Now best time for China to invest in Sabah
24 Aug 2024
President of the Sabah China Chamber of Commerce (SCCC), Datuk Frankie Liew, pointed out that it is now the best time for China businessmen to invest in Sabah due to favorable timing, geographic advantages and human factors.
He said this is specially under the current protectionist and trade-war attitudes of Western countries, global free trade is increasingly narrowing. Malaysia, Sabah and China need to establish closer relationships to enhance their economic and food security through diplomatic and trade networks and supply chains.
Liew stated this on Friday at a trade and economic seminar in Yanbian Korean Autonomous Prefecture, Jilin Province, with Yanbian Prefecture’s enterprises, SCCC and the Sabah Economic Advisory Council.
He expressed great honor for being able to once again receive the endorsement of Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe to lead the SCCC and represent the business community of Sabah in this official delegation.
“We believe that this visit will not only facilitate direct connections with strong and sincere political and business enterprises but also precisely align with potential projects and industries. We hope to learn from the local leaders and with their guidance and advice, ensure a fruitful and beneficial trip. China, with its vast territory and rich resources, complete industrial and supply chains, ample capital, high-level research, and excellent talent, is currently one of the global economic engines, a leader in Southeast Asia, and a partner we look forward to learning from and collaborating with,” he pointed out.
He noted that since China’s rise, it has been the largest trading partner for Southeast Asia, including Malaysia and Sabah. This year marks the 50th anniversary of diplomatic relations between Malaysia and China, a milestone for further deepening and broadening overall trade cooperation.
He emphasized that the current Malaysian unity government led by Prime Minister Datuk Seri Anwar and the Sabah People’s Alliance (GRS) government led by Chief Minister Datuk Seri Hajiji Noor uphold a neutral “pro-China” stance, resolutely defending friendly and partnership relations with China despite pressures and temptations from Western powers.
“Our advantage lies in our multilingual and multicultural background, relatively mature educational levels, and good interactions and diplomatic relations with ASEAN and Western countries. Sabah is also a gateway to the nearly two billion population market of China and ASEAN. Sabah has a predominantly small and medium-sized economic system, with major sectors in services, tourism, oil palm cultivation, and mining of oil and natural gas. Recently, under the new government and with the strong promotion by Hajiji and Phoong, Sabah is rapidly industrializing, attracting substantial investment and technology from China and South Korea, making us optimistic about future development. Additionally, Sabah has significant development potential in agriculture, fisheries, food industry, new energy, and infrastructure. We are also an important base for bird’s nest production, with abundant herbal resources, a summer-like climate, ample rainfall, and no major natural disasters.
“We believe there are many points of intersection and complementary advantages. Currently, electric vehicles are not yet widespread in Sabah. Leveraging ASEAN and regional free trade advantages, we hope to establish bases or centers for new energy vehicles in Sabah to serve as a hub for the ASEAN region.”
Liew also mentioned that although SCCC’s core service is to promote investment and trade between Sabah and China, it also strengthens its advantages by maintaining close ties with ASEAN countries, including Indonesia, the Philippines and Brunei, to form partnerships and share resources and information. With these conditions, we can not only facilitate investment from Chinese enterprises and investors into Sabah but also assist in entering the ASEAN market, helping sincere and capable enterprises maximize their benefits.
SCCC will actively participate in domestic and international conferences and exhibitions to showcase Sabah’s advantages and potential, connect with international business networks, and achieve mutual benefits and prosperity.
Liew announced that the Sabah government will hold the first Sabah-China Expo and Sabah-China Business Summit from November 22 to 24 at the Sabah International Convention Centre (SICC) in Kota Kinabalu.
SCCCis honored to be a co-organizer and will invite representatives from various provinces and cities in China to participate and discuss future business opportunities in Sabah, known as the “Land Below the Wind.”
Liew emphasized that they will continue to fully cooperate with the policies and directions of the Malaysian and Sabah governments, promote investment and recruitment, and assist Chinese enterprises in establishing technology, production capacity, and resources in Sabah to become a crucial link in the global industrial and supply chains, bringing greater economic benefits and a better life to both regions.
“Many people may have heard of Malaysia and know that China and Malaysia have been close partners for 50 years, but many are not very familiar with our small Southeast Asian country and mistakenly think that Kuala Lumpur is the capital of Malaysia and that all matters can be handled through Kuala Lumpur.
“In fact, Malaysia is a federal country consisting of Peninsular Malaysia, Sabah and Sarawak, geographically divided into West Malaysia (the Malay Peninsula) and East Malaysia (Sabah and Sarawak), separated by the South China Sea. It takes nearly three hours to fly from Kota Kinabalu, the capital of Sabah, to Kuala Lumpur in West Malaysia.
“Due to this geographical separation, valuable information between China and Sabah is often delayed or not fully communicated, causing missed opportunities and suboptimal investment cooperation. Under the Malaysia Agreement 1963 (MA63), the Sabah government has a high degree of autonomy, with many important powers, including land, natural resources and immigration rights, directly managed and approved by the Sabah government. A few years ago, the Malaysian and Sabah new governments were working to restore the equality of the ‘Malaya, Sabah and Sarawak’ partners.
“In 2019, with the encouragement and support of the Sabah government, various industries in Sabah, especially those with ideas and initiatives to promote trade and investment between Sabah and China, were called upon to establish a specialized business organization to represent and safeguard bilateral interests between Sabah and China, and proactively promote and implement trade and investment activities, information and resource interaction, assistance and communication,” he said.
The objectives of the Sabah China Chamber of Commerce are as follows:
Promote economic, trade and other industrial and commercial exchanges and cooperation between Sabah and the People’s Republic of China;
Provide members with information related to bilateral economic, trade and other industrial and commercial activities between Sabah and the People’s Republic of China;
Offer a platform for business information, financial and trade information exchange, including organizing various exhibitions, forums, training activities and investment guidance services, to establish and develop business cooperation;
Jointly safeguard the legitimate rights and interests of members and provide assistance and suggestions for problem-solving when needed;
Promote a healthy business culture and foster a prosperous and harmonious society.
The core members of the Chamber come from various sectors in Sabah including real estate development, plantations, agriculture, tourism and hospitality services, construction sector, building materials, creative design, media, education, e-commerce, and cultural industries.
SCCC has two main wings: the Young Entrepreneurs Committee and the Women Entrepreneurs Committee, bringing together local young talents and female elites, nurturing future successors. The Chamber also has branches in Hubei and liaison offices in Guangzhou, Shengzhou, and other places to assist in promoting cooperation and communication and delivering timely and accurate information.
SCCC has signed a partnership memorandum with Jin Lihua, chairman of Hunchun Huairui Ginseng Bioengineering Co Ltd and has established a liaison office in Jilin Province, with chairman Chen Pengyu appointed as the representative.
Meanwhile, Park Cheol, a researcher from the Yanbian Korean Autonomous Prefecture Foreign Affairs Office, mentioned that the visit by SCCC will enhance understanding and relationships, and contribute to industry exchanges and business opportunities in Yanbian Korean Autonomous Prefecture.
SCCC deputy president Brett Chua invited Yanbian enterprises to participate in the Sabah China Economic Forum and Sabah China Expo to showcase their products.
Meanwhile, Datuk Thomas Logijin, the permanent secretary of the Industrial Development and Entrepreneurship Ministry, visited Hunchun City to observe the production process of Huairui Ginseng Bioengineering Co Ltd.
He welcomed Huairui Ginseng Bioengineering to invest and set up factories in Sabah, and promised to provide all necessary assistance, including coordination with various departments.
Jin Lihua, chairman of the Jilin Functional Foods Association and Huairui Ginseng Bioengineering Co Ltd, stated that Changbai Mountain in Jilin Province and Heilongjiang, which is connected to Russia, is the source of ginseng. He plans to invest in Sabah and establish contact. He expressed that the visit by the Sabah delegation will deepen understanding of ginseng and encouraged cooperation.
Source: Borneo Post
