Malaysia well advised to get on the New Silk Road

OBOR, first announced in 2013 by Chinese President Xi Jinping as a move to revive the ancient Silk Road trade route between Asia and Europe, pres?ents a great opportunity for businesses.
While “one belt” refers to the old Silk Road linking China and Europe through Central Asia and the Middle East, “one road” refers to the 21st-century Maritime Silk Road to Africa, Southeast Asia and the Pacific. Together, they may just deliver what could be the biggest source of growth the world has yet seen.
Tying in neatly with this over the past few years has been Chinese investment in various industries in Malaysia. Apart from well-known Chinese property developers such as Country Garden, R&F Properties and Greenland Group, Chinese pres?ence is now being felt in other sec?tors as well.
Xiamen University Malaysia, which opened recently in Sepang, is the first overseas expansion for the renowned Chinese university. It is tabling a full range of offer?ings and has a targeted student intake of 10,000.
In Johor, the 7-billion-ringgit (Bt56 billion) Gemas-Johor Baru electrified double-tracking rail project was awarded to the state-owned China Railway Construction Corp. The track pro?vides capacity for existing trains to move at speeds as high as 160km/h, improving the trans?port of goods across Malaysia, including to Singapore.
On the east coast, the Malaysia-China Kuantan Industrial Park in Pahang has seen 5.6 billion in investment to build a steel mill and upgrade port infrastructure. The initiative is jointly owned by Chinese and Malaysian private and public enti?ties.
Meanwhile, China’s Guangdong province is teaming up with the Malacca government to promote tourism and manufac?turing opportunities in that Malaysian state. Private Chinese firms have also taken an interest in participating in the Malacca Gateway project.
Then there’s the 18-billion-ringgit sale (including liabilities) of 1MDB (1Malaysia Development Berhad) subsidiary Edra Global’s power assets to China General Nuclear Power Corp. Edra’s power assets are spread across Malaysia, Egypt, Bangladesh, Pakistan and the United Arab Emirates.
Let’s not forget the 7.41-bil?lion-ringgit (60 per cent) equity sale of the 1MDB-owned Bandar Malaysia project in Kuala Lumpur to a consortium led by Iskandar Waterfront Holdings, the master developer of Danga Bay, and China Railway Engineering Corp.
Much of the attention on the OBOR initiative has focused on infrastructure opportunities. But business prospects arising from China’s economic development plan extend beyond mere infra?structure and finance.
For Malaysia, there are vast opportunities in halal food, trans?port, tourism, trade, ports, educa?tion and industrial development brought about by this belt-road cooperation. Once infrastructure development swings into full action, there will be demand for services and supplies from SMEs.
One of the key potential sectors is the nascent but lucrative halal food industry to cater to the large Muslim population along the Belt and Road regions.
Malaysia is the first in the world to introduce halal food standards. Recognised by the United Nations and in 57 coun?tries, the Jakim certification can help food manufacturers build an extensive distribution network across Asia, the Middle East and North Africa. 
The halal industry is not limit?ed to food producers, but also extends to the supply chain, from transportation to storage and handling, in ensuring adherence to the integrity and purity of halal products.
SMEs have to seize the oppor?tunities generated by the OBOR initiative or face the risk of being left out in the cold.