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PETALING JAYA: China’s quarantine-free crossborder travel has begun, leading to hope among trade organisations that the Malaysian economy and bilateral trade development would benefit.
Organisations dealing with Chinese investment are optimistic that more business people will return to Malaysia to kickstart business ventures or continue from where they left off previously.
Malaysia-China Business Council director Datuk Beh Hang Kong said China’s opening and rules relaxation would have a “direct effect” on the economy.
“The most prevalent ones would be to our tourism sector and the related downstream industries.
“Next, the opening would facilitate greater face-to-face interactions, which is important in trade activities,” he said in an interview.
Beh, also China-Asean (Malaysia) Entrepreneur Association chairman, said many business decisions had been put on hold because their Chinese counterparts could not fly to Malaysia.
“China has been our largest trading partner. We have been enjoying good bilateral trade relations,” he said.
“Although our trade volume was still good during the pandemic, having direct contact will certainly increase trade activities, especially in receiving more foreign direct investments (FDIs).
“FDIs are often long-term plans that need more physical visits on the ground before decision making, which were affected previously. This opening has been long-awaited,” he said.
Starting yesterday, China eased its restrictions on foreign travel. This means that inbound travellers are no longer required to quarantine.
With many Chinese firms looking to expand their business, Beh said: “Before the pandemic, we used to have two to three million Chinese businessmen trading with us each year.
“The number of those returning starting Sunday (yesterday) will be low at first but it will gradually increase, especially after the Chinese New Year celebration.”
As the chamber is determined to do more trade promotions later, Beh said the government should strengthen its policies and accommodate more FDIs.
“Our government should take the lead and send the right signals to investors with more business-friendly approaches,” he said.
Malaysia-China Chamber of Commerce (MCCC) honorary president Datuk Tan Yew Sing expected Chinese business people to come in droves in the second half of the year.
“The Lunar New Year is coming. And various challenges and uncertainties still plague the global economy,” he said.
“China may remain cautious with its Covid-19 situation for a while.”
Also, he said Chinese investors would likely be clearer of their investment directions and plans after China’s “two sessions” meetings in March.
The “two sessions” (or liang hui in Mandarin) refers to the annual meetings of China’s two main political bodies – the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).
It begins on March 4 in Beijing with major policies involving the economy, trade, diplomacy, the environment and more to be laid out.
Tan called on Malaysia to refrain from a “wait and see” attitude but take initiatives to attract more FDIs by implementing strategic and win-win policies.
“Our Prime Minister said he would visit China later this year, likely after the liang hui. I hope his visit will bring more positive vibes for our trade development,” he said.
Chartered accountant Shaun Lee Chong Leng, who frequently deals with Chinese businessmen in their investment journeys, said Malaysia is set to gain with their return.
“I have seen more Chinese companies incorporating new companies as they are set to return to Malaysia.
“We must introduce more friendly policies and provide incentives for our local small and medium enterprises to attract more capital funding and FDIs,” he said.
Lee, who is MCCC Melaka’s vice-president, said Malaysia has the upper hand against other South-East Asian countries due to multilingual skills and rich natural resources.
With the Regional Comprehensive Economic Partnership (RCEP) free trade agreement coming into force, Lee said more products with more choices are coming as Chinese investors are keen to explore business opportunities here.
“I hope the new government will remain stable and work on delivering solid and firm trade policies with no flip-flops,” he added.
Source: https://www.thestar.com.my/news/nation/2023/01/09/business-climate-set-to-improve