Translator：Jiang Wenyu

On July 6, 2022, Malaysia Investment Trade Authority (MIDA) and Shanghai Landing Law Offices jointly organized ‘the Belt and Road Investment in Malaysia’ webinar. Mr. Steven Cheng Seng Hock, Consul, Director of MIDA Shanghai Office, and Mr. Liu Yixing, Director of Global Management Committee of Shanghai Landing Law Offices, attended the meeting.

Mr. Steven Cheng Seng Hock from the MIDA delivered a speech at the beginning of the webinar. He firstly expressed his gratitude to Shanghai Landing Law Offices and all the speakers, and believed that the participants would have a better understanding of how to do business in Malaysia from the sharing of all the speakers. He said that since the establishment of diplomatic relations between China and Malaysia 48 years ago, the two countries have been cultivating and developing a mutually beneficial and win-win economic relationship. Despite the global economic downturn after the COVID-19 outbreak, he hoped that the economic partnership between China and Malaysia could be strengthened with the joint efforts of both countries. He then showed the official video of the MIDA, which helped everyone better understand the business environment, policies, etc. of Malaysia.

Then Mr. Liu Yixing, Director of Shanghai Landing Law Offices, delivered a speech. Mr. Liu said that China has risen rapidly in the past 40 years of reform and opening up. China's manufacturing capacity, the country's strong strength, coupled with the Chinese tradition of hard work and pioneering and adventurous spirit, means that the rise of China will inevitably form a huge wave of overseas investment. Mr. Liu objectively and rationally believed that Malaysia is a good place to invest because of its advantages of being an English-speaking country and having a large Chinese population. Mr. Liu said that this webinar is of great significance, as LANDING has provided legal services for more than 120 Chinese Fortune 500 companies to invest overseas in a short period of four years, even during the epidemic blockade in its global layout. He also expressed his hope to establish better cooperation with Malaysian authorities and organizations through this webinar, and build a better bridge for Chinese enterprises to invest in Malaysia.

Afterwards, Mr. Dewei Wan from the MIDA shared the investment opportunities in Malaysia. First of all, he gave a brief introduction of the MIDA and shared that its headquarters building has resident departments such as Immigration and Customs, Labor and Electricity and Telecommunications, as well as non-resident departments such as Tourism, Health, Labor and Safety, and Environment. These departments will provide one-stop services for companies investing in Malaysia. Then Mr. Dewei Wan introduced the high percentage of Chinese investment in Malaysia, introduced a few successful cases such as Huawei, LONGi and Geely Automobile that have landed in Malaysia, and then introduced about the company's shareholding structure, policy on hiring foreign workers, online approval process for industrial licenses, investment incentive policy, talent resources situation, ecosystem situation and visa situation.

Next, Mr. Wee Seng Hwat of CNmy Construction (Shanghai) Co., Ltd. (hereinafter referred to as CNmy) shared his experience of site selection and construction of factory buildings in Malaysia. Mr. Wee Seng Hwat introduced the differences in the process and parties involved in the construction of industrial plants in Malaysia and China, the responsibilities and work of the parties involved in the pre-construction and post-construction phases, and shared some successful cases. CNmy was founded in Shanghai in 2005 and established a branch office in Malaysia in 2016, CNmy can provide one-stop project management consulting services (Design, Procurement, Construction Management) or general contracting services (Design, Procurement, Construction). With rich experience in building plants in China and Malaysia, the team of Eagle Prosperity is familiar with the culture and working habits of both sides.

Then, Ms. Maggie Khoo from BIPO Company (hereinafter referred to as BIPO) shared the Malaysian human resource management with the audience. Firstly, she introduced the basic information and business of BIPO, which provides global payroll service HR management system for overseas enterprises. Then Ms. Maggie Khoo introduced the labor and employment law in Malaysia in detail, including employment contract, salary situation, provident fund situation, tax withholding situation, social security situation, overtime benefits situation and so on.

Afterwards, Ms. Song Jun, Managing Director of Sales and Product Development Team, Funding Department, OCBC Wing Hang Bank (China), shared with the audience the product structure and professional knowledge of foreign banks on cross-border financing as well as cross-border investment related financial products.

Ms. Hu Min, Senior Partner of LANDING, shared with the audience the legal environment of investing in Malaysia. Ms. Hu has experience in legal practice for domestic enterprises investing in Malaysia, and has provided legal support for projects involving investment in industrial machinery, engineering construction, auto parts, oil and gas in Malaysia. Under the background of the Belt and Road, China's investment in Malaysia has been developing in the fields of trade, engineering contracting, infrastructure construction, digitalization, etc. Chinese enterprises investing in Malaysia need to pay attention to comprehensive prevention and control of legal risks.

Finally, Mr. Li Xinli, Senior Partner of LANDING, shared with the audience the dispute resolution of investing in Malaysia. Mr. Li has rich experience in dispute resolution of international disputes, he analyzed the possible dispute resolution in the process of investing in Malaysia, Mr. Li suggested choosing the dispute resolution of international arbitration, introduced the advantages of international arbitration, as well as optional well-known international arbitration institutions. Then Mr. Li analyzed the dispute resolution provisions in the BIT between China and Malaysia, told investors what remedies can be taken if their interests are damaged in Malaysia because of the local government, and cited three investment arbitration cases with the Malaysian government as the defendant.

After listening to the sharing of several guests, the online audience enthusiastically asked questions. Several sharing guests answered the questions raised by everyone, including Malaysia's entry policy, human resource cost, RECP rules, the determination of origin of solar PV products produced in Malaysia, the determination of bonded factories, and how LANDING can help Chinese enterprises to avoid the legal risks of investment and other issues. The meeting was moderated by Mr. Li Xinli.

The meeting was co-organized by OCBC Wing Hang Bank (China), BIPO, CNmy and LCOUNCIL. The meeting achieved a good response.