There has been a strengthening of the trading relationship between Malaysia and China and this has become even more-so with the Malaysia Digital Economy Corporation (MDEC) signing an agreement with the Alibaba Company Ltd and Hangzhou Municipal Government. The purpose of the agreement is to set up in both nations e-hubs that will be connected to eWTP (Electronic World Trade Platform) that will help to link both China’s and Malaysia’s digital trade initiatives. Signing the agreement was Alibaba Group CEP Yong Zhang, Hangzhou mayor Xu Liyi and Malaysian Digital Economy Corporation Chief executive officer Yasmin Mahmood. Also present at the signing was the founder of Alibaba Jack Ma.
Talking about the new partnership, Dato’ Sri Mohd Najib Tun Abdul Razak, prime minister of Malaysia said:
“Fostering closer partnership with China is imperative to sustaining our economic growth, and e-business and commerce is clearly the future of global trade. It is therefore exciting to witness the forming of a partnership between government and reputable private enterprises, who will work together to lay the foundation for a more efficient conduct of cross-border trade in the internet age, to the benefit of all.”
The new tri party agreement states that the three parties involved, MDEC, Hangzhou’s government and Alibaba will work alongside each other to develop the necessary infrastructure to facilitate “seamless cross-border e-commerce trade between Malaysia and China”. This is consistent with the aims of Alibaba’s Electronic World Trade Platform which aims to function as a centralized customs clearance, warehousing and fulfillment facility for Malaysia and the region.” Alibaba chief executive officer Yong Zhang said: “Alibaba has a vision for an eWTP that empowers small and medium businesses around the world to engage in frictionless trade shared by Malaysia.”
Founder of the Alibaba Jack Ma is very positive about the new agreement and hopes that the new agreement will have wide benefits and help level the playing field.
“E-commerce is becoming increasingly globalized and it is transforming the way commerce is conducted. With the creation of eWTP, we and partners will build the infrastructure to empower SMEs and young entrepreneurs to succeed in this era of data technology. Today’s announcement has opened up a gateway to global success for small businesses in the two countries. It is our hope that more and more countries and SMEs around the world will benefit from a more level playing field.”
It’s been a busy time for Alibaba as they have also recently expanded their investment in Hong Kong, choosing Qupital to be its first FinTech investment in the city. Qupital is Hong Kong’s first and largest online invoice discounting and factoring exchange, enabling companies to raise finances against their invoices. It was founded by Andy Chan (25) and Winston Wong (26) and has just secured a seed investment of $2 million led by Alibaba Entrepreneurs Fund and MindWorks Ventures.