KUALA LUMPUR, Feb 29 — The Malaysian government and an "important” Chinese institution are in an advanced stage of negotiations to set up a two-way foreign investment (FI) promotion, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said the aim is to cement a cooperative agreement focused on investment promotion enhancement to bolster investment flows, encouraging Chinese firms to explore opportunities in Malaysia while similarly facilitating Malaysian enterprises to expand into China.

He also highlighted that the progress underscores a notable pivot by Chinese corporations towards Malaysia, due to the country’s strategic location and conducive business environment.

"This potential partnership is targeted at fostering investments in high-value sectors, meticulously chosen to reflect the strategic priorities of both nations, thereby promising to fortify economic ties and promote mutual growth,” said Tengku Zafrul.

The minister said this during the annual announcement of Malaysia’s investment performance in the manufacturing, services and primary sectors for 2023.

He said high-value sectors are important to supporting the creation of high-value jobs which will help to boost the middle-class group that was badly impacted during the pandemic.

Tengku Zafrul noted that the top five industries that created the highest numbers of managerial, technical and supervisory (MTS) employment were electrical and electronic (E&E), machinery and equipment (M&E), non-metallic mineral as well as fabricated metal and chemicals.

Last year, over 30,000 jobs were created within the MTS category, with Malaysians accounting for 91.7 per cent of the individuals hired to fill these roles.

"Malaysia’s E&E industry is expected to become a powerhouse due to increasing domestic and regional demand, driven by the growth of industries such as electric vehicles (EVs), renewable energy, aerospace and the digital economy.

"All these will collectively improve Malaysia’s export competitiveness while providing higher-paying skilled jobs for our people,” he noted. — Bernama