“Upgrading China-Malaysia’s Two Countries, Twin Park Partnership” – Malaysia-China trade set to  further expand

(Kuala Lumpur, 11 Sept) Deputy Minister of International Trade and Industry Datuk Lim Ban Hong delivered a keynote speech in an online conference titled “Upgrading China-Malaysia’s Two Countries, Twin Park Partnership” centred on investment cooperation. This online forum was organised by the People's Government of Guangxi Zhuang Autonomous Region, People’s Republic of China (PRC), National Development and Reform Commission of China, Ministry of Commerce (MOFCOM) and China-Malaysia Qinzhou Industrial Park (CMQIP) Administrative Committee in conjunction with the 18th CAEXPO which is held on annual basis in Nanning. The guests who graced the forum included Mr. Azlimi bin Zakaria, Consul General of Malaysia in Nanning; Wang Naixue, Vice Chairman of the Chinese People's Political Consultative Conference of Guangxi Zhuang Autonomous Region, and Wei Yan, Deputy Director of the Asian Department of the Ministry of Commerce of China.

In his speech, Lim Ban Hong said that the economy and trade between Malaysia and China remain at a strong and stable level during the severe global pandemic. Since 2009, China has been Malaysia's largest trading partner for 12 consecutive years, while Malaysia is China's main trading partner in ASEAN. China is also Malaysia’s largest export destination and largest import source, while the range of products exported and imported between both countries has also expanded, signaling the growing inter-linkages of our supply chains. According to the National Bureau of Statistics of China, a total trade of USD131.16 billion was recorded in 2020, thereby indicating the deepening development of trade between our two countries.

He said that on the investment front, China is one of the top ten sources of foreign direct investment (FDI) in Malaysia. In 2020, China remained as the largest investor in the manufacturing sector for five consecutive years. This is in line with the strategic goal of the National Investment Aspiration (NIA) launched by the Malaysian government, which is to assist the country in industrial upgrading and economic transformation.

He pointed out that officials from the Ministry of International Trade and Industry of Malaysia and the Ministry of Commerce China are working closely to formulate the second cycle of the Five Year Programme for Economic and Trade Cooperation. Among others, some of the new areas of cooperation identified for the Five Year Programme include digital economy, entrepreneur development, research and development (R&D) in agriculture and primary industries as well as cooperation in the Industrial Revolution 4.0, provincial engagement and industrial capacity development. He expressed his hopes that the implementation of the second cycle of the Five Year Programme will result in strategic collaborations among private sectors from both Malaysian and China in the new cooperation areas and cutting-edge industries.

Of the “Belt and Road” initiative (BRI) mooted in 2013, he emphasized that Malaysia was among its earliest supporters and signed the BRI Memorandum of Understanding (MoU) during the inaugural Belt and Road Forum for International Cooperation (BRF) on 13 May 2017 in Beijing. The Second Belt and Road Forum in 2019 saw the establishment of the “Two Countries, Twin Park” concept, namely the Malaysia-China Kuantan Industrial Park (MCKIP) and China-Malaysia Qinzhou Industrial Park (CMQIP) as a symbol of the success of the BRI. As the Regional Comprehensive Economic Partnership Agreement (RCEP) is about to be fully implemented, Malaysia-China economic and trade is expected to have greater development prospects in the future.

Lim Ban Hong also put forward two proposals on enhancing of the cooperation between Malaysia and China in the “Two Countries, Twin Park”: (1) Strengthen bilateral investment promotion and encourage more Chinese enterprises to enter the MCKIP to gain a foothold in the vast ASEAN market. Meanwhile, more Malaysian companies are encouraged to invest and set up factories in the CMQIP as a window to the vast inland markets in China; (2) Both nations to strengthen investment projects with competitive advantages such as palm oil, rubber, bird's nest, durian, and halal food; in order to achieve a complementary and mutually beneficial cooperation model in the industrial supply chains to further enhance the economic and trade relations between Malaysia and China.

In conclusion, Lim said that the Malaysian government is willing to further deepen bilateral cooperation with China, continue to build a high-quality BRI cooperation mechanism, and lead the comprehensive strategic partnership between Malaysia and China to a higher level and help the two countries enter the post-pandemic period. The close cooperation between Malaysia and China will lead to the era's comprehensive economic recovery and benefit all of us in the realm of economic and trade.

Datuk Lim Ban  Hong
Deputy Minister of International Trade & Industry
MCA Vice President

-MCA Online-