InvestKL expects RM5b investment from China

China Special Channel was established between Chinese Business Chambers and InvestKL to facilitate investment interest

by SHAHEERA AZNAM SHAH/ pic by RAZAK GHAZALI

INVESTKL Corp is projecting an additional RM5 billion investment from China to be generated through a special investment channel established for Chinese investors in the next 12 months.

InvestKL chairman Datuk Seri Michael Yam (picture) said the special investment channel, named China Special Channel (CSC), was established between Chinese Business Chambers and InvestKL to facilitate investment interest, particularly for the domestic high technology manufacturing sector, earmarked for the export production.

“Although CSC welcomes all investment from Chinese investors, we are focusing on the high-impact and high-value sectors such as artificial intelligence, consumer technology, as well as medical devices and services.

“We have set a target of RM5 billion alone for InvestKL under the special lane to be achieved within 12 months,” he said at the memorandum of agreement (MoA) signing ceremony in Kuala Lumpur yesterday.

Yam added that the investment channel is expected to create more highly-skilled employment in Malaysia.

“These investments will be focusing on the Fourth Industrial Revolution as we would also like to create employment for young people and sharpen their knowledge to recover the (local) talent lost to countries such as Singapore,” he said.

Through the special lane channel, InvestKL will attract Chinese companies and global multinational corporations that are exploring setting up new businesses and regional hubs outside of China and are relocating their smart manufacturing and high-value services to Malaysia.

When asked if China’s commitment to the US trade deal will put Malaysia at risk, International Trade and Industries Minister Datuk Darell Leiking said the Phase 1 trade deal recently signed between the US and China will not reduce the latter’s trade volume and investment to Malaysia.

“Malaysia and China have always been together and they have continuously brought in many investment opportunities to Malaysia as they trust our fundamental system.

“China is confident that Malaysia will be a better landing point for them,” Darrell said.

Commenting on the bilateral trade between China and Malaysia, the republic’s ambassador to Malaysia Bai Tian said the trade amount between the two countries last year was at a record high of US$125 billion (RM503 billion), 14.4% higher than the amount in 2018.

“Malaysia is one of the important Chinese outbound investment destinations due to the long-standing relationship and friendly atmosphere that has been rendered to Chinese investors.

Bai added that the special investment channel created for Chinese investors will boost the total trade volume between China and Malaysia.

“Between 2016 and 2018, China was the biggest source of foreign direct investment in the manufacturing sector for Malaysia.

“I believe we are going to see an improvement in global trade, which will translate into higher Chinese investments to Malaysia,” he added.

The investment channel for Chinese investors was first announced by Finance Minister Lim Guan Eng last year as a medium to attract investment amid the trade war between China and the US.

InvestKL is also focusing on businesses that are located in Beijing, Shanghai and Shenzhen areas, regions that homed about 70% of the China Fortune 500 companies, as well as innovative enterprises.