China's investors remain confident in Malaysia despite a review of the East Coast Rail Line (ECRL) project which had been awarded to a Chinese state-owned company, Chinese envoy Bai Tian said today.

The Alibaba Group's decision to open an office in Kuala Lumpur and several investments secured after May 9 was proof that the confidence of Chinese investors remained strong, he said.

"As a matter of fact, three medical companies decided to invest RM1.2 billion in Malaysia in the first week after the new government was formed," the envoy said at the opening of Alibaba Group's new office in Malaysia.

"And the China Construction Bank in Malaysia has also decided to purchase RM200 million worth of bonds from the local bond market," he added.

He also cited the D&Y Group which opened up the second phase of its factory in Johor.

"When the third phase of D&Y factory in Johor goes into production within this year, their total investment in Malaysia will reach US$400 million and will create over 2,000 employment opportunities," he said.

Bai dismissed the review of ECRL project by the new Pakatan Harapan as a non-issue.

"Yes, of course (they are still confident with Malaysia). There is an English saying that goes 'We shall not only look at the trees, we should look at the forest too," he quoted.

Bai is confident that the bilateral trade will exceed US$100 billion.

"We have achieved US$40 billion in the first five months this year, a 14.7 percent increase as compared to the same period last year," he said.

Prime Minister Dr Mahathir Mohamad had stated the government was reviewing all deals made with China including the RM60 billion ECRL contract which he described as "strange".

ECRL's contractor, the China Communications Construction Company (CCCC), is fully-owned by the Chinese government. 

The 688-km rail link, if built, will connect Port Klang in Selangor and Pengkalan Kubor in Kelantan and will be constructed in two phases.