At first glance, there seems to be no difference between Qiang Yan's family and a typical Shanghai family of three.

The parents are involved in business while the daughter is a university student. Each of the families lives in a three-bedroom apartment. On weekends, they usually watch movies or go shopping.

But the Qiangs do not go out and about on Nanjing Road in Shanghai, regarded as the China's premier shopping street. Instead, they go shopping at Suria KLCC in Kuala Lumpur.

They do not live in a high-rise apartment by the Huang Pu River, but near the twin towers of the KLCC. And the daughter is not studying at Fudan University, but at the Malaysian campus of Australia's Monash University. The Qiangs identify themselves as "settled in KL".

Qiang Yan has had a connection with Malaysia since 1992, when he arrived on a market research mission for Shanghai Three Gun Group Co Ltd in China.

He and his wife have lived in KL for more than 10 years now. Six years ago, their daughter arrived to pursue her tertiary studies.

"Even though many regard it better to live in Shanghai, what matters most is that we have become used to life here. If we go back to Shanghai, we may experience inconvenience and unfamiliarity," said Qiang.

He is now managing director of Shanghai Thai-Tien Industry Sdn Bhd, a joint venture company between Shanghai Three Gun and a Malaysian partner.

The business activities in Malaysia are mainly to supply ready-made clothes and fabric to textile dealers, as well as the import and export of textile products.

No easy life

Few Chinese nationals have taken up investment opportunities in Malaysia, let alone considered residence like the Qiangs.

"(Around 1992), about 200 to 300 Chinese business persons attended regular meetings called by the Chinese embassy here. That number has dropped by two-thirds over the years," said Qiang.

"Many gave up their business in Malaysia for various reasons, including the inconvenience of applying for employment passes, homesickness, low profitability or loss of investments."

Malaysia's immigration law requires foreigners to apply for an employment pass or professional visit pass, which determine the position and functions of the holder, duration of stay and activities of the company.

It takes three to six months to process applications, at a fee of RM5,000 to RM6,000 each. The Chinese embassy applications are made with the assistance of service agencies.

"We can apply for a two-year employment pass each time, but we might get a one-year or three-year one. It all depends on the mood of visa officers," said Qiang.

The Qiangs have not had an easy time of adapting to life in Malaysia, but have persisted with a never-say-die attitude to overcome their difficulties.

"Our office has been burgled for several times. Once, a same burglar came a second time several days after he burgled the office," said Qiang's wife.

"Later we found out it was because he had failed to open our safe at the first time. And he opened it with a huge saw at the second time. Thing got better after the alarm system was installed."

Qiang recalled the extreme frustration he faced during the 1997 East Asian financial crisis, especially for those carrying out import-export trade valued in US dollars.

As the exchange rate of the ringgit fell dramatically against the US dollar, earnings of several hundred thousand ringgit turned into losses of several million.
"It is in my character to fight, no matter how serious the situation. Instead of giving in, we tried our best to recover bit by bit. We have almost recovered fully after 10 years," Qiang said calmly as if it were someone else's story.

There is also fierce competition in the textile trade, as it is widely recognised as a profitable business.

"We have to compete with local businesses as well as businesses from China. Dumping makes the situation even worse."

Chinese traditional medicine

Those in the Chinese traditional medicine (CTM) business also know how difficult it is to set up business and break into a new market.

For example, the widely-known brands 'Dong E E Jiao' and 'Peking Tongrentang' (right) are completely alien to Malaysians.

Peking Tongrentang (M) Sdn Bhd deputy general manager Wei Shian said: "Although a large proportion of Malaysians are of Chinese origin, their knowledge of traditional medicine is lower than that of Chinese citizens."

Unlike in Japan and Hong Kong, CTM therapy is not covered by Malaysian medical insurance, which prevents people from selecting the therapy as their first choice of treatment, he said.

"Drugstores cannot compete with supermarkets unless during special episodes as SARS when they are crowded with people", he quipped.

Demand for Tong Rentang is slow compared to China where people are used to buying 'Niu Huang Jie Du Pian' to treat fever or 'Banlangen Keli' for a minor cold.

Shangdong Dong E E Jiao (M) Sdn Bhd managing director Meng Xianqing (left) said almost everyone in China knows the functions of Dong E E Jiao, which are to replenish blood, stop bleeding, nourish Yin and moisten the lungs.

"However, in Malaysia, we have to start from the very beginning. The cost of advertising is much higher than in China, and without as big an impact. We plan to progress step by step instead of taking risks," he said.

Early this year, Peking Tongrentang obtained halal certification.

"In the beginning, customers were mainly elderly Chinese. But more and more young adults and even English-educated people are visiting our shop, together with Malay and Indian customers," said Wei (right).

He noted that many may be against CTM simply because of the inconvenience of preparing it,as it involves cooking for hours.

In response, Tongrentang is providing services that make it possible for customers to drink CTM like take-away cold tea.

Much to be done

There has been almost no new capital from China over the past few years because China itself offers business opportunities, while official procedures in Malaysia are too complicated, said Qiang.

For instance, Chinese investors are put off by company registration requirements in Malaysia, including the need to incorporate ventures as a local business or as a local branch.

The business must be registered with the Companies Commission of Malaysia, which would generally require the services of lawyers or accountants.

Those who prefer a sole proprietorship or who cannot find a partner would not to invest in Malaysia, said a Chinese embassy official who declined to be identified.

"Malaysia is not active enough in encouraging Chinese capital. The government should get rid of unnecessary application procedures and see to more efficient and convenient applications for an employment pass," said Hai-O Enterprise Bhd managing director Tan Kai Hee.

When government officers of the two countries visit one another, they make routine statements about "excellent relations and the scope of co-operation" in many different areas.

However, in 2004, only US$49 million (1.4 percent) of the US$3.46 billion in foreign investments came from China, based on data from the international trade and industry ministry.

Questions such as how Malaysia can attract investment from China and how investors can rise to success in Malaysia are still up for discussion.