China's small and medium enterprises (SMEs) have been urged to use Malaysia as a stepping stone to promoting their products in Asean.

Deputy International Trade and Industry (Miti) Minister Chua Tee Yong said today with China now being the world's second largest economy, diplomatic ties between both countries have also grown stronger.

"Malaysia's geographical location between the Straits of Malacca and the South China Sea is strategic.

"Looking back over the last few years, Bank Negara Malaysia has set up a clearing house to promote trade between both countries, and this year, China decided to invest in Malaysian bonds.

"This is a clear picture of how good our relationship is with China," Chua told reporters at the Malaysia-China Silk Road Economic Forum 2016 session in Petaling Jaya.

China tops in manufacturing investments

He also said in terms of manufacturing investments in the first quarter of 2016, China was tops, overtaking the United States and Japan for the first time.

"This should be used and leveraged on by businesses to promote trade between both countries. As a small country, Malaysia needs trade and exports to ensure economic growth, while creating more employment.

"Last year, the bilateral trade volume with China stood at US$97 billion (RM396.633 billion).

"The target this year is US$160 billion (RM654.24 billion), with room for improvement through economic forums and business talks that Miti endorses and welcomes," Chua added.

Earlier, Science, Technology and Innovation Deputy Minister Abu Bakar Mohamad Diah, who officially opened the forum, said Malaysian entrepreneurs must take the opportunity to introduce products and innovations to their Chinese counterparts.

"China is a big market. We hope this gorum can review the potential and commercialise more Malaysian products.

"To become a high income nation by 2020, we need to have strategies, one of which is the need to own and sell more of Malaysia's innovative products that can have a high impact on society, and not just restrict it to presentations and papers with the trademark sign," Abu Bakar told reporters at the event later.

He said by 2020, his ministry aims to commercialise 360 products.

In the 10th Malaysia Plan (10MP), he said, the government spent RM1.1 billion on research and development (R&D), while for the 11MP (2016-2020), about RM37 million has been spent to date.

Abu Bakar said in line with the Malaysia Commercialisation Year (MCY) 2016, his ministry is also planning to hold an expo to showcase the R&D efforts by ministries and government agencies.

It will be held in November to mark the peak of the MYC 2016.

- Bernama