The Malaysian government has, by far, adopted an open-mind, open-door policy to China by allowing investments and imports from China to flow into the country freely.
Besides that, it also wants to promote exports and large scale project bidding in China.
China is an important trading partner for Malaysia. China is Malaysia largest trading partner.
Malaysia and China marked another milestone in its effort to strengthen both country economic tied by jointly develop the China-Malaysia Qinzhou Industrial Park (QIP), which will be the third industrial park in China that is developed under the government-to-government (G2G) initiative.
Trade volume between China and Malaysia is expected to reach US$100 billion (RM306.34 billion) this year, which would make Malaysia the third Asian country to break through that mark after Japan and South Korea.
Last year, bilateral trade reached a historical high of US$90 billion (RM275.70 billion) and was very much in Malaysia’s favour.
Palm oil was one of the major commodities exported to China, while the main goods were information technology (IT) products like chips.
IT products took up some 40% of trade both ways..
QIP will be develop by S. P. Setia Bhd together with Rimbunan Hijau Group from Malaysia with Qinzhou Jingu Investment Co Ltd (Qinzhou Jingu) from China.
A ground-breaking ceremony was held in the presence of Chinese Premier Wen Jiabao and Prime Minister Datuk Seri Najib Tun Razak in China on 1st April 2012.
S. P. Setia’s participation will be via its 45% equity stake in a Malaysian JV company known as Qinzhou Development (Malaysia) Consortium Sdn Bhd, which in turn will hold 49% stake of the China JV Co to be formed with Qinzhou Jingu as its JV partner.
In a statement issued, S. P. Setia said the China JV Co would be the vehicle through which the Malaysian Consortium and Qinzhou Jingu would jointly develop the QIP.
The QIP is located 10km south of Qinzhou City and 5km north of the Guangxi Qinzhou Free Trade Port Area a national economic and technological development zone.
It is also strategically located between the port cities of Beihai City and Fangchenggang City.
The industrial park has a planned area of 55 sq km, consisting of five functional districts namely industrial, residential, auxiliary service, production and living centre, and scientific and technology service.
On completion, this ecological coastal city development is expected to house a population of 500,000, which is nearly 13% of Qinzhou’s current estimated population of 3.9 million.
Development in the QIP will kick off with a Start-Up District comprising commercial, residential, industrial and public amenities which spans over 7.87km.
Source : BERNAMA and The Star
(this article written for 1BINA.my)