According to China Customs, the total trade value of import and export between China and Malaysia reached US$74.22 billion in the year of 2010, an impressive increase of 42.8% year on year. Among them, China’s export to Malaysia accounted for US$23.81 billion, 21.3% growth upon the last year, and the import value amounted to US$50.41 billion, 55.9% increase compared with 2009. Based on the cheerful trade exchange between two countries, China’s Foreign Trade conducted a special interview with H.E. Mr. Iskandar Sarudin, Ambassador of Malaysia to China.
Q: How did you introduce Malaysia to Chinese? During your time in China, what impressed you most?
A: There are a lot of elements that I can put forward in promoting Malaysia to the world in general and to China in particular. Malaysia has a vast area of green forest, beautiful sandy beaches and islands for eco–tourism. Apart from that, we can also provide historical places for the cultural loving visitors, and shopping haven to satisfy shopaholics. I also believe that our unique cultural diversity with strong spirit of hospitality will impress the visitors from China and make their stay in Malaysia an experience that can be cherished forever. In addition, we offer anything and everything that you wish to see in Asia, as the slogan of our tourism goes, ‘Malaysia is Truly Asia.’
As for my impression on China, China is an ancient country with thousands of history. The pace of moderation and development is breathtaking. On top of that, I admire the hard work and determination of the people of China, by giving their support to the Government, especially in ensuring the successful organizing of world events. The year 2010 has seen China has managed to organize successfully two events in Shanghai and Guangzhou, which is not an easy task to achieve without the commitment of everybody involved.
Q: China-ASEAN FTA opened at the beginning of 2010. What influence has it generated in the cooperation between China and Malaysia? And what is to be expected in the future?
A: The full implementation of the FTA between ASEAN and China is a big leap towards closer regional integration between ASEAN and China. Malaysia and China have always shared very close bilateral relations particularly in the areas of trade, investment, tourism, education, cultural and economic cooperation. The priority would be to further enhance this relation to a higher level of collaboration.
Q: What are your comments on the mutual trade relationship between China and Malaysia? What is your hope for the future development?
A: Malaysia and China continues to foster strong bilateral trade relation and in 2009, total trade between Malaysia and China was valued at US$ 51.838 billion. It accounted for 2.3% of China’s total trade with the world.
In 2009, Malaysia has emerged as China’s:
? Largest trading partner;
? Second largest export destination;
? Largest source of import.
In terms of ranking, Malaysia was China’s:
? 8th largest trading partner;
? 14th largest export destination;
? 7th largest source of import.
China by the sheer size of its market has vast potential that can benefit Malaysia and I strongly believe the future for bilateral trade expansion is very promising. I also encourage businessmen from China to source their products from Malaysia, which has a thriving manufacturing sector.
Q: How is the investment situation from China to Malaysia? Which fields are most welcome for foreign investment there? For those Chinese enterprises who wish to invest in Malaysia, what recommendation will you give?
A: In the first three quarters of 2010, investment inflows from China to Malaysia reached US$283 million (RM 914 million). In the area manufacturing, investments worth US$156.3 million were approved in the first 9 months of 2010.
Malaysia continues to offer investment opportunities in a wide range of areas.
Potential areas of investment which offers opportunities for Chinese investment include manufacturing of basic metal products; automotive parts and components; machinery and equipment; engineering support; medical devices; healthcare products; pharmaceutical products; chemical products; halal food products; solar related component/equipment; and alternative energy source.
In the area of services, Chinese firms can consider favourably to set-up their regional offices in Malaysia. Malaysia also offers investment opportunities in the areas of construction, healthcare, educational services and tourism.
With effect from June 23, 2010, the China Banking Regulating Commission (CBRC) had recognised Malaysia as its 11th approved Qualified Domestic Institutional Investor (QDII) investment destination. Fund managers, securities firms and financial institutions from China can now avail the Scheme to explore investment opportunities in the Malaysian capital market. Q: Malaysia is famous for its halal manufacturing industry. Are there any cooperation between China and Malaysia in this field? What is your view on its future cooperation and development?
A: Increasingly, Malaysian businesses have expressed keen interest to explore the halal market segment in China. Currently, Malaysian entrepreneurs have set-up halal product business operations either wholly or jointly in Xi’an and Yinchuan. Malaysia is also providing training to Chinese entrepreneurs in the area of halal production awareness.
Apart from collaboration in the manufacturing of processed halal food products, there is vast potential to explore halal meat products from China. Producers of processed food, and fresh or frozen meat from China can explore the potential of obtaining Malaysia’s halal mark certification for wider market access and acceptance worldwide.
Q: As a member country in ASEAN, what strategic role does Malaysia play in promoting closer relationship between China and ASEAN? Are there any future plans or on-going programs?
A: As the first country amongst the original ASEAN membership to have established diplomatic relations with China, Malaysia is especially gratified at the constructive approach taken by China in her interaction with ASEAN. The relationship is one of a partnership of equals and has brought mutual benefits, and we certainly look forward to the convening of an ASEAN-China commemorative summit in 2011.
Malaysia has and will continue to play an active role in strengthening norms, rules and institutions in the region. We believe that enhancing relations require the enhancement of connectivity between ASEAN and China. Within ASEAN, Malaysia will continue to strengthen economic and people-to-people ties between ASEAN and China. For example in 2009, China recorded 4.1 million tourist arrivals from ASEAN. In turn, ASEAN received about 4 million Chinese tourists, and Malaysia continued to be a regional magnet for Chinese tourists. We hope to build on this.
On economic relations, it is important for us to maximise the ASEAN-China FTA Framework (ACFTA). It would, among others, support production processes in ASEAN. In this connection, it is also important to work together to address concerns of ASEAN SMEs, particularly as they relate to China’s manufacturing prowess. China’s assistance towards strengthening of SMEs in ASEAN will help to alleviate uneasiness among our business community over the ACFTA.
In this connection, I believe that Malaysia can play a vital role in utilizing the US$10 billion ASEAN-China Investment Cooperation Fund to accelerate the necessary infrastructure related projects and linkages between ASEAN and China. Malaysia looks forward to a mechanism that would enable Malaysian companies to utilise the Fund for projects that would enhance connectivity between ASEAN and China.
I wish to take this opportunity to express Malaysia’s appreciation on the assurance given by Premier Wen Jiabao at the 13th ASEAN-China Summit held in Ha Noi, Viet Nam on 29 October 2010, that China would ‘forever be a good neighbour’. I have noted that during the past few months, some analysts have spoken of the threats posed by China’s growth and assertiveness in the South East Asian region. We definitely do not share the same view. Malaysia’s position is that in an important and strategic region such as South East Asia, it is important for all countries, large and small, to abide by rules and institutions which we have commonly established. The strategic role that we play in promoting closer relationship between China and ASEAN flows from this position.