Malaysia-China trade may exceed US$100 bln

The Malaysia-China Chamber of Commerce expects bilateral trade between Malaysia and China this year to exceed US$100 billion.

“Based on the 2011 bilateral trade between Malaysia and China that was worth US$90.3 billion, we expect it to surpass the US$100 billion mark this year,” said its Secretary-General, Youth President and General Affairs Chairman, Joseph Lim.

“Malaysia and China are currently going through what we call ‘honeymoon’ years, and relations now are at their best ever.

“Most of our consumer products and even services are imported from China,” he told a press conference on the Malaysia-China Entrepreneur Conference (MCEC) here today.

On the other hand, Lim said, Malaysia exports a lot of electronic parts and natural resources such as petroleum, palm oil, rubber and timber to China.

“We also found out that it is much cheaper to set up a factory in Malaysia than in China.

“Based on our latest figures, the labour cost in China has increased. In Guangdong you have to pay 3,000 yuan whereas in Malaysia we pay less than 1,000 yuan.

“This shows that the production cost in Malaysia is much lower than in China,” he added.

To further strengthen this positive development, the Chamber and TNT Express Malaysia have invited three speakers from China to share their success with budding entrepreneurs in Malaysia at the MCEC on Sept 8.

“All of our speakers are carefully selected to share what we believe will be most beneficial to our participants, apart from providing them an ideal avenue for networking and business matching.

“Currently around 800 participants have already signed up, including from overseas and China.

“We also have considered 30 projects for the business matching sessions,” he added.


Malaysia-China trade may exceed USD100 billion

The Malaysia-China Chamber of Commerce expects bilateral trade between Malaysia and China to exceed USD100 billion this year. Its Sabah branch president, Datuk Lau Kok Sing, said the bilateral trade between both nations was recorded at around USD35.6 billion as of May this year.

“Last year the bilateral trade between Malaysia and China stood at USD91 billion and we expect it to exceed USD100 billion this year,” he said in an interview here yesterday.

The Sabah branch of the chamber, led by Lau, recently organized a trip to Hong Kong, Xi’an and Shanghai in China to learn more about the tourism and development in China. The chamber invited Head of State Tun Haji Juhar Haji Mahiruddin and wife Toh Puan Norlidah R.M. Jasni as well as Youth and Sports Minister Datuk Peter Pang En Yin to join the trip.

Also among those in the China trip were Lau’s wife, Datin Lim Su Chin, the chamber’s honorary advisor, Datuk James Hwong, vice president Frankie Liew, internal auditor Datuk Alan Ang Banth Suoon, deputy secretary-general Dexter Lau Wei Dick and member Koh Kian Ling.

“The Malaysia-China Chamber of Commerce was established not long ago, and so it was our honour and a form of recognition and encouragement that the TYT could come with us on this trip,” Lau said.

He said the chamber would organize more trips to bring Sabahan entrepreneurs to China, adding that there are opportunities in the tourism and hotel industries.

On the other hand, Lau also hoped to bring more Chinese investors to the State to explore opportunities in agriculture, oil and gas and the rubber industries in the near future. He added that Chinese who have come to Sabah had commended its beautiful scenary, and on this trip, he said the local officers had pledged to bring more people to visit Sabah.

Among the places the group visited include Terracotta Warrior and Horses, Qing Shi Huang Maosoleum, The Great Mosque, Yu Garden, and The Bund in China.

India is pressing China to buy more of its goods

India is pressing China to buy more of its goods from pharmaceuticals to software and taking steps to reduce Chinese imports as it grows increasingly worried about its widening trade gap with its Asian rival. New Delhi is frustrated that trade talks launched when Chinese Premier Wen Jiabao visited India in late 2010 haven’t yielded significant benefits. India’s trade deficit with China jumped 42% to nearly $40 billion in the last fiscal year ended March 31, and was the largest contributor to the country’s overall gap between exports and imports.

India wants greater access for its “value-added products” and wants China to increase government procurement in sectors such as pharmaceuticals, Mr. Sharma said. India recently submitted a list of 916 goods that it believes China should purchase in larger quantities.

Meanwhile, Chinese goods are flooding Indian markets—from heavy industrial equipment to laptops to cosmetics. In a little more than a decade, China has moved from India’s seventh-largest source of imports to its largest source, overtaking the U.S., Germany and Japan, according to Indian government data.

India is taking steps to curb that influx. The cabinet late last month approved a 21% tariff on imports of equipment for big power projects, a move aimed at protecting local manufacturers from Chinese competitors. Such protectionist moves have drawbacks, though. India desperately needs to boost power generation, as the massive outage this week demonstrated, and advanced Chinese technology—from boilers to turbines—is becoming increasingly vital to pull off the biggest power plant projects. China already supplies over 40% of India’s power gear.