Malaysia set to draw minimum RM30bil investment from China: Juwai IQI
Juwai IQI co-founder and group chief executive officer Kashif Ansari said the surge in investment followed the official visit of Chinese President Xi Jinping to Malaysia in April.
The visit saw important agreements signed in the semiconductor and aviation sectors.
Kashif said the visit was seen as a pivotal moment that set the direction for increased foreign direct investment (FDI) activities throughout the year.
"In 2024, China's total investment to Malaysia reach RM31 billion, more than double the amount recorded in 2023 and the highest since 2015. We expect another year of at least RM30 billion in Chinese investment in 2025.
"This time, battery and solar component plants will most likely account for a larger share," he said in a statement.
He said the East Coast Rail Link (ECRL) project was a prime example of long-term value creation with the project being managed by China Communications Construction.
The latter employs more than 16,000 Malaysians directly including joint contractors, Bumiputera companies and carrying out 40 per cent of the public works.
"Once it is complete, projections say it will boost Malaysia's gross domestic product by 3.8 per cent.
"And while job numbers are difficult to predict, the GDP growth would likely generate more than 90,000 new jobs to the economy. For example, Malaysia's 5.1 per cent GDP growth in 2024 created about 127,000 new private sector jobs," he said.
Kashif pointed out Johor-Singapore Special Economic Zone as the big winner as the state attracts large-scale industrial and logistics projects.
"The zone is a major point of interest for our corporate clients in China, especially manufacturers. We get the same questions from company after company that is considering moving to the area.
"Chinese companies' top three questions about the special economic zone have to do with the headline tax incentives on offer, which flagship zone best matches their industry and the speed of cross-border cargo clearance."
He added that the strong inflow of direct investment will have a significant impact on the real estate market, with high demand expected for industrial and logistics property.
He said the new steel plant and battery facility are examples of projects that are driving surging demand for large-scale industrial land.
"The fact that construction forms 52 per cent of total Chinese inbound capital flows suggests direct and robust investment into assets like factories, transport and logistics centres.
"The property markets in the Johor special economic zone, Greater Kuala Lumpur and Selangor are all likely to benefit," he added.
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