（原标题：SFC Markets and Finance | Liew Chin Tong: Malaysia and China will set up long-lasting collaboration）

南边财经全媒体记者 杨雨莱 广州报谈

This year of 2024 marks the 50th anniversary of the diplomatic relations between China and Malaysia. China has also remained Malaysia's largest trading partner for 15 consecutive years, while Malaysia is China's second largest trading partner and largest source of imports in ASEAN. 

What remarkable progress has been made in the economic and trade fields between China and Malaysia over the past years? And what future cooperation can we expect? Liew Chin Tong, the Deputy Minister of Investment, Trade and Industry (MITI) of Malaysia, shared his perspectives on these questions in an exclusive interview with SFC. 

“I think Malaysia and China will be able to find a new way to collaborate where Malaysia becomes a very strategic partner to the Chinese economy by providing space for the Chinese economy to maneuver in the new global situation,” Liew Chin Tong noted in the interview.

Furthermore, he also delved into the program of Two Countries, Twin Parks, which he considered to be a symbol and testimony of collaboration between China and Malaysia. He mentioned that the program is upgrading which he hoped would, in the next 10 years, bring a different level and solid collaboration between the two countries.  

SFC Markets and Finance: Since this (year) is the 50th anniversary of the diplomatic relation between China and Malaysia, what remarkable progress has been made in the economy and trade relationship between our two countries over the past years?

Liew Chin Tong: Over the last 50 years, the Chinese economy has grown exponentially. From 1974 when we established diplomatic relations to now, the Chinese economy has just grown so much. Chinese economy, from a recipient of investment from Malaysia back in the 1980s and 1990s, Chinese economy now is so big that many Chinese investors are investing in Malaysia. The relationship has changed a lot over the last 50 years. Of course, now we are entering into a new situation where the Chinese economy is facing the new global reality where US-China conflicts have become the dominant situation. I think Malaysia and China will be able to find a new way to collaborate where Malaysia becomes a very strategic partner to the Chinese economy by providing space for the Chinese economy to maneuver in the new global situation. 

SFC Markets and Finance: Since we noticed that last year Malaysia's GDP growth was 3.7%, which is a bit lower than the expectation of 3.8%, how do you view the current situation of the Malaysian economy?

Liew Chin Tong: The Malaysian economy will grow steadily. We are now entering a period where we have a stable government, after all, and the Malaysian society is very stable as a society. We are located in a strategic location under the current global situation where companies and corporations are looking to build a second supply chain outside China, both for Chinese companies and also for Western companies. The semiconductor industry, particularly in Malaysia, will play a role in somehow welcoming investment from everyone. 

We think we will grow in the following sectors. We will grow because this is the first time in many years, we will see re-industrialization. Over the last 20 years, we have seen a steady decline in industrialization. We have experienced premature deindustrialization over the last 20 years, but now we are seeing re-industrialization, and that, I think, will be a growth engine. 

The second growth engine is technological upgrade. The Malaysian economy for the last 20 years has been playing in the low productivity and low technological realm. But now we will be in a situation where we think we will have an upgrade of technology, and we will pay people more. We will also use a lot more digitalization, innovation, and also what they call automation.

The third engine of growth is green technology or green transition. We are still very dependent on the ICE car. We're very dependent on old technology. We have not actually taken the green transition like many other countries yet, but that will be an engine of growth. 

And we also believe that in the years to come, we will have a larger middle class, and the middle class will require a lot more services: childcare, aged care, medical care, and that will be a strong growth factor as well.

I also think that the fifth engine of growth is Services 2.0. My message here is that we think that Malaysia can be a regional headquarters for Chinese firms, and we think that there will be a Services 2.0 version for the Malaysian economy. That will be an engine of growth.

And finally, our different regions in the country, for example, Johor and Singapore, I would think that region will grow. We also think that different parts of Malaysia will have regional growth as well, and that will also be the engine of growth. So, for the years to come, I think we will experience the second economic takeoff like the first one we experienced. The first Malaysian economic takeoff happened between 1988 and 1997. The economy grew exponentially for a period of time. We think we will repeat that in the years to come. 

SFC Markets and Finance: This year, Malaysia has proposed a series of economic development plans such as Prosperous Malaysia Economic Framework, National Energy Transition Roadmap, and even the five-year 12th Malaysia Plan. So, what are some highlights of those plans? And what do these plans indicate about the development goals of the Malaysian economy?

Liew Chin Tong: Broadly, if you want to use a very simple way of explaining this, for the longest time, the Malaysian economy has been trapped in a middle-income trap. Now, the World Bank coined these words, a "middle-income trap". We have been trapped in this middle-income trap, where we have not grown exponentially. We have not actually acquired technology at a fast pace.

But what these plans, as you have just mentioned, intend to do generally, we want to take up, we want to be more at the forefront of technology. We want to green up, we want to be at the forefront of the green transition, and we want to create a more prosperous society, so Malaysians will be paid better.The Malaysian industry will be at the forefront of the global economy. So that is a general sense of what we want to create.

SFC Markets and Finance: I believe that you attended a meeting related to the program: Two Countries Twin Parks a few days ago. Could you tell us the original intention of establishing the program, Two Countries Twin Parks? 

Liew Chin Tong: The Two Country Twin Park was a program between the two countries since 2012. In 2012, the two prime ministers, the Prime Minister of Malaysia and the Premier of China, both launched a park on both sides in order to create collaboration between the two countries. Of course, the collaboration between the two countries is not restricted to these two parks, but these two parks serve as a symbol and testimony of collaboration between the two countries. And it also serves as an example for other parks that China has with other countries subsequently.

Now, we have to deal with the situation of how to upgrade, how to bring high-quality development to different parks, to both parks. And also, we need to deal with a mismatch. For instance, there are not enough Malaysian companies that invest in the Qingzhou Park in Guangxi compared to Chinese investors in the Kuantan Industry Park in Malaysia. One of the ways that we hope that we can deal with this, together with the Chinese government, is to create differentiated industries. That means we'll try to source Malaysian companies that provide services and industries that Guangxi does not have, so that it is differentiated and we can find ways that are profitable and workable, realistic for them to invest in Guangxi. 

So, I mean, trade and economic development come with a lot of coordination. We will have to deal with competitions, we will have to deal with the government providing policies to help and to make things happen. I mean, we hope that the next 10 years of these two parks will bring a different level and very solid collaboration between the two countries.

SFC Markets and Finance: You've mentioned that this trip in China, some kind helped with your ideas about this program. So, what are the details? Can you elaborate on it? 

Liew Chin Tong: Broadly, we would think that in Kuantan, in Malaysia, there needs to be an upgrade to the new high-end industry rather than industries that China may not necessarily require. So the level of complexity of the industry may have to go up. Whereas as far as the Qingzhou Park is concerned, we need to find and source Malaysian investors that provide services and industries that Guangxi may not have, so that is the general view of upgrade.

But broadly, this trip that I am in China, it is not just about the two parks. I want to send a message to corporations in China, that we hope we can create a new perception of Malaysia. So many Chinese corporations look at Malaysia as a better version of Vietnam, Thailand, or Indonesia, but these countries have huge populations and demographic dividends. Malaysia is a much smaller country. We have 33 million population; we do not have a demographic dividend.

However, we are very strong with our human capital. We have a very strong multilingual workforce, people who are able to handle multicultural situations. And we have very strong infrastructure. We have two ports among the top 15 ports in the world, the Tanjung Pelepas Port as well as the Port Klang Port. Both ports are actually among the top 15 ports in the world. Malaysia is a potential location for Chinese firms that are venturing out to choose or to locate their regional headquarters. The main purpose of my trip this round is to create a new impression, a new perception of Malaysia from China.

SFC Markets and Finance: You've mentioned before that you hope Malaysia will be the destination for Chinese enterprises to set up their regional headquarters. So, how do you view the current situation of Chinese enterprises investing in Malaysia? And what will be your future plan for making this business happen? 

Liew Chin Tong: Well, of course, if we take a larger perspective, Chinese firms are now looking to venture out. I have the following points to make. Number one, I would think that Chinese firms, in the long run, as a whole, corporations from China as a whole should not be forever thinking of just exporting to Europe and the US alone. For Chinese firms to grow organically globally, I think it is important to think about how to make Southeast Asia, maybe even Africa and Latin America, rich. If Southeast Asian societies become much richer in the next 10 to 15 years, it certainly will be a major market. And I urge the Chinese industries and Chinese firms to see the long-term future of Southeast Asia and to build very deep roots and ties in Southeast Asia for their long-term expansion.

So the Chinese firms that are investing in Southeast Asia, they are not just thinking of setting up shops to export to the US and Europe alone. But actually, to think of building very strong supply chains with domestic suppliers, with Malaysians, with the Indonesians, with the Thai, so that they can be deeply rooted in Southeast Asia. 

SFC Markets and Finance: We want to go into the Belt and Road Initiative since Malaysia is one of the pioneer countries that respond to the Belt and Road Initiative to China. Last year was the 10th anniversary of BRI and our company SFC even made a documentary, when many of our reporters went to Malaysia for the documentary. So, how do you think about the BRI? How is the economic cooperation between China and Malaysia? And what will be the future prospect for it? 

Liew Chin Tong: The first phase of the Belt and Road, there were many major projects. But increasingly, at the meeting last year, it mentioned about "Xiao er mei," small and beautiful, and about projects that connect the people. I think the next phase of Belt and Road will have to really think about small and beautiful, connecting people, connecting hearts and minds. 

And it is important to see that, and it is my hope and my wish that in China, there will be a lot more people studying Malaysian economy. In Malaysia, there will be a lot more people studying Chinese economy and even beyond, not just economy but studying contemporary China as a society. Why? I think it is important to build deeper understandings and connections so that the Belt and Road Initiative is not just about infrastructure projects. 

There are some and many of those infrastructure projects that were quite good, but there are also infrastructure projects that need to be improved. But the point is that the Belt and Road Initiative in the next decades shouldn't just be about infrastructure projects. It should be about small and beautiful projects that connect the hearts and minds of people. 

SFC Markets and Finance: It's also worth noting that China's import and export volume in the first quarter to the other 14 member countries of RCEP, which is ￥3.08 trillion with an increase of 2.7%. So, the RCEP right now has already come into effect for more than 2 years. How do you think the consequence and outcome of it? And what impact will it bring to the China-Malaysia cooperation in economy? 

Liew Chin Tong: RCEP is a great invention, great collaboration. And we think that RCEP will bring a lot more benefits to everyone, to the Chinese and to also other participants. But moving forward, because the Chinese economy is very strong, and the Chinese manufacturing capacity is very strong. The Chinese technology is really almost at the forefront.

The challenge for countries like Malaysia is that our size is small. Our economic size is relatively small compared to the Chinese economy. The Chinese economy was about 17 trillion US dollars. The US economy was 24 trillion US dollars. Just Guangzhou alone, the size of GDP was already about 400 billion US dollars, just like the size of Malaysian economy. So if China grew by 5% annually, each year China will produce two Malaysian economies. So in terms of capacity, there is also a mismatch. 

When it comes to collaboration between the manufacturing sector, it is not easy because the Chinese manufacturing sector is huge and very efficient, and the technology is strong. But when it comes to collaboration on services, we have a lot to offer. We have a lot to offer that the Chinese economy may not offer or may not have, may not provide. 

So in the long run, the Chinese economy may have to consider how to expand on services, and the Chinese economy will need to move not just focusing on manufacturing, but you have to go into a lot more services. With a much stronger service sector in the Chinese economy, you will be able to absorb Malaysians, or we can say, you will be able to absorb Malaysian export of services and not just manufacturing goods because it's not easy for the Malaysian economy to produce manufactured goods and export them to China because the Chinese manufacturing sector is very strong. Well, so I think this rule will require the Chinese economy to adjust at some point. And of course, in the years to come, I strongly believe that the Chinese economy will grow a lot more in the services sector, and we will be able to find a matching point much better. 

SFC Markets and Finance: You've just talked about the high-quality development, which I believe you have much knowledge about it. In your view, how do you understand high-quality development? And how do you think China's high-quality development will bring the opportunities to the cooperation between the two countries or to the Malaysian business?

Liew Chin Tong: High-quality development means development that changes people's lives for the better. Green transition is a good case in point. In China, China is leading green transition. China is using technology, new technology to change the lives of people by getting them to depend more on solar than just electricity, by getting more people into using EVs instead of ICE cars, by getting people to use a lot more technology, better technology, better communication technology. So the point is that development should bring benefit to ordinary people. Investment should make people live a better life, so how people live a better life, a more meaningful life, a life that is less polluting.

So when we think about collaboration between Malaysia and China, we will have to start thinking about how to ensure that whatever investment from China into Malaysia now will create a better life for Malaysian people. And together with Malaysian people, together with the Malaysian businesses, we build better China-Malaysian collaboration, not just at the government-to-government level, but at the firm-to-firm level. And this is not easy. This is not easy because businesses are there to make money, but how to ensure that businesses are there not just making money, but actually creating a better society, a healthier society, a society that is a lot greener. So I mean these are the questions that we will have to answer.

And when we think about partnership, partnership is not just government-to-government. Partnership is people-to-people, which we have very strong people-to-people relationships. But partnership is also about business-to-business. How do we ensure that Chinese businesses, which are very huge in size and at the forefront of technology, how do they collaborate with Malaysian businesses so that it is a win-win situation? I mean these are challenges that we will have to face, so that we can build long-lasting partnerships.

SFC Markets and Finance: As it is known, the Malaysian government is also paying a lot of attention to green development and digital economy. So in these emerging fields, what role does China play in the world, in your opinion? And what achievements did China obtain? 

Liew Chin Tong: So as I said, the Chinese economy is moving very fast in green transition. Solar in the what they call technology, communication technology, in EV, and these technologies are very good. So the question now is how do we translate this technology into usage in Malaysia? But also, whatever they develop in China, what it's transplanted to Malaysia, it is not just a sale to Malaysian people, but actually collaboration in manufacturing, collaboration in services, collaboration in R&D. I mean these are the things that we are hoping to create, so that the Chinese companies when they come to Malaysia, they are not just thinking of selling to Malaysian people. They are thinking of working together with the Malaysian people.

Likewise, when it comes to investment in Malaysia, we are hoping that the Chinese companies see Malaysia as a regional headquarters, looking at Malaysia as a place where we can work together to build a global business, and not just using Malaysia as a manufacturing hub for export. So those are difficult questions that I think we should start exploring, and the more we discuss, the more we'll find, a very, very long-lasting collaboration or partnership.

SFC Markets and Finance: Last but not least, since we are in the GBA right now, and the GBA is serving as the innovation hub of our country. So how do you think about the Greater Bay Area? And what future corporations may be built between the GBA or Guangdong with Malaysia? 

Liew Chin Tong: GBA is one of the few large economies in China. Shanghai, Beijing, Chongqing area, and GBA are closest to Southeast Asia and closest to Malaysia. My hope is that in the long run, the Malaysian economy will have much deeper ties and more sophisticated linkages between the Malaysian economy and the Chinese economy.

Number one, I'm hoping to see that the Malaysian or Kuala Lumpur Stock Exchange will have a deeper relationship with the Shenzhen Stock Exchange. How deep, how fast, and what sort of program is, we will leave it to them to decide. This visit of mine included a visit to Shenzhen Stock Exchange, with a clear message. I want to see a lot more collaboration between those two stock exchanges to the extent that one day, maybe in the years to come, people who are on both sides can trade on each other's stocks.

Not easy but possible. I also hope that the financial institutions between the insurance companies, the banks in GBA will work closer with the Malaysian banks so that you can facilitate a lot more collaboration. Our Prime Minister Ibrahim spoke about using renminbi and bringing it to trade. I spoke about this at the Boao Forum. How do we create more usage of renminbi and ringgit to trade? It is not easy because companies will want to keep some dollars, companies would prefer to trade in dollars. But there are opportunities. And the financial institutions in Shenzhen and to an extent in the other parts of Guangdong and of course in Hong Kong. This is an opportunity for us to see how to trade more and to create more opportunities to trade in renminbi and ringgit.

And beyond that is really to build company-to-company level R&D collaboration. And Shenzhen to an extent and other parts of Guangdong are also the leading technology hubs. How do we build technological collaboration? Collaborating on R&D and, say, for example, on medical research, on the biomedical, on various products, technology. I think we have a lot of opportunity to work together. And GBA, of course, I mean, you know the Greater Bay Area, of course, is closest to where we are. And I hope all these collaborations will happen in the years to come.

操办：于晓娜    

监制：施诗

攀扯裁剪：李依农

记者：杨雨莱 胡慧茵

拍摄：肖航 实习生何子浩

制作：李群 蔡于恬

新媒体统筹：丁青云 曾婷芳 赖禧 曾昭发

国际运营监制: 黄燕淑

国际运营本色统筹: 黄子豪

国际运营裁剪：庄欢 吴婉婕 龙李华 张伟韬

出品：南边财经全媒体集团  九游会J9·(china)官方网站-真人游戏第一品牌