Even though China has recently tightened capital outflows, it will continue to pump investments into Malaysia, according to the country’s ambassador to Malaysia Dr. Huang Huikang, reported Free Malaysia Today.
To alleviate worries that Chinese investments here would dry-up, he shared that any stringent capital controls imposed by Beijing’s central government will not impact the Southeast Asian country.
“No… no such thing,” told reporters who asked whether China’s stringent measures on capital outflows would greatly affect Malaysia.
Not long ago, news broke out that Beijing has curtailed its citizens from converting the renminbi into other currencies for the purchase of real estate, in a bid to strengthen its money and increase its foreign exchange reserves.
At present, each individual is only permitted to wire US$50,000 (approximately RM222,000) outside of the country per year, and transfers amounting to US$29,000 (RM128,949) and above must be reported to the People’s Bank of China.
Chinese citizens are also not allowed to transfer money to foreign countries to buy bonds, properties and insurance. On the other hand, domestic firms are permitted to purchase overseas real estate, subject to the approval of the government. Companies that break this rule can be charged with money laundering.
Previously, Second Finance Minister Johari Abdul Ghani expressed worries that China’s strict rules on capital outflows would “indirectly” affect Malaysia’s economy.
Among China’s developments in Malaysia are:
2. R and F Princess Cove Phase 1 Residence, Johor Bahru
Image sourced from FMT
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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