China's capital controls won't affect M'sian investments: Ambassador

Chuah Bee Kim

KULAI: China’s exercising of more stringent controls on its capital outflow will not adversely affect investments in Malaysia, such as Forest City in Johor.

China's Ambassador to Malaysia, Dr Huang Huikang, told reporters here today that the Chinese government does not prohibit its citizens from buying property overseas.

"(However) China does not encourage the buying of football teams or cinemas in foreign countries.

"What is permitted and what is not is clear-cut," Huang said at the D&Y Textile (Malaysia) Sdn Bhd plant in Sedenak, near here.

Huang, who had earlier visited Forest City, said he is satisfied with the mega-development’s progress.

"Forest City is an iconic green development like no other. It will put Johor on the international map," he said.

Huang dismissed allegations that the development will be inundated with Chinese nationals once it is completed.

"I do not deny that there will be Chinese citizens working and living here, but there will be other nationalities too. It's also not possible that it will be a ghost town," he said.

Huang also said he hopes that the Malaysian government will make it easier for foreign talents to come in, whenever there are not enough local talents, to meet Forest City’s requirements.

Huang wrapped up a nationwide tour, during which he visited 14 projects in seven states, beginning March 7. D&Y Textile in Sedenak was his last stop.

Huang added that he hopes the government would curb negative allegations about foreign investors here, as they would have an adverse impact on investor confidence in Malaysia.

"Our presence has not snatched away the ricebowls of locals. On the contrary, we have helped them save their jobs," he said.