China-Malaysia MOUs worth billions prove that right approach is taken

China-Malaysia MOUs worth billions prove that right approach is taken

18 Sep 2023

Malaysia’s success in securing yet another RM19.84 billion worth of memoranda of understanding (MOUs) with China this year is proof that the government is using the right approach in seeking investment opportunities.

Three MoUs in total were signed during Prime Minister Datuk Seri Anwar Ibrahim’s one-day working visit to Nanning, China, on Sunday at the invitation of Chinese Premier Li Qiang to attend the 20th China-Asean Expo (CAEXPO).

Accompanied by several Malaysian ministers, Anwar witnessed the MoU exchanges totalling RM19.84 billion, in addition to a record RM170 billion investment commitments secured from the world’s second largest economy in March this year.

Of the three MOUs, the first with an estimated RM15 billion was exchanged between Citaglobal Bhd and Shanghai Sus Environment. Both companies will explore to develop waste-to-energy power plants, primarily in Malaysia.

Universiti Keusahawanan Koperasi Malaysia (UKKM) associate professor Dr Abu Sofian Yaacob said the scope of potential waste-to-energy and related industries is huge.

“This could result in a cleaner environment in Malaysia as well as help to reduce electricity rates,” he told Bernama today.

The second MOU, worth about RM2.34 billion, was between PM Access World and Beibu Gulf Port Group while the third, with a potential export of RM2.5 billion, was signed between Sime Darby Oils International Ltd and GuangXi Beibu Gulf International Port Group.

Abu Sofian said the PM Access World-Beibu Gulf Port Group deal will pave the way for Malaysia to expand into the Chinese market.

“The RM2.34 billlion MoU in warehousing and logistics is another potential for export and import business. PM Access World has many branches beyond Malaysia and is well known as a warehousing and logistics provider.

“This could be enhanced further by partnering Beibu Gulf Port Group, an established business entity in China. The group is  involved in ports, logistics, industry and trade, real estate and investments. They also have ports and investment business in Hong Kong, Malaysia and Brunei,” he said.

Meanwhile, Abu Sofian said the MoU between  Sime Darby Oils International  and GuangXi Beibu  could lead to Malaysia selling refined palm oil and shortening to China as well as neighbouring countries with China as a distribution hub. This means that Malaysia’s palm oil and palm oil product exports could rise, he said.

Anwar told a media conference that the Sime Darby Oils International-GuangXi Beibu MoU will help protect the interest of oil palm smallholders and producers alike.

He said the MoU will boost Malaysian palm oil export to China to 500,000 tonne a year from 250,000 tonne in the previous year.

For the first six months of 2023, Malaysia attracted RM132.6 billion worth of approved investments in services, manufacturing, and primary sectors involving 2,651 projects which are expected to create 51,853 job opportunities in the country.

Source: Bernama