BATU GAJAH, Malaysia - Malaysian Prime Minister Najib Razak said Tuesday that he is eyeing attracting more investment from China as a new direction to further promote relations between the two countries.

Najib said the Malaysia-China relations have entered a new era since his father, Malaysia's second Prime Minister Abdul Razak bin Hussein, decided to establish diplomatic relations with China in 1974.

"Since the historical decision, bilateral relations between Malaysia and China have been continuously advancing to higher levels," he said.

"Today, China is Malaysia's largest trading partner."

Najib was speaking at the ground breaking ceremony of a $131 million railway car manufacturing and maintenance center invested by the China South Locomotive and Rolling Stock Corporation Ltd, or CSR.

He said the project is a fruit of the good bilateral relations.

Trade between Malaysia and China has been thriving under Najib's premiership. According to China's General Administration of Customs, the two-way trade amounted to $94.8 billion in 2012.

China's ambassador to Malaysia, Chai Xi, said he expects the figure to reach $100 billion in 2013.

However, investment between the two countries, especially China's investment in Malaysia, is believed to lag far behind.

Najib said he had told Chinese leaders that the relations between the two countries shouldn't be limited to trade only.

"We should encourage investment as it will show the long term commitment of China to the economic development of Malaysia. It will also show their confidence in the policies of the Malaysian government," he said.

The Malaysian prime minister is expected to further boost relations with China if his ruling coalition wins the upcoming general election.

China and Malaysia have established two joint industrial parks recently, one in the Guangxi Zhuang autonomous region, South China, and the other in Malaysia's northern port city of Kuantan, to further boost bilateral trade and investment.

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