ACCCIM welcomes Chinese investments 11th January 2017

CHINA is an invaluable strategic partner that have led to numerous win-win situations in Malaysia. Indeed, China’s investment commitments not only provide a direct boost to the economy but also enhance investor confidence in Malaysia. As such, both public and private sectors should build on this in order to attract more domestic and foreign investments, thereby enhancing economic development and growth.

President of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) Datuk Ter Leong Yap commented, “Malaysia and China have always maintained close bilateral ties since diplomatic relations were first established in 1974. In fact, the frequent exchanges and visits between the top leaders of both countries are a testament to these excellent relations, resulting in around US$100 billion in bilateral trade as well as recent large-scale economic investment projects.”

“The social and economic benefits are clear. Trade and economic cooperation with Chinese enterprises have created many business and employment opportunities. Many countries are trying hard to court Chinese investors and we must stay ahead of the curve by building on our position as the destination of choice for foreign investors, especially those from China,” remarked Datuk Ter, who is also the President of the National Chamber of Commerce and Industry of Malaysia (NCCIM).

It is worth highlighting that the deepening relationship between the two countries are not purely economic. Four years ago, when top-ranked Xiamen University decided to expand overseas, both the Chinese and Malaysian governments were instrumental in the establishment of Xiamen University Malaysia (XMUM), the first Chinese university outside China. This campus not only brought in RM1.3 billion in investments but also a strong line-up of world-class academics, of whom about 80% have doctorate degrees. Professor Wang Ruifang, President of XMUM, pledged that any surplus from this non-profit research university will be reinvested into XMUM for future development, research funding or scholarships, thus ensuring the long-term legacy of this important government-to-government project.

Datuk Ter added, “The 10,000 students targeted to eventually enroll in the highly-respected XMUM will not only strengthen Malaysia’s position as a preferred global education hub that is capable of attracting the best talents from overseas, but also provides Malaysian students with the chance to hone their skills to global standards. Furthermore, these institutions will be important platforms with long-term multiplier effects, where relationships and networks can develop and be taken to the next level.”

It is wrong to regard Chinese investments as a one-way street. In fact, China has proven itself to be a good partner in the way it takes the initiative to develop mutually beneficial projects in many regional economies. Some Malaysian companies are even working with Chinese investors to set-up or expand production bases, incubation centres, high-tech enterprises and other businesses.

In line with China’s ‘One Belt One Road’ policy, Malaysia should take advantage of its unique position not only as ASEAN’s gateway to China, but also China’s gateway to ASEAN. As well as a burgeoning market for Halal goods and services, Malaysia’s high-tech industries, green energy sectors and the digital economy are also expected benefit from China’s intensifying focus into these fields.

In conclusion, Datuk Ter noted that, “To thrive at the global stage, Malaysia should recognise and grasp these opportunities. In this respect, we are fortunate to have the Chinese as important strategic partners.”