MALAYSIAN FIRMS URGED TO INVEST IN PAN BEIBU GULF REGION

From Vincent Low Seng Guan

NANNING (China), Aug 7 (Bernama) -- Malaysian companies should invest in the
Pan Beibu Gulf (PBG) regional development and establish robust economic link
with China to gain greater access to its hugh market.

Malaysian Institute of Economic Research's senior fellow, Dr Shankaran
Nambiar, said a strong two-way link would also enable Malaysia to benefit from
the global market.

He said PBG could also act as China's link to the three corridors in
Malaysia and to create some kind of synergy.

"The link will eventually interest businessman in China to explore
opportunities in Malaysia, which is in line with the country's economic agenda
of strengthening economic ties with China," he said.

Shankaran said this when delivering his speech at the 2009 Pan-Beibu Gulf
Economic Cooperation Forum here today.

He said the forum would also offer Malaysia an excellent opportunity to
pursue a more diversified economic partnerships.

"It offers Malaysia an opportunity to participate in a number of industries
which are new to Malaysia, particularly paper-making, metallurgy and marine
industry," he said.

Shankaran said the recent global economic crisis required a re-thinking of
Malaysia's growth strategy and PBG would provide an important opportunity to
pursue the development of light industries.

"The cities in the PBG region will develop its own niche and Malaysian
companies can capitalise on the facilities here, Beihai, Qingzhou and Fangcheng.

"This is also in line with Malaysia's new policy to explore new areas of
growth and technology," he said.

He said the Malaysian companies could also benefit from the abundance in the
supply of skilled and unskilled labour in China.

The Chinese government has proposed to set up US$10 billion investment fund
and US$15 billion loan for projects in the PBG, he said.

Shankaran said Malaysia's exports were dependent on the US, EU, Singapore
and Japanese markets, and with the decline of these markets, there was a need
for Malaysia to explore other new markets.
-- BERNAMA