00:00The Hainan Free Trade Port is reshaping regional trade flows, creating new opportunities for ASEAN partners.
00:08With preferential tariffs, streamlined customs and increased trade facilitation, Hainan is fast becoming a new hub in China-ASEAN trade.
00:25Malaysia, with its strategic ports and logistics network, is well positioned to capture these benefits and strengthen its position as
00:33a bridge between ASEAN and China.
00:36This creates a chance for Malaysia's infrastructure to integrate into regional supply chains more effectively.
00:43Malaysia can play a role as a connector, as a bridge.
00:48Actually, Hainan itself is trying to play a role as a bridge between China and Southeast Asia, China and Asia
00:53-Pacific at large.
00:54First, it's on the connector because I think Malaysia, we have advantage in our geographical locations and also infrastructure.
01:01Our port, of course, the Port Clan and also the PTP, the Port of Tanjung Polipas.
01:07This is the way how Malaysia is already in a very mature industry because PTP is of the world's top
01:13ten, right?
01:14We just plot focusing on intra-ASEAN trade.
01:17That's on the infrastructure and our geographical advantage.
01:20We can complement very well with the Hainan Free Trade Port.
01:24So, we are talking about opportunity for Malaysia operator.
01:27First, we have to look into these liners.
01:30Whether the feeder hub between the ASEAN and Hainan and also developing these, what you call, certified supply chains into
01:38China.
01:39We are looking at the possibility of, you know, Malaysia also promoting these, what you call, halal logistics.
01:46And also the integrations where Malaysia has the competitive advantage.
01:51And also providing value-added logistics.
01:54Same like here, you know.
01:55So, bondage warehouse and consolidation for the export.
01:59For Malaysia, the Hainan Free Trade Port presents a unique opportunity.
02:03Our port and rail infrastructure supports trade connectivity with China, within which Hainan is emerging as a new gateway.
02:13As you know, Malaysia sits in a very strategic location along very busy trade routes.
02:20In our backyard, it's straight from Melaka, which is one of the world's busiest sea lanes, which hosts close to
02:25100,000 ships annually.
02:27And amid our shores, we have two of the world's busiest container ports, namely Port Klang, which is ranked number
02:3410 last year.
02:35Handling close to about 15 million TU, or 20-foot equivalent unit.
02:40And also port of Tanyung Pelepas, which handle about 14 million TUs.
02:45So, one of the biggest drivers of growth of both these ports is the Asia-Pacific trade, namely transshipment.
02:53So, Malaysia can probably benefit from near-shoring.
02:58There's also a new term called friend-shoring, where our manufacturers outsource the manufacturing activities to countries which are friendly
03:05towards us,
03:06and also enjoy lower factor of production, which certainly is going to be the case with Hainan because of all
03:13the great incentives that they are offering.
03:16If you look at this landscape of Malaysia, we have both two ports down here.
03:20It's a strategic location that can help us to have this collaboration between this Hainan.
03:26And it also benefits towards this ASEAN because Hainan port can play a vital role to boost the whole ASEAN,
03:35especially China is a trading powerhouse in the region.
03:38And so, I think it also may help us in this in the ASEAN region.
03:44Malaysia's expanding rail network continues to strengthen links between production centres and major ports, improving the flow of goods across
03:53the country.
03:54This supports more reliable, efficient connections into regional and global supply chains.
04:00Apart from the port clang, we'll see the other side of the Kuantan port, the South China Sea.
04:06It's very near to the southern part of China.
04:09That is a sister port, you know, with the very near to Hainan, to the Guangxi there, you know.
04:14So, I think this one is the added advantages to both Malaysian businessmen and the so-called the businessmen in
04:24Hainan.
04:25The Hainan, opening it up as a Hainan train port, also can make use.
04:31Arrived at the South East Asia, being a first port, it arrived over here now.
04:36In terms of the logistics, the goods and raw materials, you know, and then in terms of the peoples as
04:44well, peoples to peoples.
04:45I think it is a complement to all these so-called infrastructures, you know, become integrated.
04:54Hopefully, we said that East ELL can work is because it's between the East and the West.
05:01So, we are talking about congestion, road congestion, you are talking about land transport.
05:05We are also looking at the possibility that do we have the volume of cargo moving from the West to
05:13the East?
05:13And also, the shipping company, the vessel, is calling how regular they're going to call the Kuantan port.
05:22But bear in mind that if we are talking about monsoon time, not many vessels are calling there.
05:26Secondly, we are talking about the cost and efficiency of the whole trade. That matters as well.
05:32In between Pahang and Selengor, there must be also some pick-up point and off-loading point.
05:39So, cost that matters. We have to look into the cost as well.
05:43As Hainan Free Trade Port matures, Malaysia's infrastructure can tap into increasing trade flow,
05:49attract investment and enhance its position as a logistics hub in the region.
05:55The synergy between port and rail connectivity ensures Malaysia remains a vital link in ASEAN-China trade.
06:04Certainly, when there is an emergence of a big ambitious player like that, like Hainan,
06:10which seems to want to attain the same kind of objectives that our ports do,
06:15there is going to be competition.
06:17And of course, the competition is going to be put into perspective
06:19because the slice of the cake of global trade is huge enough for everyone.
06:23Our own trade is already close to exceeded a trillion ringgit.
06:28And our ports continue to break records in terms of throughput,
06:32in terms of containers and also in terms of the cargo handle year after year after year.
06:37And that is a testimony to not only a growing population,
06:39growing demand for raw materials or components,
06:42but also an area with Asia Pacific, Southeast Asia, which is vibrant and will continue to grow.
06:48In the scheme of maritime trade, no port is an island, no country exists in isolation.
06:57We are all interconnected through a very intricate cobweb of components of ports of shipping services and so on.
07:05We benefit from their growth as much as they benefit from us.
07:08This tremendous growth of Port of Tanyu Perlepas or Port Kelang, Port of Port Bitulu Port
07:12have partly been driven by the demand of cargo that they export to China and vice versa
07:19because of the growing number of volume that we need to handle.
07:24By aligning its strategic infrastructure with the opportunities offered by the Hainan Free Trade Port,
07:29Malaysia is not just participating in regional trade,
07:34it is shaping the future of ASEAN-China commerce.
07:38In the next episode, we will hear from Malaysian businesses looking to capitalise on Hainan's potentials.
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