KUALA LUMPUR, June 3 (NNN-Bernama) — Malaysia tops the list on expansion opportunities for 65 per cent of Chinese companies looking to scale up their sales and production operations in ASEAN.
According to a survey conducted for Standard Chartered’s “Borderless Business: China-ASEAN Corridor”, Malaysia’s long-standing and strong economic ties with China presents a major growth opportunity for Chinese companies looking to internationalise.
“A significant majority of Chinese companies focusing on ASEAN expect business growth in the region over the next 12 months.
“The region’s fast-growing consumer markets, rapidly maturing supplier landscape, and regional trade links offer Chinese companies a strong growth potential in sectors such as high-value manufacturing, energy, and digital services,” Standard Chartered Malaysia said in a statement Thursday.
Recent data from the Ministry of International Trade and Industry indicated that China as Malaysia’s largest trading partner for the 12th consecutive year in 2020 with total trade valued at RM329.8 billion, accounted for 18.6 per cent of Malaysia’s total trade compared with 17.2 per cent in 2019.
Meanwhile, 72 per cent of Chinese businesses currently sell and export to Malaysia.
Access to the large and growing ASEAN consumer market (56 per cent), local government incentives and support for project sustainability (54 per cent), as well as the presence of a mature and reliable supplier base (51 per cent) were regarded as the key drivers in entering the ASEAN market.
Additionally, the Regional Comprehensive Economic Partnership is expected to attract more investments into the region and will be a boon to Malaysia’s export growth.
“Some 88 per cent of respondents plan to increase their investments by at least 25 per cent into ASEAN over the next three to five years,” it said.
Standard Chartered Malaysia managing director and chief executive officer Abrar A Anwar said having grown with the country over the last 146 years, and being the only international bank present in all ASEAN markets, the bank is well-positioned to support companies venturing into Malaysia and their cross-border financing needs.
“Our leading financial solutions and cutting-edge digital capabilities are what make us the go-to bank for Chinese companies with ASEAN growth aspirations,” he said.
— NNN-BERNAMA