Hong Kong companies keen to invest in Malaysia

HONG KONG: Hong Kong companies are keen to collaborate with Malaysian firms in developing infrastructure and real estate projects in the country, even though several mega projects are being revalued and postponed by the government.

Hong Kong Trade Development Council (HKTDC) regional director for South East Asian & South Asia, Peter Wong, said the growth opportunities in Malaysia remained strong with the government's firm commitment to develop the country.

He said the government's decision to re-evaluate and postpone several projects did not affect investor confidence in Malaysia.

Furthermore, he said, the new government led by Prime Minister Tun Dr Mahathir Mohamad made the decision because of cost factors and not political reasons.

"We see this as a great time for Hong Kong companies to work with Malaysian companies in implementing infrastructure projects. After all, we have expertise in cost effective management," he told a media conference in Kuala Lumpur today.

Wong said besides attractive growth opportunities, the government's commitment to work with foreign investors and attract foreign direct investment makes Malaysia a major investment destination in the region.

He said Malaysia was Hong Kong's third largest trading partner in the ASEAN region.

"The signing of a free trade agreement between ASEAN and Hong Kong last year will enable more market access and strengthen Malaysia and Hong Kong cooperation," he added.

Meanwhile, AECOM Country Director, Patrick Wong, said there are various ways for the government to reduce the cost of mega projects.

He said for rail projects, cost could be reduced by reducing the number of stations, reducing the underground area and using a single track rather than double track.

Source: New Straits Times