Belt and road opportunities amid challenges


Since its launch in 2013, China’s Belt and Road Initiative (BRI) has significantly affected Malaysia’s infrastructure and economy through large-scale projects and increased trade.

However, experts are calling for a structured approach to ensure sustainable growth.

Malaysia Silk Road Society president Datuk Dr Cheah See Kian highlighted South-East Asia’s role in the BRI and its connection to the Regional Comprehensive Economic Partnership (RCEP).

RCEP negotiations began in 2012 involving 16 countries, including Asean members and partners such as China and Japan.

However, India withdrew in 2019 leading to 15 countries signing the agreement in 2020.

RCEP aims to unify Asean’s free trade areas, enhancing regional trade and supporting small and medium enterprises (SMEs).

Cheah said that despite multiple negotiations, full implementation remains elusive due to political differences.

He expressed concern that this passive atmosphere has negatively affected Malaysia and Asean without China.

Therefore, Asean is hoping for a more active Chinese involvement in RCEP, he said.

“The agreement, proposed in 2012, is still not fully implemented as of 2025, raising doubts about its future,” he added.

He said that although South-East Asia holds potential as a connector between Asia, Africa and Europe through the BRI, it lacks a clear global blueprint.

Given the current geopolitical landscape, support from the United States seems unlikely.

Meanwhile, MCA-PRC Affairs & BRI Committee chairman Datuk Tan Teik Cheng hopes the BRI will transition from focusing solely on large-scale infrastructure investments to fostering deeper private sector collaboration.

“Chinese companies bring advanced technology and financial strength, while Malaysia offers rich natural resources and access to Asean market.

“To maximise these advantages, the government should establish a ‘Malaysia-China SME Development Centre’ to facilitate business expansion through official and private partnerships,” he said.

Tan emphasised the importance of reappointing a special envoy to China to coordinate business collaborations and ensure investment commitments materialise.

Following Malaysia’s RM170bil investment agreements signed with China in April 2023, he noted that tangible progress remains unclear.

“If a special envoy is appointed to coordinate efforts between businesses and government agencies, collaborations will be more efficient.

“For instance, the data economy and renewable energy sectors are key future industries.

“Malaysia’s favourable climate makes it ideal for solar energy projects and its stable power and water supply supports data centre development,” he said.

Malaysia has had three special envoys to China: Tan Sri Ong Ka Ting, Tan Kok Wai and Datuk Seri Tiong King Sing.

The post has remained vacant since Tiong became Tourism, Arts and Culture Minister.

Tan also highlighted Malaysia’s linguistic advantage, particularly among Chinese-educated professionals, as a valuable asset in BRI-related projects.

He stressed that the BRI must extend beyond infrastructure.

“While roads and railways are tangible developments, their impact can feel distant to the general public.

“To make the initiative more meaningful, policies must integrate SMEs and ensure that economic benefits reach a wider segment of society,” he added.

Malaysia’s engagement in the BRI is showcased through major infrastructure projects aimed at boosting regional connectivity.

Among them, the East Coast Rail Link (ECRL) stands out as a flagship endeavour.

As of December 2024, the ECRL has reached 76% completion, Transport Minister Anthony Loke has announced.

Spanning 665km, it connects the Klang Valley in Selangor with Pahang, Terengganu and Kelantan with its anticipated completion date in 2027.

Initially estimated at RM80bil, the ECRL’s cost was later adjusted to RM74.96bil, comprising RM50.27bil for construction and RM24.69bil for development expenses.

Another significant development is the Malaysia-China Kuantan Industrial Park (MCKIP), which has attracted 19 projects worth RM25.68bil that have been approved under the initiative, with the potential to create more than 10,000 jobs.

To date, RM20.77bil has been realised, resulting in 7,572 jobs being created.

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