Investments into China by Malaysian enterprises are in many sectors; manufacturing and services. The size of companies do not matter and it depends on what types of business they are doing. Among products and services that Malaysian enteprises involve in include processed food and beverage, rubber gloves, cosmetics, electronics components and parts, construction and real estate, information and communication technologies and hospitality.

There are many different reasons for investing in China. Main reasons include the huge domestic demand that China offers. The 1.3 billion population market size is already a pulling factor for foreign enterprises to come to do business in China. The purchasing power in China has also risen significantly, the middle income constitute about 30% of China or about 400 million people.

Another reason is that China has abundance of labor resources and relatively the labor cost is still lower, especially at 2nd and 3rd tier regions. Labor intensive industries will have no issue to get people to work, and in another word Malaysian investment in China also generate employment for the locals.

Besides investing in China, some other Malaysian enterprises resort to direct exporting and importing with China. And because of the growing middle class and increasing purchasing power, imported products are becoming more sought after items due to various reasons; status, high quality perception and internationally well known branded.