Following the China’s economic slowdown and its gloomy property outlook, instead of worrying about its likely declining export demand for ASEAN’s goods and service, the ASEAN countries might benefit economically from the Created in China concept. This enables Chinese companies to access business opportunities around the world.
About a few years ago, Chinese companies began to shift their strategies to Asia, integrating business ideas with Asian resources and planning to enter a more globalized market. With household incomes falling in China and households prefer to save than to consume especially in the wake of the downturn in the real estate market, more of China’s giant companies are now turning their attention to markets outside China.
In the two decades since China joined the World Trade Organization in 2001, China has become a world manufacturing power. As China’s labor costs rise, coupled with China’s prolonged Covid-19 lockdown and US-china trade tensions, global investors are gradually moving factories out of China and towards Asia. In the coming years, Asian Factory would focus more on exporting higher value and innovation-led goods and services for global markets.
Due to its proximity to Singapore, Malaysia is one of the most cost-effective destinations in Asia for global investors. This is a major highlight of the Chinese economy’s choice of Malaysia as the very first destination to carry out its “Created in China” concept to reach the global market.
Doing business in Malaysia not only provides wider opportunities for Chinese businesses as it avoids the sensitivities of trading with China due to US-China tensions, but also benefits from global collaboration with Western countries that operate businesses in Asia countries especially Singapore.