Muhyiddin touts Malaysia's advantages to potential Chinese investors

He noted that Malaysia is among the first group of countries to have approved settlement of trade in the renminbi through the proposed setting up of a yuan - as the currency is also called - clearing bank recently.

"The move to facilitate and reduce the cost of doing business is a tremendous boost for the private sector," he said, during a roundtable meeting with Malaysia and China's captains of industry here on Tuesday night.

He also said the China-Malaysia Qinzhou Industrial Park (CMQIP) and the Malaysia-China Kuantan Industrial Park (MCKIP), would play a fundamental role in economic cooperation between both countries and a catalyst in increasing investments.

"Chinese investors can consider locating their investments in the MCKIP, while Malaysian investors have the CMQIP," he told the session organised in conjunction with his six-day official visit to China.

Muhyiddin arrived in the Chinese capital on Sunday for the visit that also covers Shanghai and Chongqing.

At the roundtable meeting, he pointed out that China was Malaysia's largest trading partner and an important market for Malaysian products.

Elaborating on this point, he said trade between both countries had grown more than five-fold over the last decade.

Bilateral trade of US$64.4 billion (RM212.5 billion) was recorded in 2013 compared to only US$14 billion (RM46.2 billion) in 2003, positioning Malaysia as China's eighth largest trading partner and the biggest among Asean countries.

Both China and Malaysia have set a trade target of US$160 billion (RM528 billion) to be achieved by 2017.

"I am sure this is achievable with the strong partnership and collaboration within the business sector and measures put in place by the respective governments to facilitate business," said Muhyiddin.

On the investment front, he said two-way investments are increasing and China was now one of the top 10 foreign investors in Malaysia.

"For the first seven months of 2014, approved investments from China reached US$1.46 billion, surpassing the full year investments approved figure in 2013 of US$1 billion," he added.

Muhyiddin said more than 158 manufacturing projects with the participation of Chinese investors had been implemented, including in sectors such as electrical and electronics, textile, basic metal, the plastics industry as well as machinery and equipment.

Besides manufacturing, Chinese investors are actively venturing into telecommunications, construction and real estate development, he added.

He expressed the belief that Malaysia's Chairmanship of Asean would bring tremendous benefits to the Chinese business community, particularly those who have a base in the Asean countries.

"The common market under the Asean Economic Community (AEC) will move towards reducing barriers to trade and investments, making it easier for the flow of goods, services and capital, while upscaling competitiveness," he said.

At the function, the deputy prime minister also witnessed the exchange of a memorandum of understanding (MoU) between the Malaysian Investment Development Authority (Mida) and Bank of China (Malaysia) Bhd.

The MoU, among others, enables the bank to refer potential foreign direct investments from China to Mida and provide financing packages to successful applicants to facilitate their investment in Malaysia.