Will China maintain its top investor position in Selangor this year?

Question

Accepted Answer

China is expected to remain Selangor's top investor this year.

Invest Selangor Bhd is optimistic that China will maintain its position as the top investor in Selangor for the current year. This sentiment is largely attributed to the ongoing trade conflict between China and the United States, which may prompt Chinese companies to relocate their operations. In 2018, China was indeed Selangor's leading investor, contributing RM3.93 billion, primarily within the manufacturing sector, specifically in basic metal products and paper.
Optimism Driven by US-China Trade Tensions

The escalating trade dispute between China and the United States is a significant factor contributing to the positive outlook for Selangor's investment landscape. This geopolitical situation is seen as a catalyst for Chinese enterprises to seek alternative investment locations outside of China, with Selangor being a primary beneficiary. The state's established manufacturing base and strategic location make it an attractive option for companies looking to diversify their operations amidst international trade friction.
Selangor's Investment Performance and Targets

In 2018, China's investment value in Selangor reached RM3.93 billion, predominantly in manufacturing sub-sectors like basic metal products and paper. Japan followed as the second-largest investor, with RM435.6 million invested across semiconductor, factory automation, automotive, and food industries. For the current year, the Selangor state government has set an ambitious target of achieving a total investment of RM10 billion.
Focus on High-Technology Clusters and Programmes

To achieve its investment goals, Selangor is strategically focusing on developing five key high-technology clusters: machinery and equipment, transportation and equipment, life sciences, food and beverages, and electrical and electronics. Complementing these strategic initiatives, Invest Selangor has allocated an additional RM10 million for investment-related programmes in the latter half of 2019, spanning from July to December. This funding will support various activities, including trade and investment missions, business seminars, dialogues, exhibitions, and publications.
Existing Manufacturer Reinvestment and Expansion

The manufacturing sector in Selangor has demonstrated consistent strength, with a significant portion of approved investments stemming from reinvestment and expansion activities by existing manufacturers. Between 2010 and March 2019, 902 manufacturing projects, representing 39.6% of the total, were approved for expansion or diversification. Furthermore, reinvestment by established manufacturers accounted for RM37.6 billion, or 41.9%, of the total investment approved in Selangor's manufacturing sector during this period. This indicates a strong foundation of investor confidence and sustained growth within the state's industrial base.

Reading history

Hide →

This history is cleared when the page is closed.

Will China maintain its top investor position in Selangor this year?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends