Malaysia well poised to ride next tech wave: PBEC
27 Jul 2023
Malaysia is well positioned to take advantage of the next wave of technological advancements and trade opportunities to compete with its peers in Asean, according to the Pacific Basin Economic Council (PBEC).
PBEC chief executive officer Michael Walsh said Asean, as a whole, is in a position to work together in common areas as a bloc, to compete with other major regions to win new business opportunities in trade, services and manufacturing, among others.
“The Pacific Basin remains the best demographic in terms of long-term economic and wealth creation globally.
This means that economies like Malaysia are well-positioned to take full advantage of it.
“Singapore’s value proposition is very strong. Malaysia can tap into the investment flows. Also, the regional headquarters set up in Singapore over the past three years are facing rising costs of living and a lack of space.
“Malaysia, especially Johor Bahru, is attracting more Singaporean hybrid and skilled workers. They commute when needed,” he said during the 6th Asia Economic and Entrepreneurship Summit organised by KSI Strategic Institute for Asia Pacific today.
Walsh noted that China’s economic flows into Asean and the Middle East as well as the rise of India’s economy and those in the surrounding areas are benefiting from trade flows with Asean.
“Globalisation has turned into regionalisation. The unfettered globalisation trend of the last 15 years for all of us who love trade and international business, due to the failure of some national policies, has given rise to a different type of globalisation,” he added.
Universiti Malaya’s Asia-Europe Institute economics professor Prof Datuk Dr Rajah Rasiah said Malaysia and Asean are now benefitting from the geopolitical issues around the globe.
“Many companies are now relocating from China to not just Malaysia, but to Vietnam and Thailand to a large extent, to circumvent prohibitions as well as tariff hikes to reach the United States,” he said.
KSI president and Asean Economic Club chairman Tan Sri Michael Yeoh said in his opening remarks that Malaysia hopes to become the fulcrum of China-India-Asean trade activities to take advantage of the opportunities from such a collaboration.
Trade saw a greater shift towards China, India and Asean and it is strategic to have greater collaboration between these regions.
“We need to increasingly take into account the green and digital technology transformation as the growth of green technologies is the future of trade,” he said.
“We need to further accelerate the implementation of the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as this will open up more opportunities for our country,” he added.