Najib's visit will boost M'sia-China business ties

Prime Minister Datuk Seri Najib Razak's six-day visit to China starting today, is expected to be the catalyst for Malaysian businesses to further strengthen ties with their Chinese counterparts.

The Malaysia External Trade Development Corporation's (Matrade) senior trade commissioner here, Abu Bakar Yusof, said the visit to mark the 40th anniversary of Malaysia-China relations will certainly boost the bid by both countries to post trade of US$160 billion (RM512 billion) by 2017.

"The visit and the anniversary celebration enables the business sectors of both countries to see and tap the vast opportunities available to them," he told the Malaysian media ahead of Najib's visit.

Abu Bakar said Chinese companies are keen to venture into Malaysia, especially in sectors like energy, infrastructure, construction, steel, oil and gas, property, automotive, textile and electrical and electronic components.

The two-way trade volume between China and Malaysia in 2013 reached US$106 billion (RM339 billion). It made Malaysia, China's third largest trade partner in Asia, after Japan and South Korea.

According to Abu Bakar, trade between both countries grew at an average 20 percent annually between 2000 and 2013.

Malaysia's biggest exports comprised electrical and electronic products, followed by chemical, medical, petroleum, natural gas, palm oil, rubber and timber.

Imports from China were mostly steel, electrical and electronic components, vehicles, textiles and furniture.

Abu Bakar said Malaysia was looking forward to exporting more value-added products, among them medical equipment, automotives, IT and machinery for the water treatment industry.

Matrade, he said, was also focusing on the second tier provinces in China, such as Shandong, Liaoning, Sichuan, NIangxia and Xinjiang, where the per capita income and purchasing power is increasing.

He added that the world's second biggest economy has also potential in the halal sector, citing the 30 million Muslim population there.

Asked if the Flight MH370 tragedy had affected trade and investment with the Chinese business community, Abu Bakar said initially, the food sector saw a drop in sales, but the situation has since improved.

Currently, there are about 300 Malaysian companies operating in China, including those manufacturing gloves, food products and in service sectors like hotels and restaurants, alongside retailers such as Parkson which has 58 outlets throughout the country.

Abu Bakar said Matrade would continue to promote trade aggressively through its offices in Beijing, Shanghai, Hong Kong, Chengdu and Guangzhou.

China, with 1.36 billion people, achieved a gross domestic product of US$18 trillion (RM57 trillion) last year, with the services sector contributing 46.1 percent to it, ahead of manufacturing (39 percent) for the first time.