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Malaysia-China pacts to benefit local industries, says International Trade Minister

The signing of 14 agreements worth RM144 billion (US$3,381,989,7600) between Malaysia and China, comprising three main major components, will bring a huge impact to local industries, said Datuk Seri Mustapa Mohamed.  

The International Trade and Industry Minister said the three major components were in trade investments, soft loans and mutual cooperation under the business-to-business Memorandums of Understanding (MoUs).  

“For instance, the signing of an MoU between the Malaysia External Trade Development Corp (Matrade) and Alibaba Group, that allows its platform to be used by more than 10,000 Malaysian small and medium enterprises listed to penetrate into the international market under the cooperation,” he told Datuk Nawawi Ahmad (BN-Langkawi) during Minister’s Question Time Thursday.  

Mustapa cited the example of the framework cooperation agreement signing between Hebei Xinwuan Steel Group and a Sarawakian steel company worth US$2 billion under the trade investment component.  

“Under the soft loan component, there is the construction of the planned East Coast Rail Line (ECRL), which is estimated to be worth RM50 billion (US$1,174,302,0000).  

“Among the benefits that we will enjoy from the ECRL, is that we will be able to open up and create many job opportunities in the east coast,” he said.  

Mustapa also said the Malacca Gateway project would boost tourism and trade, not only for the state, but also for the country.  

He also noted that the Government planned to take advantage of the transfer of technology following the signing of the agreements with China.  

He said it was just a broad framework agreement signed with China, including with the China Communications Construction Company Limited (CCCC).  

“We have yet to sign the Memorandum of Agreement, and we will look into the details to ensure there will be a transfer of technology, and that Malaysia will gain from the signing of the agreements,” he said.  

On a separate matter, Malaysia is expected to raise the issue of the Trans-Pacific Partnership Agreement (TPPA) at the Asia Pacific Economic Cooperation (APEC) meeting in Peru after Donald Trump won the United State’s presidential election, said Mustapa.

“One of our main agenda is to discuss the TPPA. For Malaysia, we will not move from our stand. We believe that the TPPA will bring benefit to our country as a whole.

“We will inform the Dewan Rakyat on the latest development when the time comes,” said Mustapa.

 

 

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