BRI a boon to connectivity and job opportunities

THE Belt and Road Initiative (BRI) is a global strategy for infrastructure development that the Chinese government introduced in 2013.

This initiative is inspired by the historical Silk Road and focuses on improving connectivity through enhancing policy, infrastructure, trade, finance, and people-to-people links.

Furthermore, BRI is aimed at strengthening the global economy, generating fresh opportunities for worldwide development, and establishing a new foundation for international economic cooperation.

So far, it involves substantial investments in over 150 countries and more than 30 international organisations.

Since BRI's inception, Malaysia has been an active participant, demonstrating a commitment to fostering economic cooperation and infrastructure development with China.

The Malaysian government, through various administrations, has engaged in BRI projects as part of broader efforts to enhance connectivity and stimulate economic growth. These initiatives include collaborations in areas such as transportation, trade and investment.

Malaysia's involvement in the BRI is evident through projects like the East Coast Rail Link (ECRL) and the Malaysia-China Kuantan Industrial Park (MCKIP).

The ECRL, a major railway project, aims to improve transportation links within Malaysia and enhance connectivity with other BRI countries.

Meanwhile, the MCKIP 1 and 2 serve as a platform for economic cooperation for heavy and medium industries.

MCKIP 3 caters to logistics hubs, light industries, residential and commercial components, and industrial development between Malaysia and China.

By participating in the BRI, Malaysia seeks to leverage Chinese investment and expertise to bolster economic development.

The ECRL is a major infrastructure project in Malaysia designed to create connectivity and provide job opportunities through several mechanisms, namely improved transportation infrastructure, enhanced trade and economic connectivity, job creation during construction, stimulating local businesses, facilitating regional development, and long-term economic development.

Based on the MIDF Research Thematic Report on Sept 7 last year, the ECRL is expected to offer additional job opportunities and will have positive spillover effects on other economic sectors.

It involves the construction of a railway network that connects the east coast of Peninsular Malaysia, spanning approximately 665km. This enhanced transportation infrastructure facilitates the movement of goods and people, improving connectivity between different regions of the country.

By providing a more efficient and faster mode of transportation, the ECRL contributes to the development of economic corridors along its route.

Improved connectivity is expected to boost trade and economic activities, encouraging the growth of industries and businesses in the regions it serves.

The positive spillover effects of enhanced economic growth would be fostering job creation in the surrounding areas.

The construction phase of the ECRL will generate a significant number of job opportunities. A project of this scale requires a diverse workforce including engineers, construction workers, project managers and support staff.

This influx of jobs can have positive effects on local economies. The development of the ECRL may involve local suppliers and businesses. Companies providing construction materials, equipment and services may benefit from the project, leading to increased economic activity in the areas surrounding the rail link.

Furthermore, Malaysia Rail Link Sdn Bhd (MRLSB) and China Communications Construction Company Ltd (CCCC), who are involved in the ECRL, have launched an Industrial Skills Training Programme (PLKI-ECRL).

Its objective is to upskill locals through technical training with guaranteed employment by the ECRL main contractor, and it involves 1,800 participants throughout the construction period.

The ECRL may open up new areas for business development, especially in the regions along its route. Improved accessibility can attract investment, tourism, and other economic activities, creating additional job opportunities in sectors such as hospitality and services.

The enhanced connectivity brought about by the ECRL can have long-term economic benefits. It can make regions more attractive for investment, spur industrial development and contribute to a more balanced and integrated national economy.

MCKIP has also similarly benefited Malaysia. It focuses on industries such as the steel and non-ferrous metals industry; machinery and equipment manufacturing; petrochemical industry; electrical and electronic energy; and clean technology and renewable energy.

It has spurred the development of critical infrastructure including roads, ports and utilities. This has not only improved regional connectivity but also facilitated the movement of goods and services, making the area more attractive to businesses.

Therefore, the development of critical infrastructure creates jobs directly through construction activities and indirectly by stimulating economic growth, supporting local businesses, and attracting further investment.

The long-term impact can be substantial, contributing to both short-term employment gains and sustained economic development. ECRL is also well connected to MCKIP, with two stations in Kuantan Port City.

The establishment of industries within MCKIP has also directly resulted in the creation of job opportunities. Furthermore, the industrial park has attracted significant Chinese investments, fostering economic ties between Malaysia and China.

This influx of capital has contributed to the growth of industries, leading to increased trade activities and economic collaboration. In a recent statement, Deputy Investment, Trade and Industry Minister Liew Chin Tong said MCKIP has achieved a cumulative investment value of over RM31bil across 21 projects and is expected to create more than 14,000 job opportunities.

China has been one of Malaysia’s main trading partners since 2009. Based on reporting from the Malaysia External Trade Development Corporation (Matrade), in September, trade with China comprised 17.1% or RM38.27bil of Malaysia’s total trade.

This is indeed evidence of China’s remarkable involvement in Malaysia’s trade. Through the years, both countries have mutually benefitted from strong political and economic ties.

As BRI continues to expand worldwide, Malaysia will surely benefit directly from it and from the spillover of improved connectivity worldwide.

Justina Joseph Jeyaraj is a lecturer at Tunku Abdul Rahman University of Management and Technology (TAR UMT). The views expressed here are entirely the writer’s own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the South-East Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT), in conjunction with the 10-year anniversary of the Belt and Road Initiative.