China hails DFTZ as example of investor success

HONG KONG: Malaysia’s Digital Free Trade Zone (DFTZ) has been singled out by China as an example of its investors going global in a special address to the Ninth World Chinese Economic Summit here (WCES).

The DFTZ, said a representative from China’s Foreign Affairs Ministry, would bring local small and medium enterprises onto the world stage.

“Chinese investments are operating in 190 countries and regions with a total asset worth US$5tril (RM21tril).

“Just 10 days ago, the first overseas electronic world trade platform – the DFTZ of Malaysia – was inaugurated by Alibaba Group,” said commissioner Xia Feng.

Chinese enterprises, said Xia, would bring along capital, high quality production capacity, high technology and development experience to cooperate with local counterparts for the sake of common development.

China’s outbound direct investment in 2016, he said, had increased 34.7% to a record high of US$196bil (RM821bil), accounting for 13.5% of the global total.

With China importing over US$8tril (RM33.6tril) worth of goods over the next five years and its 700 million tourists making outbound trips, it would be generating enormous business opportunities for countries around the world, said Xia.

In her speech, Hong Kong chief executive Carrie Lam said that it was a good time for the WCES to take place in Hong Kong, as it had just signed a free trade agreement (FTA) and its related investment deals with Asean on Sunday in Manila.

“The agreements are significant and comprehensive, and will bring about new business opportunities and boost trade and investment ties through legal certainty, better market access and cooperation in capacity building technical assistance,” she said.

Lam said the Belt and Road initiative, which covers three quarters of the world’s land mass and 60% of the world population, was a much needed driving force for the global economy.

Commenting on their speeches, Transport Minister Datuk Seri Liow Tiong Lai told Malaysian journalists that it was committed to create a seamless network across the land, air and sea to boost the logistics sector.

“I am very happy to hear that Hong Kong has signed an FTA with Asean.

“Hong Kong plays an important role in the Belt and Road and China’s Guangdong-Hong KongMacau Greater Bay Area.

There will be enormous opportunities for Malaysians to invest here, and vice versa,” he said.