Stable China to benefit Asean in the long run, says Koh
The 7th World Chinese Entrepreneurs Convention: STORIES BY PAULINE S.c. NG, P.W. THONG, HONG BOON HOW AND KATHY FONG
A STRONG and stable China with a booming economy would eventually benefit the “Little Tiger” economies of Malaysia, Thailand and the Philippines in the long run, but in the short run or over the next few years, China looms more as a competitor than a benefactor, said Penang chief minister Tan Sri Dr Koh Tsu Koon.
Following reforms over the past 25 years, China has in recent years emerged as the biggest hub in the global supply chain for the electronics and information and communications technology (ICT) sectors.
With the massive relocation of production operations to China, Koh said the phenomenon of “hallowing-out” had already begun to take place in the Little Dragons – Taiwan, Hong Kong and Singapore – and Little Tiger areas.
“This has been true especially for Taiwan and to a lesser extent, Hong Kong, Singapore and Malaysia in that order,” Koh said, adding that “hallowing-out” posed a great challenge because it threatened to lead to serious unemployment with its negative social consequences, especially for a multi-racial country like Malaysia.
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Koh said yesterday on the “Role and Contributions of Chinese Enterprises in the World Economy” that in so doing however, the need for individual firms to explore the China market and even to move their substantial operations to China could not be denied.
But for the Little Tigers to enjoy a healthy relationship and mutual benefit with the Big Dragon, he pointed out both the Little Tigers and the Big Dragon must share a larger and longer-term common perspective.
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