China’s rise in high technology development is astounding, many large corporations have expanded their footprint across the world offering services like AI, cloud computing and data centre management, being a long time business partner the call for more collaboration between the two nation on these sector could benefit Malaysia in the long run.
Deputy Minister of International Trade and Industry of Malaysia YB Datuk Lim Ban Hong has called for greater involvement in the area of high-technologies that can not only elevate local companies but also further strengthen bilateral trade, investment, and economic cooperation. It is additionally crucial during these trying time when the country’s agenda is to expedite the economic recovery.
Malaysia is taking multiple proactive steps at the wake of Covid 19 pandemic which dealt a massive blow to the economy, MITI is working tirelessly in getting agencies to pump prime all industrial sectors, with more focus given to areas that are showing potential like those in digital and electronic. Opportunities arising from China’s transformation to become a technology powerhouse should not be overlooked, Malaysia has all the capability to peak together with China. Datuk Lim wants Malaysian companies particularly from the Electrical & Electronics (E&E) sector to explore business opportunities with not only with advanced companies in conventional 1st Tier cities in China, but also with Small and Medium Enterprises in 2nd and 3rd Tier cities that are hubs of high-technology.
“China has been Malaysia’s largest trading partner for 11 consecutive years and Malaysia has also been China’s major trading partner among ASEAN member countries. This goes to show the importance of boosting trade relations between the two nations as both are interdependent with one another,” Lim noted. The E&E industry continues to be the main contributor to the national Gross Domestic Product (GDP). In 2019, Malaysia’s E&E trade was recorded at RM618.66 billion, with exports amounted to RM373.12 billion or 37.5 per cent of the total export.
For the period of January to October 2020, Malaysia’s total trade of E&E has increased by 1 per cent to RM522.7 billion compared to the corresponding period in 2019 despite the unprecedented challenges faced due the pandemic. Earmarked as a critical industry in the country’s economic recovery and re-growth plan, the well established Malaysia’s E&E sector has tremendous potential to place the country as a regional hub for advanced technology, with its business ecosystem and infrastructure, availability of local supply chain and talent, as well as having more than 35 years of experience in this industry.
Malaysia and China can enhance its collaboration in the high-value industry and this will promote Malaysia’s effort to move towards becoming a knowledge-intensive and high-end products & services hub