Good funding a feature of Belt and Road, say observers

HONG KONG: The availability of funds is one of the prominent features of China’s Belt and Road initiative, said observers and industry players.

With connectivity as its axis, the ambitious initiative aims to link up the regions through land-based and seafaring routes, with China pledging funds to support various infrastructure projects.

“I am very bullish that China is very committed to the Belt and Road in terms of construction and financing.

“One thing I do know is that China is not only prepared to give Malaysia the technology but all the funds to build the railway between Singapore and Kuala Lumpur.

“That’s how committed China is,” said Far East Consortium International Ltd chairman Tan Sri David Chiu.

He was among the panellists at a session themed “Logistics and Supply Chain: Enhancing the Innovating Connectivity Between China, Hong Kong and Asean” at the World Chinese Economic Summit here.

Hutchison Port Holdings Trust CEO Gerry Yim said while a lot of fresh funding was pouring into countries along the Belt and Road for infrastructure development, hardware itself was not going to improve trade.

“There is a need to reduce friction of trade,” he said, adding that a better flow of information and faster customs clearances were also important.

Citing inland African countries as an example, Yim said while shipping only took two weeks, cargoes reached their final destination in around 45 to 60 days due to delays at customs.

Datuk M. Supperamaniam, distinguished fellow at Institute of Strategic and International Studies Malaysia, mulled on whether Belt and Road projects would bring spillover benefits to the local economy and communities.

“The RM55bil East Coast Rail Link, for instance, has to come with multiplier effects.

“Besides carrying cargo, how does it upgrade the farming communities and enhance their productivity and competitiveness?” said Supperamaniam, who is a former Malaysian ambassador to the World Trade Organisation.