Low Yat to invest RM400m in China trade centre

Source From (The Sun Daily): http://www.thesundaily.my/news/357962

Published: on 25 April 2012
EE ANN NEE
sunbiz@thesundaily.com

KUALA LUMPUR (April 24, 2012): Low Yat Group is developing the China-Asean SME Trade Centre (CASMETC) in Jiangsu province, China, which would cost between 650 million and 800 million renminbi (RM325-400 million) and be completed in three years.

It has already completed the first phase of the project while the second and third phases will be launched soon.

Its executive director Low Gee Teong said the company invested 300 million renminbi for the first phase of the project, spanning 31,293 sq m, which was completed last year. It comprises seven blocks of 213 units of retail and office space with gross floor area of 38,341 sq m.

So far, the first phase has achieved 40% occupancy, of which 5% or seven are Malaysian companies in the palm oil, batik and coffee businesses. CASMETC has a total built-up area of 130,000 sq m and the first phase is scheduled to open in June.

"The second and third phases with a total floor area of 92,500 sq m planned for commercial, hotel and small office/home office purposes will be completed over the next few years. Future expansion could be four-fold of what we have now," Low told a press conference at the CASMETC promotional meeting here yesterday.
CASMETC is a one-stop referral centre providing all Asean companies and SMEs the facilities and support to explore business opportunities in China.

The project is located in Changshu city which is booming with multinational manufacturing and industrial enterprises, and one of the 10 biggest textile, clothing and costume wholesale markets in China. The Changshu Southeast Development Zone is now home to over 300 foreign-funded enterprises.

"The China-Asean Free Trade Area, established in January 2010, provides zero tariffs for over 90% of the products traded between China and Asean. The significant reduction in tariff has lent a strong impetus to the fast growth of bilateral trade, with more and more Asean enterprises keen in venturing into the China market," Low added.

According to China customs statistics, Malaysia-China trading volume reached US$90.03 billion last year. Malaysia's exports to China stood at US$62.14 billion, a 23.2% increase from a year earlier. Imports from China were valued at US$27.89 billion, up 17.2% from the same period in 2010.
Malaysia continues to be China's number one trading partner in Asean.