By VIKTOR CHONG
viktor@mystar.com.my
Initiating China’s one belt one road initiative
“We are witnessing the shift in wealth from the western hemisphere to the eastern hemisphere here. This wealth will move to Asia in the next few years to come,” said ASEAN Legal Alliance chair Datuk Seri Matthew Yeoh at the Arena Real Estate Network Alliance 2017. The event was held for three days at the 14th floor of the Berjaya Times Square Hotel.
Yeoh pointed out the differences between the global population and residential value of real estate for the international community.
“As of now, North America has about five percent of the world’s population with control over 20% of value in terms of the world’s residential real estate.
Europe, on the other hand, has about 11% of the world’s population with 24% in real estate value.
“Notice the discrepancy in distribution for real estate value which is skewed towards Europe and North America.
Asia Pacific controls over 37% of the world’s population, with only a small fraction of control on the world’s value of real estate.”
Yeoh further claimed that the China’s one belt one road initiative will be the largest infrastructure in the world for the 21st century, which is composed of land and sea routes connecting east and west under the inspiration of the ancient silk road.
He estimated its total cost to be at around one to three trillion in value.
“Currently, the Asian Infrastructure Bank and the Silk Road Fund will provide fundings at a few hundred billion USD. It will connect 65 countries across three continents, impacting 60% of the world’s population.
“There will be a land line linking Central China and the west of China to Central Asia, crossing over to Russia, Eastern Europe and up to Western Europe and the United Kingdom.
“On the other hand, we have the maritime silk road which goes through the coastal cities of China to the South China Sea and to the straits of Malacca.
"On to Sri Lanka, the Indian south continent, Arabian Peninsula, the east of Africa and on to Europe,” said Yeoh.
Yeoh, however, advised caution on China’s encroachment in the ASEAN region.
“China is making relationships in third world countries like Africa, building hospitals, bridges and offering scholarships to students.
They know that education is a good way to foster long term relationship with other countries.”
“Is China attempting to colonise us? From my point of view, we do not look at colonialism in a negative sense.
All kinds of colonialism or domination start in a very friendly way. This we can see from the British who provided aid and military protection to the natives.”
“That will depend on our government and how far we are willing to engage this help. And importantly, how good are we at negotiating.
With all these expensive infrastructures in place, China will surely be protective over their assets. The important question is whether we are able to work with China,” he said.
Yeoh concluded by pointing out the future prospect of Bangkok. “The eastern line will pass Hanoi, Ho Chi Minh City, Phnom Penh and down to Bangkok. Even the central line which passes Southern China, Laos and Central Thailand will converge in Bangkok. With such connectivity and synergy, Bangkok has much potential for investment purposes,” he said.
Present at the conference is Invest KL Corporation chairman Datuk Seri Michael KC Yam who promoted Greater KL to the foreign delegates through his speech titled "Invest In Malaysia - Opportunities in Greater KL."
