Kuala Lumpur, 10 September, 2011 – The East Coast Economic Region (ECER) Malaysia has set the tone to surpass its annual investment target following a RM900 million investment pledge from China-based Wenzhou Foreign Trade and Economic Cooperation Bureau.
The RM900 million investment will see the establishment of an integrated industrial park comprising logistics and warehousing facilities at ECER’s Special Economic Zone (ECER SEZ), Kuantan, Pahang.
Through this investment, Wenzhou will also have its first trading complex in the ECER which will be based in the integrated industrial park to boost bilateral trade.
In addition, both Wenzhou City and ECER Development Council (ECERDC) will collaborate to identify new areas of economic collaboration and stimulate investments.
The RM900 million investment in the ECER SEZ was formalized today with the exchange of documents between Wenzhou Foreign Trade and Economic Cooperation Bureau and the East Coast Economic Region Development Council (ECERDC).
Representing ECERDC at the document exchange was its chief executive officer Dato’ Jebasingam Issace John, while Wenzhou Foreign Trade and Economic Cooperation Bureau was represented by its Deputy Director for Foreign Trade, Zhou Zheng.
The exchange was witnessed by YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry and Xu Yufei, Vice Mayor of Wenzhou Municipal People’s Government.
“This investment is significant as it indicates confidence in Malaysia and further boosts trade ties between Malaysia and an economically-strong China. It also demonstrates the attractiveness of ECER as a key destination for investors from among the world’s largest economies to ride on,” said Dato’ Issace.
He said Wenzhou’s presence in the ECER will further boost trade as more ECER companies could tap into Wenzhou City’s significant domestic market with a population of eight million.
Last month, the ECER secured a RM2 billion industrial biotechnology investment with the collaboration between South Korea’s CJ CheilJedang Corporation and France’s ARKEMA SA to set up the world’s first bio-methionine plant and Asia’s first thiochemical platform.
ECER is expected to surpass its annual investment target of RM5 billion by October. With the latest MoU, ECER has attracted more than RM48 billion worth of investments since its launch in 2007.
To date, some RM20 billion had been received from various clusters including oil, gas & petrochemical and manufacturing, and these projects have created 20,000 new jobs.
Located in the southeast of Zhejiang district, Wenzhou has been dubbed the ‘light industry capital of China’. The city produces 60 per cent of China’s shoes and has a strong presence in apparel manufacturing. It is also a major manufacturing centre for electrical appliances, electronic items and light machinery.
As one of China coastal cities open to the outside world, Wenzhou has established commercial centres in Brazil, Holland, United Arab Emirates, the United States and Germany.
In Malaysia, their trade centre is located in Ipoh, Perak while its trade centre in Senai, Johor is currently under construction.
In 2009, Wenzhou City’s per capita gross domestic product reached US$4,722 (RM14,166). As at the end of 2009, 558 enterprises from this Chinese city invested overseas.