(from L-R) Guangdong Economic & Trade Representative Office Malaysia representative Eng Kim Huat, LBS managing director Tan Sri Lim Hock San, Star Media Group managing director & ceo Datuk Wong Chun Wai

PETALING JAYA: MALAYSIA is expected to benefit from the One Belt One Road (OBOR) initiative with the opportunity for economic growth following the new proposed trade route by China, said LBS Bina managing director Tan Sri Lim Hock San.

He said with the infrastructure to build the route, local businesses can take advantage and leverage the new connectivity that would be available with the initiative. Lim added given the strong relationship between the Malaysian and Chinese government, it would benefit both countries in the long run.

“Last year, Prime Minister Datuk Seri Najib Tun Razak has gone to China to sign RM144bil for infrastructure. With this type of money going into Malaysia, it would bring a lot of business into the country, and although Malaysians might not be involved considering the scale of the projects, our companies can benefit by being subcontractors to supply materials.

“The tourism industry including hotels and the food and beverage industry can do business, and of course with more tourists coming in, this would boost our tourism as well,” he said in the StarProperty.my Business Edition Forum titled “One Belt One Road Initiative”.

The event was organised by StarProperty.my in Menara Star on Jan 18. Star Media Group Bhd group managing director and chief executive officer Datuk Seri Wong Chun Wai presented the welcoming speech. The forum was moderated by StarProperty Sdn Bhd assistant general manager Ernest Towle.

Lim also said that LBS would be involved in projects in China, focussing on the 265-acre Zhuhai racing circuit where they aimed to upgrade the track and also the surrounding amenities.

“We will be building theme parks and a Malacca cultural centre in Guangdong, which was from the agreement both parties signed a few years ago.

“We are also going to upgrade the racing circuit and maintain the track. We are not only going to focus on the race track but also build a theme park, among others,” he said.

Guangdong Economic and Trade Representative in Malaysia Eng Kim Huat also said that the infrastructure projects being embarked in the country by companies from China is benefiting the country in the long run.

He mentioned some of the projects, such as the East Coast Rail Link, as some of the examples of the country reaping the rewards from the venture. Eng also added that the country would benefit further as the route is further developed in the future.

In the shorter term, he agreed that tourism would be one of the first sectors that would benefit from OBOR.

“Recently, Xiamen Airlines just announced a new route from Beijing to Kota Kinabalu. The number of arrivals is not very high, but it would be reaping the benefits further in the future,” he said.

Small and medium enterprises (SMEs) would also have the opportunity to grow as well as he cited agreements such as the Digital Free Trade Zone (DFTZ) would help local businesses market their products to a larger audience.

“DTFZ launched by Najib a few months ago is a stepping stone for our companies to sell their products to China and also Southeast Asia.

“Using the platform, you don’t have to worry about searching for buyers, and the companies don’t have to travel to China to promote their products,” said Eng.

Those in the food and beverage, especially the ones that produce Halal-based products, will also be one of the industries that would be at an advantage.

“In the past, it was difficult to sell to China, but because of OBOR, merchants can go online to look for suppliers rather than having to go to the country and establish the connection there,” he said.

OBOR was initiated by China president Xi Jinping to connect 65 countries across the world via sea and land, encouraging business through the creation of a vast network.