MITI: Strategic collaboration with China will benefit Malaysia

KUALA LUMPUR: Strategic collaboration between Malaysia and China via Chongqing could lead to market expansion, technology sharing, and cross-border investment, particularly in developing and manufacturing critical parts and components for electric vehicle (EV) or Next Generation Vehicles (NxGV).

In a statement today, the Ministry of International Trade and Industry (MITI) said the Chongqing Municipality is one of the most important economic areas in Southwest China and is a critical key production base for automobiles, automotive parts and components, mainly for EV and autonomous vehicle.

"The entry into force of the Regional Comprehensive Economic Partnership (RCEP) agreement sends a strong positive signal that Malaysia and China, along with other RCEP participating countries, choose to open our markets instead of resorting to protectionist measures during this challenging time," it added.

The ministry added that Malaysia and Chongqing aspire to capitalise on the New International Land-Sea Trade Corridor and RCEP to further strengthen the trade and investments ties.

"Therefore opportunities abound for companies from both Malaysia and China to work together as part of the RCEP supply chain facilitated by both countries' respective investment promotion and trade facilitation agencies," it noted.

In 2021, Malaysia's total trade with Chongqing Province increased by 16.5 per cent to US$3.8 billion (RM15.9 billion) compared to 2020. Total exports increased by 13.7 per cent to US$2.9 billion (RM12.1 billion), while total imports increased by 26.9 per cent to RM3.8 billion from 2020.

To continue the upbeat momentum, Deputy International Trade and Industry Minister Datuk Lim Ban Hong underscored the importance to continue the momentum between Malaysia and China by leveraging the RCEP framework, it added.

Lim hosted a virtual meeting with the vice-mayor of Chongqing Municipal People's Government Cai Yunge today which was also attended by senior officials from MITI, Chongqing Municipal People's Government, Chongqing Commerce Commission and Malaysia Investment Development Authority (MIDA).

In the virtual meeting, Lim noted that Malaysia and China through Chongqing, will establish a working group at the senior officials' level to follow through the deliberations at the meeting.

-- BERNAMA