On 20th, April, Malaysia-China Chamber of Commerce (MCCC) have successfully held a Belt and Road Conference which themed as “Achieving Economic Prosperity through Gigantic Interconnectivity”. It marked the first session conducted in English by MCCC for the non-Chinese speaking community on the ambitious Belt and Road initiative. The Conference received overwhelming response with nearly 400 participants.
MCCC is actively organising roadshows nationwide to raise the awareness among businesses on the BRI.
The speakers at the conference were distinguished fellow of the Institute for Strategic and International Studies Datuk M. Supperamaniam, Universiti Malaya’s Institute of China Studies research fellow Dr Zhang Miao and Renmin University Law and Globalisation Research Centre director Dr Yan Lijin.
MCCC president Tan Yew Sing said Chinese foreign direct investments in Malaysia were crucial for economic growth and infrastructure development.
“We are certain that Chinese capital as a foreign direct investment (FDI) is essential to our economic growth and infrastructure development. Furthermore, we are also positive that if transfer of technology from these Chinese investments rich in resources, talent and technology were completed, it would definitely improve the overall competitiveness of industrial development in Malaysia,” he added.
Tan Yew Sing said that the main theme of this era is just as President Xi Jinping described, it is not a solo performance by the Chinese, but rather should be a concerted effort, among countries along the route. “The Belt and Road,” which should be jointly promoted through consultation to meet the interests of all, is not close ended, but open and inclusive. All countries are encouraged to build a community of shared interests, destiny and responsibility featuring mutual political trust, economic integration and cultural inclusiveness.
“At MCCC, we hope to start with promoting people-to-people interaction, by introducing “The Belt and Road” initiative to our non-Mandarin speaking Malaysians, to raise their awareness, promote interest and encourage participation. I’m sure our business friends are well aware that the key to maintain a sustainable long-term partnership is building a sincere and loyal friendship with our trade and business partners, on top of commercial interest.”
Tan Yew Sing also highlighted that the question now is how to effectively protect the interests of the people and local businesses, especially small and medium enterprises (SMEs) and local workers, as we attract foreign investment. “This is a test on those in charge of negotiation and policy implementation.”
He pointed out, in order to jointly build a sustainable business through consultation to meet the interests of all, it is necessary for any foreign direct investment (FDI) to know about local policies and local customs and practices, to unlearn and relearn in order to adapt and adjust to local market conditions and cultural environment.
The Belt and Road initiative is gaining track with Malaysia set to sign an agreement on cooperation with China by May.
Malaysia Deputy International Trade and Industry Minister YBhg. Datuk Chua Tee Yong who also as Guest of Honour of B&R conference said the memorandum of understanding inked in Beijing to coincide with the Belt and Road Forum for International Cooperation to be held there.
He said this would pave the way for greater connectivity and economic cooperation between the two countries.
“It will encompass major strategic projects in Malaysia that will be jointly developed by both countries.
“Key projects that could be formally linked with the Belt and Road initiative are the Malaysia-China Kuantan Industrial Park, Xiamen University Malaysia, Melaka Gateway, East Coast Railway Link and Bandar Malaysia,”
Chua said the Belt and Road initiative would bring ample opportunity for expanding bilateral trade and investment with all participating countries.
Malaysia could position itself not just as a hub for Asean but also for countries along the route when facilitating investment within the region, he added.
Chua said Malaysia’s trade with China totalled US$58bil (RM255bil) last year, while for the first two months this year, there was a 28% year-on-year increase.
“Belt and Road Initiative can benefit Malaysia”
The Belt and Road Initiative (BRI) is an innovative multi-tier economic strategy which will open opportunities for Malaysian business.
But local firms must enhance their competitiveness before exploring the opportunities, advices by Datuk M. Supperamaniam.
He said that state owned enterprises (SOEs) and enterprises from China have high standards and requirements. Hence he said Malaysian business, especially SMEs, must first understand the benchmark before embarking on any collaborative projects or ventures with their China counterparts.
- Supperamaniam said that it is important for Malaysian businesses to strive to match the capability of their Chinese counterparts. He highlighted that many local businesses have only focused on the domestic market and have been reluctant to expand their business beyond Malaysian borders.
Dr Yan Lijin said that Malaysia is still one of the top destinations in the ASEAN region for investments from China.
Borrowing the example of China seeing Malaysia as a role model back in 1980s, he said, “Back then, China looked at Malaysia, and our government wanted to reach the capability of the Malaysian electronics manufacturer by 2000.”
“Today, we see Malaysia still performing better than us in certain segments and that is why we feel that China can learn from your country.”
China is in the transition from a manufacturing powerhouse into a huge consumer market, said Yan. He explained that other countries can work together and leverage on the great opportunities created by the needs of China’s growing middle-income group.
“Demand in China is steadily growing so we need to gather supply from countries with the capability to serve a huge market.” He added.
The BRI model by China President Xi Jinping is a timely multinational economic strategy which is based on the concept of sharing resources for the benefits of all participating countries. Its aim is to promote the connectivity in the Asian, European and African continents and their adjacent seas.
“This is to establish and strengthen partnerships among countries along the Belt and Road. The connectivity will help align and coordinate the development strategies of the countries.”
The BRI consists of the land-based Silk Road Economic Belt and the ocean-based Maritime Silk Road. The initiative includes two routes stretching from China’s southeast ports and the South China Sea. One route passes through the Indian Ocean and ends in Europe, while the other ends in the southern Pacific Ocean.
