China is a main component in the country’s rise of infrastructure and development. And now Malaysia has opened its digital economy gate to China.
Alibaba’s Founder Jack Ma and Prime Minister Najib Razak has launched the first Digital Free Trade Zone (DFTZ) outside China in Kuala Lumpur on Wednesday (22 March), reported Reuters and Free Malaysia Today.
“Many asked me why I chose Malaysia to work together on the DFTZ. I told them [the country] is very business-friendly and much more efficient than I thought,” said Ma, who is also the Executive Chairman of the e-commerce giant.
The zone, which will take advantage of the latest technology to empower young entrepreneurs and small businesses, will also contain a logistic hub with a one stop service centre that will cater to the e-commerce business.
Expected to be unveiled in end-2019, the logistic hub will function as a warehouse, a fulfilment facility and a centralized customs clearance for Malaysia and Southeast Asia. This is expected to speed up the clearance for imports and exports, as well as deliver packages within 72 hours over the next 20 years and onwards.
While Alibaba did not reveal size of its investment in the logistic hub, the company said the facility is part an “e-hub” it is establishing at DFTZ, which in turn is a part of Ma’s Electronic World Trade Platform (eWTP) initiative that aims to eliminate the trade obstacles for smaller companies and emerging economies.
The e-hub will also involve partnerships between Alibaba affiliate firms and local businesses. For instance, Malaysia-based Malayan Banking Bhd and CIMB Group Holdings have agreed to explore joint opportunities in e-payment and financing services with Ant Financial, Alibaba’s financial services affiliate that includes Alipay. Both banks will also let Chinese tourists use Alipay e-wallet services in Malaysia.
Meanwhile, the DFTZ will feature another digital hub that will be developed by Catcha Group, the Kuala Lumpur-based internet firm which owns iflix, the Southeast Asian version of Netflix.
According to its Chief Executive Patrick Grove, the company and its partners plans to invest around US$200 million (RM886.2 million) to US$300 million (RM1.33 billion) in the digital hub.
Among China’s many investments in Malaysia are:
1. 10. Verticas Residensi, Jalan Ceylon
Image sourced from FMT
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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