SPEECH BY

YB DATO’ SERI ONG KA CHUAN,

MINISTER OF INTERNATIONAL TRADE AND INDUSTRY II MALAYSIA

AT 2015 CIFIT WELCOMING DINNER “CAPITAL MEETS PROJECTS, NETWORKING WITH GLOBAL RESOURCES”

7-9-2015 @ ROYAL VICTORIA HOTEL, XIAMEN

(5 minutes)

Distinguished Guests

Ladies and Gentlemen

1.  Let me begin by congratulating the Ministry of Commerce (MOFCOM), China, and His Excellency Su Shulin, the Governor ofFujian Province and Chairmanof the CIFIT Organizing Committee for successfully organizing the 19th China International Fair on Investment and Trade (CIFIT) in Xiamen.It is a great honour for me to be here and I am grateful for the warm reception and hospitality since our arrival in Xiamen.

2.  As the largest global investment and promotion fair, CIFIT is an important platform to reinforce cooperation and networking amongst entrepreneurs nationwide. Malaysian Government is very supportive of this event, and lastyearwe had the honor to be the host country of the 18th CIFIT. Earlier, I had a pleasure of meeting with the His Excellency Khalid Al-Rumaihi,Chief Executive of The Economic Development Board from the Kingdom of Bahrain, the host country for this year’s CIFIT. I shared our wonderful experience with His Excellency Khalid in being the host country.

3.  This year, I am pleased that Malaysia’s participation is bigger than the last one. The Malaysian Pavilion this year encompasses a720 square meters exhibition area, with a total of 54 booths. We welcome visits to Malaysian Pavilion at Hall C, showcasing Malaysian property, food and beverage, household products, services, retail trade and many others.

Ladies and Gentlemen,

4.  For the past seven consecutive years, China was Malaysia’s number one trading partner, first in terms ofimports and our second largestexport destination.In 2014, total trade between our two countries was valued at US$63.50 billion, an increase of 2.2% compared with 2013 – and this accounted for 14.3% of Malaysia’s total global trade.Among ASEAN members, Malaysia remains China's largest trading partner. This demonstratescontinued strong trade ties between our two economies.

5.  Our governments have been working togetherin helping our business community continue to interact and expand their businesses. The establishment of the two sister industrial parks, China-Malaysia Qinzhou Industrial Park and the Malaysia-China Kuantan Industrial Park are the classic example of the close business cooperation between Malaysia and China.The setting up of the first overseas campus of the Xiamen University in Malaysia also marked another significant milestone in bilateral cooperation.

6.  We have also established The China-Malaysia Five Year Programme, which form the basis of our economic and trade cooperation with China for the next five years as well as for wider bilateral economic relations for decades to come. Bilateral investments cross flows between both our countries are encouraging. I hope the Chinese and Malaysian entrepreneurs will capitalize on our close bilateral ties and continue to work together for our mutual benefit.

Ladies and Gentlemen,

7.  The 21st Century Maritime Silk Road announced by President Xi Jinpingin October 2013 prompted a great deal of interest throughout the continents Asia, Europe and Africa, including Malaysia.The Prime Minister of Malaysia, Dato’ Seri Mohd.NajibTun Abdul Razak has reiterated Malaysia’s support for the “One Belt One Road” initiative. Malaysia can indeed serve as an ideal gateway for China to enter into South East Asian market.

8.  In 2014, Malaysia’s total trade expanded by 2% to $445 billion. Growth was also strong in 2014, at 6%, and this positive record continued in the second quarter of 2015, at 4.9%.The cost of doing business in Malaysia is alsocompetitive. In Malaysia, we haveskilled, multilingual labour force as well as some of the most affordable costs of living in the region and easy connectivity from any part of the country. The recent launching of the Bank of China Malaysia as the Renminbi Clearing Bank for Malaysia has also facilitated direct trade settlements in the region.

9.  Malaysia’s attractive business environment has attracted worldwide recognition.In 2015, we ranked 18thin the World Bank’s ‘Ease of Doing Business’ Report, 14thin the World Competitiveness Yearbook and 20thin the WEF’s Global Competitiveness Report 2014–2015. Malaysia, in fact, is presently ahead of developed economies such as Austria, Australia, France and the Republic of Korea.

10.  In addition to Government's commitment to facilitate conducive business environment, there is yet another reason why investors should focus on Malaysia as their preferred investment destination. I refer, of course, to the impending formation of the ASEAN Economic Community (AEC).

11.  The AEC will be formally established by the end of this year. It seeks to create a single market and production base among the 10 Member States of ASEAN. Once implemented fully, the AEC will help facilitate a seamless, cross-border trade and investment regime in this region.

12.  The potential of a deeply integrated regional economy is massive. ASEAN is home to more than 620 million people and a rising middle class with increasing disposable income. The region averages 5 percent annual economic growth. Collectively, ASEAN's economy is currently ranked Number 7 in the world. Our annual GDP is estimated at more than USD 2.5 trillion. And that is expected to almost double to USD 4.7 trillion by 2020, with the implementation of the AEC.

Ladies and Gentlemen,

13.  In closing, I believe I have briefly outlined the potential for investors in Malaysia. We offer competitive advantages and these include a strategic geographical location, excellent connectivity and an educated, talented and hard-working populace. To these are added the Government's prudent and pragmatic policies and streamlined processes that are very business friendly.

14.  I strongly urge all the business people present here today to regard Malaysia as their preferred investment destination and capitalise on Malaysia’s commitment to an open trading regime. In the midst of global economic uncertainty, our track record demonstrates that you can count on us as a trusted partner in our joint strides towards increased prosperity for all.

I wish you all successful and productive meetings in the days ahead.

Thank you.

1