KUALA LUMPUR: Investment promotion agency InvestKL is targeting to attract RM5 billion of Chinese investments in the first year via its China Special Channel (CSC).
CSC will act as a single window for all investment opportunities from China into Malaysia. Via CSC, InvestKL will attract Chinese companies and global multinational corporations that are exploring to set up new businesses and regional hubs outside China and relocate their smart manufacturing and high value services.
InvestKL today signed memorandums of agreement (MoAs) with four Chinese business chambers to promote and strengthen collaboration among all parties.
The CSC was announced by Finance Minister Lim Guan Eng during the tabling of Budget 2020 last October, as the protracted trade war between the United States and China had created a unique opportunity for Malaysia to be the preferred destination for high value-added foreign direct investments.
Emphasis will be in attracting investors operating in key sectors including consumer technology, smart technology, renewable energy, medical technology, medical devices, electrical and electronics, mechanical engineering, chemical and aerospace.
The focus regions include Beijing (Jing-Jin-Ji Area), Shanghai (Yangtze River Delta), and Shenzhen (Greater Bay Area). These regions are home to 70% of the China Fortune 500 companies, as well as innovative up-and-coming enterprises.
As the lead agency of the CSC initiative, InvestKL will evaluate and channel investment opportunities via active complementary collaboration with other agencies including Malaysia Investment Development Authority, Malaysia Digital Economy Corp, as well as regional and state investment promotion agencies.
This is to ensure effective last-mile investment facilitation, based on criteria such as land, infrastructure and other ecosystem needs. In addition, InvestKL’s dedicated China team has been tasked to develop strategies and attract all high tech, high value and high impact investment opportunities. This focus is also in line with Malaysia’s priority in adopting Industry 4.0 to drive the local smart manufacturing and services sector.
InvestKL, represented by CEO Muhammad Azmi Zulkifli, signed MoAs with Malaysia-China Business Council, China Enterprises Chamber of Commerce In Malaysia, the Associated Chinese Chambers of Commerce and Industry of Malaysia and the Malaysia-China Chamber of Commerce.
These chambers and councils will collaborate with InvestKL to identify Chinese state-owned enterprises, private enterprises or MNCs in the smart manufacturing or services sectors, that are exploring expansion beyond China.
Lim said CSC will see a more cohesive and centralised effort to direct, facilitate and support all China-related investment opportunities to Malaysia.
Muhammad Azmi said CSC represents another of its key performance indicator, on top of its focus to attract large global multinationals to Greater Kuala Lumpur.