China elevates Malaysia ties, aims to triple trade by 2017

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Fri Oct 4, 2013 2:17am EDT

* China, Malaysia boost ties hours after Obama cancels Asia trip

* Xi, Najib boost military cooperation

* China-Malaysia trade seen tripling to $160 bln by 2017

By Yantoultra Ngui

KUALA LUMPUR, Oct 4 (Reuters) - China and Malaysia agreed on Friday to elevate bilateral ties to a "comprehensive strategic partnership", aiming to boost military cooperation and nearly triple two-way trade to $160 billion by 2017.

Chinese President Xi Jinping and Malaysian Prime Minister Najib Razak spoke soon after U.S. President Barack Obama cancelled a week-long tour of four Asian nations, including Malaysia, due to the U.S. government shutdown.

Najib said he agreed with Xi, who is visiting Malaysia ahead the Asia-Pacific Economic Cooperation summit in Indonesia that Obama was to have attended, to encourage more joint military exercises and visits between the nations.

China is already Malaysia's largest trading partner, with two-way trade last year totalling 181 billion ringgit ($57 billion). Trade between the two countries, which rose at an average annual of 15.7 percent between 2002 and 2012, is expected to hit $70 billion by the end of this year.

"We have agreed to strengthen our partnership with naval defence, joint military exercises to combat terrorism and promote security," Xi told a news conference in the Malaysian administrative capital Putrajaya.

"This will create a sound environment for peace and the prosperity of both countries," he said.

The two leaders declined to answer questions from reporters.

China has been steadily increasing its influence in the region in recent years, although not always harmoniously and has clashed with several countries over territorial disputes.

Faced with China's growing influence across the region, Obama announced in 2011 a pivot towards Asia as the United States brought wars in Iraq and Afghanistan to an end.

Malaysia is one of several Asian nations that has competing territorial claims with China over the resource-rich South China Sea, but it has kept a lower profile in the dispute than the Philippines and Vietnam and downplays regional concerns over Beijing's rising military clout.

In addition to soaring trade, Malaysia has seen an increased flow of Chinese investments in recent years in sectors such as logistics and property.

China's Guangxi Beibu Gulf International Port Group Ltd said last month it was buying a 40 percent stake in Kuantan Port Consortium Sdn Bhd for 334.4 million ringgit ($94 million), a move that would pave the way for 3 billion ringgit worth of extension works at the biggest port on the east coast of peninsula Malaysia.

Late last year, Chinese property developer Country Garden Holdings Co Ltd said it was buying 11 hectares of prime waterfront land in a big industrial zone in southern Malaysia for almost 1 billion ringgit ($328.97 million).

Xi said in Indonesia on Thursday China hoped that trade with the 10-member Association of Southeast Asian Nations would reach $1 trillion by 2020.

UPDATE 1-China elevates Malaysia ties, aims to triple trade by 2017 | Reuters

 

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Malaysia Wants To Capture US$25 Billion Investments From China In Next Five Years

KUALA LUMPUR, Oct 4 (Bernama) -- Malaysia wants to capture US$25 billion worth of investments from China over the next five years as it taps on the stronger bilateral economic partnership between the two countries.

Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said the target only accounted for five per cent of the total investments expected from China in the next five years.

"China is becoming an important source of investment in the world compared with the United States, European countries and Middle East.

"It is expected to spend US$500 billion for outward investments in the next five years at US$100 billion per annum.

"If Malaysia can get five per cent of that total amount at US$5 billion per annum, this will be good. This is a potential that has to be explored by the ministry and related agencies like the Malaysian Investment Development Authority and the Malaysia External Trade Development Corporation," he told reporters after the Malaysia-China Economic Summit here on Friday.

Besides, Mustapa said Malaysia was set to lure five per cent or four million of the 80 million Chinese tourists to Malaysia from more than one million tourists currently.

Meanwhile, he said the third round of negotiations for the Regional Comprehensive Economic Partnership (RCEP) between Asean and six dialogue partners, including China, will be held here in January.

The RCEP, expected to be concluded in 2015, has been discussing matters like customs, trade facilitation, logistics, intellectual property rights, as well as, dispute settlements, which are seen as crucial issues between Asean member states and its dialogue partners, Mustapa said.

"China is also looking at several issues, discussed during the Trans-Pacific Partnership (TPP) talks, which has similarities to the RCEP and can be brought to the negotiations," he said, adding that China did not express interest to enter the TPP.

BERNAMA - Malaysia Wants To Capture US$25 Billion Investments From China In Next Five Years

 

[Anonymous user]

Congrats to Malaysia

 

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Updated: Saturday October 5, 2013 MYT 6:50:18 AM

China shows interest in KL-Singapore high-speed rail project

PUTRAJAYA: China has expressed interest in participating in Malaysia’s 330km-long Kuala Lumpur-Singa*pore high speed rail (HSR) link project.

China President Xi Jinping said the project, together with port development and other connectivity projects, were on top of their overseas investment ventures.

He said they were also ready to consider participating in the Nor*thern Economic Corridor development projects.

“The Chinese government will continue to encourage Chinese companies to participate in Malaysia’s railway, port and other connectivity projects.

“The Chinese government is ready to give positive consideration to participate in the Northern Corridor development projects in the appropriate ways,” he said yesterday at a joint press statement with Prime Minister Datuk Seri Najib Tun Razak after their bilateral meeting at the Perdana Putra Building here.

Earlier this year, Malaysia and Singapore announced plans for the rail link, which is expected to cut land travelling time between the two countries to just 90 minutes.

The project, targeted to be completed by 2020, is reported to cost about RM40bil. Several local and foreign firms have been reported to have started talks to form consortiums to bid for the project.

The firms are MMC Corp Bhd, which may team up with Gamuda Bhd and Chinese and European system integrators and YTL Corp Bhd with Spanish bullet train maker Talgo or CAF.

Other firms are UEM Group Bhd, which is working with Ara Group to form a consortium with European companies that may also include Talgo, while Global Rail is said to be talking to Canada’s Bombardier Inc and Chinese firm China Railway Group.

Xi said during the bilateral meeting that both governments agreed to maintain high-level contacts and this would help enhance coordination on major issues.

“There will be a closer cooperation in defence, law enforcement, security, naval and military exchange, combating terrorism and transnational crime. By doing so, we are going to create a sound environment for the growth and prosperity of both countries,” he added.

He said both countries had agreed to actively advance the construction of science lab and expand the training and exchanges among young scientists.

He added that both governments would also encourage competent and capable companies to take active part in the space and scientific entrepreneur cooperation.

Meanwhile, International Trade and Industry Minister Datuk Seri Mustapa Moha*med said Malaysia was eyeing 5% of China’s US$500bil (RM1.588tril) outbound investments over the next five years.

The country is also hoping to attract 5% of the 80 million outbound tourists from China searching for a suitable holiday destination.

“With its US$500bil set to flow into other countries, China will be an important investment source for us,” he said at a press conference after the Malaysia-China Economic Sum*mit at the Kuala Lumpur Convention Centre yesterday.

Mustapa said China’s huge potential was something that should be looked into by the ministry, Malay*sian Investment Development Authority and Malaysia External Trade Development Corporation.

He said China’s investment in Malaysia was less than the other way around.

“Currently, China’s investment in our country is only about 10% of the US$6.3bil (RM20.05bil) of what Malay*sia invested in China,” Mustapa said.

Asked the reasons for the imbalance, he cited the high speed of development experienced by China.

“There are a lot of opportunities for growth there,” he said, adding that Malaysian businessmen were knowledgeable and attuned to the Chinese market.

Mustapa said Malaysia hoped that China’s industry players would invest in the services and manufacturing sectors here. On the event, he said eight business projects worth RM9bil were signed with China.

China shows interest in KL-Singapore high-speed rail project - Nation | The Star Online

 

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Huawei plans logistics centre in Iskandar

Published: 2013/10/05

KUALA LUMPUR: Khazanah Nasional Bhd has entered into a collaboration agreement with Huawei Technologies (Malaysia) Sdn Bhd to establish the Huawei regional data hosting and logistics centre in Nusajaya, Iskandar Malaysia, Johor.


Under the collaboration agreement, Khazanah will provide the facilitation for Huawei to set up the proposed centre, Khazanah said in a statement yesterday.

"The centre will occupy a combined office and warehouse space totalling 90,000 sq ft and will serve Huawei's regional customers, leveraging on the strategic location of Iskandar Malaysia as well as supportive government investment incentives," said Khazanah's managing director Tan Sri Azman Mokhtar.

"The establishment of the centre is expected to create 600 jobs in various managerial, technical and administrative positions. Huawei will also be involved in developing local ICT (information and communications technology) expertise to meet the centre's manpower requirements.

"The strategic investment by Huawei is another milestone in the growth and progress of Iskandar Malaysia, which continues to attract investments in multiple sectors from domestic and foreign investors."

The government's investment arm is also collaborating with Beijing Enterprises Group Co Ltd to further strengthen its exposure to environment-related sectors in China.

Khazanah said in a separate statement the collaboration will involve an equity investment into Beijing Enterprises' subsidiary, Beijing Enterprises Water Group Ltd, and a joint effort to build a sizeable platform in the waste-to-energy sector.

"For the equity investment in Beijing Enterprises Water, Khazanah, via its wholly-owned unit, Mount Reskit Investments Ltd, will subscribe to 400 million new shares in the company, representing about 4.95 per cent of its enlarged share capital at the price of HK$2.95 (RM1.21) per share," it said.

Khazanah will emerge as the third largest shareholder in Beijing Enterprises Water after Beijing Enterprises (47.3 per cent) and Tenson Investment Ltd (8.44 per cent).

It said Beijing Enterprises Water intends to apply the net proceeds of about HK$1.18 billion as general working capital. Bernama


Huawei plans logistics centre in Iskandar