Vol. 1 | Issue No. 2 | August 2019 | HHQ IN TOUCH © Halim Hong & Quek IN NEWS |

OF THE MALAYAN TIGER AND CHINESE DRAGON: 45 YEARS OF STRONG DIPLOMATIC TIES & STILL COUNTING

The seeds of a strong friendship between and were sowed as early as the 15th century, during the times of Sultanate (of Malaya) and the Ming Dynasty (of China)1.

The 1900s brought about a renewed momentum in the relationship between Malaysia and China amidst the gloomy clouds of the Cold War;

In 1971, Malaysia sent its official trade delegation to participate in Guangzhou Trade Fair and became the very first country in South East Asia to normalise relationships with a socialist China2. This gesture encouraged further bilateral trade visits and talks between the nations which eventually led to a historical visit to China in 1974 made by Malaysia’s second Prime Minister Tun Abdul Razak who officially formalised the Sino-Malaysian diplomatic relations3 for the very first time.

Image Source: https://www.delcampe.net/

In the present times of the Belt and Road Initiative (“BRI”), the diplomatic bond between Malaysia and China is evidently flourishing further. The BRI, an economic strategy conceived and launched by the China President Xi Jinping in year 2013, has set into motion multiple large-scaled infrastructure projects entered into in collaboration by States and corporations from more than 100 developing nations4 with China.

With China being its largest trading partner for the past 10 years5, Malaysia is for sure to benefit in BRI6. In Year 2018 alone, trade between the countries escalated to a total of RM313.8 billion, whilst the approved foreign direct investment (FDI) across all Malaysian sectors grew by a staggering 73.4% to RM29.3 billion in the first quarter of Year 20197.

Image Source: https://www.pmo.gov.my/ Malaysia Prime Minister Tun Dr and China President Xi Jinping at The Second Belt and Road Forum for The recent presence of Malaysia Prime Minister Tun Dr Mahathir Mohamad at the High- International Cooperation held in April 2019. Level Meeting of The Second Belt and Road Forum held in Beijing in April 2019, was significant in not only conveying Malaysia’s support of the BRI8, but also special, in strengthening the already existing amity shared between the nations.

To reflect further on the key outcomes of the Beijing’s Forum, and to essentially celebrate the 45 years of solid relationship between the nations, the Malaysia-China Business Council (MCBC) organised the Malaysia-China Belt & Road Economic Cooperation Forum (“the Forum”) on the 8th August 2019, held at Royale Chulan Hotel, Malaysia.

The Forum saw the coming together of more than 500 government officials and delegates , business leaders and entrepreneurs from both Malaysia and China. (From left) Mr Lei Bao Ping, YB Tan Kok Wai, YB , Ambassador Bai Tian & Dato’ Quek Ngee Meng at the Malaysia-China Belt & Road Economic Cooperation Forum 2019 held on 8th August 2019.

1 Adapted from Dr Hew Kuan Yau’s Belt & Road Initiative for Win-Winism (, Asia Comic Cultural Museum, 2019) 2 Alan The Learn Seng, “The real story behind the historic Malaysia-China ties” (August 19, 2018), https://www.nst.com.my/lifestyle/sunday-vibes/2018/08/403014/real-story-behind-historic-malaysia-china-ties (Accessed on August 16, 2019) 3 Ibid Note 2 4 As of March 2019, BRI has grown to attract a total of 125 participating countries along its six corridors; World Bank. 2019. “Belt & Road Economics” Advance Edition 5 Malaysia-China Business Council, The Growing Importance of Malaysia-China Ties, http://www.mcbc.com.my/en/council-update/ (Accessed on August 16, 2019) 6 Ministry of Finance Malaysia, Speech by YB Lim Guan Eng at the Malaysia-China Belt & Road Economic Cooperation Forum 2019, https://www.treasury.gov.my/; (Accessed on August 16, 2019) 7 Ibid Note 6 8 Prime Minister’s Office of Malaysia, Speech at The High-Level Meeting of Belt and Road Forum for International Cooperation, https://www.pmo.gov.my/2019/04/speech-at-the-high-level-meeting-of-belt-and-road-forum-for- international-cooperation/?highlight=speech%20china (Accessed on August 16, 2019)

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Vol. 1 | Issue No. 2 | August 2019 | HHQ IN TOUCH © Halim Hong & Quek IN NEWS | continued The Forum was graced by many honourable and notable speakers, amongst others, the Malaysian Minister of Finance YB Lim Guan Eng, China’s Ambassador to Malaysia Bai Tian, Beijing Normal University’s Dean of Emerging Markets Institute Prof Hu Biliang and Renmin University of China’s School of International Studies, Prof Wang Yiwei.

Key experts from various industries engaged the delegates in meaningful dialogues on pertinent areas relating to the Belt & Road Initiative (BRI) through six thematic sessions; 1. Food Exportation to China 2. Tourism and Culture Industry 3. Positioning Malaysia as a Preferred Investment Destination

The signing of a Memorandum of Understanding during the Malaysia-China 4. Benefiting from E-Commerce Belt & Road Economic Forum on 8th August 2019 5. Risk Management and Dispute Prevention 6. Towards Greater Synergy for Trade Connectivity. One of the Panel Sessions, organised by Messrs Halim Hong & Quek, focused on addressing the growing need for robust legal and tax compliance, as well as strategic use of available mechanisms for dispute management in BRI.

Renowned panellists for the session: (1)Mr Yee Wen Ping, Country Managing Partner of Deloitte Malaysia; (2) Mr Liu Chao, Deputy Director-General of Legal Affairs Department of China Council for the Promotion of International Trade (CCPIT); (3) Mr Vinayak Pradhan, Director of the Asian International Arbitration Centre, Malaysia (AIAC); and (4) Ms Farah Jaafar, Chief Executive Officer of IBFC Incorporated Sdn. Bhd,

together projected novel and progressive outlooks for the Panel session on “Promoting International Trade through effective legal & business communities to take note of and implement for tax compliance and dispute prevention“ during the Forum sustainability and success in their respective ventures in the BRI.

In closing the successful Forum, Organising Chairman Dato’ Quek Ngee Meng reminded delegates of the importance of building strong alliances in the current times of sluggish global economy which is constantly being threatened by the ongoing US-China Trade War, uncertainties surrounding Brexit and the rising geopolitical tensions in the Persian Gulfs.

Despite the many challenges, Malaysia is steadfast in improving itself and will continue to participate pro-actively in the BRI and in bridging the gaps amongst emerging economies.

For many, the BRI may just be a platform for mutual economic cooperation. For the Malayan Tiger and Chinese Dragon, however, the BRI is yet another vital milestone in their long-standing friendship.

And as both the nations roar and soar through the BRI, it is hoped that they help restore and spread the much-needed traditional Asian spirits

Dato’ Quek Ngee Meng, Organising of “peace and cooperation, openness, inclusiveness, equality, mutual 9 Chairman of the Malaysia-China Belt & learning and mutual benefit” for a better world. Road Forum, delivering his Closing Remarks

Written By: KASHMIR HARBANS SINGH

9 Joint Communique of the Leaders’ Roundtable of the 2nd Belt and Road Forum for International Cooperation (2019)

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