China Is Now Malaysia’s Top Investor

CHINA which is already the world’s second largest economy is a fast growing country.

Just last week, China has become the top foreign investor in the Malaysian property market overtaking Singapore.

What does this mean?

How will this affect the rakyat?

’s take a look.

China and Malaysia are good friends
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China and Malaysia have always been good friends ever since the late Tun Abdul Razak Hussein visited China for the very first time in 1974.

Ever since then, Malaysia and China have become close and is becoming closer when Datuk Seri Najib Razak visited China in November.

During the visit, Malaysia and China signed a total of RM143.6 billion worth of business deals.

And just last week, Ali Baba founder Jack Ma announced the setting up of an e-commerce hub near Kuala Lumpur

International Airport as well as the setting up of the Malaysia Digital Free Zone.

This is just the start of a good relationship between Malaysia and China which is set to grow even further.

China-Malaysia trade set to reach US$100 billion
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Malaysia and China trade has been growing for the past decade in areas such as property, commodity, electrical and electronics and so many others.

In fact, the trade value between Malaysia and China this year is expected to reach US$100 billion (RM443 billion).

This is an economic prospect which Malaysia should not refuse as the benefits to the rakyat is huge such as job opportunities, a better standard of living and a good strong economy to the country.

Malaysia should boost friendship with China
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Since 2010, China has been the world’s largest exporter and second-largest importer of merchandise goods.

In his column in the New Straits Times, Umno Youth vice-chief and Umno Supreme Council member Khairul Azwan

Harun said in 2015 alone, China’s investment into trading countries jumped by 15 per cent, making it the second largest provider of foreign direct investment.

Between 2005 and 2016, China’s total global investment and overseas construction activities totalled to US$1.2 trillion.

The main receivers of these investments were from Asia, Africa, Europe, North America and the Middle East as well as Malaysia.

Quite clearly, Malaysia would be missing out if we refused Chinese investment.

So we have to work together with China as they have technological capabilities.

Asia Pacific chief economist for IHS Global Insight, Rajiv Biswas said China is also setting up its own regional economic initiatives such as the One Belt One Road regional strategy to boost trade.

It will be a loss if Malaysia does not join.

Property in China becoming very expensive
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The property market in China is becoming more and more expensive.

So that is why, Chinese businessmen are focusing on the competitive Malaysian property market.

China has also overtaken Singapore as the biggest source of foreign investment in the Malaysian real estate.

The Chinese property buyers are very much attracted by property projects such as Iskandar in Johor and Bandar Malaysia in Kuala Lumpur.

According to a report by property consultancy Cushman & Wakefield, Chinese companies, mainly developers, invested an estimated US$2.1 billion in Malaysia between 2014 and 2016, compared with Singapore’s US$985 million in the same period.

So all this benefits to the Malaysian economy and its rakyat.

Malaysia should depend less on the US and look up to China
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US President Donald Trump has already announced that the US will practise a protectionist economy.

What this means is that it will protects its economy by slapping a high tax on Chinse products entering the US.

Well, if that is the case, its better for Malaysia to do more trade with China rather than the US.

This is because the US wants to protect its own economy and does not really want to share with others.

The US is not playing fair.

Malaysia should trade with countries which provides a win-win situation for all.

China holds an enormous market for Malaysian companies
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China has a population of more than 1.3 billion people.

So when a Malaysian company produce for example a chair, the company must not think of the Malaysian market which is small with a population of only 30 million.

A Malaysian company which makes a chair has the potential to sell it to over 1.3 billion people in China.

So in the end, it is the company and its workers who benefit, able to earn salaries and provide a good living to the family.

China also has a burgeoning market for halal goods and services, high-tech industries, green-energy sector and the digital economy which are expected to benefit Malaysia.

Malaysian business community wants more trade with China
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The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has urged the public and private sectors to bank on the country’s strong bilateral relations with China to boost economic development and growth.

Its president, Datuk Ter Leong Yap, said China, as an invaluable strategic partner, had improved investor confidence in Malaysia through its investment commitments.

Malaysia and China have always maintained close bilateral ties since 1974 and visits between leaders of both countries are testament to excellent relations resulting in US$100 billion (RM446 billion) in bilateral trade, as well as large-scale projects.

In line with China’s One Belt, One Road policy, Ter said Malaysia should take advantage of its unique position as Asean’s gateway to China and also vice versa.

What does all this mean to the rakyat?
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Malaysia will benefit a lot from its close relationship with China.

The rakyat will benefit from the technology which China provides as well as the increased investment.

This investment would be good for our economy and it will create jobs for the rakyat providing them with a good income for their families.

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