PETALING JAYA: Asia Pacific Investment Bank (APIB) has urged Chinese enterprises to make full use of the favourable trade policies and tax incentives by the Malaysian government and invest in Malaysia in expanding their international business venture.
In a statement today, APIB CEO Chris Wang said China has always been the main source of foreign direct investment to Malaysia. Despite facing an unprecedented pandemic crisis this year, the trade volume between the two countries has recorded US$103.93 billion (RM423 billion) from January to October 2020. The trade figure reflects the strong bilateral relationship between Malaysia and China, both in trade and diplomatic ties. Both countries remained closely in touch during the pandemic.
Malaysia is transforming to be competitive, high-value added services hub and a global trading center. The Malaysian government in its recent 2021 Budget introduced a new tax incentive, with a preferential tax rate of 10% for five years which can be renewable for a further five years period. This will attract foreign investments especially Chinese enterprises, and at the same time promote global trade activities.
“As a Chinese-funded offshore investment bank, we strongly encourage China enterprises to invest in Malaysia for a win-win outcome. For 11 consecutive years, China has been Malaysia’s largest trade partner and there is further potential in terms of economic and trade collaborations,” said Wang.
According to recent statistics by the Ministry of International Trade and Industry of Malaysia, from January to September 2020, the Malaysian government has approved investment projects by 58 manufacturing companies. These projects will generate large number of new job opportunities which is essential in the current sluggish labour market.
Wang further noted that the Economic Stimulus Package introduced by the Malaysian government during the pandemic has provided assistance for businesses. However it is equally crucial to attract foreign investments to stimulate growth and rapidly revitalize the country’s economy.
“In order to attract and assist foreign enterprises to invest in the country, the Malaysian government has put a lot of efforts in securing a business-friendly environment. By holding regular dialogue sessions , the government was able to formulate policies that met the expectation of foreign investors. At the same time, the Liberal Equity Policy is also a factor in attracting foreign investors. Since June 2003, foreign investors can hold 100% of the equity in all investment in new projects.”
In the recently published Global Competitiveness Report 2020, Malaysia ranked second after Singapore among Asean countries. As a developing nation, Malaysia possesses huge potential, especially in areas such as online trading and digital technology.
To better service the Chinese enterprises to invest in Malaysia, APIB recently launched the “APIB’s Labuan International Business Financial Centre – Comprehensive Financial Services Programme”.
Moreover, APIB also introduced financial service schemes specifically targeted to enterprises venturing in cross-border trades. These include multi-currency settlement tool, supply chain financing scheme, short term liquidity for enterprises, as well as over-the-counter option products. APIB has innovated the application procedures by allowing corporates to access the financial services speedily and easily. Applicants no longer need to present themselves at the bank and can access the financial services online. This effectively quicken both the application and approval procedures and increase efficiency.