“China is currently Malaysia’s largest trade partner with a total of RM241 billion worth of investments as of the end of last year.”

DATUK PHANG AH TONG, Malaysian Investment Development Authority deputy chief executive officer

MALAYSIA should opt for “higher-quality investments” from China in the future, said former Malaysian Investment Development Authority (Mida) deputy chief executive officer Datuk Phang Ah Tong.

He said the country should push for investments in growing industries such as bioenergy and other high-growth technology clusters, and not just “traditional” areas such as infrastructure and property.

“China is currently Malaysia’s largest trade partner with a total of RM241 billion worth of investments as at the end of last year. However, a majority of these are not ‘high-quality’ investments,” he said at the Deloitte TaxMax 2017 conference, here, yesterday.

“On the flip side, Malaysia is not China’s biggest trade partner and we rank number six to them. Right now, China views us as a springboard in the rest of Asean and perhaps also to India, but we are not as important for them yet.”

Datuk Wong Siew Hai, governor of the American-Malaysian Chamber of Commerce and chairman of the Malaysian American Electronics Industry, took a more optimistic view.

“I think the trend will change over the long term and we will see more of these higher-quality investments in areas such as aerospace and biotechnology. China is growing and they will need to leave China in order to grow bigger,” he said.

“Sooner or later, these highquality investments will come to Malaysia, but only if Malaysia continues to be very competitive and proved itself to be a good springboard to Asean.”

Wong said China had begun acquiring local technologically-driven small and medium enterprises (SMEs) with a high level of innovation.

“Many Chinese companies are acquiring local SMEs that are doing innovative technology business, to help these companies to grow.

“The interest from China to further invest in technology in Malaysia is already present, it’s just a matter of time for it to come in,” he added.

TaxMax 2017 explored the tax perspectives and planning opportunities in the 2018 Budget, unveiled analysis and comprehensive approaches to local and international burning tax issues.

PIC BY OWEE AH CHUN (From left) Former Mida deputy chief executive officer (CEO) Datuk Phang Ah Tong, American Malaysian Chamber of Commerce governor Datuk Wong Siew Hai, Deloitte Malaysia country tax leader Yee Wing Peng, IJM Corp Bhd CEO and managing directorDatuk Soam HengChoon and Sunway University Business School economics professor, Dr Yeah Kim Leng, at the press conference on Deloitte TaxMax 2017 in Petaling Jaya yesterday.