29/04/2011 (Bernama) - China is keen to increase investment in Malaysia, especially in the resource-based industry in Sarawak, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

He said the interest was conveyed to him by China's Minister of Commerce Chen Deming at their meeting at the Malaysia-China Economic, Trade and Investment Cooperation Forum here Thursday.

Among the areas which caught China's interest in Sarawak are palm oil, pepper and aluminum sectors, he said.

Chen also expressed China's interest to participate in the construction and infrastructure sector in Sarawak, he said.

"They are keen to invest in Sarawak even to the extent of setting up industrial parks there," he told reporters after meeting his Chinese counterpart.

On investment, Mustapa said his ministry had suggested to China to participate more in the manufacturing and services sectors in Malaysia to balance the investment gap between Malaysia and China currently.

He said the ratio of China's investments in Malaysia and Malaysia's investment in China was at the scale of 8:1 and the ministry would like the country to play a bigger role in the manufacturing and services sectors in this country, as compared to the traditional construction sector to balance the investment gap.

To date, It is estimated that there are about US$2 billion worth of Malaysian investments in China compared to US$250 million worth of Chinese investment in this country, he said.

During the meeting, Mustapa said both parties signed an Agreement on Expanding and Deepening Economic and Trade Cooperation between Malaysia and China, which would pave the way for advancing economic cooperation in a better structured manner.

Under the agreement, a Malaysia-China Joint Economic and Trade Committee will be set up and co-chaired by both countries to identify projects and programmes for collaboration between Malaysia and China, he said.

He said the committee is expected to be established in less than two months and the first meeting will be held shortly after its establishment.

Among areas suggested for collaborations are manufacturing, wholesale, minerals, industrial parks and logistics, he said.

Earlier, in his speech, Mustapa invited Chinese enterprises to part take in Malaysia's economic transformation under the Economic Transformation Programme (ETP).

The ETP, aimed at making the Malaysian economy more competitive and allowing Malaysian businesses and enterprises to be integrated in the global production network, would provide Chinese enterprises opportunities to participate and benefit from Malaysia's economic development.