$670 million investments for Johor from China firms

$670 million investments for Johor from China firms

DONGYING (SHANDONG) - Johor is likely to receive RM2 billion (S$670 million) in investments from three big Chinese companies - one re-investment and two new investments - this year.

Johor Domestic Trade, Tourism and Consumerism Committee chairman Datuk Tee Siew Kiong said talks were already ongoing between the state government and the three investors to set up operations in Johor.

"We are confident of securing the investments based on the progress made during the discussions," he said during a week-long trip to Dongying in Shandong recently.

He said the figure included some US$100 million (S$135 million) for the expansion of the second phase of Shandong's D&Y Textile and Garment Group, which has been operating at the Sedenak Industrial Park in Johor since last year.

"The other two new investors involved core businesses of producing tyres and the other one in the green technology sector, which are yet to make its debut in Malaysia.

Tee said the tyre company had initially conducted a feasibility study on four countries including Indonesia, Thailand, the United States and Malaysia as part of its plan to set up operations.

"The chances of the tyre company investing in Johor is much higher compared to other countries or even other Malaysian states due to the state's strategic location and close proximity with Singapore," he added.

Tee said existing Chinese investors in the state had praised the delivery system of the state authorities in aiding and assisting in undertaking their businesses in Johor.

"This has greatly boosted the state's image among Chinese investors and companies that are actively looking to relocate and expand their operations outside China," he said, adding that the Johor government would continue to strive for the best services to keep investment growing.

Citing an example of its efficient services, Tee said that registering a company and opening a bank account for the purpose would only take three days in the state, while it could take up to a year in other countries.

He said that despite the economic slide, Johor had been able to retain its position as the top state for investment in the country, grossing some RM66.6 billion in the past three years alone.

"In 2013 we secured some RM14.4 billion in investments, which rose to RM21.1 billion and RM31.1 billion in 2014 and 2015," he said, adding that Chinese companies contributed the most especially in the manufacturing sector.

Tee assured that the state government would continue its efforts to attract more foreign investors especially China companies and sustain its position as the top investment destination in the country.

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