The Malaysian Insight

CHINESE investments in Malaysia are expected to grow now that both countries are enjoying better ties after a rocky start under the Pakatan Harapan government, said special envoy to China Tan Kok Wai.

Against a backdrop of the US-China trade war, he said, this started to become evident from foreign direct investment figures in the first quarter of the year.

Manufacturing FDI increased from RM8.9 billion to RM20.2 billion in Q1, with US and China being the largest sources. US FDI accounted for RM11.5 billion, while China invested RM4.4 billion. Overall, Malaysia reported a 73.4%, or RM29.3 billion, increase in FDI in the quarter.

Tan said he expects China’s confidence in Malaysia to grow due to the common ground between the countries.

“Malaysian Chinese and the Chinese people share the same origin. The two countries have also stood united against protectionism and anti-free trade policies in the US-China trade war,” he said in an interview in conjunction with his one-year anniversary as special envoy to China.

Tan said he hopes more Chinese companies with advanced technology invest in Malaysia, as this would help Malaysia venture into areas like artificial intelligence and big data, in line with Industry 4.0.

He added that the International Trade and Industry Ministry should look out for high-quality investments from Chinese firms that adhere to environmentally safe standards.

The Malaysian Insight previously reported that orders have been pouring into various sectors, especially for small and medium enterprises, since the US-China trade war began last year.

The science and technology sector, in particular, has benefited, but finding the right talent remains a challenge.

Tan’s appointment as special envoy on August 1 last year drew flak from the opposition as the PH administration had said it would put a stop to bestowing such posts on politicians, as practised by the previous Barisan Nasional government.

Tan is a DAP member and Cheras MP. He also serves as Malaysia-China Business Council chairman.

However, he said, Putrajaya made an exception for his post due to the importance of the country’s relationship with China, which has remained Malaysia’s largest trading partner in the last decade.

China is also the only country for which the PH government has retained a special envoy, added Tan. – August 4, 2019.