PM Najib and Jack Ma Announced “Digital Free Trade Zone”

 

PM Najib and Jack Ma Announced “Digital Free Trade Zone”

As the news released earlier, Alibaba Group plans to start up a regional distribution hub in Malaysia. Yesterday, Malaysian Prime Minister Datuk Seri Najib and Jack Ma (Alibaba executive chairman) announced the first “Digital Free Trade Zone” (DFTZ) outside China, which is expected to cater $ 65 bil (roughly RM287.6 bil) of logistics in 2025.

In addition, the “Digital FTA” is estimated to create another 60,000 jobs in 2025.

The free trade zone is expected to lead the e-commerce roadmap in Malaysia, reaching RM211 bil of GDP by 2020.

Najib and Jack Ma witnessed the signing of four memorandums of understanding, including between Alibaba Group and Malaysian Digital Economic Corporation (MDEC).

In addition, Alibaba signed a memorandum of understanding with Maybank and CIMB for Alipay mobile wallet implementation in Malaysia. This will allow Chinese visitors to pay for their transactions in yuan without concern about exchange rates in Malaysia, while Malaysians can also use Alipay in the Chinese market.

The last memorandum is a Memorandum of Understanding between MDEC and Catcha Group for the establishment of Kuala Lumpur Internet City (KLIC).

Kuala Lumpur Internet City will be the first satellite service hub to be established by MDEC and Catcha Group. Another satellite service hub will be established in Bandar Malaysia.

The CEO of MDEC, Dato’ Yasmin Mahmood pointed out the “Digital Free Trade Zone” will help Malaysian SMEs to double their exports in 2025.

Besides, Daniel Zhang (CEO of Alibaba Group) pinpointed that both sides have multiple long-term development plans, so far the total amount of investment is not disclosed.

 

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