Increasingly, more companies from Hong Kong are now looking at Malaysia as one of the important destinations for developing their artificial intelligence (AI) and e-commerce, which is an emerging trend in Southeast Asia. This comes at a time when the impacts of the New Domestic National Security Law of Hong Kong are sparking various discussions on international relations in business.
That is a cost, according to industry leaders and diplomats, unlikely to imperil the burgeoning love affair between Hong Kong and Malaysia.
A new hub for AI and E-commerce
Malaysia is touted as ripe for an AI transformation, with companies from Hong Kong looking to tie up with local companies to develop the country’s technological ecosystem. Lien Huiluen is the deputy general manager at SenseTime Hong Kong and said that Malaysia was one of the promising prospects for AI breakthroughs. Other examples include Face++, a technology company for image recognition and other related businesses with Chinese businesses, prepared to partner with Malaysian companies. The partnership would be such that there will be innovation and the exchange of technology among them, which will benefit Malaysia greatly in its stride to achieve digital infrastructure and AI capability.
E-commerce is another segment that has attracted a rising level of interest within Hong Kong’s business sector. As noted by Terry Chan Kin-fai, chairman of the Hong Kong eCommerce Supply Chain Association, this has, therefore, been an indication that more Hong Kong brands are coming into the e-commerce market of Malaysia. Hong Kong companies, especially those dealing in cosmetics and electronics, have expanded by 30-40% in further developing their businesses in Malaysia over the past two years. The trend, hence, highlights the position of how e-commerce is making Malaysia an increasingly strategically important market for Hong Kong.
Strengthening diplomatic and trade relations
The relations between Hong Kong and Malaysia are underlined with powerful rapport, not only with business interests but also with powerful diplomatic rapport. Indeed, this is the 50th anniversary year of diplomatic relations, to be celebrated with different events and discussions on the ways of further consolidating their relations.
In the words of Muzambli Markam, who is the Malaysian counterpart to Hong Kong’s top diplomat, he added that there is optimism for business relationships to continue flourishing between the two, even with the perception of a new security law in Hong Kong. Whereas few business sectors in Hong Kong are still skeptical, all the same, regarding the promulgated national security law, the general feeling was, however, very positive toward the new law, given that many felt that it was necessary to ensure that there is stability. The business leaders and commerce chambers of Hong Kong threw the weight of their support behind the law, such that it is part of the commitment of the city to law and order, which, in their words, must be indispensable for any continued business operation.
Expanding economic cooperation and development
The future of cooperation in the Hong Kong-Malaysian economy could be very bright as a host of undertakings has been initiated among both. The financial chief of Hong Kong announced the establishment of an economic and trade office in Kuala Lumpur. It will be the fourth office of Hong Kong in Southeast Asia. It will represent a further commitment by the city toward expanding its footprints to foster economic partnerships within this region.
Just recently, a trip by John Lee Ka-chiu, Hong Kong Chief Executive, to Malaysia reaffirmed the commitment of the two countries to working together in promotion. The trip resulted in 11 deals, including significant accords in the railway and property sectors. The number of agreements concluded attests to the difference in the development in the broad scope of Hong Kong-Malaysian cooperation: among them are trade, technology, and infrastructure development. On the contrary, the relations between Hong Kong and Malaysia are bound to develop with these new legislative changes. Robust and powerful diplomatic and economic cooperation gives an extremely good base to take the partnership to a completely different level, considering the greater attention towards AI and e-commerce development. This would place them at an advantage for the opportunities and challenges that a digital wave presents. Cooperation in such areas is likely to accrue mutual benefits and push the riper growth of the Southeast Asian economy.
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