China motorcycle firms invited to invest in Sabah
26 Sep 2024
Motorcycle and electric motorcycle companies in Chongqing, China have been encouraged to invest in Sabah.
Sabah China Chamber of Commerce (SCCC) president Datuk Frankie Liew invited the companies to consider visiting Sabah and explore the possibility of establishing a regional production or distribution centre.
He made the invitation when he led a delegation to visit Chongqing Dazu High-Tech Zone, and several motorcycle and electric motorcycle companies to discuss future economic and trade investment cooperation between the two regions.
They visited the motorcycle and electric motorcycle production facilities and explored the potential for technology and production capacity transfer.
Liew said that with the rise of protectionism in western countries, global trade is shifting from liberalization to fragmentation, affecting various industrial and supply chains. Therefore, Sabah and China should establish closer and broader economic and trade cooperation, integrating each other’s trade networks, supply chains, technology, capital and resources to enhance supply chain security, economic security and food security.
“Sabah needs China’s technology, capital and products, while China can leverage on Sabah’s resources and market access, benefiting both sides,” he said.
Liew pointed out that in recent years, Sabah has rapidly advanced towards industrialization, driven by strong state government support, attracting significant investment and technology from China, Korea and other countries.
Last month, a delegation from the Sabah state government signed five memorandums of understanding (MOUs) with the Jilin provincial government and various enterprises, with a total investment of RM600 million. These MOUs include establishing a truck assembly plant in Sabah, exporting bird’s nests and durians to Jilin, health food processing, and agricultural research projects.
Liew further elaborated that while Malaysia’s industrial manufacturing output grew by 0.8% last year, Sabah’s growth was 4.4%, making it the fastest growing state in Malaysia’s manufacturing sector. This indicates that more Chinese companies are willing to transfer technology, capital, and resources to Sabah, contributing to capacity transfers.
“China has always been Sabah’s largest trading partner. The trade volume between Sabah and China doubled from RMB 10 billion in 2018 to RMB 20 billion in 2023. With more Chinese companies entering Sabah, we believe there is even greater growth potential in the future,” he said in press release on Thursday.
Chongqing Yinxiang Motorcycle (Group) Co., Ltd., established in 1997, has developed into a large-scale integrated enterprise group engaged in research, development, manufacturing, and sales of motorcycles, gasoline engines, general-purpose machinery, and other products. It owns seven brands, including Yinxiang, Xianfeng, Jiermu, Jida, Xiaoxing, Feiken and Zhiwei, with established products and stable domestic and international markets.
The company has five production and sales subsidiaries, with products exported to Southeast Asia, Europe, America and Africa. It has also established production factories in Vietnam, Laos, Indonesia, Nigeria and the Philippines. The company is further expanding into emerging markets in Europe, Southeast Asia, Africa and the Middle East, gradually realizing a global brand strategy.
Liew praised the visit to Dazu High-Tech Zone and the motorcycle and electric motorcycle production facilities, noting that both the quality and quantity are of top-notch standards, particularly suited for emerging markets like ASEAN.
He emphasized that Sabah’s geographical location is highly advantageous, being centrally located in Southeast Asia for both air and sea transport. Coupled with good relations with neighbouring countries, Sabah is ideal for various industries and investments to set up hubs. By using Sabah as a central point, companies can access the vast Southeast Asian and ASEAN markets.
“Although Sabah’s population is only about three million, we are the best gateway to enter both China and the ASEAN markets. With ASEAN at our back and China in front, we are the golden door to a two billion population market.”
He also highlighted that Sabah’s Chinese community is large, well-educated and skilled in various fields. He believed that if Chinese enterprises establish supply chains in Sabah or wish to export products from Sabah to China, the local Chinese community would be more than willing to assist and coordinate.
Liew also mentioned that SCCC has close ties with government departments and agencies, including the Ministry of Industrial Development, the Ministry of Entrepreneur Development, Invest Sabah Berhad, the Malaysian Investment Development Authority (MIDA), the Lands and Surveys Department, Universiti Malaysia Sabah, and other key institutions.
He stated that SCCC could facilitate introductions if needed.
Liew has also invited Chongqing business representatives to participate in the Sabah-Zhuhai Trade Fair scheduled for October 21 in Hengqin, Zhuhai, China.
He expressed hope for continued close contact with Huang Fang, with more cooperation opportunities in the future, saying, “Let’s work together for the betterment of economic and trade cooperation between Chongqing, China, and Sabah, Malaysia. Let’s walk the path together and prosper together!”
The delegation also included Henry Shim, Special Officer to the Minister of Industrial, Development and Entrepreneurship of Sabah; Brett Chua, Deputy President of SCCC; Ling Hang Tze, Director of IT & Information; and Chen Peng Yu, representative of the Sabah-Jilin International Cooperation Project.
During the visit, the Sabah delegation also inspected the Dazu District e-commerce industrial park, Dazu Rock Carvings, Chongqing Jielilai Furniture, Chongqing Qiaofeng Cutlery Co., Ltd., Chongqing Gonghua Vehicle Industry Co., Ltd., Chongqing Dalong Yufeng Motorcycle, and Chongqing Tailg Motorcycle Co., Ltd.
Source: Borneo Post
