KUALA LUMPUR, Jan. 20 (Xinhua) -- Malaysia's capital city Kuala Lumpur is targeting to attract and streamline Chinese investment via a China Special Channel (CSC), officials said on Monday.
InvestKL, a government Investment Promotion Agency to attract multinational companies to establish their regional hubs and undertake regional activities in Kuala Lumpur and adjacent areas, is eyeing for 10 billion ringgit (2.46 billion U.S. dollars) in investments over the next two years by streamlining entry for Chinese investors.
"China's investments into Malaysia should reflect our prosperous, long-standing trading relationship. CSC can be an effective bridge to not just draw in new investments, but also streamline the engagement process to effectively match Chinese investors with production sites, tax incentives, and supporting talent pipeline," said InvestKL Chairman Michael Yam.
"Via CSC, InvestKL targets to bring in 10 billion ringgit in new investments from China in the next two years. Our China team has been tasked to develop strategies and attract high-tech, high-value and high-impact FDI," he said when investKL signed memorandum of agreement (MoU) with local business chamber including the China Enterprises Chamber of Commerce in Malaysia to attract Chinese investment.
InvestKL CSC will act as a single window for all investment opportunities from China into Malaysia, attracting Chinese companies aiming to set up new businesses and regional hubs outside of China or relocate their smart manufacturing and high value services.
The mechanism aims to draw investors from key sectors including consumer technology, smart technology, renewable energy, medical technology, medical devices, electrical and electronics (E&E), mechanical engineering, chemical, and aerospace.
The CSC was first announced by Finance Minister Lim Guan Eng during the tabling of Malaysia's national Budget 2020 last October.
Lim, who witnessed the signing, said the channel will focus on attracting and supporting Chinese companies and global multinational corporations located in China looking to set up new bases in order to expand into Southeast Asia.
"The CSC will also be in a position to understand the needs of the investors and the nature of the investments, to be able to help them develop their entry strategies and navigate the complexities of doing business in a new country," he said.
International Trade and Industry (MITI) Minister Darell Leiking, who was also present at the signing ceremony, said the move would enable Malaysia to benefit from value-added investments at a time of uncertain global economic conditions.
"I certainly look forward to welcoming Chinese companies and global multinationals in China from these sectors to set up their operations here in Malaysia, and anticipate the transfer of knowledge, skills and innovation that will undoubtedly follow which will have a positive impact on Malaysian job-creation and upskilling of the workforce," he said.