Business

Malaysia can be safe haven for Chinese companies

Lim Guan Eng

Lim Guan Eng

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Aug 8 2019 : Malaysia plans to set up a “special channel” led by the Finance Ministry to facilitate more investments from China, said minister Lim Guan Eng.

The “special channel” he said, would be able to double the approved foreign direct investments (FDIs) in manufacturing from China to about RM8.8 billion from RM4.4 billion recorded in the first quarter of this year.

“We should be able to use the existing institutions (to set up the channel).

“I think when I go to China for the investment mission (in this month), we will be fleshing out the details for the Chinese investors,” he said while confirming of his upcoming visit to Shenzhen this month.

Lim met reporters after officiating the Malaysia-China Belt and Road Economic Cooperation Forum 2019 here, today.

On the Shenzhen’s investment mission, he is confident that Malaysia could offer to become a safe haven for Chinese companies, particularly amid the intensifying trade war between the US and China.

“When we talk about the trade war, that is basically between the US and Shenzhen, a manufacturing and export market in China.

“Since the Chinese manufacturing investors are looking for a safe haven, I think we are able to offer it for them,” he said.

Lim also believed Malaysia would be able to offer a more compatible mix in manufacturing as well as expertise to the Chinese investors.

“They are not very familiar with what Malaysia has to offer, in fact, what we can offer is the compatible mix. So we want to promote Malaysia and let the Chinese investors be aware that we are much better, not only in terms of manufacturing mix but also cost, compared to other countries,” he said.

Asked on updates surrounding issuance of Panda bonds, Lim said at the moment, the pricing is still not attractive enough for Malaysia to raise money from the bonds, but discussions on the matter are continuing.

“If there is any further announcement, we will make it later,” he added. – Bernama

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