Trade and Investment Mission in Conjunction with Prime Minister’s Official Visit to The People’s Republic of China

The Trade and Investment Mission (TIM) to the People’s Republic of China, led by YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), was held from 30 March to 4 April 2023, in conjunction with YAB Prime Minister Dato’ Seri Anwar Ibrahim’s official visit to China. This timely undertaking was a proactive measure taken by MITI, MIDA and MATRADE to bolster bilateral trade and investment ties between Malaysia and China, resulting in securing potential investments of RM170 billion for Malaysia.

The TIM consisted of a Roundtable Meeting with the Captains of Industry, a Business Forum attended by more than 1,000 Chinese and Malaysian business delegates, and one-to-one meetings with potential investors from various sectors such as electric vehicles and data centres. During the one-to-one meetings, KuruData and Chery Automobile announced their plans for new investment projects. GDS Services Ltd also expressed their commitment to Malaysia by undertaking an expansion project that aims to position Malaysia as the next regional data centre hub, with potential to also host GDS Services’ supply chain and existing clients from China to Malaysia. These three (3) projects will create numerous new job opportunities and boost the country’s economic growth.

Highlights: YAB Prime Minister’s Roundtable Meeting with Captains of Industry in Beijing

One of the most impactful key events during the TIM was the YAB Prime Minister’s Roundtable Meeting with the Captains of Industry in Beijing. The meeting provided a valuable opportunity for the 36 Chinese captains of industry to discuss potential future investment opportunities in Malaysia with YAB Prime Minister, covering a broad range of industries.

The meeting highlighted several high-profile investment projects, such as Zhejiang Zhink’s intention to consider Malaysia as the destination for investment in manufacturing food-grade PET new materials, and LONGi Group’s plan to increase production capacity for ingot, wafer, cell, and module in Malaysia, creating over 7,000 new job opportunities.

Other notable investment projects discussed during the meeting include GDS Services Ltd’s commitment to investing up to RM4.5 billion over the next decade in additional data center projects in Malaysia, Shanghai DC-Science Co. Ltd.’s interest in setting up a state-of-the-art data center in Malaysia, and ZTE Corporation’s potential investment of RM200 million in establishing two innovation centers to drive Malaysia’s 5G development and revolutionize the vertical industry application sector.

Geely Zeekr Hangzhou Bay Smart Plant

The TIM also included a visit to the Geely Zeekr Hangzhou Bay Smart Plant, one of the most advanced vehicle facilities globally. The fully automated plant, equipped with over 300 robots and industrial-grade 5G+ intelligent internet systems, serves as a remarkable example of the fruitful collaboration between Geely and Proton in the development of EV supply chain, further strengthening the ecosystem in Malaysia.

China has been Malaysia’s top FDI source in the manufacturing sector for five consecutive years since 2016. In 2022, MIDA announced approved investments in various economic sectors totalling RM264.6 billion (USD59.9 billion), with the People’s Republic of China dominating foreign investment at RM55.4 billion (USD12.5 billion) or 33.9 per cent.

The strong interest demonstrated by the People’s Republic of China companies during the TIM serves as a major catalyst in boosting bilateral trade and investment relations. The TIM was indeed a proactive and strategic measure taken by MITI, MIDA, and MATRADE to attract inflows of high technology investments and increase trade performance to further enhance the economic growth of Malaysia.