Bilateral relations key to economic progress
PUSHING FORWARD: Govt cannot rest on its laurels during testing economic times
LAST week was a hectic one for administrative capital Putrajaya. I am not referring to how hard it may have been for those in the Foreign Ministry to craft a respectful congratulatory message to United States president-elect Donald Trump without sounding surprised or tickled by his election victory.
But rather, the week was abuzz with stately affairs and gallant formalities as the government, headed by Prime Minister Datuk Seri Najib Razak, welcomed Turkmenistan President Gurbanguly Berdimuhamedov, followed by Philippine President Rodrigo Duterte’s official visit.
In addition to enhancing trade cooperation between the two countries and confronting the persistent challenges faced by the oil and gas sector, Turkmenistan, famed for its exquisite carpets and diverse cultural treasure, is also keen to study Malaysia’s economic model. Turkmenistan holds the largest natural gas reserves among Central Asian countries. There is room for more to be done to push the country’s economy further.
Similarly, the Philippine delegation’s stopover in Kuala Lumpur was also seen as an important move to step up bilateral cooperation.
The Philippines is Malaysia’s fifth largest trading partner in Asean and 10th largest trading partner globally, with total trade at RM13.5 billion.
Besides establishing a framework for cooperation in tackling security issues along Malaysia’s borders, especially off the Sabah coast, where 10 Malaysians have been kidnapped this year, the visit also provided the opportunity for Duterte’s team to gather valuable insights into the operations at Putrajaya.
More than two years before Duterte’s visit, the Philippine government had expressed interest to build several “mini Putrajayas” in several areas of the country’s 81 provinces.
In addition, it is also hoping to work with Malaysian companies on many of its upcoming infrastructure, roads and rail network projects, at an estimated cost of RM2 billion.
Other areas discussed were on critical sectors, such as tourism and agriculture, as well as on franchise businesses and the development of halal products.
Both leaders’ and their delegations’ visit were timely reminders that a country’s government cannot afford to rest on its laurels, especially during testing economic times where market conditions and the business environment evolve swiftly.
Malaysia’s emphasis on the need to progress was none more apparent than our prime minister’s recent visit to China and Japan.
Having met with China President
Xi Jinping on his third official visit to the country, Najib spearheaded historic achievements with the signing of 14 business-to-business deals worth about RM143 billion.
In addition, the government also signed 16 government-to-government agreements, with most focusing on enhancing trade, defence, security, culture and people-to-people connectivity between both nations.
Among the highlights were collaborations on the East Coast Rail Line, which is expected to transform the east coast of the peninsula and form the foundation of a new growth corridor for Malaysia; the Trans-Sabah Gas Pipeline project; the setting up of China Railway Engineering Group Ltd’s RM8.4 billion regional headquarters in Bandar Malaysia; Malaysia Airlines’ success in adding eight new destinations to China, namely Haikou, Nanjing, Fuzhou, Wuhan, Chengdu, Chongqing, Tianjin and Shenzhen; and, 11 new routes between the two countries starting next year.
But the deal that made headlines was the appointment of Internet tycoon and Alibaba Group executive chairman Jack Ma as adviser to the government on digital economy.
Backed by Ma’s valued insights, the introduction of the Digital Free Trade Zone, scheduled for March next year, is expected to be a key milestone for the information technology fraternity in the country.
Following Ma’s appointment, Najib said businesses must embrace technology and enter the digital economy to succeed or risk folding.
According to Frost & Sullivan, the Southeast Asia market, covering Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnamm is set to become one of the world’s fastest-growing regions for e-commerce activities, growing from around US$11 billion (RM48.2 billion) last year to more than US$25 billion by 2020.
Malaysia Digital Economy Corporation indicated that there are about 45,000 online entrepreneurs in the country, with 15,000 recording a total transaction of about RM30 million. Malaysians, according to Ernst & Young Advisory Services, spend an average of 14 hours a day on digital devices, with 87 per cent of them on the Internet.