Increased Chinese investment does not mean country being sold

KUALA LUMPUR: The increase in China’s investments to Malaysia does not mean that the country is being sold to the Chinese, said Managing Director of Capital Dynamics Sdn Bhd, Tan Teng Boo.

He said some people had the wrong perception of this.

“It is wrong because the country needs investments to move forward. The US and Japan, for example, have been investing in Malaysia for a long time while China has just recently started to invest,” he said.

Tan said this to Bernama after the briefing on the coming 2017 Global Investor Week, which will be held on Nov 4-5, 2017 here.

He said it would take a long time for China to match the investments made by US and Japan here.

“The US and Japan had invested here for a long time and China has just recently started to increase its investments.

“China is now a country with a strong economy. It could have invested where ever they want, but they chose Malaysia. This is because we have strong diplomatic relationships with them, and we need the investments to help boost the country’s economy,” he said.

Among the notable investments from China in Malaysia were the East Cost Rail Link that will connect Port Klang to Pengkalan Kubor, Kelantan and also its investment in Proton Holdings Bhd, he said.

“China’s role in Proton, for example, is a good thing and seeing how it has turned Volvo around, I am positive that Proton will be up on par in five to 10 years’ time,” he said.

In May, China’s Zhejiang Geely Holding Group Co Ltd, the owner of Sweden’s Volvo Car Group, had bought a 49.9 per cent stake in Proton from conglomerate DRB-HICOM Bhd.

Meanwhile, Tan said, the 2017 Global Investor Week, would include talks on China’s economic and political developments as well as the Association of South-East Asian Nations economies and markets.

“Prior to the event, we will hold a series of roadshows nationwide to attract those interested,” he said.

Capital Dynamics is an independent fund management and investment advisory firm.

Source: Bernama

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