BEIJING, Nov 18 — The opening of Bank Negara Malaysia’s representative office here is a step in the right direction to reduce the cost of doing business, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said today.

He said that by encouraging companies to settle payments in yuan, the cost of doing business would further reduce, with no necessity for conversion into other currencies.

The representative office would also further contribute towards the development of financial market infrastructure and strengthen the financial linkages, which would in turn facilitate greater bilateral trade and investment between Malaysia and China, he said at the opening ceremony of the Beijing representative office.

Mustapa (picture) said the growing strength of trade between Malaysia and China has resulted in three key developments.

“Firstly, China’s increasingly prominence as a source of demand for the global economy. Secondly, the success of the policy strategy to diversify Malaysia’s exports and markets to meet the growing demand.

“Thirdly, the trend has been further spurred by initiatives to strengthen regional cooperation between Asean and China, particularly in Asean-China Free Trade Area,” the minister said.

He said China’s efforts towards internationalisation of its yuan would lead to further expansion in bilateral trade with Malaysia.

“Malaysia has been China’s largest trading partner among Asean countries since 2009, and Malaysia will soon become the only country in Asia whose trade with China exceeded US$100 billion,” he said.

Bilateral trade between Malaysia and China is to hit US$160 billion (RM510 billion) by 2017, he added. — Bernama