China firms to invest more in oil palm, padi

By June RamleePublished: 2009/12/19

Chinese companies are planning to plant more oil palm trees and padi in Malaysia as they seek to expand their investment in the country.


Gao Wenkuan (picture), the economic counsellor at the Chinese Embassy in Kuala Lumpur, said that talks between Chinese and Malaysian companies for the projects are ongoing.

They are likely to work in a joint venture.

"I cannot reveal how much the investment is worth as negotiations are still ongoing. But it will kick off next year," he told the Business Times when met at a commodities exhibition in Kuala Lumpur yesterday.

He said several Chinese companies are already investing in padi planting in Kedah in the last four years.

"This year the investment from China to Malaysia was worth RM5 billion in various sectors," he said.

The investment from Malaysia to China was higher this year compared with 2008.

"This year's Malaysian investment in China is worth US$333 million (RM1.15 billion) from January to October. This is a 50 per cent increase than last year which was marred due the financial crisis.

"And the investment was in various sectors like electronics, real estate, hotel, palm oil and corn," he said.