In a major development, China has committed to investing $39 billion in Malaysia to strengthen its economy and reduce its reliance on the US dollar. The investment will be used to fund various projects, including a high-tech valley project by Zhejiang Geely Holding Group and Proton.
The announcement was made by Prime Minister Anwar Ibrahim during a parliamentary session. He revealed that China’s commitment to invest in Malaysia totals a record-breaking 170 billion ringgit ($39 billion). The investment is expected to significantly boost Malaysia’s economy and reduce its dependence on the US dollar.
Initial Investment in Zhejiang Geely Holding Group and Proton’s Automotive Project
It’s investment in Malaysia will start with an initial injection of 2 billion ringgit in Zhejiang Geely Holding Group and Proton’s automotive high-tech valley project. The investment is expected to increase to 32 billion ringgit as the project progresses. This significant investment will help boost Malaysia’s automotive sector, which has been hit hard by the COVID-19 pandemic.
Reducing Dependence on US Dollar
Anwar Ibrahim stated that Malaysia no longer needs to depend on the US dollar. The central bank of Malaysia is already working on enabling the two countries to negotiate on trade matters using the ringgit and renminbi. This move will help reduce Malaysia’s reliance on the US dollar and increase its trade relations with it.
Boosting Malaysia’s Economy
The investment by China is expected to provide a significant boost to Malaysia’s economy. The funds will be used to develop key sectors such as infrastructure, transportation, and technology. This investment is a sign of it’s commitment to increasing its presence in Southeast Asia and boosting economic ties with the region.
Malaysia’s Economic Growth to Get a Boost from China’s Investment
China’s commitment to investing $39 billion in Malaysia is a significant development for the country’s economy. The investment will help reduce Malaysia’s reliance on the US dollar and increase its trade relations with it. The funds will be used to develop key sectors and strengthen the country’s infrastructure. This investment is a clear indication of China’s commitment to strengthening economic ties with Southeast Asia.
The investment by it is also expected to create numerous job opportunities for Malaysians. The funds will be used to develop infrastructure, which will require skilled labor and engineers. This will help boost Malaysia’s economy by providing employment opportunities and increasing consumer spending.
Moreover, the investment is likely to enhance Malaysia’s competitiveness in the global market. With the support of China‘s investment, Malaysia can develop its technology sector, which has been a significant area of focus for the Malaysian government. This development will increase Malaysia’s capacity to manufacture high-tech goods and improve its position in the global supply chain.
Read more: Donald Trump says the US Dollar will no longer be the world standard
The importance of the US dollar
The move also highlights the importance of reducing reliance on the US dollar in international trade. The US dollar has been the dominant currency in international trade for decades, but countries like China are making efforts to promote their currency, the renminbi, as an alternative to the US dollar. The investment by China in Malaysia will further strengthen this effort and promote the use of the renminbi in international trade.
Similar articles: Kenya’s President Advises Citizens to Ditch US Dollars Amid Global Currency Turmoil
China’s investment in Malaysia is a significant step towards strengthening economic ties between the two countries. It will provide a boost to Malaysia’s economy, create job opportunities, and enhance the country’s competitiveness in the global market. The investment is also a significant step towards reducing reliance on the US dollar in international trade, and promoting the use of the renminbi. Overall, this investment is a win-win for both countries and is expected to yield long-term benefits.
