Established in 1966, Felcra was previously known as the Federal Land Consolidation and Rehabilitation Authority.

Instead of opening up new land settlements for agriculture, as in the case of Federal Land Development Authority (Felda), Felcra empowers existing landowners in rural areas to better manage their crops through economies of scale.

Last year, Felda gained global branding when the public listing of its unit, Felda Global Ventures Holdings Bhd, raised RM10.5 billion.

When asked on Felcra's plans for an initial public offering, chairman Datuk Bung Mokhtar Radin said Felcra is not like Felda because the 60,000ha oil palm and rubber plots managed by Felcra belong to smallholders.

"Felcra does not own the land. We only manage the crops for a fee and in return, we accord dividends to the landowners. Lawyers have advised us that it would be difficult to lease the land from smallholders."

Asked if Felcra still wants to participate in the capital market, Bung Mokhtar said: "We are still at the analysis stage. We are identifying a subsidiary for listing.

"We don't want to be totally dependent on the oil palm and rubber business. We want to diversify into property development. We have land in Kuala Lumpur, Perak and Langkawi."

Bung Mokhtar was speaking after Rural and Regional Development Minister Datuk Seri Mohd Shafie Apdal witnessed the signing of a corporate integrity pledge between Felcra and the Malaysian Anti-Corruption Commission. Also present was Felcra chief executive officer Datuk Ramlee Abu Bakar.

"We're looking to partner with a developer from the private sector to develop a 1.8ha land along Jalan Semarak in Kuala Lumpur," Ramlee said.

He noted that this mixed development near the Kuala Lumpur City Centre has an initial gross development value of up to RM900 million.

"We are awaiting approval from the Finance Ministry. Once we secure the approval, we hope to start working with a partne

The ninth and latest Chinese company to list on Bursa Malaysia – China Automobile Parts Holdings Ltd – for example, which reported a healthy net profit of some RM64mil for its financial year ended Dec 31, 2012 (FY12) – is trading at less than half of its IPO price of 68 sen, based on its latest closing price of 31.5 sen,

Still, the general lack of ability of Chinese companies to attract local investors has not stopped their counterparts from wanting to list here, partly also due to the fact that there is a long waiting list back in China.

“I know of a couple of interested firms,” says one industry observer.

He says one of the issues with the Chinese listings here so far is that most tend to go for big amounts – aiming to raise huge amounts of funds does not mean quality.

“These companies should focus more on creating value for their companies in order to attract investors to take up their shares.

“For example, Chinese companies should consider building up their presence here by setting up manufacturing facilities locally so that people can have better understanding of their businesses,” he says.

“This way, they are also value-adding Malaysia by creating jobs and boosting the economy by investing and, of course, investors will feel ‘closer’ to them as their facilities will be located near to where investors can physically see them.”

He says Chinese companies serious about expanding their businesses and making it more relevant to this part of the world can also use Malaysia as a stepping stone to expand into other growing South-East Asian markets.

“Investors here will definitely welcome such a move.”

A fund manager echoes his sentiments.

“Much of the concern of prospective Chinese company investors here are focused on the companies’ investment or assets which are mainly located in China.

“Prospective investors are wary of the fact that fixed assets (plants, warehouses, machines) are located too far away from Malaysia, which translates into an issue when it comes to ‘site-visiting’,” he notes.

Reports of fraud cases and scandals surrounding Chinese companies that list overseas, for example in Singapore, do not help the situation either.

“It’s really about engaging the prospective investor in a holistic, personal and proper manner,” notes the industry observer.

In the meantime, sources say that there are at least two Chinese firms in the process of preparing their applications for the authorities for a potential listing.

One is an apparel manufacturer while the other is dealing mainly with chemicals.

According to the latter’s website, Everfine New Resin Co Ltd was established in 1998 in and is located in Quanzhou, Fujian Province Wuli Industrial Zone.

The company, which is at the initial stage of its IPO plan, is focused on the “development, production and sale of resin/curing agent of the modern enterprise.”

“The company’s products are widely used in aerospace communications, electronics, chemical paints, leather bags, decorating paints, building materials and other fields.”

If this IPO does materialise, it will contribute to creating a more diverse group of Chinese companies listed on Bursa Malaysia as most are now sports apparel companies.

That said, bamboo flooring manufacturer Kanger International Bhd is set to be the 10th China-based company to be listed on Bursa Malaysia.

The company’s business is in the manufacturing and trading of bamboo flooring and related products for residential and commercial markets under its brands Kanger and KAR Masterpiece.

It also acts as an original equipment manufacturer for customers who request this service.

“China’s robust growing economy has encouraged many of its entrepreneurs to list their companies for expansion purposes. Some may want to expand their businesses offshore and may find South-East Asia a suitable region for listing, this includes listing right here in Malaysia,” says the fund manager.