Investment boost for Malaysia

Malaysia expects more investments from its major trading partners in Asia, riding on the region's efforts to reinforce its links amid slower economic growth in developing countries.

So far, a RM500 million investment from a Taiwanese tyre company is in the bag while another two in orchid farming and aquaculture are being finalised.

These deals have come from the ongoing Malaysia-International Chinese Business Forum, an event to spur trade and investment with China, Taiwan, Singapore and Hong Kong.

Malaysia's trade with these four countries account for a third of its total trade. It is also growing as trade jumped 36 per cent in the nine months this year from 2009.

"Malaysia Investment Development Authority (Mida) will hold one-on-one meetings with potential investors during the forum.

"We are also promoting business and investment opportunities in the country's New Economic Model and Economic Transformation Programme," Trade Minister Datuk Seri Mustapa Mohamed told a news conference after launching the forum and chairing a closed-door dialogue with selected participants in Kuala Lumpur yesterday.

The forum is organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and supported by the ministry and Mida.

Also present were Mustapa's deputy Datuk Mukhriz Mahathir, Mida director-general Datuk Jalilah Baba and ACCCIM president Tan Sri William Cheng.

Earlier, Prime Minister Datuk Seri Najib Razak, in a keynote address read by Mustapa, said Malaysia is seeing greater investments from Singapore, Taiwan, China and Hong Kong.

Since 2006, the cumulative investment from these countries in manufacturing projects amounted to US$12.4 billion.

"We believe that recent announcements such as China's recognition of Malaysia as an approved Qualified Domestic Institutional Investor destination, as well as the opening of new branches of regional banks in Malaysia, will facilitate and strengthen these investments," the prime minister said.

Najib said that Asia, in line with its increasing economic importance, will reinvigorate its historical role in expanding trade links among nations and across continents.

 

"As we move forward together, it is inspiring to remember the Silk and Spice routes that flourished over the past two millennia and how they promoted the exchange of wealth, culture and knowledge across the world," he said.

The prime minister said given its history and strong ties in the region, Malaysia is well-placed to be a conduit for deepening the relationships between the Chinese communities in Asia.

He cited the country's open trade policies, business-friendly environment and solid ties with China, Taiwan, Singapore and Hong Kong governments as some of the reasons for Malaysia's ability to facilitate growing economic, business and governmental links with these countries.

The forum has attracted some 700 participants, of which 250 are from overseas.