MCA aims to help M’sia achieve $160 bn trade

“Looking at the current global economic situation, it will be tough to meet the target, but we will work doubly hard to achieve it.
“If we cannot achieve it next year, we will try in 2018,” said MCA president Liow Tiong Lai, when opening the conference “Belt and Road Initiative: Malaysia-China Business Dialogue” at Wisma MCA here.
In 2013, the two nations set a target to increase their trade to $160 billion in 2017 after China upgraded Malaysia to be its full strategic partner.
But last year, Malaysia-China trade fell to just below $100 billion from $120 billion in 2014 due to the global economic slowdown.
Liow, who is also transport minister, noted that the initiative, expounded in 2013 by Chinese President Xi Jinping, spans 65 countries in Asia, Europe and Africa to drive regional development and cooperation.
Among others, the initiative encompasses building infrastructure in these countries to enhance connectivity, trade, capital flow and travel with China.
Malaysia is one of the key beneficiaries under the policy, and China’s Silk Road Fund has allocated an initial 40 billion yuan (Bt207 billion) for the development of projects linked to the initiative in Malaysia, according a Chinese banker.
Malaysia’s close relations with China, the sharp rise in Chinese investment in Malaysia, development of a port alliance with China and efforts by the Chinese ambassador to promote Malaysia were among the factors cited by Liow as offering optimism to trade and economic cooperation.
Seeing a positive impact from the initiative, the MCA chief boldly projected that tourist arrivals from China to Malaysia will increase to eight million in five years, from two million expected this year.
“Increased frequency and routes for direct flights, along with e-visas and online registration systems, have enhanced people-to-people communication.
“In the next five years, we hope to bring in eight million tourists from China.
“We are confident, especially now that China Southern Airlines will have direct flights to Malacca from September 29,” he said.
Earlier, Chinese Ambassador Huang Huikang had expounded on the healthy Chinese investments here.
He said Malaysia – one of the first countries to endorse and support the Belt and Road initiative – was reaping the fruit of the early bird now.
Malaysia has emerged to become China’s sixth largest global trading partner, after the US, Japan, South Korea, Germany and Europe.
China has been Malaysia’s largest trading partner for the past seven years.
Treating Malaysia as a “trustworthy and reliable” regional partner, China will continue to invest heavily in Malaysia on many fronts.
There was plan to invest $3 billion in an integrated steel/cement/coal project in Sarawak and a $2 billion modern energy project in Malacca.
In Malacca, there is already a commitment to invest $10 billion on the development of Malacca port and related tourism projects.
Investment in Bandar Malaysia could rise to 150 billion ringgit (Bt1.3 trillion) for China and its Malaysian partners, when the integrated property project is completed.
China has committed to investing $2 billion.
Bandar Malaysia has been classified as a Belt and Road project and could get easy financing from the Silk Road Fund.
China is also discussing with the Malaysian government on the development of various railway systems, in addition to bidding for the 70 billion ringgit Kuala Lumpur-Singapore High Speed Rail, the ambassador said.
“Soon you will see this scenario. After taking dinner in Kunming, our Chinese nationals will board a train to Kuala Lumpur to have breakfast here,” he said.