The Belt and Road Initiative or BRI is a long-term initiative that was introduced by the Government of the People’s Republic of China (China) in 2013.
Malaysia and China have signed a Memorandum of Understanding to Promote Joint Economic Development in the Silk Road and the 20th Century Maritime Route 21 (BRI MoU) on 13 May 2017, which marks Malaysia’s participation as one of the BRI member countries.
The Memorandum of Understanding reflects the commitment of the Government of Malaysia and the Government of China to cooperate in the development and strengthening of the economy between the two countries based on the principle of equality and mutual benefit.
Since Malaysia signed the BRI MoU, the Malaysian and Chinese Governments in 2019 have officially announced the Malaysia-China Kuantan Industrial Park (MCKIP) flagship project in Pahang and the China Malaysia Qinzhou Industrial Park (CMQIP) in Guangxi Province as BRI cooperation projects between Malaysia and China.
CMQIP and MCKIP which were respectively developed in 2012 and 2013 under the concept of “Twin Parks, Two Countries” have been the catalyst for strengthening economic relations between the two countries at the state and central government levels. In 2023, this Twin Park has achieved a decade of progress.
“Now, MCKIP is the main engine of economic growth in the East Coast Region of Malaysia and has generated employment opportunities for local residents,” Deputy Investment, Trade and Industry Minister Liew Chin Tong, said in the Dewan Rakyat today (Nov 6), in reply to a question raised by Wan Ahmad Fayhsal Wan Ahmad Kamal [ MACHANG ] on the Government’s stance on Chinese investment in Malaysia especially through the Belt and Road Initiative (BRI) taking into account hidden risk prospects of loans and long-term implications such as environmental costs, potential ‘debt traps’ as well as risks to national sovereignty.
Liew added, as of October 2023, MCKIP has recorded a cumulative investment value of more than RM31 billion for 21 projects that are expected to create more than 14,000 job opportunities. Of that amount, RM14.6 billion from investment in MCKIP has been realized so far.
To accommodate the growing demand, the industrial area at MCKIP has been expanded from 1,200 acres to 3,500 acres.
Based on the development of the “Twin Gardens, Two Nations”, MITI as the ministry responsible for the implementation and monitoring of the BRI in Malaysia, is always committed to identifying new opportunities under the BRI to generate positive momentum in bilateral relations between Malaysia and China.
In this regard, MITI constantly monitors the appropriateness and impact of domestic and foreign investments. This includes ensuring that investments meet the policies outlined under the New Industrial Master Plan (NIMP 2030) which was launched on 1 September 2023 by the Prime Minister.
In addition, the National Investment Council (NIC) and the National Committee on Investment (NCI) have been established to lead and steer the strategic direction of the development of the country’s investment ecosystem.
“These two committees play a very important role in ensuring that only foreign investments of high value and in line with the country’s investment direction will be approved.”
MITI will always work with ministries, regulatory agencies, state governments and relevant stakeholders to ensure that foreign investment programs and projects under the BRI are in line with national legislation, regulations and Government policies, Liew added.
