Malaysian PM Anwar’s visit to China the start of more Chinese investments, say business groups

The China visit

Business groups in Malaysia have welcomed Prime Minister Anwar Ibrahim's visit to China, during which 19 agreements were signed to boost investment in green technology, the digital economy and modern agriculture. The Star reported the groups saying the visit sends a strong, positive signal to international investors and should boost bilateral investment.

Anwar's four-day official visit, which ended on a Saturday, included meetings with Chinese leaders including President Xi Jinping and business figures. He described the trip as a major achievement for the country.

"The hospitality received and focus given (by Chinese leaders and business figures) were extraordinary. I consider this a very positive development. This visit is of great benefit to Malaysians," — Prime Minister Anwar Ibrahim

The visit secured RM170 billion (S$51.2 billion) in investment commitments from China — the largest ever from the country — via 19 memoranda of understanding (MOUs) signed between Chinese and Malaysian businesses, focused especially on green technology and the digital economy. Anwar also invited President Xi to visit Malaysia in 2024 to mark the 50th anniversary of diplomatic ties between the two countries; Xi last visited Malaysia in 2013, when the Comprehensive Strategic Partnership agreement was signed.

Reactions from business groups

SME Association of Malaysia president Ding Hong Sing welcomed the agreements as good news for local industry, particularly small and medium-sized businesses, expecting a ripple effect as Malaysia gains from China's technology expertise.

Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Koong Lin Loong, part of Malaysia's trade delegation to Beijing, said the visit sends a positive message to foreign investors — particularly from China — about Malaysia's standing as a close trading partner.

"The 19 MOUs are a great milestone related to various sectors including electronic vehicles, electronics, big data and digitalisation. They will definitely have a good impact on the country," — Koong Lin Loong, Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general

Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan called the commitments a good sign for bilateral trade, expecting Chinese investment to boost science and technology, the digital economy, green economy, modern agriculture and bio-medicine — areas where China already leads globally — and said the resulting SME partnerships would give local small businesses a much-needed boost. Malay Chamber of Commerce Malaysia acting president Norsyahrin Hamidon said the chamber remains supportive of the government's push to attract Chinese investment, calling it high time Malaysia tapped into China's large market.

Malaysia-China trade ties

China has been Malaysia's largest trading partner since 2009, with bilateral trade reaching RM487 billion in 2022. It was also Malaysia's top investor that year, accounting for 21% of the RM264.6 billion in investments approved by Kuala Lumpur.

Source: The Straits Times