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Tuesday, 9 December 2014

Singapore largest FDI in China,Indonesia and India

In Asean, Malaysia is like Belgium in Asia.

Belgium has three official languages, which are (in order of size of the native speaking population of Belgium) Dutch, French and German. Belgium hosts the EU's headquarters as well as those of several other major international organisations such as NATO.

While Malaysia have only one official language. Malaysia have National School (Malay language) and vernacular schools ( Chinese and Tamil respectively). Ideally, Malaysia should have advantage on trade relation with Indonesia, China and India.

However, ASEAN Secretariat base in Indonesia, not Malaysia due to it population and size.

On 14 March 2014, China announced that Singapore FDI to China amounted to USD7.327billion in 2013, making it largest FDI to China, if Hong Kong consider part of China. Hong Kong FDI to China amounted to USD78.302billion in 2013.

On 5 Dec 2014, Indonesian Ambassador to Singapore, Andri Hadi said Singapore was among the five countries with the largest foreign direct investment (FDI) in Indonesia in 2013 and could become the largest investing country this year. By the third quarter of 2014, Singapore was in the lead, with FDI totalling US$4.9 billion, or 22.5 percent of the total FDI.

Earlier, 26 May 2014,Singapore has overtaken Mauritius as the largest source of foreign direct investment into India, ending its long run over the top slot. FDI inflows from Singapore to India added up to nearly $6 billion (over Rs 35,500 crore) in 2013-14

Investors from across the globe have preferred to route funds into India via the Mauritius route because of the tax advantages offered by the island nation located at the tip of the African continent. Singapore has, however, managed to gain some glitter in recent years as India offered similar tax sops as part of the Comprehensive Economic Cooperation Agreement, although the treaty came with some riders to ensure that only genuine investors could benefit.

This mean Singapore become largest FDI in Indonesia, China and India. Despite Singapore Chinese dominated compare to more balance ethnic composition of Malay, Chinese and Indian in Malaysia. Further,  Singapore also largest FDI in Vietnam.

Malaysia still largest trading partner with China among 10 Asean countries.  However, Singapore and Thailand is fast trailing behind. 

Earlier, Haier, the leading Chinese electrical appliance maker, announced plan to use Thailand as an operation hub for commercial air conditioners to penetrate other Asean countries when the single market is formed at the end of 2015, in stead of Malaysia 

Thailand, Laos, Myanmar and Cambodia are focus markets for Haier's commercial air conditioners. 

If the sales volume of commercial air conditioners in neighbouring countries reaches economy of scale, Haier will consider setting up production lines for commercial air conditioners in Thailand. 

Haier's factory in Prachinburi now produces a wide range of products, from refrigerators to washing machines, serving domestic and overseas markets including Japan, India, the Middle East and Africa. Haier now offers small appliances there, including set-top boxes for digital TV sets. It plans to launch a new Haier business platform in Thailand next month, combining e-commerce with social media, "

Meanwhile, Malaysia investment in Indonesia including plantation,banking,telecomunication and media industry.

Malaysia investment in India including telecommunication.

Well-known Malaysia brands like Parkson and Shangri-La are household names in China.

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