SYNERGISTIC: Beijing targets increased global presence while Kuala Lumpur can provide right investment environment
THE business compatibility between Malaysia and China could not be more perfect - China is determined to go global and Malaysia has one of the most liberal investment policies and a stable, pro-business government.
China's might and Malaysia's role as the gateway to Southeast Asia have proven enduring with Chinese companies such as Bank of China, ICBC, Huawei, Xinhua, Shougang Group, Anbound, CSR, Chery, ZTE, SinoHydro, Eastern Steel Industries already having a strong presence in Malaysia.
Major China investors are Vibrant Waves Sdn Bhd (stainless steel manufacturer), GSI Asia Group Sdn Bhd (poultry breeding and poultry raising equipment), Euroma Rubber Industries and Ji Kang Dimensi Sdn Bhd (a hot-rolled steel plate manufacturer).
Others to have also made their presence felt in Malaysia include Guangxi Beibu International Port Group and CHEC Constructions (M) Sdn Bhd.
Guangxi Beibu Gulf International Port Group is expected to invest RM5 billion to build an integrated modern steel production facility, high-tech aluminium processing plant and an oil palm refinery in the Malaysia-China Kuantan Industrial Park (MCKIP) in Pahang.
The three projects are said to employ green technology and are part of Phase I of Guangxi Beibu Gulf International Port, which should see completion in 2015 and create 3,000 jobs at the professional, skilled and unskilled levels in Kuantan.
Guangxi Beibu Gulf International Port Group is also reported to be involved in the expansion of Kuantan Port and, according to reports, it has pledged RM3 billion for this purpose.
The plan is for Malaysia's iron ore to be exported from Kuantan Port to Qinzhou Port to support the development of the shipping and automobiles industries in the China-Malaysia Qinzhou Industrial Park, which is the sister park in China to MCKIP.
Meanwhile, CHEC Constructions (M) Sdn Bhd, a subsidiary of China Harbour Engineering Company, has undertaken the building of the Second Penang Bridge, in collaboration with Jambatan Kedua Sdn Bhd.
The company said the RM4.5 billion Second Penang Bridge is designed to withstand far field earthquakes measuring 7.5 on the Richter scale.
It is scheduled for completion on November 8. At 17km, it will be the longest bridge in Southeast Asia, linking Batu Kawan on Penang mainland to Batu Maung on the island.