Malaysia is set to benefit from China's New Normal Policy mainly through trade, investments and strategic co-operation, said the Finance Ministry.

In this regard, local exporters have to be nimble and adapt to structural developments in the Chinese market to seize opportunities.

The government, in complementing this through the National Export Council (NEC), has embarked on various initiatives to boost trade with China, which include leveraging on the trade facilitation taskforce under Malaysia-China Five-Year Plan (2013-2017).

In its 2016/2017 Economic Report released in conjunction with the announcement of 2017 Budget today by Prime Minister Najib Abdul Razak, who is also finance minister, the ministry said the taskforce aims to smoothen market access, collaborate with China's state-owned enterprises to enhance opportunities for Malaysian companies to be part of their supply chain, intensify promotion and branding in second- and third-tier cities in China as well as explore counter-trade opportunities with China.

In November 2016, a special Malaysia Promotion Programme will also be launched in Shanghai as a strategic platform to intensify the branding of Malaysian products and services, said the report.

The report said NEC's strategies will also focus on huge opportunities in the services sector and consumption-related activities, given China's booming and affluent middle-class.

"Among the potential areas for Malaysian exporters include healthcare, education and language training, environmental services, aerospace, robotics, car, halal ingredients, energy saving electrical and electronics products, quality building materials and interior firrings, lifestyle products such as fashion apparels, cosmetics, toiletries, green and organic goods, as well as agriculture produce.

"Hence, local manufacturers and service providers should look for opportunities to provide new product offerings that meet the demands of the Chinese consumers and corporates," it added.

China, under the New Normal Policy, is moving away from an export-, manufacturing- and investment-driven economy to one led by domestic, services and consumption, which will result in lower growth rate compared with the double-digit expansions in previous decades.

The report said while China's rebalancing acts pose some downside risks in the near-term, the shifting patterns of consumption and trade is expected to present significant opportunities for the Malaysian economy over the medium and long-term.

- Bernama