12-9-2023

Good morning,

Ir Prof. Dr. Goi Bok Min, Vice President of UTAR,

Mr. Koo Cheng, 许春先生，CEO of Sin Chew Daily,

Mr. Gu Cai Yuan, Director of Guangxi Cultural Industry Group 广西文化产业集团董事顾才源先生

Mr. Hao Le, Chief Marketing Officer, Malaysia-China Kuantan International Logistics Park (MCKILP),  马中关丹国际物流园开发有限公司，招商总监 郝乐先生

Mr. Wen Guiyong, Deputy President and CEO, China_Malaysia Industrial Park (Guangxi) Hua Wu Investment Co. Ltd  广西中马园区华物产协投资有限公司副董事长，总经理 文桂勇先生

Dr. Yang Jinghua, Guangxi Minzu University, 广西民族大学，杨箐华博士

En. Syed Kamal Muzaffa, Director of MIDA,

Distinguished guests and delegates,

Media friends,

Ladies and gentlemen,

Selamat pagi; 大家早上好

1. I would like to welcome all speakers and participants at the 6th seminar on the Twin Parks Cooperation Between Malaysia & China, which carries the theme Enhancing ESG: Promoting Cultural Exchange and Sustainable Development of Twin Parks. My congratulations go to UTAR for organising this seminar, which is supported by ACCCIM.

2. Malaysia- China’s warm friendship and cooperation have come a long way, thanks to mutual understanding and respect as well as common consensus on building a China-Malaysia community with a shared future.

3. This year marks the 10th anniversary of the establishment of a comprehensive strategic partnership between China and Malaysia, and next year we will witness the 50th anniversary of the establishment of the diplomatic relations between the two countries.

4. Both countries have endured strong economic and investment partnerships, focusing on win-win cooperation, and have always been at the forefront of China-ASEAN relations. We have reasons to expect positive broad prospects for two countries.  First, the high level of exchanges between the leaders of two countries underscores Malaysia-China’s firm commitment towards deepening bilateral relations. This is reflected in our Prime Minister’s role in leading a strong delegation of business leaders and enterprises to China in April. This was reciprocated by the visits of high-ranking China officials, having dialogues with their counterparts in Malaysia. Both countries have conducted sound cooperation in automobile manufacturing, digital economy, new energy, agricultural technology and food security. Second, strong economic and trade cooperation. China has been Malaysia’s largest trading partner for 14 consecutive years since 2009. The bilateral trade volume between China and Malaysia accounted for 21% of the total trade between China and ASEAN. China was the largest foreign investor in Malaysia’s manufacturing sector in 2016 to 2020, before dropping to 4th position in 2021, and coming back to the second position in 2022. Third, people-to-people exchanges with cooperation in culture, tourism, education, science and technology, and other fields between China and Malaysia. Since 2012, China has been Malaysia’s largest source of tourists outside ASEAN member countries. Post COVID-19 pandemic and China’s reopening, many Chinese business delegations are back here to seek business and investment opportunities, and also Chinese tourists have gradually returned.

Ladies and Gentlemen

5. The “Two Countries, Twin Parks” flagship project, China-Malaysia Qinzhou Industrial Park (CMQIP) and Malaysia-China Kuantan Industrial Park (MCKIP) in respective countries, represents a new model of international cooperation on industrial parks.

6. The MCKIP, which enters the 11^th year of operation since it was launched on February 5, 2013, is labelled as a model of China-Malaysia cooperation under the Belt and Road Initiative (BRI). It has promoted pragmatic cooperation and deepened the friendship between the two countries.

7. MCKIP has remained a key economic and industrial driver along Malaysia’s east coast since its launch, boosting industrial output and job creation and has become one of the East Coast Economic Region (ECER) development corridor’s most successful industrial parks. The park has attracted more than 50 international companies with a total investment of close to RM30 billion as at end-2022, creating more than 14,000 jobs for Malaysians. More importantly, the collaborations have created substantial spin-offs to the local industries, including transport and logistics; retail; port-related services; as well as businesses and the local community.

8. Over to the twin sister park in China, CMQIP is the third industrial park collaboration between China and its partner countries to deepen the bilateral economic and trade ties with the support and guidance of both governments.

9. The park mainly focuses on the development of biomedicine, information technology, equipment manufacturing, renewable energy, new sustainable materials, the modern service industry, and traditional ASEAN competitive industries. Furthermore, the park is committed to building a high-end industrial cluster, industry-city integration demonstration zone, scientific education and talents cluster zone, and international cooperation and free trade pilot zone.

10. We believe that the MCKIP and the CMQIP have set an innovative and strategic example of bilateral economic cooperation model in the region. With Malaysia’s ratification in RCEP and CPTPP, which China has formally submitted a request to accede to CPTPP, both twin parks are expected to build more complete industrial and supply chains between Malaysia and China, and deepen their pragmatic cooperation in trade, investment, technological cooperation, tourism, culture and other sectors.

11. The inter-connected development of MCKIP, Malaysia-China Kuantan International Logistics Park and the East Coast Rail Link are expected to contribute significantly to the development of Malaysia East Coast Economic Region (ECER), particularly Pahang state. When the East Coast Rail Link is completed and becomes operational in 2026-2027, it would further boost the development in the eastern corridor, given its connectivity to the MCKIP and Kuantan Port.

12. Indeed, Pahang state government intends to replicate the success story of MCKIP and to establish almost similar industrial facilities in other parts of the state. These new areas would benefit from new transportation network once the ECRL is completed in the next few years.

Ladies and Gentlemen

13. What lies ahead for the twin parks? How can both countries raise the level of cooperation to higher notch. With the expected rising geo-economic rivalries between advanced economies, Malaysia stands to benefit from the “China+One” strategy as global manufacturers trim their dependence on China.

14. Malaysia’s New Industrial Master Plan (NIMP) 2030 has laid out the generation of industrial transformation direction, focussing on high value-added and technology driven industries that conform to the ESG and reduced gas emissions.

15. Given China’s strength in new growth industries, there are enormous opportunities for deepening bilateral trade and investment activities between the two countries on a sustainable basis. Several industries are of great potential for bilateral investment cooperation, include clean recycling activities (lead-acid and lithium-ion batteries), manufacturing of hydrogen fuel cells, hydrogen storage tanks, investment in the greener supply chain ecosystem.

16. SMEs have to be ESG compliant as they become part of the global supply chains and the vendors for investors from China. Hence, SMEs have to be aware of their level of readiness in terms of ESG practices. Adequate supports in terms of financing, technical know-how and understanding of regulatory barriers must be given to improve their state of readiness.  This is for their sustainable operations in the long term.

17. The chamber would like to propose the following initiatives to encourage Malaysian companies to invest in the Malaysian Innovation City of China-Malaysia Qinzhou Industrial Park.

a) Both Governments and promotion agencies must give strong political and facilitation support for the uptake of investment projects in terms of ownership and management of the ndustrial parks.

b) Organize roadshows and marketing events as well as specific investment promotion activities to showcase the state-of -the-art industrial park to Malaysian investors, focussing on attracting projects that bring high value-added and modern technology to boost industrial supply chains and industry clusters in domestic and foreign markets. Currently, the MCKIP has more heavy industries concentration and hence, it should encourage high-technology industries, light manufacturing, and food processing industries.

c) ACCCIM to collaborate with the Malaysian Development Industrial Authority (MIDA) to promote the twin parks. In cooperation with the China (Guangxi) Pilot Free Trade Zone Qinzhou Port Area Investment Promotion Service Center, ACCCIM has established ACCCIM QINZHOU INDUSTRIAL PARK ADMINISTRATION SDN. BHD,, which is responsible for the operation of the Malaysian Innovation City’s investment representative office and encouraging Malaysian enterprises to invest in the park. Areas of cooperation include upstream and downstream industries such as bird’s nest, rubber products, palm oil, food products, Chinese herbal medicine, cross-border e-commerce, and international trade. For your information, I will lead ACCCIM Delegation to Nanning, Guangxi to visit Qinzhou Port Area of China (Guangxi) Pilot Free Trade Zone on 15-16 September to discuss areas of cooperation.

d) The financial institutions, including development banks in both countries can explore a financing and investment framework to provide the necessary financing facilities to support cross-border business ventures.

e) Provide pre-and post-inspection activities in order to timely resolve the issues and constraints faced by enterprises, helping them to implement the project in compliance with the investment regulations, business compliance, the environmental impact and land regulations.

f) The industrial park must equip not only with top notch infrastructure, other factors such as cost, the supply of skilled workers, the location of related suppliers and networks as well as business networking are equally important.

18. In conclusion, both countries must continue to support and encourage more Malaysian and Chinese enterprises to invest and do business in Malaysia and vice versa, so as to foster more new growth drivers of cooperation. More importantly, the Government of Malaysia needs to enhance conducive investment climate, provide better investment facilitation as well as predictable regulatory environment, backed by stable economic and political conditions.
作为结论，两国必须继续支持和鼓励更多马中企业来马投资营业，培育更多新的增长产业合作点， 反之亦然。更重要的是，马来西亚政府需要在稳定的经济和政治状况下，加强利商投资环境，提供更好的投资便利以及优越可预测的监管环境。

19. I would like to encourage participants to have active interactions with the speakers, as we call stand to benefit greatly from the sharing and exchange of views during the session. I wish you all a very successful seminar and fruitful discussion.
我鼓励研讨会参加者与演讲者积极互动。相信我们都将从会议期间的分享和互动交流中受益。祝愿研讨会取得圆满成功，并进行富有成果的讨论。

Thank you。

谢谢！