Malaysia tapping China as funding source

Malaysia tapping China as funding source
The Petronas towers are seen through the door frames of an abandoned restaurant in Kuala Lumpur on Aug.18, 2015.
PHOTO: Reuters

 KUALA LUMPUR - With economic growth slowing and foreign direct investment from its traditional partners sagging, Malaysia is chasing more investment from China, banking on yuan settlement facilities and Beijing's external trade promotion initiatives.

The Petronas towers are seen through the door frames of an abandoned restaurant in Kuala Lumpur on Aug.18. © Reuters

Malaysia is banking on FDI both as a source of revenue and to help boost the country's technology prowess. However, it plunged 41 per cent on the year to 21.4 billion ringgit ($5.2 billion) in the first half of 2015. Hong Kong topped the list of FDI sources with 3.1 billion ringgit in the manufacturing sector, overtaking traditional sources Japan, Singapore and the US China came in at fourth place with 1.2 billion ringgit.

Noting that the investment outlook "appears to be subdued" for the latter half of the year, Trade Minister Mustapa Mohamed said Malaysia wants to conclude more deals from major economies in North America, Europe and Asia, particularly China.

"Malaysia is also positioning itself to take advantage of China's outward investment strategy, namely the One Belt, One Road Initiative," he said in a press release on Wednesday.

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