SINGAPORE: MALAYSIA is keen to boost the level of Chinese investments in the country, especially in the manufacturing and services sectors.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said China was also eager to raise its interest in the economic dimension. The 40 years of bilateral China-Malaysia Friendship, which comes to fruition next week, marks a good time to reinvigorate the ties and interest. "China has agreed to facilitate exclusive meetings with at least 20 top Chinese stock market leaders in conjunction with economic summit next week." Prime Minister Datuk Seri Najib Razak will lead a large delegation to Beijing for the anniversary celebrations at the Great People's Hall. Mustapa met his Chinese counterpart, Gao Hucheng, on the sidelines of the recently concluded Apec trade ministers' meeting in Qingdao, China. "The Chinese government has also proposed the signing of a memorandum of understanding (MoU) on Convergence of the New Maritime Silk Road and Economic and Trade Cooperation between Malaysia and China." Malaysia acknowledged the significance of these initiatives as they will boost bilateral trade. A delegation of 200 Malaysian businessmen, including small-and medium-sized enterprises, will be part of the entourage. China has been Malaysia's single largest trading partner in the past five consecutive years with a total trade value of more than US$100 billion (RM321 billion). It is also a close partner of China within the framework of the Asean-China Free Trade Agreement (FTA). The bilateral trade profile has witnessed a major shift in the past 10 years where commodities are no longer the major source of goods traded, but as much as 50 per cent of trade now comprises manufactured products and other higher value-added goods. There is also a growing trend of Malaysian conglomerates increasing their investment in China and they range from Parkson, Sime Darby, UMW, Berjaya, Genting to Maybank and Hong Leong Bank. Mustapa said the visit would help restore confidence in Malaysia, especially after the disappearance of Malaysia Airlines flight MH370, which had a large number of Chinese nationals on board. "The business summit will spur Chinese investors' interest and we hope to bridge the gap between the sharp differences in investments," he said. In China's 13th Five Year Plan, there will be some US$500 billion (RM1.6 trillion) on the look out for opportunities abroad. "We want a slice of the cake and it has to be significant and credible." The Chinese have shown interest in Malaysia as seen in one of the early harvest projects, which involved the import and export of materials for processing at industrial parks in Qinzhou and Kuantan. The other is the operation and expansion of Kuantan Port and Weifang Port in China, but Mustapa said more work needed to be done. Go Automobile, in partnership with China's giant Great Wall Motor Co, was the first firm issued with an energy-efficient vehicle manufacturing licence since the revised National Automotive Policy rollout last year. Mustapa, who arrived from China to attend the two-day Trans Pacific Partnership that ended on Tuesday, said Malaysia was also working with the Apec 2014 host on the FTA Asia Pacific initiative by China. Apec trade ministers have been tasked to complete a study on FTAAP by year-end. The TPP and Regional Comprehensive Economic Partnership, involving the 10 Asean nations and six trading partners, he said, were building blocks for the realisation of FTAAP.

By RUPA DAMODARAN

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