I was talking to a good friend a few nights ago during supper of maggi goreng and teh tarik. He said, “the investments from China into Malaysia is a good thing, right?” I said, well we do have two choices. First choice, the Chinese investments into Malaysia are increasing or second choice, Chinese investments are skipping Malaysia and going into other countries instead. He laughed. Seriously, it’s time to understand how to make best of all these investments. Read more about where and what these investments are. In fact if we are developers, it is time we see if there are any joint ventures that we could form or participate in. Typically, these Chinese investments also attract potential investors too. Just look at the developments in Iskandar by the Chinese developers to know that it is happening.
It’s not just me saying so, as Deloitte Malaysia Country tax leader Yee Wing Peng shared that Malaysia is well well-positioned to embrace more Chinese investments. Besides that, the Chinese multinationals (MNCs) are also setting up their regional service centres in Malaysia due to the business and language proficiencies inherent within Malaysians. Full article in The Borneo Post here. Yes shared further that there were already several Chinese MNC developers with mega-mixed developments in Malaysia and this will likely bring even more Chinese MNCs to invest here. This is what Country Garden Holding Co Ltd regional vice president, Dr Runze Yap said about the Malaysia-China dynamics. “Malaysia is a great middle ground between China and the Western countries. In terms of policy, Malaysia has maintained a very delicate and well-balanced relationship between China and the US.”
Looking at all the ASEAN countries, it is quite clear there’s just one country where the Chinese investors would feel most at home. Besides Malaysia has a good pool of talents (including me) and infrastructure. It’s best to start understanding why they are coming in instead of many other ASEAN nations. Before everyone start to say that’s simply because of Ringgit weakening, do note that there are CHEAPER neighbouring countries. Plus the ringgit was still the best performing currency in Q1 2016 and all these new investment decisions by China CANNOT have been made just one week ago when ringgit started sliding due to EXPECTATIONS… Anyway, believe whatever we want to believe. Just remember, appropriate actions are necessary.
written on 17 Nov 2016
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