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Malaysia: Open up a new land-sea corridor in Southeast Asia

author:Tide News

Chao News client reporter Wu Qiao, Zhou Feng, Pan Jun

At the beginning of the 15th century, the famous Chinese navigator Zheng He made seven ocean voyages and five times in Malacca, Malaysia, and followed him across the sea not only with Chinese tea, silk and porcelain, but also with profound Chinese culture and trade opportunities. Zheng He's great voyage laid the cornerstone of friendly diplomatic relations between China and Malaysia, and hundreds of years later, mutual promotion and common development are still the keynote of exchanges between China and Malaysia. Malaysia is one of the first countries to support and participate in the Belt and Road Initiative, and is an important node country of the Belt and Road Initiative.

We see heavy machinery from China laying tracks and bridges in Malaysia, young Malaysians working in the Malaysian-Chinese cooperative industrial park to create a better life for themselves, and more young people learning XiChinese, watching Chinese TV dramas, grabbing red envelopes, reading Xiaohongshu, and shopping Taobao...... Malaysia's openness and inclusiveness have also created more opportunities for Chinese companies to cross the South China Sea and break new ground here.

In 2022, bilateral trade between China and Malaysia reached US$203.6 billion, exceeding US$200 billion for the first time. According to Malaysian statistics, in 2022, China's investment in Malaysia reached US$12.5 billion, accounting for 33.9% of the total foreign investment attracted by Malaysia. Based on win-win cooperation, it is composing a grand narrative movement.

Malaysia: Open up a new land-sea corridor in Southeast Asia

A track-laying machine being watched

and a "win-win" railway

270 kilometers east of Kuala Lumpur, Malaysia, is Kuantan, the capital of Pahang. Single-storey or double-storey houses with small courtyards are nestled among palm and coconut palms, exuding a sense of peace.

In 2023, for China and Malaysia, Kuantan, this is a name that deserves to be labeled. In the past 10 years, two of the most iconic projects jointly built by China and Malaysia, the East Coast Rail Link (ECRL) and the Malaysia-China Kuantan Industrial Park (MCKIP) in the "Two Countries, Two Parks", have both been subtly linked together by the start of the Malaysia-China Kuantan International Logistics Park project this year.

Malaysia: Open up a new land-sea corridor in Southeast Asia

At sunset, a fishing boat returns home on the Kuantan River

On December 11, 2023, Chao News reporters witnessed the grand track-laying ceremony of the East Coast Rail Link (ECRL) in Kuantan. It was the most monumental day since the East Coast Railroad was rebuilt in 2019, with local media saying that "they [referring to the East Coast Rail Link Project Company] have never held such a big event."

Malaysia: Open up a new land-sea corridor in Southeast Asia

CCPG500A long rail laying machine

The event was attended by Malaysia's Supreme Head of State, Abdullah Abdullah, and Head of State, Tunku Azizah, who wore traditional Songkok hats as a sign of respect. At the scene, the CCPG500A long rail laying machine laid the first 500-meter-long rail in the roar, and this "steel giant" made in China became the background for people to take photos and check in. Sultan Abdullah watched with great interest at the railing, as the huge track-laying machine automatically lays the concrete sleepers on the gravel track foundation in a regular manner, and the guests were deeply impressed by the advanced infrastructure equipment from China.

With the laying of steel tracks, the railway is getting closer and closer to opening to traffic.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Malaysia's supreme head Abdullah leans over to watch the track laying

With a total length of about 665 kilometers, the Malaysia-East Railway is one of the largest single transport infrastructure projects undertaken by a Chinese company overseas. After the track-laying ceremony, Chinese Foreign Ministry spokesperson Mao Ning said at a regular press conference on the 14th that he looked forward to the deepening and practical cooperation between China and Malaysia in various fields and bringing more benefits to the people of the two countries. Former Malaysian ambassador to China, Majid Ri, said that once the project is completed, it will be of great significance, "because it will connect some underdeveloped areas on the east coast of Malaysia with the west coast." It will be a "land bridge" between the two important ports of Kuantan and Port Klang on the east and west coasts of Peninsular Malaysia.

On the day of the track-laying ceremony, Malaysia's Minister of Transport Loke Siew Hock delivered a keynote speech that lasted more than 10 minutes. He said that the introduction of advanced track-laying equipment from China has greatly improved the efficiency of railway construction, and the East Malaysia Railway project is of great significance to promote local economic development, promote social progress in the east coast of Malaysia and promote skill upgrading.

In his speech, Loke said that so far, 23,000 workers are working hard at 1,900 construction sites along the line. At least 40% of the total civil works of the ECRL project will involve local Malaysian companies. From 2017 to October this year, about 2,800 Malaysian companies participated in the ECRL project. The ECRL project, implemented under the Belt and Road Initiative, has created a win-win situation for both Malaysia and China.

Ten years of gardening

Chinese companies are looking for business opportunities in Malaysia

On the east side of the Kuantan section of the Malaysia-East Railway, which is in full swing, a new park with a total planned area of about 460 hectares is also in full swing, which is the Malaysia-China Kuantan International Logistics Park, which is jointly developed by China Harbour Engineering Co., Ltd., a subsidiary of China Communications Construction Co., Ltd., Malaysia's IJM Group and Guangxi Beibu Gulf International Port Group. It is also the third phase of the MCKIP, one of the key projects of the Belt and Road Initiative, the Malaysia-China Kuantan Industrial Park.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Chao News reporter is developing the Malaysia-China Kuantan International Logistics Park

In 2013, witnessed by the leaders of the two countries, the MCKIP was officially opened, creating a model of "two countries, two parks" together with the China-Malaysia Qinzhou Industrial Park. After 10 years of development, the total agreed investment of the park is about 46 billion yuan, and the total industrial output value exceeds 60 billion yuan. As the first project to settle in MCKIP, UEB completed its first production line in just 18 months, and today, with an annual capacity of 3.5 million tonnes, UFEC is one of the largest and most advanced full-process steel companies in Malaysia. Other companies entering the park include Camel Battery, Xindi Tire, Cogeneration and Jianhui Paper. The salaries of United Steel employees are much higher than the local average salary. Kelly, a Malaysian guy who works here, said that the east coast, where Kuantan is located, is relatively underdeveloped, and local residents, especially young people, used to go to the more developed west coast region to look for work. Now, he can work in the nearby industrial park, and his living standard has improved significantly, "We have a family of four or five people here who all work in the industrial park."

At the beginning of the new decade, the MCKUAN International Logistics Park looks forward to a broader future.

The construction of the Donghai Road Railway has also brought opportunities for Chinese enterprises to invest and develop along the railway, and China Harbor has also carried out strategic transformation through such opportunities. In the "five links" jointly built by the "Belt and Road", they have shifted from "facilities" to "economy and trade". Wan Yu, General Manager of MCKUAN International Logistics Park Development Sdn Bhd, described the vision of the park as follows: The development goal of the park is to build a China-Malaysia industrial cooperation demonstration zone, and then a China-ASEAN regional economic cooperation demonstration zone.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Wan Yu, general manager of Malaysia-China Kuantan International Logistics Park Development Co., Ltd., explained the industrial park planning to Chao News reporters

Malaysia has given enterprises in the park a preferential policy of 100% corporate economic income tax reduction for up to 15 years. This is undoubtedly very attractive to some Chinese companies that are looking for ways to go overseas. It is reported that from the signing of the investment agreement in September last year and the establishment of a development company, to the end of the third quarter of this year, nearly 100 domestic enterprises have carried out investment intention docking, and nearly 60 groups of enterprises have conducted field visits to Kuantan, including many enterprises from Zhejiang.

On the weekend of December, when the reporter walked into this "virgin land" that was still in the early stage of development, he saw more than 30 pieces of machinery and equipment quietly and neatly lined up, and the empty land ended in a dense forest. Jia Zhike, head of the construction project of Kuantan International Logistics Park, told reporters that the earthworks of the logistics park will be completed in June next year, and the construction of "five links and one leveling" (water, electricity, roads, communications, and land leveling) infrastructure will be completed in the next two years.

Nearly 90 per cent of the earthworks are Malaysians. "I am impressed by the diligent work attitude of the Chinese staff, and I hope that this project will bring more employment opportunities and a better quality of life to my country. Muru, a 53-year-old Malaysian-Indian employee, said.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Mrulu, a 53-year-old employee of Indian origin in Malaysia

Jia Zhike drove a jeep to tour the park with reporters, and what appeared in front of him was a vast field, beautiful meadows, and small rivers with trees reflected in them...... Soon, a modern park with logistics, industrial, residential and business districts will be erected here, and Chinese and Malaysian builders will open up new horizons here.

Malaysia: Open up a new land-sea corridor in Southeast Asia

From Kuantan to the Gulf of Tonkin

1,200 nautical miles in both directions

Just 1.7 kilometres southeast of MCKIL is the Kuantan New Deepwater Port Area. China and Malaysia have jointly built an industrial park in Kuantan, which is inseparable from the port of Kuantan. Located on the east coast of Malaysia, facing the South China Sea, 1200 nautical miles away, is the port of Qinzhou in Guangxi, China, and the boat journey time is about 3-4 days. This is the natural location advantage of Kuantan Port.

In October 2013, Guangxi Beibu Gulf International Port Group signed an agreement to acquire part of the shares of Kuantan Port.

Malaysia: Open up a new land-sea corridor in Southeast Asia

On the day when the Chao News reporter interviewed the new deep-water port area of Kuantan, the sun was shining and the sea was sparkling, and the 100,000-ton cargo ship FJ IRIS was parked at the wharf and was unloading coal. In the stockpile, trucks full of ore shuttle back and forth, a busy scene. Cai Shixing, deputy equipment manager of the new deep-water port area of Kuantan Port, told reporters that the original water depth here was only 12.5 meters, and only 50,000-ton ships could be berthed, but after the transformation, the water depth is now 18 meters, and the 150,000-ton ship can be berthed, and the throughput capacity has been increased from the original 26 million tons to 52 million tons.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Cai Shixing, deputy equipment manager of Kuantan Port's new deep-water port area, briefed Chao News reporters on the situation of Kuantan Port

Malaysia: Open up a new land-sea corridor in Southeast Asia

Today, Kuantan Port has become an important support for the development of MCKIA. In the future, with the opening of the Kuantan Station of the East Coast Railway, a linkage model of "port-railway-park" coordinated development with modern ports as the core, integrated logistics as the link, and coordinated development of "port-railway-park" will be further formed, helping the park's products to radiate to international markets such as China, the Indian Peninsula, the Far East and the Pacific Rim. It is also possible to transport goods to the west coast of Malaysia via the Malaysia-East Railway, and Port Klang, Malaysia's most important port gateway, goes directly to the sea and is transported to Europe or North America via the main sea route. The Port of Kuantan-Malaysia Railway-Port Klang has, to a certain extent, created another golden passage beyond the Straits of Malacca.

On April 7 this year, the "Kuantan Port - Beibu Gulf Port - China Sichuan and Chongqing Multimodal Transport Route" was opened, and on May 8, the first container of 436 boxes of Musang King durian of "Kuantan Port - Beibu Gulf Port - China Sichuan and Chongqing Multimodal Transport" was stored in Nanning International Integrated Logistics Park. Lu Yong, Executive Deputy General Manager of Beibu Gulf Holdings (Malaysia) Sdn Bhd, said: "Western Malaysia is very rich in agricultural resources, Malaysia is located in the tropics, and fresh food, fruits and vegetables are highly complementary to China. We are building two-way logistics and striving to make MCKIP and Kuantan Port an important gateway to the ASEAN region. ”

People-to-people bonds

From the depths of history to today's glory

The earliest written record of Pahang that appeared in Chinese was the Book of Tang, called Po Feng. Pahang has been trading with Fujian Province since the Southern Song Dynasty and also appears in the Navigation Chart of Zheng He, who arrived in Pahang twice in 1412 and 1416. "The soil is fertile, the climate is at room temperature, the rice millet is abundant, the boiled sea is salt, and the coconut milk is made into wine. Up and down, no thieves. "Such a rich and peaceful land is more vibrant today because of the Belt and Road Initiative.

People-to-people bond is one of the "five links" pursued by the Belt and Road Initiative, and it is also the most basic, solid and lasting connectivity.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Kuantan sunset

Lu Yong, executive deputy general manager of North Port Holdings (Malaysia) Sdn Bhd, said that the land use right of the MCKIP is 99 years, and the projects introduced by the industrial park, such as the steel industry, are asset-heavy projects and have a relatively long cycle. The Port of Kuantan has been granted a 60-year concession by the Malaysian government until 2075, "in terms of the year of the land and our port concession, we are a long-term investment or a long-term development project, so we want to put down roots here for a long time." We have paid more attention to cultural exchanges and people-to-people bonds, and we have done a lot of work. ”

Malaysia: Open up a new land-sea corridor in Southeast Asia

Lu Yong, Executive Deputy General Manager of Beibu Holdings (Malaysia) Sdn Bhd

Lu Yong summed it up with the words "carbon in the snow" and "icing on the cake": Kuantan, where the company is located, is very prone to flooding in the rainy season, and will always take the lead in organizing the delivery of urgently needed materials to the local people; various social activities will be organized on Muslim festivals to deepen the understanding of different cultures of employees of the two countries; in June 2018, Chinese and Malaysian calligraphers and painters organized sketching in Kuantan, and the company donated some of their works to the local government; in July 2019, the company undertook the "Two Countries, Two Parks, Common Prosperity" The concert allowed foreign music lovers to appreciate the profound heritage of Chinese culture and the unique charm of Guangxi's folk music......

"There are many vivid stories of mutual love and mutual help between Chinese employees and Malaysian people, and we must be good 'bridge builders'. Lu Yong said.

Malaysia: Open up a new land-sea corridor in Southeast Asia

Chinese and Malaysian calligraphers and painters sketch in Kuantan

In 2022, the trade volume between China and Malaysia exceeded US$200 billion for the first time, and China has been Malaysia's largest trading partner for 14 consecutive years.

Today, the results of the cooperation between the two sides have already been evident in various fields: projects such as the Kuala Lumpur Landmark Tower undertaken by Chinese companies have risen from the ground and refreshed the city skyline, cars jointly produced by Geely and Proton of China can be seen everywhere, and Malaysian durian, bird's nest and other products have entered thousands of households in China......

In 2024, China and Malaysia will celebrate the 50th anniversary of the establishment of diplomatic relations. In the process of jointly building the Belt and Road Initiative, the cooperation between China and Malaysia has achieved many examples. "We can also expand cooperation in more areas, including but not limited to economy and trade, education, culture and sports, and people-to-people exchanges. It is necessary to cherish the common historical memory, and the relations between the two countries still have great potential in the future. Malaysian Transport Minister Loke Siew Hock said in an interview with the media.

Policy coordination, infrastructure connectivity, unimpeded trade, financial integration, and people-to-people bonds, China and Malaysia, from the depths of history to today's glory, have stirred up a strong voice of the times to work together.

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