IN 2013, China announced the One Belt One Road initiative which is a plan by China to develop the country as well as other countries.
There will be many plans which include economy, social, infrastructure, transport, education and so many more.
The One Belt One Road initiative will benefit China or its within the same road which includes Malaysia.
Let’s take a look at some of the benefits to the rakyat.
What is One Belt One Road initiative?
One Belt One Road or OBOR initiative was mooted by President Xi Jinping of China as a development strategy that focuses on connectivity and cooperation among countries.
It is also to boost trade between the countries by providing infrastructure such as ports, railways and expressways.
The OBOR initiative is a plan by China to grow with its neighbours in six different directions or also known as corridors.
The corridors from China include China to East Russia and to West Russia, Pakistan and Mediterranean.
For Malaysia, the corridor will start from Southern China along the Indo-China penisular and all the way to Peninsular Malaysia and Singapore.
What are the benefits of OBOR to the rakyat?
The benefits of the One Belt One Road to the rakyat is huge as there will be many economic developments for the rakyat such as investments, a new railway line, new buildings and roads, a new seaport, new airports and others.
All these developments will support the economy, provide jobs and help the rakyat to have a better life.
What are some of the projects?
In a Star report on May 16, Transport Minister Datuk Seri Liow Tiong Lai said some of China main projects in Malaysia include the RM55 billion East Coast Rail Link.
This railway track will connect all the ports in the East Coast such as Tumpat, Kuantan and go all the way to Port Klang, Selangor.
The ports will be upgraded and enlarged to do trade with China.
There will be economic activties along the railway tracks which will benefit the rakyat as it will provide jobs enabling them to earn an income.
The Melaka Gateway
China will also be a partner with Malaysia to develop a port under the RM40 billion Melaka Gateway project which would boost the growth of maritime industry in Malaysia.
Datuk Seri Liow said Melaka’s glory, which dated back many centuries ago, could be restored with the Belt and Road initiative to see the state rise again and play a prominent role in the world’s maritime sector.
The deep sea port is targeted to be a liquid cargo terminal with storage facilities, benefiting oil trading in the regions of Asia, Europe and the Middle East.
There will also be a container terminal, break-bulk and dry bulk terminal, shipbuilding and repair services, maritime industrial park and port logistics services.
All this will bring investments into Malaysia and help our economy and benefit the rakyat.
Digital Free Trade Zone to support the economy
Prime Minister Datuk Seri Najib Razak just returned from his trip in China on May 16.
Datuk Seri Najib said soon Malaysia will have the Digital Free Trade Zone and its development was also very encouraging with the signing of the memorandum of understanding between Malaysia Digital Economy Corporation, Hangzhou Municipal Government and Alibaba (China) Company Limited.
Bernama reported that Najib was confident that Malaysia would be able to develop the e-commerce industry through the initiative in which Malaysia would become the hub of digital economy in Southeast Asia with an estimated double-digit growth, while Hangzhou will become the hub in China, which is a good news for operators of small- and medium-scale entrepreneurs in the country.
Robotic Future City
During his visit to China on May 16, Datuk Seri Najib said another project which would be implemented in Malaysia is the Robotic Future City on a 404.6ha site in Johor Bahru, which involves an investment of more than RM15 billion.
It would include a research and development hub, manufacturing, education, services, and exhibition centre.
All this will support the economy and benefit Malaysia.
Sabah and Sarawak will also benefit
Datuk Seri Najib said Sabah and Sarawak have also benefited from his visit to China.
In Sarawak, a joint-venture factory producing methanol and derivatives between Sarawak Bumiputera Property Foundation, Consortium of Huanhqiu Contracting & Engineering Co. and MACFEAM Sdn Bhd will be built at a cost of RM2 billion and is estimated to be completed in 2021.
In Sabah, a cooperation agreement to develop The Shore worth US$ 132.58 million has also been signed.
All these investments will benefit the country and the rakyat.
AirAsia and Felda Global Ventures
In his blog posting at www.NajibRazak.com Najib said AirAsia had also become the first low-cost carrier outside China which had been granted a licence to operate in the republic with an investment of US$ 100 million.
This will give better income to AirAsia and it will be shared with the rakyat as AirAsia is a public listed company.
AirAsia will share its profits with the rakyat through dividend payments.
Najib said China has also increased its palm oil purchase from Malaysia since his last visit in November.
China will buy more palm oil from Malaysia with the Memorandum of Understanding between Felda Global Ventures Holdings Bhd and Sinograin Oils Corp.
The rakyat will also be able to share Felda Global Venture’s profits as it is a public listed company on Bursa Malaysia and it will pay dividends.
Malaysia and China on course to hit RM700 billion trade goal
Malaysia and China can achieve their goal of US$160bil (RM694bil) in bilateral trade in the next two years with continued investments from China under its Belt and Road initiative.
In a Star report on May 16, Liow said in Beijing at the Belt and Road Forum for International Cooperation said the initiative was beneficial to both Malaysia and China.
Malaysia’s infrastructure projects could be implemented faster through strategic partnerships made possible by its close ties with China.
The OBOR will eventually boost bilateral trade and investment between both countries and boost bilateral trade which totalled about US$100 billion (RM433 billion) last year.
Movement of goods will be easier
During his recent visit to China earlier this month, Datuk Seri Najib said he is confident that Malaysia will receive enormous benefit from China’s OBOR Initiative.
Datuk Seri Najib said that the movement of goods will be easier due to the existence of interconnection, especially between China and Central Asia, China and Europe, China and Southeast Asia, as well as between China and East Africa.
In a Bernama report on May 16, Najib said through the initiative, transportation and movement of goods would be much easier and cheaper and would also enable local entrepreneurs to penetrate a larger market.
Movement of goods will be faster, easier and cheaper and local businessmen can sell their products to other countries within the same corridor such as Vietnam, Laos, Cambodia, Myanmar and Thailand.
Najib’s visit was a success
In his blog posting, Najib said his five-day visit to China, on May 16 was a success which including the signing of nine Business-to-Business Memorandum of Understanding in various sectors, including construction, agriculture, financial market, infrastructure and investment cooperation worth US$ 22.7 billion or approximately RM31.26 billion.
He said Prime Minister Li Keqiang had given assurance that the China’s government would continue supporting Chinese companies to invest in Malaysia.
“Foreign investments such as this will certainly help our people as it would create higher-income and highly-skilled job opportunities.This is in line with our aspiration become a high income nation by 2020,” he said.
In the end, all this investments will trickle down to the rakyat givng them a higher quality of life.