China investments in Sabah total RM12.3 billion
Published on: Tuesday, August 13, 2024
Yang Tina (sixth left) presenting a silk handmade painting to Phoong
Kota Kinabalu: State Industrial Development and Entrepreneurship Minister, Datuk Phoong Jin Zhe said that China has maintained its position as Sabah’s largest trading partner, with total investment doubling to RMB20 billion (RM12.3 billion) over the past five years.
“China has always been Sabah’s largest trading partner. Our trade volume with China has doubled from RMB10 billion (RM6, 164,640,000) in 2018 to RMB20 billion in 2023,” Phoong said during a courtesy visit from the China Hubei and Henan Enterprise Delegation, here, Saturday.
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The delegates were introduced by Sabah China Chamber of Commerce (SCCC) President Datuk Frankie Liew.
“Last year, Sabah’s gross industrial manufacturing output value grew by 4.4%, making it the fastest-growing state in Malaysia’s manufacturing sector,” Phoong said highlighting Sabah’s rapid industrialisation.
Pointing out Sabah’s strategic advantages, including pro-business policies and geographical location, Phoong said Sabah has the second busiest airport in Malaysia, with 82 weekly flights to and from nine Chinese cities.
“By next year, we expect connections to 12 Chinese ports, making Sabah the most connected place to China in Southeast Asia,” he said.
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He also spoke about Sabah’s shipping advantages saying it takes only two to three days for a ship to arrive in Sabah from China with ships from Xiamen arriving within four days.
“We hope to learn more relevant technologies from China, not just high-tech, but also industrial chains. We’re particularly interested in natural and mineral resources,” Phoong said expressing his commitment to attracting diverse investments, including high-tech and industrial chain transfers.
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“If China wants to implement the industrial chain in Sabah, we will definitely provide assistance and coordination.
“If China intends to sell Sabah’s products to China, we are also happy to assist and discuss, and hope that Sabah will continue to be the preferred area for investment by all parties,” he said.
In addition, Phoong will also visit Beijing and Jilin, China next week for government-to-government visits and meeting agenda such as to discuss the cooperation in the export of frozen durian, bird’s nest and related fields of biological drugs, as well as explore cooperation in the automotive field.
“Jilin is famous for ginseng and I hope that the ginseng-related industry can also be combined with some local herbs in Sabah.
“Last year, the gross industrial manufacturing output value of Malaysia grew by 0.8 per cent, while Sabah grew by 4.4 per cent, making it the fastest growing state in the manufacturing industry in Malaysia.
“This shows that the Ministry of Industry is very much looking forward to working with investors to lead the development of Sabah, lead the industrialisation, and reform and open up for 40 years, so that the economy and people can become prosperous.
“Under the Belt and Road Initiative, Sabah has achieved substantial development and a lot of investment in the past few years, which is inseparable from our cooperation with China,” said Phoong.
Citing the successful investment of Qibin Air Group as an example of Sabah’s favourable investment climate, Phoong said Qibin Group has established the first photovoltaic glass manufacturing plant in Sabah with a total value of RM3 billion.
“They expect to increase investment by more than RM7 billion, making Sabah a global photovoltaic glass production base,” Phoong said.
Phoong also invited Chinese businesses to attend the “First Sabah China Expo and Sabah China Business Summit” scheduled for November 22-24 at the Sabah International Convention and Exhibition Centre.
The head of the Hubei and Henan delegation this time is Yang Tina, general manager of CITIC Environmental Technology/Wuhan Xinfeng Optoelectronics Henan, and the members are Zhengzhou Shenglong Co., Ltd. Chairman, Wang Peng, Overseas Manager Song Hongzhu, Director Chen Feifei; Information Industry Electronics 11th Design Institute Technology Engineering Co., Ltd. Tianjin Branch Vice President and Director of Overseas Project Office Ge Jun, - Tianjin Branch Vice President Hu Qiaochu, Business Department Manager Yu Qiangsheng, Mechanical and Electrical Engineer Liu Hao and Electrical Professional Engineer Zhu Hongwei.
Among the delegations, Wuhan Xinfeng Optoelectronics’ main business is hydropower engineering; Information Industry Electronics 11th Design Institute Technology Engineering Co., Ltd. is a leader in photovoltaic power generation and other fields; Zhengzhou Shenglong Co., Ltd. is a major R&D and manufacturer of 3D stereoscopic large screens, 3D virtual simulation platforms, and intelligent optoelectronic display equipment, all of which are local heavyweight companies.
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