[ 06-10-2015 ]
Weaker Ringgit Helps Attract Investors From China To Malaysia
KUALA LUMPUR, Sept 25 (Bernama) -- The weakening ringgit will benefit entrepreneurs from China who are investing in Malaysia, says the Malaysia-China Chamber of Commerce.
"With the depreciation of the local note, Chinese companies could reap the benefits by investing in Malaysia as it is cheaper and this country offers growing prosperity," President Datuk Bong Hon Liong told reporters on the sidelines of the LED Business Summit here Friday.
Local companies as well as those from China are attending the summit which discussed trade opportunities in the LED industry to both countries.
Bong said the summit would be beneficial for local LED industry players from China who intend to conduct business cooperation with the local market.
Nonetheless, he said the depreciation of the ringgit against the renminbi posed challenges to Malaysia in achieving the target trade value of US$160 billion by 2017 (RM1=US$4.38).
Bong also said local players faced some challenges during trading activities with China as import transactions were either done in the renminbi or US dollar.
He hoped the ringgit would not depreciate further in the long-term as the rising cost would affect the industry players in Malaysia.
Currently, though the ringgit is weaker, it is still superior to the reminmbi, standing at about 68 sen to a Chinese renminbi.
He said with China being Malaysia's fourth largest trading partner since 2009, the prospects appeared excellent for even larger growth in future.
The trade between Malaysia and China stood at US$102 billion in 2014.
During January and July 2015, trade stood at US$57.09 billion, making China the largest trading partner in Malaysia.