Malaysia Pi­o­neered in Build­ing the World’s First EWTP “Pi­lot Area”

China's Foreign Trade (English) - - Regional Trade & Investment - By Guo Yan

On March 22, the Malaysian Dig­i­tal Econ­omy Cor­po­ra­tion ( MDEC) an­nounced a strate­gic part­ner­ship with Alibaba Group, and both par­ties will jointly build the first EWTP “pi­lot area” out­side China in Malaysia, to help young peo­ple and SMES in Malaysia and through­out South­east Asia par­tic­i­pate in global trade.

“To­day is an ex­cit­ing day for our coun­try,” Malaysian Prime Min­is­ter Na­jib said at the launch­ing cer­e­mony: “We have a great part­ner!”

An op­por­tu­nity for SMES in Malaysia to en­ter the in­ter­na­tional mar­ket

Na­jib was sat­is­fied with the progress of the EWTP project. Ac­cord­ing to him, the ne­go­ti­a­tion with Alibaba for es­tab­lish­ing the first EWTP “pi­lot area” out­side China was started last Novem­ber, and four months later the idea is turned into re­al­ity, demon­strat­ing the ef­fi­ciency of Malaysia and Alibaba.

Na­jib said, “Alibaba Group is aim­ing at boost­ing the de­vel­op­ment of trade, es­pe­cially for th­ese small and medium-sized en­ter­prises, which makes it the per­fect part­ner for the EWTP project. Mean­while, the EWTP project will cre­ate a lot of op­por­tu­ni­ties for Malaysia.”

Na­jib also had a high ex­pec­ta­tion for the eco­nomic fu­ture of the EWTP project. He said, Alibaba had cre­ated 30 mil­lion jobs in China, and the “310” model of Ants Fi­nan­cia l Ser­vices Group (that is, the ap­pli­cant fill out the ap­pli­ca­tion form on­line in 3 min­utes, and the sys­tem com­plete the re­view in 1 sec­ond and ap­prove the lend­ing, in­volv­ing 0 man­nual work) also cre­ated a “new world”. The same change is tak­ing place in other parts of the world, for ex­am­ple, there are 200 mil­lion users of mo­bile pay­ment in In­dia. With the EWTP “pi­lot area”, Malaysia is ex­pected to re­al­ize fi­nan­cial in­clu­sion and dou­bledigit growth in cross-border trade. “The free E-trade zone con­trib­utes 37% of GDP, and 97% are small and medium en­ter­prises,” said Na­jib.

Jack Ma, chair­man of Alibaba Group, said: “I have been try­ing to make the vi­sion of EWTP come true since I put up the EWTP ini­tia­tive in 2016. The first EWTP dig­i­tal hub out­side China is of great im­por­tance, as it will sup­port the fu­ture de­vel­op­ment of global small busi­nesses and young peo­ple, and push the EWTP ini­tia­tive. Through in­no­va­tion in lo­gis­tics, pay­ment, cus­toms clear­ance and big data, to­gether with gov­ern­men­tal sup­port and cor­po­rate co­op­er­a­tion, the EWTP vi­sion will come true, pro­vid­ing op­por­tu­ni­ties for small busi­nesses and young peo­ple to par­tic­i­pate in the glob­al­iza­tion.”

This “Dig­i­tal Free Trade Zone” is rooted in Jack Ma’s e-hub con­cept. In his vi­sion, e-hubs con­nect each other to form e-roads around the world, and pro­vide small and medium en­ter­prises with all the in­fra­struc­ture needed for global trade, mak­ing “buy­ing and sell­ing glob­ally” pos­si­ble.

With the help of Alibaba, the Malaysian “Dig­i­tal Free Trade Area” will

be an e-hub in­te­grated lo­gis­tics, pay­ment, cus­toms clear­ance and data func­tions, pro­vid­ing the in­fra­struc­ture for Malaysia to de­velop dig­i­tal econ­omy and con­nect­ing small and medium- sized en­ter­prises in Malaysia to the world. Specif­i­cally, led by Cainiao and Lazada, the project will build a su­per in­ter­na­tional lo­gis­tics cen­ter at Kuala Lumpur In­ter­na­tional Air­port, to pro­vide sup­ply chain fa­cil­i­ties and busi­ness ser­vices of lo­gis­tics, ware­hous­ing, cus­toms clear­ance, trade and fi­nance, help­ing small and medi­um­sized en­ter­prises in Malaysia with the cross-border trade; to ex­plore new cross­bor­der e-trade rules for con­ve­nient and ef­fi­cient “one-stop” for­eign trade ser­vices; to pro­vide pay­ment and in­clu­sive fi­nan­cial ser­vices, pro­mot­ing B2B trade; to make use of Ali cloud and big data tech­nol­ogy, sup­port­ing Malaysia to foster lo­cal en­trepreneurs and dig­i­tal eco­nomic pro­fes­sion­als.

Alibaba Group CEO Zhang Yong said, “Our vi­sion is to help Malaysia build a new ecosys­tem, to en­cour­age e- com­merce and dig­i­tal eco­nomic in­no­va­tion, and to pro­mote small busi­nesses and young peo­ple in Malaysia to ben­e­fit from the glob­al­iza­tion.”

It is re­ported that Malaysia will co­op­er­ate with the Hangzhou Cross­bor­der E-com­merce Com­pre­hen­sive Pi­lot Area on cross-border e-com­merce trade fa­cil­i­ta­tion, to pro­mote trade be­tween Malaysia and Hangzhou as well as the en­ter­prises of Malaysia and China, es­pe­cially SMES.

Build the fu­ture in­fra­struc­ture for global trade

Lo­cated in Malaysia, aim­ing at build­ing the fu­ture in­fra­struc­ture for global free trade net­work of SMES, the EWTP project in Malaysia praised by Alibaba as e-hub has rea­sons.

At the launch­ing cer­e­mony, Zhang Yong men­tioned “in­fra­struc­ture” many times as he re­sponded the ques­tions from re­porters. He said, “Trade has no bound­aries. Fa­cil­i­tat­ing trade through the In­ter­net and boost­ing free trade be­tween SMES all over the world, so as to pro­vide con­sumers in var­i­ous coun­tries and re­gions with global goods, that is the ori­gin of EWTP. To achieve the tar­get, it needs sup­ports of in­for­ma­tion, pay­ment, lo­gis­tics and ser­vices, and the in­fra­struc­ture comes first.”

Based on Zhang Yong’s in­tro­duc­tion, in­fra­struc­ture con­struc­tion in­cludes four as­pects: lo­gis­tics, pay­ment, cloud com­put­ing large data ser­vices and in­te­grated for­eign trade ser­vice plat­form.

For lo­gis­tics, Alibaba will build a lo­gis­tics cen­ter in Malaysia, which can cover the South­east Asian mar­ket and pro­vide one-stop cus­toms clear­ance, ware­hous­ing and dis­tri­bu­tion ser­vices, speed­ing up the flow of im­port and ex­port goods.

Ant Fi­nan­cial Ser­vices will pro­vide pay­ment and fi­nan­cial ser­vices cen­ter­ing on im­ports and ex­ports. By now, the group has signed agree­ments with lo­cal banks for pay­ment fi­nan­cial co­op­er­a­tion, and in­tro­duc­tion of es­tab­lished e-wal­let tech­nol­ogy to South­east Asia.

As the main ser­vice provider, Ali Cloud will carry out full co­op­er­a­tion with Malaysia on cloud tech­nol­ogy and cloud knowl­edge train­ing, and pro­vide cloud ser­vices to Malaysian small and medium-sized en­ter­prises. Zhang Yong specif­i­cally men­tioned that, Ali will help Malaysia with per­son­nel train­ing to spread cloud ser­vice among small and medium-sized en­ter­prises.

In or­der to im­prove the ex­port ef­fi­ciency of lo­cal en­ter­prises, Ali will in­tro­duce the highly ma­ture in­te­grated for­eign trade ser­vice plat­form model in China like Just One Touch to Malaysia, pro­vid­ing small and medium- sized en­ter­prises in South­east Asia with sin­gle elec­tronic port that connects all gov­ern­men­tal ser­vice plat­forms.

Zhang Yong also re­vealed that the third e-hub is un­der ne­go­ti­a­tion, in ad­di­tion to the EWTP projects in China and Malaysia. He said, “By now we have another hub out­side of China, and the third will emerge soon. And the three e-hubs will con­nect each other to form a net­work, pro­vid­ing free data flow and trade fa­cil­i­ties. Based on this in­creas­ingly grow­ing net­work, the dream of free trade for small and medium-sized en­ter­prises will be­come true. Fi­nally, the tar­get of Alibaba, namely serving two bil­lion con­sumers around the world, cre­at­ing 100 mil­lion jobs and fos­ter­ing 10 mil­lion busi­nesses with prof­itabil­ity, can turn into a re­al­ity, and also Alibaba’s strat­egy and vi­sion of glob­al­iza­tion.”

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.