Malaysia supports Belt and Road Initiative: official

Ong Ka Chuan, second minister of Malaysia's Ministry of International Trade and Industry. [File photo]

Malaysia actively supports the Belt and Road Initiative, wrote Ong Ka Chuan, second minister of Malaysia's Ministry of International Trade and Industry, in his contribution to the 21st Century Business Herald. The following are elected excerpts.

As a founding member of the World Trade Organization, Malaysia has always actively taken part in international free trade agreements, and it has been Malaysia's constant policy to attract foreign investment and support international trade. In 2015, Malaysia's exports to its free trade partners accounted for 63 percent of its overall exports that year.

Malaysia actively responds to and supports the Belt and Road Initiative proposed by China. Malaysia has profound historical connections with China through the ancient maritime Silk Road.

The Belt and Road Initiative so far covers 64 countries, a population of 4.4 billion and 63 percent of global total.

Malaysia hopes China can adhere to the "win-win" principle of the initiative, and further promote regional trade and investment facilitation, strengthen customs cooperation, boost cross-border e-commerce and service industry development.

Malaysia is one of the founding members of the Asian Infrastructure Investment Bank.

The initiative is a good platform to strengthen intergovernmental cooperation between Malaysia and China. Since the Prime Minister Najib Razak visited China in November 2015, the two countries have signed 14 business-to-business memorandums of cooperation worth US$34.4 billion, which shows the great commercial potential of the Belt and Road Initiative.

By the end of 2016, Malaysia's direct investment to China hit US$2.38 billion, and China's investment in Malaysia was US$2.06 billion. Last year, China became the largest investor in Malaysia's manufacturing industry, especially in the steel industry, nonmetal mining and solar power industry. Malaysian government welcomes the Chinese companies' technology and innovation transfers to the Malaysia market.

Malaysia has transformed from an exporter of primary agricultural and industrial products to an economy strong in manufacturing and service industries.

China has been Malaysia's largest trade partner for eight years consecutively. China's stress on its commitment to building a human community with a shared destiny makes us rest assured that China is a determined supporter of global trade. China has the ability to play up the concept and spirit of free trade and Malaysia is confident with China's foundation, ability and sincerity of doing so.

The Strait of Malacca is an important pass on the maritime Silk Road. ASEAN supports the regional economic integration of East Asia, which is also in line with some of China's strategies. The Belt and Road Initiative is good for Malaysia's trade activity and marine transportation.

China boasts all industrial categories settled by the United Nations. China itself is one of the largest markets. Its proposal is conducive to prompting restructuring and industrial upgrading of the ASEAN members.

China also pays special attention to promoting people-to-people exchanges, which is necessary to deepen mutual trust between peoples and building a community with a shared destiny.