LARGER INFLOWS OF INVESTMENTS FROM CHINA TO MALAYSIA EXPECTED

KUALA LUMPUR, Nov 2 (Bernama) -- China's recent approval of Malaysia as a
destination for Chinese portfolio funds through the China Qualified Domestic
Investor Status will generate larger inflows of Chinese investments into
Malaysia.

Deputy Prime Minister Muhyiddin Yassin, in stating this, said that Chinese
businesses could participate directly in Malaysia's Economic Transformation
Programme.

"We have identified investment projects in 12 National Key Economic Areas in
which Chinese investors can participate. Chinese investors have huge resources
and potential for investment in oil and gas, tourism and construction," he said
at the opening of the Second World Chinese Economic Forum.

He also said that Malaysian investors could collaborate with Chinese investors.

Malaysia has become China's largest trading partner among Asean countries and two-way trade volume between the two countries in 2009 exceeded US$53 billion.

"We are confident that trade between the two countries can be better this year than in previous years," Muhyiddin said.

He said the "go-out" policy, which encouraged Chinese companies to invest abroad, has helped in developing Malaysia and China's economic ties through investments in many industries and would hopefully lead to further investment opportunities for Malaysian and Chinese firms in the future.

"In Malaysia, the maturity of bilateral relations with China has been accompanied by positive developments in many sectors," he added.