MALAYSIA’S trade ties with China will flourish under the Pakatan Harapan government, never mind the unfavourable sound bites against the economic superpower during the 14th general election, said two local Chinese trade groups.

They also felt the appointment of Lim Guan Eng as finance minister would serve to enhance bilateral trade with China.

Malaysia-China Chamber of Commerce (MCCC) president Tan Yew Sing said Lim’s appointment was not because he was Chinese, but because of his track record in Penang, where he as the chief minister of 10 years had greatly developed the local economy.

“The local Chinese business community is confident that Lim can take the country’s economy to greater heights,” Tan said.

During the GE14 campaign period, PH chairman Dr Mahathir Mohamad had promised to review all mega-projects initiated by the BN government, including several infrastructure projects in which China was heavily invested.

The review was to ensure the projects were beneficial to Malaysia, he said.

Tan said he was not worried about the review which was normal in any democracy after a change of government.

He pointed out that the new administration had not said it would reject new investment from China.

Tan said that during his first tenure, Dr Mahathir had warmed towards China.

“He was wary of the US and was friendly towards China. Now, times have changed, the world has changed.

“China is an economic superpower now, and Dr Mahathir will definitely recognise the country as such. He has even personally announced that the PH government will be business-friendly.”

Tan said at the moment, there was a lack of people who could facilitate Malaysian-Chinese trade.

“I think Malaysia is having a shortage of related talents, including technical staff. There are plenty of research and development personnel on the Chinese side and they can share their knowledge and advancements with Malaysians.

“On the Chinese side, they can benefit from Malaysia’s multi-lingual talents, there are no drawbacks for both sides on the global market.”

The previous government under Najib Razak had welcomed China’s “One-Belt-One-Road” initiative, in which China would invest billions in Malaysia, including in the Malaysia-China Kuantan Industrial Park, the Malacca Gateway project and the East Coast Rail Link. These total some US$30 billion (RM119 billion) in investments.

Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) president Ter Leong Yap, believes trade ties with China can only get better.

He said Acccim was recently invited by former finance minister Daim Zainuddin, who has been appointed to the Eminent Persons Council, to a discussion.

“Of course, we will also be talking about Chinese investment. The prime minister has already said that as long as such projects are beneficial to the country, the government will support them,” Ter said.

Ter said even though the stock market had fallen slightly on Monday, the first day of trading after GE14, it had since recovered and stabilised, indicating confidence in the new PH government led by Dr Mahathir.

He said China has for the past nine years been Malaysia’s biggest trading partner and is the 6th country with the most foreign direct investment in Malaysia. Bilateral trade between the two countries last year went up to RM290.6 billion, underscoring the importance of the Malaysian market towards China.

“PH is rational and the government will be objective in its analysis of Chinese investments so there is no question that bilateral trade relations will be ruined after the change of government.” – May 17, 2018.