In May, CABC released the First Famous Chinese Brands List Recommending to ASEAN and First Famous ASEAN's Brands List Recommending to China, which attracted a lot of attention, Chinese mainstream media, including People's Daily, Xinhua News Agency, China News Service, etc., and some media from ASEAN countries like Bernama of Malaysia and Lianhe Zaobao of Singapore have reported about this activity..... MORE >>
Since 2009, China has been Malaysia's largest trading partner, Malaysia is also the largest trading partner of China among ASEAN countries, since 2008. According to the statistics from Malaysia, in 2012, trade between the two countries increased by 8%. The trade volume with China occupies 13.8% of Malaysia's foreign trade. According to statistics from China, Malaysia is expected to be the third Asia country whose trade volume with China exceeds 100 billion, after Japan and South Korea.
The main trade products between Malaysia and China are raw materials, electrical products and mechanochemistry. Export from Malaysia to China has been increasing fast in recent years, the main reason are the demand brought by the fast industrial development and the increasing purchasing power in China. We have noted that food like Malaysia white coffee has been enjoy increasing popularity among Chinese consumers, which indicates that Malaysian food products is getting more
What is worth mentioning is that the bilateral trade volume today is quintupled than that of 10 years ago.
With a view to maintain the current growth trend, Malaysia will recommend some high-quality and high-value-added products to Chinese consumers, to improve the value-chain of bilateral trade. Some high-quality products of Malaysia, like gold necklace, jewelry, furniture, rubber, food, etc., can reach the requirements for quality by Chinese consumers.
As to investment, a few of Chinese well-known financial institutions, like Bank of China, Industrial & Commercial Bank of China has set up their branches in Malaysia. Many Chinese contractors played well in the projects of infrastructure in Malaysia.
Till 2011, the non-financial FDI from Malaysia to China is eight time of that from China to Malaysia. With the fact that a gap exist in the two-way investment, we noted that the investment from China to Malaysia is growing. Investment made by Chinese companies in Malaysia has increased by 70% year on year, according to China.
We also noted that Chinese companies show more interests to investing in tourism, education and high-end manufacturing. That's why I believe the gap in the bilateral investment will be narrowed.
To promote the complementary trade relations between Malaysia and China to a new high level, we must discuss how to make best use of existing platforms to promote industrial cooperation. We can find more economic benefits by exploring the industrial complementary of the Economic Transformation Programme of Malaysia and Chinese Going Global Policies.
The two countries should continue to encourage companies to participate trade and investment exhibition, which provide a platform for companies to make business matching and strategic cooperation.
We will also make best use of our relationship with organizations like China-ASEAN Business Council, to establish relationships with governments and companies, with a view to make companies-matching and to explore business opportunities.
In the level of government, Malaysia and China have jointly established bilateral economic cooperation working group to make plan for the trade and economic development for the two countries in the next 5 years.
A new highlight of the cooperation between the two countries is that their leaders decided to create the "sisters-parks" in Kuantan, Malaysia and Qingzhou, China. It is unprecedented in this area to establish sisters-parks in two countries, which also symbolize an important milestone of bilateral relationship between China and Malaysia.
Besides, there is great potential in cooperation of hala food an service sectors between Malaysia and China. China should utilize the Malaysian Halal Certification which is widely acknowledged around the world to explore the Muslim countries. Meanwhile, Malaysia also should sell its special hala food to China. Hala food is highlighted in the food security, which has been one of the focuses in the public.
To summarize, trade and economic relations between Malaysia and China is in the ascendant.
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China-ASEAN Business Council Tel:86-10-64632564 86-10-64664339 Fax:86-10-64655230 E-mail:china-asean@ccpit.org Website:www.cafta.org.cn |