Fri, Apr 29, 2011 page11

• China and Malaysia sign range of economic deals

  TALKING TRADE: China was Malaysia’s largest trading partner last year with trade of US$45.66 billion, making it Kuala Lumpur’s second-largest export destination

  • AFP, KUALA LUMPUR
  • • 
    • 
    • 

  Chinese Prime Minister Wen Jiabao (溫家寶) said yesterday that China’s economic progress will benefit all its trade partners and its economic ascent should not be regarded as a threat.

  “China’s development presents opportunities to Malaysia and other regional countries. It does not pose a challenge, neither is it a threat,” he told a gathering of industry leaders in Kuala Lumpur.

  China has leapfrogged Japan to become the world’s second-largest economy.

  Earlier Malaysia and China signed a range of economic agreements, reinforcing an uptick in relations and a bid to identify new areas of regional economic cooperation.

  The deals, witnessed by Malaysian Prime Minister Najib Razak and his counterpart Wen, will see the setting up of power plants and an aluminum smelter, as well as other infrastructure projects in Malaysia.

  “Today’s signing to expand and deepen economic and trade cooperation signifies a deep commitment between the two governments to identify new areas of economic collaboration that should stimulate more trade and investment between both countries,” Najib said after the meeting with Wen. “We are very confident that given [Wen’s] strong leadership, China will continue to grow and provide strong impetus for global economic growth.”

  Wen arrived on Wednesday for a two-day visit and he headed to neighboring Indonesia later yesterday.

  The Chinese prime minister said that “the development of an equal and beneficial relationship will bring greater benefit to both countries.”

  “China appreciates Malaysia’s role in enhancing the ties of China with other ASEAN countries,” he said. “China agrees it will continue to import palm oil and will also import frozen durians [from Malaysia].”

  Najib, who is also the finance minister, announced that the central bank would establish a representative office in Beijing to facilitate trade in local currencies.

  It currently has offices in London and New York.

  Yeah Kim Leng (姚金龍), group chief economist with RAM Holdings, said that the setting up of the central bank office in China would boost trade and investment.

  “It will bolster economic ties and remove currency risk in respect of the unstable US dollar. It will allow two-way trade to be settled in each other’s currencies,” he said.

  Yesterday’s agreements follow the signing of a joint action plan on strategic cooperation by Najib during a trip to China in 2009.

  Wen’s trip follows a visit by Chinese President Hu Jintao (胡錦濤) in 2009.

  The visits have resulted in the signing of a several deals that saw Malaysia issue a commercial banking license to Industrial and Commercial Bank of China (ICBC, 中國工商銀行) in late 2009.

  In January, China’s leading power grid operator State Grid Corp of China (國家電網) and Malaysian development fund 1MDB announced plans to establish hydropower plants and a massive aluminum smelter in Sarawak State on resource-rich Borneo, an island split between Malaysia and Indonesia.

  China was Malaysia’s largest trading partner last year with trade of US$45.66 billion, making the economic powerhouse Kuala Lumpur’s second-largest export destination and its largest source of imports.

  Malaysia has been China’s largest trading partner in ASEAN since 2008.
• Most Popular

  • 1

    PRC likely to launch drills after National Day speech

  • 2

    US military declines to fire adopting Marine Mast

  • 3

    Formosan black bear punching Winnie the Pooh badge a hit at Japan festival

  • 4

    Taiwan ranked world's 14th richest country

  • 5

    Most willing to defend Taiwan: survey