Malaysia
sees RM1bil foreign direct investment from China this year
Malaysia-China Kuantan
Industrial Park set to spur investments
KUALA LUMPUR: Malaysia is
expecting about RM1bil in foreign direct investment (FDI) from China this year,
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said.
Up to November last year,
the FDI approved for the manufacturing sector from China to Malaysia was
RM1.5bil, 7.8% from the total RM19.1bil FDI approved for the sector for the
same period, said Mustapa.
“We are hoping for more
investments from China with the development of the Malaysia-China Kuantan
Industrial Park (MCKIP) in Gebeng, Kuantan,” he said at a briefing on the park.
Mustapa revealed that Prime Minister Datuk Seri Najib Tun Razak will officiate at the groundbreaking
ceremony for MCKIP scheduled for Feb 5. He expects the park to be fully
developed within two years.
He added that this was the
first industrial park to be jointly developed by both Malaysia and China and
the project is expected to take the two countries' bilateral and trade ties to
greater heights.
MCKIP was mooted in
response to the China-Malaysia Qingzhou Industrial Park (CMQIP) in Qingzhou,
China, which has been accorded national-level status by the Chinese State
Council.
“Gross development cost
for the MCKIP site is almost RM1.5bil, which will include the infrastructure
cost. We expect it to create 5,500 jobs and RM7.5bil in total investment value
in 2020,” Mustapa said.
He also said that the
MCKIP project was timely, as Malaysia-China ties were currently at an all-time
high.
“China has been Malaysia's
biggest trade partner since 2011, surpassing Singapore. For the first 11 months
of 2012, the total trade between Malaysia and China was at RM165.32bil, 9%
higher than the same period in 2011,” he said.
On whether the much-talked-about
Lynas rare earth refinery that was located near the MCKIP site would affect the
project, Mustapa said China investors had never raised the issue and were
showing keen and sustained interest to continue investing in MCKIP, contributed
in part by its strategic location.
The estimated shipping
time from Kuantan Port to Qinzhou Port, for instance, is three to four days,
while a time span of between four and eight days has been set for other Chinese
ports.
MCKIP, strategically
located for investors in Asean, Asia-Pacific and the Far East, is seen to be an
economic catalyst for the East Coast Economic Region or ECER Special Economic
Zone.
The industries targeted
for the site include the manufacture of equipment for plastics and metal,
automotive components, fibre cement boards, stainless steel products, palm oil
processing, carbon fibre, electric and electronic,petrochemical, information
and communications technology, and research and development.
Source: The Star
Date: 30.1.13
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