More Chinese investments will come to Malaysia

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

Next suggested article:   RM55billion for East Coast Rail Line from China

4 thoughts on “More Chinese investments will come to Malaysia

  1. Hey Charles,

    Sharing my 2cent opinion below;
    On a consumer level in China, the advertisement for investment in Malaysia is just unethical and misleading. The developer/marketing/tourism are promoting property “near” Singapore. Chinese citizen has been eyeing to send their children to Singapore (PISA ranking 2012: 2nd for Singapore, and 52nd for Malaysia) for better education purposes against Gaokao (China high school system = STPM in Malaysia), this is one of the reason they are buying property in Singapore.

    On corporate level, it doesn’t make sense not to invest in Singapore with its lower taxation, transparency and ease of doing business (2nd rank for Singapore, 23rd rank for Malaysia).

    And looking at Asean countries, Chinese investors actually felt more at home in Singapore rather than Malaysia. Discrimination on Malaysian Chinese are well known in China. In addition to the current government that keep promoting Malaysia as an Islamic country. This says a lot. Singaporean have its negativity towards China Chinese too, but that is for another topic.

    So why is China pumping money into Malaysia infrastructure? Part of OBOR (One Belt One Road) initiatives and China political/geographical agenda. Look at Africa, Pakistan, Australia, you will get see the trend.

    Perhaps the article could be less biased with opinions from the people that doesn’t have any stake or ownership fallacy We are like what we owned don’t we. Country Garden which invested in Malaysia and a tax leader who invested whole career in Malaysia would be biased to say positive comment.

    Cheers,
    J

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