OBOR INITIATIVE OFFERS VAST OPPORTUNITIES
PETALING JAYA: Malaysia is expected to benefit from the One Belt One Road (Obor) initiative with the opportunity for economic growth following the proposed trade route by China, said LBS Bina managing director Tan Sri Lim Hock San.
He said with the infrastructure to build the route, local businesses could take advantage and leverage the new connectivity that would be available with the initiative.
Lim added that given the strong relationship between the Malaysian and Chinese government, it would benefit both countries in the long run.
“Last year, Prime Minister Datuk Seri Najib Tun Razak has gone to China to sign RM144bil for infrastructure (contracts). With this type of money going into Malaysia, it will bring a lot of business opportunities into the country.
“Although Malaysians may not be involved (directly) considering the scale of the projects, our companies can benefit by being sub-contractors to supply raw materials,” he said at the StarProperty.my Business Edition Forum titled “One Belt One Road Initiative”.
“The tourism sector including hotels and the food and beverage industry can do business and, of course, with more tourists coming in, this will boost our tourism as well,” he added.
The forum was organised by StarProperty.my at Menara Star last Thursday. Star Media Group Bhd group managing director and chief executive officer Datuk Seri Wong Chun Wai presented the welcoming speech.
The event was moderated by StarProperty Sdn Bhd assistant general manager Ernest Towle.
Lim also said that LBS would be involved in projects in China, focusing on the 265-acre Zhuhai racing circuit where it aimed to upgrade the track and its surrounding amenities.
“We will be building theme parks and a Malacca cultural centre in Guangdong that is based on the agreement signed a few years ago.
“We will also upgrade the racing circuit and maintain the track. We are not only going to focus on the race track but also build a theme park, among others,” he said.
Guangdong economic and trade representative in Malaysia, Eng Kim Huat, said infrastructure projects being undertaken by China companies in Malaysia would benefit the country in the long run.
He gave projects such as the East Coast Rail Link as an example of the country reaping the rewards from the venture.
Eng added that Malaysia would gain more benefit as the route is further developed in the future.
In the shorter term, he agreed that tourism would be one of the first sectors from Obor.
“Recently, Xiamen Airlines announced a new route from Beijing to Kota Kinabalu. The number of arrivals is not very high but it will be reaping the benefits in the future,” he said.
Small and medium enterprises would also have the opportunity to grow, he said, citing projects such as the Digital Free Trade Zone (DFTZ) that would help local businesses market their products to a larger audience.
“DTFZ launched by the Prime Minister a few months ago is a stepping stone for our companies to sell their products to China and SouthEast Asian markets.
“Using the platform, you don’t have to worry about searching for buyers and the companies don’t have to travel to China to promote their products,” said Eng.
Those in the food and beverage industry, especially the ones that produce halal products, would also be benefit, he said.
“In the past, it was difficult to sell to China but because of Obor, merchants can go online to look for suppliers rather than having to go to the country and establish the connection there,” he said.
Obor was initiated by China President Xi Jinping to connect 65 countries across the world via sea and land, encouraging business through the creation of a vast network of infrastructure. that would
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