Special Message from President & CEO of MIGHT
For the last few months the US and China trade war or ‘cold peace’ as described by some analysts, has dominated the news and created much apprehension and dilemma for countries who are affected by this conflict. And, Malaysia being a trading nation and major exporter of high tech products, will be affected in one way or another.
In this era of the Fourth Industrial Revolution, the stakes are high and the countries which excel in the new technologies and control the supply chain will emerge as winners. The world was created unequal where technology advancement may exists far away from the raw materials and other cheaper resources that are necessary for making a product with the right quality and cost, hence the global supply chain. Many of the US companies use China as their manufacturing base, whilst many Chinese companies sourced technologically-advanced components from the US and Europe.
Malaysia has experienced the Chinese high technology transformation first-hand. Some of our infrastructure and transportation system in the country are increasingly using Chinese technology that are still cheaper and becoming more reliable. But even so, we need to convince the Chinese that it would be more cheaper if some components of the rail system for example are supplied by local industry players and services like MRO are using local workers, skilled or otherwise. it would be a win-win situation for both sides.
With technology and market leadership constantly changing hands, and supply chain becoming more global, it would be prudent to think that partnership and collaboration would be the way forward. The introduction of Trans-Pacific Agreement (TPA) and Belt and Road Initiative (BRI) proved the point that partnerships based on geographical location and historical connection would provide the best platform for trade prosperity and technology transfer. Although Malaysia has developed its own technology capability and capacity, it still needs to work with the bigger economies to continue its development path and to gain access to new markets through strategic alliance.
We look forward to the two superpowers going back to the negotiation table and work on a deal to halt this unproductive and unnecessary trade war.
Datuk Dr. Mohd Yusoff Sulaiman
President & CEO of MIGHT