MY and China ink three MoUs worth about RM20 billion as it strengthens bilateral relations

Malaysian PM Anwar Ibrahim has reportedly signed three Memoranda of Understanding (MoUs) worth RM19.84 billion between Malaysian and Chinese companies during a working visit to the country over the weekend. 

According to media reports, present at the signing were investment, trade and industry minister, Zafrul Aziz, local government development minister, Nga Kor Ming, deputy foreign affairs minister, Mohamad Alamin, and deputy agriculture and food security minister Chan Foong Hin.

The first MoU is reportedly worth RM15 billion and was inked between Citaglobal and Shanghai Sus Environment in a bid to explore a potential collaboration for developing waste-to-energy power plants in Malaysia.

The second MoU, worth RM2.34 billion, was signed between PM Access World and Beibu Gulf International Port Group, in order to increase warehousing and logistics cooperation between the two companies in supporting the international land-sea trade. This in turn is expected to promote economic and trade cooperation between Guangxi and Malaysia.

Don't miss: Malaysian businesses urged to prepare for investment opportunities in China

The final MoU, worth RM2.5 billion, was inked between Sime Darby Oils International and Guangxi Beibu Gulf Port Group to build a trading and distribution centre for refined palm oil and shortening in Qinzhou.

Earlier this year in August, Malaysia also secured a digital economy sector investment commitment of RM5.2 billion from China and Singapore. Malaysia’s communications and digital (KKD) minister, Fahmi Fadzil took to his Twitter page to announce the split in investment. In it, he noted that China has invested RM3 billion while Singapore has invested RM2.2 billion.

This marks a significant improvement in investment numbers from 2022 to 2023 where in the first half of 2023, KKD reportedly raked in RM 28.4 billion which is more than thrice its collections in the first half of 2022, where it only raked in RM7.5 billion. “This means, there is an increase of 279% compared to the same period last year,” Minister Fahmi added.

PM Anwar also recently said that several leading companies from China chose Malaysia as their regional hub. According to Bernama, he stated at the monthly assembly of the Prime Minister’s Department (JPM) staff on 3 April, that several Chinese companies are choosing Malaysia as their regional hub, "Usually their regional hubs are in other countries, or in neighbouring countries," he added. He also said that details of the matter will be revealed soon. 

PM Anwar said that he had made sure that leading Chinese companies in the country were aware that they should prioritise the hiring of qualified Malaysian workers when they hire for their plants. 

In addition to hiring locals, these companies have also offered to train locals in both Malaysia and China, agreeing to commence training this year. As part of this initiative, Zhejiang Geely will be bringing 300 Malaysians to China for specialised training, PM Anwar said.

Malaysia has been on a roll in terms of its foreign direct investment attraction. Earlier this year, Malaysia and Singapore established a new platform to boost bilateral trade and investments between both countries. The Annual Ministerial Dialogue (AMD) aims to allow neighbouring countries to cooperate on digital and green economy as well as strengthen bilateral ties between both ministries, the Malaysian ministry of Investment, Trade and Industry (MITI) and Singaporean ministry for Trade and Industry (MTI).

Related articles:
Malaysian businesses urged to prepare for investment opportunities in China
Malaysia secures digital sector investments of RM5.2b from China and SG
Chinese companies pick MY as regional hub, prioritises local talent hires