PETALING JAYA: Malaysia and China, which are both committed to the global call for sustainability, should seek to deepen the synergy between their respective green strategies by exploring further cooperation in the renewable energy sphere.

According to the Ministry of Investment, Trade and Industry (Miti), Malaysia is committed to pursuing the environmental, social and governance (ESG) agenda, by collaborating with China on green economy.

More specifically, Malaysia noted that China has put in place a framework under the latter’s New Energy Automobile Industry Development Plan to strengthen its foothold in electric vehicle (EV) and new vehicle technologies by 2035.

“Drawing upon each other’s experience and strength, Malaysia and China should seek to deepen synergy between our strategies by exploring further cooperation in the areas of renewable energy, energy efficiency, energy storage systems, as well as support services for EV, such as EV-charging stations, operations and maintenance,” Miti told SunBiz.

Last year, Malaysia introduced the New Investment Policy, whereby it identified five key sectors that can attract more foreign investors to invest, either in research and development or manufacturing facilities using new technologies. The key sectors are electrical and electronics, pharmaceutical, digital economy, aerospace as well as chemicals.

“Miti foresees the new and emerging sectors to drive long-term growth by building innovation capacity and attracting quality and sustainable investments that promotes the creation of high value-added jobs,” the ministry said.

In April, Malaysia secured a total of RM170.07 billion worth of committed investment from China, during Prime Minister Datuk Seri Anwar Ibrahim’s visit to the country. Furthermore, an additional RM2.44 billion worth of export potential for Malaysian products was secured.

The investment comprises two components – committed investment worth RM100.33 billion from 36 prominent Chinese companies and 19 memorandums of understanding between Malaysian and Chinese companies in various investments and collaboration projects valued at RM69.74 billion.

The ministry believes that Anwar’s visit has increased the confidence of Chinese investors and captains of industry in Malaysia’s policy direction and its business-friendly approach.

Miti said its agency, Malaysian Investment Development Authority (Mida), is providing the necessary support and assistance to materialise these investment commitments and the progress depends on the complexity of the projects. At this point in time, the ministry “is unable to provide the detailed breakdown as the investment value for a specific company is bound by the private and confidentiality terms”.

Meanwhile, Miti shared that many prominent Chinese companies have chosen Malaysia as their base for setting up manufacturing plants and their decision to invest “is purely business-driven”.

Based on Mida’s records, the Chinese companies’ investments in the manufacturing sector are mainly in the petrochemical industry, glass products, metal products, solar products and the development of data centres as well as innovation centres. Moreover, some of these investment projects are through joint ventures with Malaysian companies.

On trade and business facilitation between both countries, Miti together with its agencies, Mida and Malaysia External Trade Development Corporation. have offices in China. They are assisting and facilitating Chinese investors and importers who have expressed their interest to invest in Malaysia and sourcing raw materials from Malaysia respectively.

“Our agencies in Beijing, Shanghai and Guangzhou will provide guidance and engage with the potential Chinese companies through direct discussions and consistent follow-up,” it said.

In addition, Miti is working very closely with the Economic and Commercial Counselor’s Office from the embassy of China to facilitate the investments from China. It pointed out that China’s ambassador to Malaysia, Ouyang Yujing, has shown his support by encouraging high-quality investments and business opportunities from China.