The Ministry of International Trade and Industry Malaysia (MITI) and the People’s Government of Guangxi Zhuang Autonomous Region, of the People’s Republic of China (PRC) jointly organised an inaugural investment forum, focusing on expanding investment and business opportunities in Malaysia-China Kuantan Industrial Park (MCKIP) and ChinaMalaysia Qinzhou Industrial Park (CMQIP), further solidifying the collaborations between both the private and public sectors in Malaysia and the People’s Republic of China.
With the theme ‘Two countries, Twin Parks: Sharing Opportunities of the RCEP Implementation, Forging Cross-Border Industrial Chains’, the investment forum was the first of a series of events to commemorate the 10th anniversary of CMQIP established in 2012.
In a statement by the Ministry Of International Trade And Industry, it said that the convening of the virtual forum between Malaysia and the People’s Republic of China demonstrates the strong ties and positive momentum of high-level exchanges between both countries amidst challenges posed by the COVID-19 pandemic.
The forum was graced by YB Senator Datuk Lim Ban Hong, Deputy Minister of International Trade and Industry, Malaysia (MITI); His Excellency Sheng Qiuping, Assistant Minister of Commerce, Ministry of Commerce (MOFCOM); and Her Excellency Cai Lixin, Vice Chairman of Guangxi Zhuang Autonomous Region, the People’s Republic of China.
Also present were Pahang State Secretary, senior officials from MITI, MOFCOM, Department of Commerce Guangxi, Malaysia Investment Development Authority (MIDA), East Coast Economic Development Region (ECERDC), Malaysia-China Kuantan Industrial Park (MCKIP) Sdn. Bhd and China-Malaysia Qinzhou Industrial Park Administrative Committee
More than 800 Malaysian and Chinese industry leaders from business chambers and associations, Government-Linked Agencies, China State-Owned Enterprises, investment bankers, and SMEs attended the forum in MITI and Guangxi concurrently, as well as through virtual participation.
In his Keynote Address, YB Datuk Lim Ban Hong highlighted that “Over the years, under the “Two Countries, Twin Parks” initiative, both industrial parks have progressed substantially, with Malaysia-China Kuantan Industrial Park (MCKIP) featuring among the largest foreign direct investment recipient in Malaysia, while the CMQIP attracted investments from various parts of the world.
More importantly, the collaborations have created substantial spin-offs to the local industries including transport and logistics; retail; port-related services; as well as businesses and the local community.”
Datuk Lim reaffirmed that Malaysia aspires to enhance the trade and investment ties between MCKIP and CMQIP through industrial collaboration and to replicate the achievements of the “Two Countries, Twin Parks” model. According to him, “Malaysia and Guangxi Zhuang Autonomous Region are viewing to upgrade the industrial park’s collaboration by expanding the model to various other industrial parks in Malaysia.”
He further added that “Malaysia and China through the industrial parks are also exploring to adopt the best practices in industrial innovations to value add and increase the economic complexities of Malaysian export products.”
In her remarks, Her Excellency Cai Lixin said that “Guangxi is taking the opportunities of jointly building the New Western Land-Sea Corridor, the leading programme related to the overall development situation, and the Beibu Gulf International Gateway Port, the transfer hub, to expand high-level opening to the outside world and serving the construction of a closer China-ASEAN community with a shared future.”
Referring to the recently implemented Regional Comprehensive Economic Partnership (RCEP), she added that, “As China and ASEAN are the largest trading partners of each other and RCEP comes into effect, Guangxi’s advantages in geography, resource, and policy will be further highlighted, providing a broader stage for all parties, including Malaysia, to deepen cooperation and achieve mutual benefit and win-win results.”
Both Malaysia and the People’s Republic of China are committed to strengthening investment cross-flows by promoting the development of cross-border industrial chains and supply chains to enhance innovation as well as to improve connectivity through the land corridors in the two countries.
To further integrate the economies, companies in both countries are encouraged to utilise the Regional Comprehensive Economic Partnership (RCEP) Agreement and for Chinese companies to leverage on Malaysia’s position as a gateway to the ASEAN market. On the other hand, Malaysian companies are encouraged to use Guangxi, further expanding into the huge China market.
Noting that in 2023, Malaysia will commemorate the 10th anniversary of MCKIP, a flagship project between Malaysia and PRC under the Belt and Road Initiative (BRI), YB. Dato’ Sri Dr. Sallehuddin Bin Ishak, the Pahang State Secretary reiterated that the State of Pahang will continue to facilitate the operations of MCKIP, including the ongoing construction of the second and third phases of MCKIP which will see the integration of MCKIP with Kuantan Port and East Cost Rail Link (ECRL)
Deputy Minister of MITI, Vice Chairman of Guangxi Zhuang Autonomous Region and the dignitaries also witnessed the signing of 11 Memorandum of Understanding (MOUs) between Malaysian and Chinese companies for future projects in both industrial parks, with total potential investment of RM1.45 billion in MCKIP, reflecting continuous business confidence on the viability and sustainability of MCKIP and CMQIP.