Phenomenal trade growth between countries over last decade
SOME other major Chinese investments included Ji Kang Dimensi Sdn Bhd which manufactures steel plates; Vibrant Waves Sdn Bhd which manufactures stainless steel billets, slabs, stainless steel shaped products and Mafuzhou Integrated Industries Sdn Bhd which produces various types of bars.
Chinese companies such as Euroma Rubber Industries Sdn Bhd and The GSI Asia Group Sdn Bhd are also in the manufacturing of industrial rubber hoses and poultry keeping equipment respectively.
From the statistics provided by Malaysia External Trade Development Corporation, bilateral trade between Malaysia and China has grown nearly fourfold for the past decade, reaching US$94.77bil (RM306.6bil) in 2012 as opposed to US$20.14bil (RM65bil) in 2003.
Between 2008 and 2012, Malaysia was China’s biggest trading partner among Asean countries.
Trade with China accounted for 13.8% of Malaysia’s total trade in 2012 which amounted to US$58.45bil (RM189bil), an increase of 6.9%.
Malaysian Chamber of Commerce and Industry in China (Maycham) corporate relations director Peter Thong ( pic) said that positive and proactive action was in place to overcome challenges to trade between both countries.
“The growth in trade between Malaysia and China over the last decade is truly phenomenal.
“Thus, the Chinese and Malaysian governments and the business communities in China and Malaysia have done extremely well to achieve this significant growth,” he said.
Thong, who was Maycham chairman from 2007 to 2009, said China is often termed “the factory of the world” and many products from China are of high quality and their prices are competitive, too.
“Malaysian small and medium-sized enterprises would do well to study what they can buy from China to develop new products or diversify their business in Malaysia.
“This is an opportunity for Malaysian entrepreneurs,” he added.
China’s entry into the World Trade Organisation in 2001 and the establishment of China-Asean Free Trade Area in 2010 have further opened up the market for enterprises from Malaysia and China and has further elevated trade and investment to a new level.
Moving forward, in line with the liberalisation of the Government’s policy to promote and develop the services sector, Phang said:
“Malaysia is looking for Chinese investment in the services sector such as regional establishments, international integrated logistics centres, health care and medical tourism and professional services.”
He further reiterated that Malaysia is always on the lookout for more quality investments in high technology and high value-added, knowledge-based and skilled intensive sectors and quality employment.