China Does Not Curb Overseas Investment Among Its Citizens - Envoy

KUANTAN (Pahang, Malaysia) March 15 (Bernama) -- China does not curb overseas investment among its citizens, including in real estate despite tightening capital controls. China's Ambassador to Malaysia Dr Huang Huikang said the tightening of capital controls was aimed at clamping down outflow of Yuan in fraudulent activities such as money laundering. "We do not restrict capital outflows as we have sufficient reserves to the tune of US$1,000 billion, the highest in the world. "Measures are taken to strengthen financial controls and to stem money laundering," he told reporters after visiting the Malaysia-China Kuantan Industrial Park (MCKIP) here, Wednesday. The ambassador spoke in Mandarin and his remarks were translated into Bahasa Malaysia by an interpreter. Huang was asked to comment on fears over China's new restrictions on capital controls affecting its investment in the Forest City project in Gelang Patah, Johor. On Saturday, Johor chief minister Mohamed Khaled Nordin asserted that Forest City would not be affected by such action as the project was opened to buyers from the international community besides China. On his visit, Huang said he was satisfied with the MCKIP progress. "Everything went according to schedule and plans. I am also pleased to see the development of infrastructure such as roads, electricity and water supplies. "We are grateful to the Malaysian government for providing a good commitment, as well as facilitating the implementation of this project," he said. The MCKIP and its twin sister park, the China-Malaysia Qinzhou Industrial Park (CMQIP) in Nanning, China embodies Malaysia's close ties with China. Earlier, Huang toured an integrated iron and steel mill ran by Alliance Steel (M) Sdn Bhd valued at RM5.6 billion which employs 3,500 people. He also visited the Kuantan Port which was undergoing expansion to enable it to double its existing capacity to 52 million tonnes deadweight a year. "The port expansion is in line with the MCKIP development. It will help spur Kuantan as a port city in the future," he said. Commenting on the East Coast Rail Link project, he said it was expected to begin in the second quarter of this year and completed within six years. -- BERNAMA