On November 13, Guangxi Daily published an article titled "New Stories of Economic and Trade Cooperation between China and Malaysia in 'Two Countries, Twin Parks' Initiative", highlighting the role of the China-Malaysia Investment Holding Group (GCMG) in supporting the construction of the China-Malaysia "Two Countries, Twin Parks" Initiative and promoting economic and trade cooperation between the two nations. The full text is as follows:

New Stories of Economic and Trade Cooperation between China and Malaysia in "Two Countries, Twin Parks" Initiative

Tian Xixia, Trainee Reporter from Guangxi Cloud - Guangxi Daily

(Guangxi Daily, Nov. 13, 2024, Page 011)

On the banks of the Beibu Gulf, at the China-Malaysia Qinzhou Industrial Park, high-quality raw bird's nests and other products from Malaysia are processed and sold in the domestic market. This cross-border industry chain for bird's nests between China and ASEAN has an annual processing capacity of 500 tons, with an annual output value exceeding 10 billion yuan. The ecological aluminum business has totaled over 260 million yuan in import trade volume, and an ecological chain for the circular economy of ecological aluminum is rapidly taking shape. Here, the stories of economic and trade exchanges and cooperation between China and Malaysia are constantly unfolding. 

"As one of the main contributors to the China-Malaysia 'Two Countries, Twin Parks' Initiative, GCMG bears the important mission of facilitating international capacity cooperation and economic and trade exchanges between China and Malaysia," said Guo Qinghui, General Manager of the Business Cooperation Department of GCMG. Leveraging the resources and advantages of the China-Malaysia “Two Countries, Twin Parks” Initiative, the group frequently engages in economic and trade interactions with Malaysia, continuously achieving new results in promoting cross-border trade, strengthening capacity cooperation, and building cooperative platforms.

Taking Advantage of Port to Promote Rapid Trade Growth

Recently, palm oil purchased by GCMG from Malaysia arrived at the port. After customs inspection and clearance, it was transported to various locations across the country for further processing. 

Palm oil plays a crucial role in China-Malaysia trade. This year, trade in palm oil between GCMG and Malaysia has grown rapidly. By the end of October, the import volume of palm oil had approached 100,000 tons, with a value of about 700 million yuan, representing a year-on-year increase of over three times. 

"Malaysia has unique advantages in specialty agricultural products such as palm oil, which complement the needs of the Chinese market," said Li Yong, General Manager of the Operations Management Department of GCMG. The group's economic and trade cooperation with Malaysia spans multiple fields, including palm oil, crude oil, wet electronic chemicals, digital intelligent technology, specialty agricultural products, ecological aluminum circular economy, bird's nests, and cold chain logistics.

In recent years, with the implementation of upgraded facilitation measures for the China-ASEAN Free Trade Area and the Regional Comprehensive Economic Partnership (RCEP), the trade environment between China and Malaysia has become more open and convenient. From January to October of this year, the import and export trade volume between GCMG and Malaysia exceeded 2 billion yuan. 

GCMG not only imports high-quality products such as palm oil, ecological aluminum, and raw bird's nests from Malaysia but also promotes Guangxi products in international markets like Malaysia through various channels. 

In September this year, at the 17th World Chinese Entrepreneurs Convention held in Kuala Lumpur, Malaysia, GCMG established the "Guangxi Products Going Global" Exhibition Hall, showcasing over 30 distinctive products from Guangxi, including Qinzhou Nixing Pottery, Wuzhou Liubao Tea, and Liuzhou Luosifen, attracting significant attention from many Chinese entrepreneurs. 

"This is the group's first attempt at overseas market marketing, which helps enhance awareness of Guangxi's specialty agricultural products and handicrafts in the Malaysian market," said Bi Yihua, Deputy General Manager of the Overseas Business Department of GCMG. The group plans to collaborate with local distributors in Malaysia to explore the market through free trials, experiential marketing, supply chain finance, and other methods, further consolidating and expanding trade relations with Malaysia.

Focusing on Capacity Cooperation to Build Cross-Border Industrial and Supply Chains

At Pingguo Ecological Aluminum Capacity Cooperation Base of GCMG, ecological aluminum as raw material imported from Malaysia is undergoing a remarkable transformation. 

Inside the factory, six large smelting furnaces operate efficiently. Through a series of precise processes, including crushing, iron absorption, sieving, remelting, refining, and purifying, the ecological aluminum as raw material is ultimately transformed into high-quality alloy aluminum rods.

In recent years, GCMG has actively promoted the upgrade of the capacity cooperation for the China-Malaysia "Two Countries, Twin Parks" Initiative, accelerating the construction of cross-border industrial and supply chains. Pingguo Ecological Aluminum Capacity Cooperation Base is the first capacity cooperation project officially operated by the Industrial Investment Group, a subsidiary of GCMG. This project has initiated the processing and production of aluminum rods using ecological aluminum as raw material, successfully linking the southwestern region of the New Western Land-Sea Corridor with the ASEAN new materials industry chain.

By acquiring ecological aluminum as raw material through capacity contracting in Malaysia and other locations, conducting deep processing at processing bases in Guangxi, and planning to establish ecological aluminum industrial parks in Southeast Asia, a complete ecological aluminum circular economy industry chain will be formed.

This year marks the 50th anniversary of diplomatic relations between China and Malaysia. In April, during the fifth Joint Cooperation Council Meeting on China-Malaysia Qinzhou Industrial Park and Malaysia-China Kuantan Industrial Park held in Qinzhou, Guangxi, both countries reached a consensus on the importance of strengthening industrial upgrading and promoting deeper integration in the development of the China-Malaysia "Two Countries, Twin Parks" Initiative. Additionally, they emphasized the need for closer cooperation in the industrial and supply chains of China and Malaysia.

Currently, the China-Malaysia Qinzhou Industrial Park has gradually established cross-regional and cross-border industrial and supply chains with complementary advantages in sectors such as ecological aluminum and bird's nest products, with capacity cooperation continuously evolving.

Overseas warehouses represent another initiative by GCMG to deepen cross-border industrial and supply chain cooperation and assist Guangxi in creating a convenient domestic and international dual circulation market. Earlier this year, GCMG established its first overseas warehouse in Malaysia, actively expanding cross-border supply chains and focusing on key import areas such as petroleum, palm oil, frozen products, and tropical fruits, while optimizing the categories of supply chain business.

"We will leverage the establishment of overseas warehouses as an opportunity to deepen trade cooperation, further improve the efficiency of goods circulation, and reduce overall operating costs," said Qin Xiang, Deputy General Manager of Guangxi China-Malaysia Investment Holding International Economic and Trade Group Co., Ltd. Currently, the group has set up three overseas commodity warehouses in Port Klang of Malaysia, Johannesburg of South Africa, and Jakarta of Indonesia to ensure a steady supply of goods.

Expanding Overseas Markets and International Cooperation Platforms

Industrial silver, sulfur, and rare earths... On the China-Malaysia Unilink Cross-Border E-commerce Platform, various products are neatly categorized, enabling suppliers and purchasers from both domestic and international markets to connect seamlessly. This year, the Unilink Cross-Border E-commerce Platform achieved a revenue of 127 million yuan in its first quarter of operation.

This platform innovatively adopts a model of "cross-border e-commerce + platform", utilizing digital tools to achieve precise matching of industrial supply and demand, thereby promoting efficient circulation of goods and establishing an important bridge for economic and trade cooperation among GCMG, Malaysia, and other ASEAN countries.

In recent years, GCMG has accelerated its "going out" strategy, actively building international cooperation platforms and enhancing cooperation channels with Malaysia and other countries. "GCMG is committed to creating four major platforms, namely the platform of production and finance services, the platform of integrated city-industry services, the platform of transformation of scientific and technological achievements in industry, education, and research, and the platform of cross-border supply chains, actively promoting international capacity cooperation and vigorously developing marine industries," stated Guo Qinghui.

Currently, the construction of the four major platforms is progressing smoothly. The platform for transforming scientific and technological achievements in industry, education, and research is preparing a science and technology innovation fund with 20 million yuan for initial establishment; the production and finance services platform is forming a marine industry capital alliance, introducing its first industrial fund of 15 million yuan; and the platform of integrated city-industry services started to be built in September.

With these cooperation platforms established, how can foreign enterprises be attracted to collaborate? To further explore overseas markets, GCMG has decided to establish an overseas subsidiary in Kuala Lumpur, Malaysia -- CMQIP Industrial Development Holding (M) Sdn Bhd -- to introduce high-quality overseas industrial resources, engage in overseas industrial investments, and diversify the categories of bulk commodity imports and exports, enhancing the overseas brand influence of GCMG.

Leveraging this overseas subsidiary, GCMG is gradually establishing a cooperation network with Malaysia, providing convenient channels for economic and trade exchanges and facilitating Malaysian entrepreneurs' investments and developments in the parks.

Currently, GCMG has attracted bird's nest companies such as MBN from Malaysia and YIWEI’S NEST to establish operations, invest, and collaborate; it is also engaged in trade cooperation with SUPERLUX AUTO Co., Ltd. in Malaysia to promote the implementation of the electric motorcycle project in Malaysia and achieve agency sales in the country.

"We will continue to deepen our cooperation with Malaysian enterprises in advanced manufacturing, electronic information, new energy, new materials, advanced semiconductors, green organic food, and biomedicine," said Guo Qinghui.