China, the world's second largest economy, is a key engine of global economic recovery, which continues to play a sustained role in driving global economic growth. Malaysia, the third largest economy in ASEAN and one of the richest emerging economies in Asia, has a leading economic growth rate for these years. Hong Kong, an open, free, and advanced international economy, can be a golden bridge linking up the China-Malaysia partnership in geographical location, economic and trade connectivity, and business environment. As we celebrate the dual tenth-anniversary of China-Malaysia Comprehensive Strategic Partnership and the BRI, Hong Kong has the real potential to build on the past and expand this relationship in a promising manner.

Author: Dato’Gan Khai Choon

Chairman of The Malaysian Chamber of Commerce (Hong Kong and Macau)

As we celebrate the 10th anniversary of China-Malaysia Comprehensive Strategic Partnership and the remarkable progress of the Belt and Road Initiative (BRI), it is an opportune time to reflect on the achievements and to explore new avenues of the cooperation. In September 2023, the meeting between Wang Huning, Chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), and Dato’ Johari Abdul, Speaker of the Dewan Rakyat, further highlighted Malaysia’s commitment to enhancing collaboration with China in various sectors. In October of the year, China’s announcement of hosting the Third Belt and Road Forum for International Cooperation in Beijing also signified the importance of high-quality cooperation and the advancement of participating countries’ development.

The Malaysian Chamber of Commerce (Hong Kong and Macau), also known as MAYCHAM, has played a pivotal role in promoting economic, trade, and cultural cooperation between Malaysia, Hong Kong and Macau. Over the years, MAYCHAM has successfully facilitated communications among and participation of numerous corporations and sponsors in BRI-related businesses. The Chamber has been instrumental in connecting Hong Kong entrepreneurs and business elites with opportunities in Malaysia, leveraging the Belt and Road Initiative. As the Chairman of MAYCHAM, I am honoured to share my perspectives on the cooperation and connection between Malaysia, mainland China and HKSAR, and how we can better participate in the construction of Belt and Road.

How Hong Kong Can Drive the Partnership

Expanding Trade and Economic Collaboration: Trade and economic ties between Malaysia, mainland China and HKSAR have flourished, creating mutually beneficial opportunities. Malaysia’s strategic geographical location and its well-developed infrastructure make it an ideal partner for the BRI. The nation’s commitment to enhancing connectivity, coupled with China’s investments in infrastructure projects, has opened new doors for trade expansion and economic growth. Furthermore, Hong Kong’s status as an international financial hub and its expertise in various sectors provide valuable resources and competence to support Malaysia’s development goals. By further strengthening cooperations in trade, investment, and technology transfer, we can unlock the true potential of this trilateral partnership.

Leveraging Cultural Exchanges: Cultural exchanges are crucial in fostering understandings and goodwill among nations. Malaysia’s rich cultural heritages and diversity, combined with China’s deep-rooted civilizations and Hong Kong’s cosmopolitan influences, together create a unique platform to promote cultural cooperation. By encouraging educational and artistic exchanges, we can strengthen people-to-people connectivity and forge lasting friendships. Increased collaboration in cultural tourism, creative industries, and educational partnerships will not only enhance mutual understandings but also boost economic growth and create new opportunities for citizens.

Harnessing Innovation and Technology: Innovation and technology play a pivotal role in driving sustainable development and economic progress. Malaysia, mainland China and HKSAR are at the forefront of technological advancements in various sectors. By pooling our resources, facilities, and research capabilities, we can cultivate innovative ecosystems that spur economic growth and address common societal challenges. Collaborations in sectors such as artificial intelligence, green technology, financial technology, and smart cities will pave the way for a more sustainable and prosperous future.

Empowering Small and Medium Enterprises (SMEs): SMEs form the backbone of our economies, and their participation in the BRI is vital for inclusive growth. Malaysia, mainland China and HKSAR must collaborate to provide platforms, networks, and resources that empower SMEs to navigate international markets. Initiatives such as trade fairs, business matching events, and mentorship programmes can facilitate knowledge exchanges and encourage SMEs to seize the opportunities presented in the BRI. By supporting SMEs, we can enhance entrepreneurship, job creation, and economic diversification.

Strengthening Financial Cooperation: Financial cooperation is a critical aspect of the BRI. The collaboration between Malaysia, mainland China and HKSAR can further enhance financial connectivity in the region. Malaysia’s Islamic finance expertise, China’s robust banking system, and Hong Kong’s global financial networks constitute a powerful combination for driving investments and infrastructure financing. By leveraging our respective strengths, we can promote the development of financial centers, deepen capital-market integration, and facilitate cross-border investments. This will provide a solid foundation for sustainable economic growth and shared prosperity.

Enhancing Connectivity and Infrastructure Development: Connectivity and infrastructure development are key pillars of the BRI. Malaysia’s commitment to enhancing connectivity through projects such as the East Coast Rail Link (ECRL) and the Melaka Gateway Port opens up new trade routes and strengthens regional integration. China’s expertness in infrastructure development and Hong Kong’s experience in project financing and management can contribute significantly to the successful implementation of these projects. By prioritizing sustainable and inclusive infrastructure development, we can create a sturdy groundwork for economic growth, job creation, and improved livelihoods.

Promoting Sustainable Development: Sustainable development lies at the heart of the BRI. Malaysia, mainland China and HKSAR have a shared responsibility to ensure that economic growth is accompanied by environmental protection and social inclusiveness. Collaborations in sectors such as renewable energy, green technology, and sustainable tourism can drive the transition towards a low-carbon and resilient economy. By adopting best practices, sharing knowledge, and promoting sustainable investment, we can create a greener future for generations to come.

The Role of Government Support: Government support and policy coordination are essential for the success of the BRI. Malaysia, mainland China and HKSAR should work together to create a favorable business environment, facilitate cross-border trade, and address regulatory barriers. By streamlining customs procedures, harmonizing standards, and promoting investment protection, we can enhance the ease of doing business and attract more external direct investments. Furthermore, governments should prioritize capacity building, talent development, and knowledge sharing to ensure that all stakeholders can fully capitalize on the opportunities presented in the BRI.

Building Trust and Strengthening People-to-People Connectivity: Trust and mutual understandings are crucial elements for successful cooperation. Malaysia, mainland China and HKSAR should invest in cultural exchanges, educational programmes, and tourism promotion to foster people-to-people connectivity. By encouraging more interactions among students, scholars, artists, and entrepreneurs, we can build bridges on friendships and build up long-term collaborations. Platforms such as joint research projects, exchange programmes, and business fora can expedite knowledge transfer and enhance cross-cultural understandings.

Mitigating Risks and Ensuring Transparency: Like many other major initiatives, it is wise and responsible to address risks ahead of time during the implementation of BRI-related projects. Malaysia, mainland China and HKSAR should prioritize risk management and ensure transparency during project implementation. Robust governance frameworks, comprehensive risk assessments, and stakeholder engagements are essential to identify and address potential challenges. By adopting international best practices in procurement, project management, and sustainability standards, we can minimize risks, ensure accountability, and build trust among participating countries.

Prospects for the Next Decade

The 10th anniversary of China-Malaysia Comprehensive Strategic Partnership and the ongoing progress of the BRI present a remarkable opportunity to further strengthen cooperation between Malaysia, mainland China and HKSAR. MAYCHAM, as a key facilitator of economic, trade, and cultural exchanges, remains committed to promoting collaborations and unlocking the full potential of this trilateral partnership.

By expanding trade and economic collaboration, leveraging cultural exchanges, harnessing innovation and technology, empowering SMEs, strengthening financial cooperation, enhancing connectivity and infrastructure development, promoting sustainable development, and fostering government support and people-to-people connectivity, we can create a robust ecosystem of cooperation and contribute to the shared prosperity of our nations.

Together, Malaysia, mainland China and HKSAR can embrace the BRI as a transformative dynamism that drives economic growth, fosters cultural understandings, and addresses common challenges. Let us seize this opportunity to forge stronger ties, deepen cooperations, and build a brighter future for our two nations and the region as a whole.

(The article has been edited. Subheadings are written by editor. This article was published in the January 2024 issue of Bauhinia Magazine)