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Showing posts with label Trade & investments. Show all posts
Showing posts with label Trade & investments. Show all posts

Wednesday, November 16, 2016

The new China Syndrome: don't tell Chinese balik Tongsan, Tonggsan coming to Malaysia


May the goodwill generated from the Middle Kingdom’s investments coming our way be infectious.


NO doubt about it – the love is back. MCA is basking in its renewed affection and appreciation as a useful partner to Barisan Nasional.

That was supremely obvious in Prime Minister and BN chairman Datuk Seri Najib Tun Razak’s glowing speech at MCA’s annual general assembly on Sunday.

In the three years since the devastating general election in 2013, MCA has worked hard at rebuilding itself and has regained some of its mojo.

And it showed at this year’s assembly, which was very different from the mood and tone of the AGM post-GE13, when the party was still smarting from the anger and disappointment of its coalition partner.

Najib, feeling terribly let down by the lack of Chinese support, had lashed out at the community, calling their massive support for the Opposition a “Chinese tsunami”.

Not only that, he defended a Ma­lay newspaper’s front-page head­line: Apa lagi Cina mahu? (What else do the Chinese want?).

That year at its annual general assembly, he pointedly told MCA, whose parliamentary seats had been reduced to a mere seven and state seats to 11, half of what it won in the 2008 general election, that it needed “political Viagra” to raise its flagging spirit.

It was indeed a horribly low point for MCA. There were calls for the party to leave BN, but the leadership soldiered on, refusing to give up a long-established partnership.

A year later, at the MCA AGM, Najib did not mince his words again when he urged the party delegates to stop fighting among themselves because he found the factions confusing and tiresome.

All that has changed. On Sunday, he declared that there was no more Team A or B, only Team MCA, in recognition of Datuk Seri Liow Tiong Lai’s leadership in bringing unity and transforming the party.

But there was another feel-good factor at work at the AGM: the afterglow from Najib’s successful visit to Beijing a week earlier.

The Chinese government really rolled out the red carpet for Najib and his delegation, which included Liow, MCA deputy president Datuk Seri Dr Wee Ka Siong and other MCA leaders, during a six-day visit that netted investment deals amounting to RM144bil, covering bilateral trade, education, culture and defence.

Beijing’s warm relationship with Putrajaya and China’s position as Malaysia’s largest trading partner did not happen overnight.

China has always remembered Malaysia for being the first Asean country to establish diplomatic relations with it when communism was still seen as a threat to the region.

That was thanks to Najib’s father, second Prime Minister Tun Abdul Razak Hussein, who made that historic visit in 1974.

But it was the Malaysian Chinese community that went on to deepen and strengthen those ties. Again, this is something China remembers and is grateful for: Malaysian Chi­nese businessmen who invested in China in the late 1970s when Deng Xiaoping had just opened its doors to foreign investment.

Among them is the stellar tycoon Robert Kuok, said to wield great influence with the Chinese leadership, whose long-standing admiration for him culminated in CCTV, Chi­na’s state TV broadcaster, bestowing on him the China Econo­mic Per­son of the Year Lifetime Achievement Award in 2012.

Among the stories told include how Kuok earned the Chinese government’s trust and affection after he, the renowned Sugar King, secretly helped China overcome a severe sugar shortage in the early 1970s.

Interestingly, when Chinese leaders visit Kuala Lumpur or Singapore, they invariably choose to stay at Kuok’s Shangri-La hotel and that includes former president Hu Jintao and his successor, Xi Jinping, which is surely a measure of their continuing esteem for Kuok.

While the magnitude of the new investment deals raised eyebrows, China’s getting involved in building and funding major infrastructure projects isn’t new. After all, it was a Chinese construction company, CHEC, and a cheap Chinese government loan that helped build the second Penang bridge.

Granted, people have the right to be cautious and demand to know the details of such deals, and that should be respected. But there is no doubt that China has come to the rescue of Malaysia at a time when our economy needed a huge boost.

More importantly, Najib’s administration knows the role MCA leaders played in helping seal the deals.

After all, many of the MoUs signed concerned the development of transport infrastructure like the East Coast Rail Link and ports, which are under Liow’s portfolio as Transport Minister.

As reported, Liow made frequent trips to Beijing for meetings and wooed the Chinese to invest in Port Klang. Not only that, he was always on hand to host visiting Chinese dignitaries, like his counterpart Yang Chuantang, and Prime Minister Li Keqiang.

All the hard work came to fruition with the huge investments and the affirmation of trusted friendship between the two nations.

As Najib said, he continued to look east, like former prime minister Tun Dr Mahathir Mohamad’s Look East policy, because China was the world’s biggest economy. But frankly, there isn’t any other direction to look for big investment.

The realisation of China’s importance to Malaysia is fast taking root; so much so, the Red Shirts which, just a year ago tried to storm Kuala Lumpur’s Chinatown, have stopped their outright anti-Chinese attacks after Ambassador Dr Huang Huikang made it clear that Beijing would not stand for “incidents which threaten the interests of the country, infringe upon the rights of its citizens in doing business, or disrupt the relationship between Malaysia and China”.

But now that Najib has warmed up again to MCA and the Chinese from China are all the rage, it would really, really be nice if that love and goodwill could be spread around to Malaysian Chinese who have long invested in this place they call home and helped build it into a modern, progressive, successful nation.

It is time to stop making the Chinese community the convenient whipping boy and the bogeyman to frighten the Malays for political expediency. And no more allowing groups and individuals to spew hate speech and dangle the threat of another May 13.

This type of divisive politics has gone so bad that Liow reiterated his call for a National Reconciliation Council to strengthen the two pillars of national unity and cultural diversity, which he said had come under attack.

That is what is sorely needed to improve MCA’s chances of winning back the Chinese vote in the next general election, which is Najib’s ultimate challenge to the party.

As the joke that is going around now: no point telling the Chinese to balik Tongsan (go back to China) because Tongsan is coming to Malaysia.

By June H.L. Wong, So Aunty, So What? The Star/Asian News Network

Aunty was determined not to write about Donald Trump but she must mention she was gobsmacked by his five-year-old granddaughter’s ability to speak Mandarin.


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Many of the negative responses over the deals with China seem to be politically motivated, stemming from ignorance and, in some cases, et...

Prime Minister Datuk Seri Najib Razak (L) and China's Premier Li Keqiang at the Great Hall of the People, in Beijing. - EPA 

Malaysian PM Najib given official welcome at China's Great Hall of the People https://youtu.be/v87tJF3uO7U   Prime Minister ...

Monday, November 14, 2016

Stop bitting the helping hand

Many of the negative responses over the deals with China seem to be politically motivated, stemming from ignorance and, in some cases, ethnic prejudice against all things Chinese.


YOU can be angry with Datuk Seri Najib Tun Razak but let’s not lose our objectivity. The Prime Minister brought in RM144bil worth of deals signed between Malaysia and China.

Many Asean countries are eyeing that kind of money from China but strangely, some Malaysians’ sense of rationality is becoming warped, even perverted, and they feel it is prudent to go into senseless name-calling and mindless smearing of China.

We have to be careful here – remarks like Malaysia indulging in yellow culture, selling our soul to China and comments which smacks of racism are surely not the way to treat a friendly superpower nation like China.

Those making such disparaging remarks are doing a disservice to Malaysia. It’s akin to throwing sand into our rice bowl.

Hate the PM as much as you want as this is how democracy works. But do some of us need to lash out with political rhetoric against China?

It is one thing to score points against our political rivals but surely, there must be a line drawn – let’s not bite the hand that is trying to help us at a time when Malaysia needs to secure more foreign investment to shore up our flagging revenue from oil and gas.

Many of the negative responses over these deals with China seem to be politically motivated, stemming from ignorance and, in some cases, ethnic prejudice against all things Chinese, whether it has to do with mainland China or Chinese Malaysians.

Let’s look at the numbers – foreign investors (including the US) are net sellers of stocks in Bursa Malaysia and have reportedly dumped RM948.1mil in stocks although some have said it is even more.

Malaysia can no longer depend on traditional foreign direct investments from the US and other Western countries.

The reality is that China invested as much as US$84bil (RM370bil) in 2012, establishing it as the world’s third largest outward investor after the US and Japan. China has aggressively eclipsed other nations.

The shift towards China, according to one study, is obvious as the republic emerged as Malaysia’s largest trading partner, enjoying a 13.8% share of Malaysian trade since 2012.

Malaysian firms (especially those owned and managed by Malaysians of Chinese descent) have also been actively investing in China since it liberalised its economy in 1979. Some of these firms played a crucial role in attracting mainland Chinese firms to invest in Malaysia, according to studies.

Everyone knows that China has the money. And Malaysia has an edge over other Asean countries because of the link between Chinese Malaysians and China that has given us an advantageous position, especially when China increasingly sees Singapore as a US ally.

There are some who are unhappy with China’s purchase of 1MDB’s energy assets in Edra Global Energy Bhd for RM9.83bil by the state-owned China General Nuclear Power Corp recently, suggesting that the republic was only helping Najib out in the 1MDB controversy.

But let’s look at other investments – even before the recent trip by the PM. China has put in a multi-billion ringgit purchase of a substantial equity stake in Bandar Malaysia via China Railway Construction Corporation.

China Railway Engineering Corporation has announced plans to set up its multi-billion regional headquarters in Bandar Malaysia, which will host the main terminal for the proposed KL-Singapore High Speed Rail project.

It has been reported that the Chinese government has started buying more Malaysian Government Securities (MGS) and this inflow of new money could possibly rise to RMB50bil (about RM30bil) in total or 8.5% of Malaysia’s total outstanding MGS as of early April.

Those who have been grumbling should answer if there’s any big money coming from the US, Australia or Britain.

And many of us are also wary about money coming in from the Saudis – some are alleging that they are exporting radical Islamic values to Malaysia. Do we need this?

Like it or not, China, apart from being Malaysia’s largest trading partner which takes up 19% of its exports, is presently one of the top five foreign investors in the country.

Investments from China in the manufacturing, construction, infrastructure and property sectors are at significant levels now.

According to official data, China’s investments in the manufacturing sector here from 2009 to 2015 totalled RM13.6bil, creating 24,786 jobs.

Malaysia also needs more Chinese tourists to visit our country and we hope to attract two million Chinese tourists by the end of the year. Our tourism industry has seen a growth of 23% in arrivals from China since the e-visa entry programme was introduced in March this year.

China is the third largest source of tourists for us after Singapore and Indonesia. Malaysia targets eight million Chinese tourists by 2020.

Only 10% of China’s population travelled out of their country and yet they have spent US$229bil (RM1tril) globally last year. They easily beat the number of many Western countries put together!

They spend more than other tourists and they travel in bigger numbers. We all know that in Western countries, Chinese-speaking shop assistants are specifically hired to engage with this segment of customers.

Malaysia is not on the radar of Chinese tourists but more young Chinese tourists have chosen to visit Sabah because of its beautiful sea and lush forests.

Chinese tourists spent US$215bil (RM948bil) abroad last year, 53% more than in 2014, according to a World Travel & Tourism Council report, a figure which is more than the annual economic output of Qatar. Chinese tourists are now spending way more than anyone else, including the Americans.

The number of Chinese tourists travelling globally has more than doubled to 120 million over the last five years, according to data from the China National Tourist Office and WTTC. That means one in every 10 international traveller now is from China.

Malaysia is missing out on this action, unfortunately. For a start, we can make travelling into Malaysia easier for them and having more direct flights will help.

Let’s give credit where credit is due. Najib has done well, from his recent trip to China.

It will even be better if our own Air Asia gets to fly into more Chinese cities as this will surely help boost Chinese tourist arrivals.

Let’s get real, all of us.

Certainly we have the right to express our concerns over the terms of some projects, and to seek clearer details, but let’s not drag in unnecessary elements which strain bilateral ties.

By Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.


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Monday, November 7, 2016

Jack Ma advisor to Malaysian Govt on digital economy to start with e-FTZ

https://youtu.be/fb74uSG-7Ro

China-Malaysia Promising relationship: Najib delivering his speech in Beijing. ‘A digital economy with e-commerce is Malaysia’s next growth strategy,’ says the PM.

Alibaba founder Jack Ma agrees to be advisor to Malaysian Govt on digital economy


BEIJING: Alibaba Group founder Jack Ma has agreed to act as an advisor to the Malaysian Government on its digital economy aspirations, says Prime Minister Datuk Seri Najib Tun Razak.

"We will be in partnership with Jack on the path and route to the future," said Najib.

He said that Ma had also agreed to come to Malaysia to attend the launch of its E free trade zone in March.

Najib said this before he launched Alitrip Tourism Malaysia together with Ma Friday to lure Chinese tourists to Malaysia.

"You can see that China is the place to be. It has 300 million middle-class people, larger than US population.

"We hope, together with Alibaba, we can make Malaysia and China more prosperous," he said.

In his Budget 2017 speech on Oct 21, Najib announced the setting up of a Digital Free Zone.

He also unveiled the Digital Maker Movement and the Malaysia Digital Hub to help nurture talents and create innovators to build a fully sustainable digital economy.

The digital economy is said to account for 16% of Malaysia's GDP and is expected to rise.

By Ho Wah Foon The Star

Adviser Jack Ma to start with e-FTZ

Digital push: Najib with Alibaba Group executive chairman Jack Ma (left) during launching ceremonyjof the Alitrip Malaysia Tourism Pavilion. Looking on is Tourism and Culture Minister Datuk Seri Mohamed Nazri Addul Aziz - Bernama.


BEIJING: Alibaba founder and executive chairman Jack Ma will kick-start his role as adviser to the Malaysian Government on its digital economy at the launch of a e-free trade zone (e-FTZ) in March.

Ma, a global business icon, has ideas on the set up of the e-trade zone, Datuk Seri Najib Tun Razak said.

“I had a (30-min) meeting with Mr Jack Ma. He has agreed to be adviser to our Government on the digital economy,” said the Prime Minister.

“Jack Ma did not ask for payment. I don’t think we can afford to pay him,” Najib said in jest later to a reporter’s question.

In his Budget 2017 ( see related posts below) speech last month, Najib announced that a digital economy that includes e-commerce would be Malaysia’s next growth strategy as this could bring about double-digit growth.

Alibaba is the largest and most well-known e-commerce giant in China and the world.

“We will be in partnership with Ma on the path and route to the future,” said Najib before launching the Alitrip Tourism Malaysia Pavilion in collaboration with Alibaba Group.

Najib said Malaysia would have to act fast to implement Alipayment, further develop online banking and online commerce as “we don’t want to miss the boat”.

On the pavilion, Najib said: “You can see that China is the place to be. It has 300 million middle-class people, larger than the US population.

“We hope, together with Alibaba, we can make Malaysia and China more prosperous,” he said.

Ma, before launching the pavilion jointly with Najib with the premier’s mobile phone, urged Chinese tourists to visit Malaysia and enjoy the culture there.

“We have a long history between these two countries. About 2,000 years ago, Chinese went to Malaya to make a living. Now, we should go there to enjoy life – not to survive,” said Ma.

He took the opportunity to pay tribute to the Prime Minister’s father for having the foresight to be the first leader in Asean to establish diplomatic ties with China when others shunned the republic for being a communist nation.

“Today, we are benefiting from this decision made 42 years ago. Malaysia is China’s largest trading partner in Asean and China is Malaysia’s biggest trading partner.”

On Malaysians, he noted that on average each Malaysian has 230 friends on his social network.

“This means Malaysians are friendly, trusting and inclusive. This is an excellent culture.

“I love Malaysia… you have the culture, environment, food and hospitality and inclusiveness.”

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Thursday, January 21, 2016

AIIB attracts nations from East, West, its fate connects to Chinese economy


AIIB’s fate connects to Chinese economy

The Asian Infrastructure Investment Bank (AIIB) officially opened for business on Saturday. In the past two years or so, the bank has been a subject of heated discussion as a symbol of change in the world order. However, its significance hinges on a number of factors in future, rather than the founding itself.

There are many advantages in terms of the bank's operation and management. Infrastructure construction in Asia, which the AIIB is centered on, is virgin territory that has huge potential to be tapped. There is ample scope for the bank to find its role.

With 57 countries as founding members, the starting point of the bank is high. Besides, China as the initiator has abundant capabilities of infrastructure construction, and its experience is applicable to developing countries.

Nonetheless, disadvantages also exist, among which the biggest is the adverse attitude of the US over the bank. It will be more costly for the AIIB to overcome problems than for the World Bank and the Asian Development Bank at critical moments. Therefore, the AIIB must be operated with superb management, leaving no room for any opponents.

The further development of the Chinese economy will provide indispensible strategic support for the AIIB to increase its heft.

The reason why the AIIB could be founded, despite obstructions from the US and Japan, is that the growth of the Chinese economy has shored up the confidence of the participants.

Since its founding, the AIIB has been connecting its destiny to the Chinese economy. The confidence the world has in the Chinese economy will be projected onto the AIIB.

The AIIB touches a nerve of major global powers of the US and Japan. Its inclusive nature enables its smooth start. China has its own interests, but it cannot put its interests above those of the other countries. We should avoid a zero-sum situation, but integrate Chinese interests with others', and make achieving a win-win result a goal rather than a slogan.

With the changing times, China can't expand its power through coercion. It must integrate into the world system and develop in a way that is acceptable to the majority of the world's states.

The AIIB represents China's taking of global responsibilities as a big power. The US, as the world No.1, can capriciously vandalize the rules it makes at some critical moments. But China cannot do so. It has to be well-disciplined in serving the world so as to be recognized and accepted as a rising power in the world. - Global Times

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Sunday, January 17, 2016

Asian Infrastructure Investment Bank, opens to lay down milestone for global economic governance



  Xi pushes for 'perfection of the system


BEIJING: China has pledged US$50mil (RM221.25mil) to the Asian Infrastructure Investment Bank (AIIB) to support infrastructure projects in less developed countries.

Launching the China-led bank here yesterday, Chinese President Xi Jinping said this proved China’s willingness to shoulder more international responsibility and “push for the perfection of the international system”.

“This is a historic moment,” he added.

With an authorised capital of US$100bil, AIIB was proposed as a global multilateral financial institution by Xi in 2013 to finance infrastructure development in Asia, including energy/power, transportation/telecommunications, rural infrastructure/agriculture development, and water supply/sanitation.

Representatives from 57 founding members, including Malaysia, attended the ceremony at the Diaoyutai State Guesthouse.

Malaysia, which holds 0.11% share and 0.36% of voting share in AIIB, was represented by Treasury deputy secretary-general Datuk Mohd Isa Hussain.

The three largest shareholders of AIIB are China, India and Russia, with a 30.34%, 8.52% and 6.66% stake respectively.

Each allocation is based on the size of the member country’s economy.

The bank, based here, is largely seen as a rival to the US-led World Bank and Interna­tional Monetary Fund.

The United States and Japan have shunned the AIIB while US allies – including Britain, France and Germany – have signed up as founding members.

AIIB president Jin Liqun promised to run AIIB as an organisation that is “lean, clean and green”.

“The bank will make a positive and significant difference in Asian development,” he said.

Speaking on behalf of the non-regional founding members, Luxembourg Finance Minister Pierre Gramegna said the fact that the idea to form AIIB came from the east was a testament to the rebalancing of the world’s economy.

“Without basic infrastructure, markets cannot function well and growth is limited. AIIB will be a boost to the Asian economy, and become a platform for cooperation that will foster economic integration and inter-regional connectivity,” he said.

By Tho Xin Yi The Star/Asia News Network

AIIB opens to lay down milestone for global economic governance

BEIJING, Jan. 16, 2016 (Xinhua) -- Chinese PresidentXi Jinpingaddresses the opening ceremony of the Asian Infrastructure Investment Bank (AIIB) in Beijing, capital of China, Jan. 16, 2016. (Xinhua/Li Xueren)

BEIJING, Jan. 16 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB), a China-initiated multilateral bank, started operational on Saturday, marking a milestone in the reform of global economic governance system.

Representatives of the 57 founding countries gathered in Beijing for the AIIB opening ceremony in Diaoyutai State Guesthouse. Chinese President Xi Jinping made a speech.

With joint efforts of all the members, the AIIB will become "a professional, efficient and clean development bank for the 21st century" and "a new platform to help foster a community of shared future for mankind, to make new contribution to prosperity of Asia and beyond and lend new strength to improvement of global economic governance," Xi said.

During the ceremony, Chinese Finance Minister Lou Jiwei was announced to be elected as the first chairman of the AIIB board of governors. Jin Liqun was elected the first AIIB president.

In addition to subscribing capital according to plan, China vowed to contribute 50 million U.S. dollars to the project preparation special fund to be established soon, to support the preparation for infrastructure development projects in less developed member states.

The AIIB will promote infrastructure related investment and financing for the benefit of all sides, Xi said, keeping Asia's enormous infrastructure development demand in mind.

Calling the initiative to establish the AIIB "a constructive move," Xi said it will enable China "to undertake more international obligations, promote improvement of the current international economic system and provide more international public goods."

Statistics from the Asian Development Bank (ADB) show that between 2010 and 2020, around eight trillion U.S. dollars in investment will be needed in the Asia-Pacific region to improve infrastructure.

Xi expected the China-initiated institution and other existing multilateral development banks to complement each other for mutual strength and cooperate on joint financing, knowledge sharing and capacity building.

In his address at the founding conference of the AIIB council on Saturday afternoon, Chinese Premier Li Keqiang said the operation of the new multinational development bank is "of positive and constructive significance for the global economic governance reform."

Hailing Asia "an engine" for the global economic growth, Li said the sustainable development of the Asian economy and regional economic integration rely on the infrastructure construction and connectivity, which would help facilitate the flow of trade, investment, personnel and information.

The aim of China initiating the AIIB is to widen financing channels, expand general needs and improve supply so as to bring along the common development in the region and promote world economic recovery with its own achievements, he said.

The premier called on the AIIB to integrate the China-proposed Belt and Road initiative with each country's development strategies, promote international cooperation on production capacity and innovate more modes to realize a diverse and inclusive cooperation.

Global leaders extended congratulations to the opening of the multilateral development bank.

"The ADB will cooperate closely with AIIB in supporting the development of the Asia Pacific region," said ADB President Takehiko Nakao in a congratulatory message to the opening of the AIIB.

"We will cooperate closely to provide support and constructive suggestions for the AIIB development," said Yoo Il-ho, deputy prime minister of the Republic of Korea at the opening ceremony.

China's Vice Finance Minister Shi Yaobin said in an interview with Xinhua that China does not intend to apply for financial support from AIIB in the initial stage.

"Though as the biggest shareholder of AIIB and the biggest developing country in the world, China is fully qualified to gain loans from the AIIB, but we made the decision mainly because that many other countries in the region are in more urgent need for infrastructure development," said Shi.

Shi said China holds 30.34 percent of the whole capital stock, with the first batch of capital stock worth 1.19 billion U.S. dollars already in place.

The AIIB was proposed by President Xi Jinping in October 2013. Two years later, the bank was formally established as the Articles of Agreement took effect on Dec. 25 last year.

As its name suggests, the AIIB will finance construction of infrastructures -- airports, mobile phone towers, railways and roads -- in Asia.

Amid the evolving trend of the global economic landscape, Xi expected the AIIB will help make the global economic governance system more just, equitable and effective. - Xinhuanet

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Chinese President Xi Jinping on Saturday attended the opening ceremony for the international development bank in Beijing.Full Story


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