China investment into Malaysia to exceed US$2b this year, says envoy

An aerial view of the MCKIP start-up area. — Pic courtesy of the Malaysia-China Business Council
An aerial view of the MCKIP start-up area. — Pic courtesy of the Malaysia-China Business Council

KUALA LUMPUR, July 4 — Investments from Chinese companies in Malaysia is expected to exceed US$2 billion (RM6.4 billion) this year, driven by the establishment of the Malaysia-China Kuantan Industrial Park, said Chinese Ambassador to Malaysia Dr Huang Huikang.

He said China would continue to encourage its companies to invest in Malaysia and this year, a big project would materialise.

“A big steel plant with a cost of US$1.4 billion (RM4.5 billion) will be built at the park and upon completion, it will produce 3.5 million tonnes of high-quality steel,” he told reporters on the sidelines of the Special Meeting of Corporate Malaysia Roundtable on the 40th Anniversary of Malaysia-China Relations.

Huang said so far Malaysian companies had been investing more in China, reaching US$7 billion last year, compared with Chinese companies investment in Malaysia, which stood at US$1 billion. However, he is confident that the imbalance will improve, as investment from China has roughly maintained its momentum.

He said the Malaysia Airlines Flight MH370 incident, the search for which had been inconclusive since it vanished on March 8 with 239 passengers and crew, of which 153 were Chinese, would not jeopardise the long-term friendship between Malaysia and China.

“We have repeatedly said that the MH370 is an incident that can happen to any country and any airline. “We appreciate the Malaysian government’s determination to continue the search and rescue operation until the airplane is found,” he added.

The roundtable, organised by the Asian Strategy and Leadership Institute, aims to create a better understanding of Malaysia and China’s strategic partnership among the business community. — Bernama