KUALA LUMPUR - Witnessing China’s ancient history and resurgent economic power during his visit brought to Najib Abdul Razak’s mind Malaysia’s unique role to act as a bridge between civilizations.

Malaysia’s geographical and ideological position between East and West according to the prime minister is represented in its diverse ethnic and religious makeup.

"It is our diversity that is the source of our strength; our diversity has facilitated the astonishing progress President Obama spoke of," he says on the topic "After China" in his blog on www.1Malaysia.com.my. In his recent speech in Cairo, US President Barack Obama mentioned the "astonishing progress" in Kuala Lumpur. He said there need be no contradiction between development and maintaining distinct cultures.

Malaysians should reflect on how to empower innovation in Malaysia through their diverse cultures. "It is precisely our differences that present the greatest opportunities for the future," he says.

During his four days from June 2, Najib talked with Premier Wen Jiabao, called on President Hu Jintao, visited the Beijing Foreign Studies University and attended the Malaysia-China Business Forum as well as various other trade functions.

On deepening the ties between Malaysia and China he said "On this visit, I did not just want to follow in my father's footsteps. My intention was to take relations with China to a new level of cooperation and partnership.”

China is already Malaysia's fourth largest trading partner and much time was spent during the trip discussing how Malaysia and China can continue to expand trade and economic links that define so much of the history and interaction between the two countries. "As both our countries embarked on significant stimulus programmes, we also discussed further cooperation on efforts to pull our countries and the region, out of the economic downturn," he added.

Stimulating development
Once upon a time hailed as destinations for investments, China and Malaysia prove developing countries could challenge the status quo as in investment business practices in developed countries. The corporate and government sector worked overtime to open their economies while acquiring businesses on a global scale.

Investors from Malaysia present in UK in various fields include YTL Power International Bhd’s owns Wessex Water Ltd stake of £1.2billion (RM8.2billion); Petronas £80million (RM547 million) investment of 30% stake in an LNG terminal in Wales and MUI Group’s ownership of Laura Ashley Holdings Plc and Corus Hotel Plc, Proton Holdings Bhd’s controlling stake in Lotus, Usaha Tegas Sdn Bhd’s ownership of the ExCeL Exhibition Centre in London Docklands; mobile content developer Billadam Europe Ltd’s £50million (RM342million) deal to provide the map of London city on mobile phones and Unisem (M) Bhd and HT Consulting (Asia) Sdn Bhd. According to the UK Trade and Investment (UKTI) Tony Collingridge Malaysian investors in the UK are having good returns on their investments.

Foreign government bodies like UKTI facilitating trade and investments identified Malaysia as a key source of investments outside China and India. Targeted is the high-tech home grown Malaysian companies to invest in areas like telecommunications, ICT, software development, display technology and gaming software technology, bio science renewable energy, environmental technology and automotive.

“We’ll talk to companies about their business development and how they can do research and development in partnership with British companies or British universities,” he said.

Being the second largest country in the world to have significant number of bio tech companies, the UK funds 4.5% of the world’s science while 18% of the world’s scientific papers come from the US said Collingridge. Foreign companies conduct 40% of research and development in the UK presently.
While the UK is second only to the US in terms of patent and output in biotech, the UK is an important market for technology in Europe disclosed UKTI director for trade and investment (Malaysia) Gordon B Reid. “As the Malaysian government is encouraging local companies especially technology firms to go abroad, the Malaysian companies should consider getting expertise and partners from the UK,” he said.

Chinese business practices
Chinese business practices objected to by other nations challenge the status quo but it must be remembered developed nations once practiced such against each other. The Chinese cut flower industry of concern to producers like Colombia, Ecuador, Kenya, Malaysia and Thailand is not a case of developing a business but improving the socio economic sectors in South Western China.

Complaints were fielded from countries like the Netherlands that China does not pay royalties when they breed internationally registered varieties of flowers. Further, the government’s aid in subsidies to cover operating costs of exporters conflicts with International trade rules.

These countries could restrict Chinese flower imports and impede the transfer of know how on latest breeding techniques like new rose breeds which grow without thorns.

China exports flowers including roses which can be transported long distances with little damage. Carnations withstand the long haul by air shipment but have a low value per pound while tulips with a high value must be packed very loosely, driving up air freight charges, making it not conducive. Having a high value, lilies must be handled with considerable care so China exports them to markets closer to home like Singapore.

On their own the Chinese came up with roses without thorns which being lighter could be packed more tightly, reducing the cost of air shipment. Air shipping costs about 30 cents per long stemmed rose, a little less without thorns and leaves.

The high grade varieties of roses from Europe, commanding a premium around the world, are not grown in China due to disputes over royalty payments by Chinese growers. While China sells all grades of flowers, its growers like those everywhere else try to boost production of high grade flowers.

This has to be considered in the light of a developing country with the world’s biggest population, which the authorities are doing their best to keep employed.

Gain fully employing the rural dwellers
By placing the flower industry with others far from the coastal provinces, which enjoyed most of the nation’s prosperity, jobs were provided for millions of impoverished workers to reduce disputes between city dwellers and the rural unemployed.

Consider the price of flowers and the pay packet of workers: in Yunnan: flowers are sold at wholesale prices of 4 cents to 16 cents a piece which soars to 28 cents just before Valentine’s Day. For US$25 a month workers clip roses in greenhouses, remove thorns by hand in huge sheds before wrapping them in paper and plastic for shipment.

Such flowers exported to the USA in October 2006 end up being packed with red wine in gift boxes for the Los Angeles market demanding high prices. National pride not withstanding over their tulips, the Netherlands insists on inexpensive Chinese roses.

“One of the big dangers in China is overproduction, which is something that needs to be controlled,” said Dutch flower company Van Den Bos managing director for China Luc Dressen. A cause of worry for growers in many countries is China shipping low grade flowers which causes wholesale prices to plunge.

China posed the bigger competitive threat to the chairman of the Association of Flower Auctions in the Netherlands and president of the International Association of Horticultural Producers Doeke Faber. “Certainly they are the sleeping giant. They have excellent climate and very cheap labour,” he said.
The situation is not helped by China’s aim to quadruple exports to US by 200 million stems by 2010 or more than a billion stems.

“Our plan is to become the biggest flower producer and exporter in Asia in 10 to 15 years and possibly the world’s largest after the Netherlands,” said the deputy chief of a provincial government agency the Flower Association, Li Gang.

Extending infrastructure
Committing itself to this task the government extended its infrastructure: it is building 12 lane roads, sturdy bridges and airports in South Western China. The leadership took a personal interest in improving the province’s greenhouses by offering interest free loans for their construction.

The government spends US$200 billion a year; to build roads, bridges, airports and phone systems. Linking inland regions to the outside world it ensured the flowers are minimally damaged in the trip to their destinations.

Refrigerated trucks were offered free or at low discounts to farm groups so fewer flowers wilt in transit, Li said. Chinese farmers face obstacles such as shortage of refrigerated storage areas and trucks to keep flowers from wilting and the cost of flying the flowers to distant markets. Even if world oil prices continue to fall, air freight costs will always be substantial. As much as 90% of the retail price of a rose is added after the flowers arrive in the US or Europe.
Many of China’s roses are sold in supermarkets where the mark up is, however, smaller.

Najib’s view in conclusion on historic ties of trust at all levels with China is revealing: “my father trusted China's leadership then, just as I do now." Malaysians have to be bold like the Chinese to carve out a secure economic future by thinking and acting pragmatically even if it means being politically incorrect and offending those with close ties.

Information derived from Bernama and Badri Kuhan Yeoh & Ghandi publications.

KUALA LUMPUR - Witnessing China’s ancient history and resurgent economic power during his visit brought to Najib Abdul Razak’s mind Malaysia’s unique role to act as a bridge between civilizations.

Malaysia’s geographical and ideological position between East and West according to the prime minister is represented in its diverse ethnic and religious makeup.

"It is our diversity that is the source of our strength; our diversity has facilitated the astonishing progress President Obama spoke of," he says on the topic "After China" in his blog on www.1Malaysia.com.my. In his recent speech in Cairo, US President Barack Obama mentioned the "astonishing progress" in Kuala Lumpur. He said there need be no contradiction between development and maintaining distinct cultures.

Malaysians should reflect on how to empower innovation in Malaysia through their diverse cultures. "It is precisely our differences that present the greatest opportunities for the future," he says.

During his four days from June 2, Najib talked with Premier Wen Jiabao, called on President Hu Jintao, visited the Beijing Foreign Studies University and attended the Malaysia-China Business Forum as well as various other trade functions.

On deepening the ties between Malaysia and China he said "On this visit, I did not just want to follow in my father's footsteps. My intention was to take relations with China to a new level of cooperation and partnership.”

China is already Malaysia's fourth largest trading partner and much time was spent during the trip discussing how Malaysia and China can continue to expand trade and economic links that define so much of the history and interaction between the two countries. "As both our countries embarked on significant stimulus programmes, we also discussed further cooperation on efforts to pull our countries and the region, out of the economic downturn," he added.

Stimulating development
Once upon a time hailed as destinations for investments, China and Malaysia prove developing countries could challenge the status quo as in investment business practices in developed countries. The corporate and government sector worked overtime to open their economies while acquiring businesses on a global scale.

Investors from Malaysia present in UK in various fields include YTL Power International Bhd’s owns Wessex Water Ltd stake of £1.2billion (RM8.2billion); Petronas £80million (RM547 million) investment of 30% stake in an LNG terminal in Wales and MUI Group’s ownership of Laura Ashley Holdings Plc and Corus Hotel Plc, Proton Holdings Bhd’s controlling stake in Lotus, Usaha Tegas Sdn Bhd’s ownership of the ExCeL Exhibition Centre in London Docklands; mobile content developer Billadam Europe Ltd’s £50million (RM342million) deal to provide the map of London city on mobile phones and Unisem (M) Bhd and HT Consulting (Asia) Sdn Bhd. According to the UK Trade and Investment (UKTI) Tony Collingridge Malaysian investors in the UK are having good returns on their investments.

Foreign government bodies like UKTI facilitating trade and investments identified Malaysia as a key source of investments outside China and India. Targeted is the high-tech home grown Malaysian companies to invest in areas like telecommunications, ICT, software development, display technology and gaming software technology, bio science renewable energy, environmental technology and automotive.

“We’ll talk to companies about their business development and how they can do research and development in partnership with British companies or British universities,” he said.

Being the second largest country in the world to have significant number of bio tech companies, the UK funds 4.5% of the world’s science while 18% of the world’s scientific papers come from the US said Collingridge. Foreign companies conduct 40% of research and development in the UK presently.
While the UK is second only to the US in terms of patent and output in biotech, the UK is an important market for technology in Europe disclosed UKTI director for trade and investment (Malaysia) Gordon B Reid. “As the Malaysian government is encouraging local companies especially technology firms to go abroad, the Malaysian companies should consider getting expertise and partners from the UK,” he said.

Chinese business practices
Chinese business practices objected to by other nations challenge the status quo but it must be remembered developed nations once practiced such against each other. The Chinese cut flower industry of concern to producers like Colombia, Ecuador, Kenya, Malaysia and Thailand is not a case of developing a business but improving the socio economic sectors in South Western China.

Complaints were fielded from countries like the Netherlands that China does not pay royalties when they breed internationally registered varieties of flowers. Further, the government’s aid in subsidies to cover operating costs of exporters conflicts with International trade rules.

These countries could restrict Chinese flower imports and impede the transfer of know how on latest breeding techniques like new rose breeds which grow without thorns.

China exports flowers including roses which can be transported long distances with little damage. Carnations withstand the long haul by air shipment but have a low value per pound while tulips with a high value must be packed very loosely, driving up air freight charges, making it not conducive. Having a high value, lilies must be handled with considerable care so China exports them to markets closer to home like Singapore.

On their own the Chinese came up with roses without thorns which being lighter could be packed more tightly, reducing the cost of air shipment. Air shipping costs about 30 cents per long stemmed rose, a little less without thorns and leaves.

The high grade varieties of roses from Europe, commanding a premium around the world, are not grown in China due to disputes over royalty payments by Chinese growers. While China sells all grades of flowers, its growers like those everywhere else try to boost production of high grade flowers.

This has to be considered in the light of a developing country with the world’s biggest population, which the authorities are doing their best to keep employed.

Gain fully employing the rural dwellers
By placing the flower industry with others far from the coastal provinces, which enjoyed most of the nation’s prosperity, jobs were provided for millions of impoverished workers to reduce disputes between city dwellers and the rural unemployed.

Consider the price of flowers and the pay packet of workers: in Yunnan: flowers are sold at wholesale prices of 4 cents to 16 cents a piece which soars to 28 cents just before Valentine’s Day. For US$25 a month workers clip roses in greenhouses, remove thorns by hand in huge sheds before wrapping them in paper and plastic for shipment.

Such flowers exported to the USA in October 2006 end up being packed with red wine in gift boxes for the Los Angeles market demanding high prices. National pride not withstanding over their tulips, the Netherlands insists on inexpensive Chinese roses.

“One of the big dangers in China is overproduction, which is something that needs to be controlled,” said Dutch flower company Van Den Bos managing director for China Luc Dressen. A cause of worry for growers in many countries is China shipping low grade flowers which causes wholesale prices to plunge.

China posed the bigger competitive threat to the chairman of the Association of Flower Auctions in the Netherlands and president of the International Association of Horticultural Producers Doeke Faber. “Certainly they are the sleeping giant. They have excellent climate and very cheap labour,” he said.
The situation is not helped by China’s aim to quadruple exports to US by 200 million stems by 2010 or more than a billion stems.

“Our plan is to become the biggest flower producer and exporter in Asia in 10 to 15 years and possibly the world’s largest after the Netherlands,” said the deputy chief of a provincial government agency the Flower Association, Li Gang.

Extending infrastructure
Committing itself to this task the government extended its infrastructure: it is building 12 lane roads, sturdy bridges and airports in South Western China. The leadership took a personal interest in improving the province’s greenhouses by offering interest free loans for their construction.

The government spends US$200 billion a year; to build roads, bridges, airports and phone systems. Linking inland regions to the outside world it ensured the flowers are minimally damaged in the trip to their destinations.

Refrigerated trucks were offered free or at low discounts to farm groups so fewer flowers wilt in transit, Li said. Chinese farmers face obstacles such as shortage of refrigerated storage areas and trucks to keep flowers from wilting and the cost of flying the flowers to distant markets. Even if world oil prices continue to fall, air freight costs will always be substantial. As much as 90% of the retail price of a rose is added after the flowers arrive in the US or Europe.
Many of China’s roses are sold in supermarkets where the mark up is, however, smaller.

Najib’s view in conclusion on historic ties of trust at all levels with China is revealing: “my father trusted China's leadership then, just as I do now." Malaysians have to be bold like the Chinese to carve out a secure economic future by thinking and acting pragmatically even if it means being politically incorrect and offending those with close ties.

Information derived from Bernama and Badri Kuhan Yeoh & Ghandi publications.