BEIJING, Oct 21 — The China-Asean Investment Cooperation Fund (CAF) has invested a total of US$200 million (about RM631 million) in the building materials industry in Peninsula Malaysia’s east coast region.

“We will make the announcement in the near future,” chief executive officer Li Yao told a press conference here today.

Li said the CAF was also considering supporting sustainable forest management for the rubber, oil palm and other plantation industries in Sabah and Sarawak.

He disclosed the CAF planned to set up a joint venture with Ranhill Energy and Resources Bhd earlier to invest in power and wastewater treatment plants, but the deal fell through as the latter breached the joint venture agreement.

On another development, the CAF is expected to establish a liaison office in Kuala Lumpur in the coming months to enhance investment relationships.

The CAF was established in 2009 and began operations in 2010. With an ultimate size of US$10 billion, the CAF aims to finance major investment cooperation projects in infrastructure, energy and resources, information and communications technology, and other fields.

Meanwhile, executive vice secretary-general of the China-Asean Business Council Xu Ningning said two-way trade between Malaysia and China totaled US$77.6 billion in the first three quarters of this year.

It recorded a year-on-year growth of 12.4 per cent, he said, adding the growth was higher than the average growth of 11.6 per cent in China-Asean total bilateral trade volume from January to September this year.

Despite China posting a trade deficit of nearly US$10.9 billion with Malaysia in the same period, Xu said China had recorded a surprise trade surplus of US$30.07 billion with Asean in the first half of this year.

China is Malaysia’s largest trading partner, with bilateral trade in 2012 amounting to RM181 billion (US$57 billion).

To date, China is the biggest trading partner for Asean, while Asean overtook Japan in 2011 to become China’s third-largest trading partner, with bilateral trade totalling US$400.1 billion in 2012. — Bernama