Digital Free Trade Zone (DFTZ)

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KUALA LUMPUR: The government is finalising talks with several international e-commerce players to participate in Malaysia’s Digital Free Trade Zone, a minister said.

“The DFTZ belongs to the government and it's not solely for China’s e-commerce giant Alibaba Group. The government is seeking qualified investors who have the financial muscles and efficient logistics network to participate in the DFTZ,” said Deputy Minister of International Trade and Industry (MITI) Datuk Chua Tee Yong.

To a query if American e-commerce giant Amazon.com is among big names interested to participate in Malaysia’s DFTZ, Chua refrained from confirming or denying except to say, “the government will make the announcement soon.”

SME Association encourages its small medium enterprises (SMEs) members to pursue innovations and automation for higher level competency among its staff.

“By doing so, our members can reduce their intake of foreign workers,” said SME Association of Malaysia president Datuk Michael Kang.

“At the same time, employers need to upskill their staff’s competency,” he told reporters after Chua officiated at the launch of SME Association Platinum Business Awards 2018 here today.

To date, Malaysia has slightly over 900,000 SMEs, which represents close to 99 per cent of the total establishments in the country.

Also present were Human Resources Development Fund (HRDF) chief executive Datuk C.M. Vignaesvaran believed SMEs’ contribution to the economy could be strengthened with better access to training.

Vignaesvaran hoped to extend training opportunities to more SMEs with the expansion of the Pembangunan Sumber Manusia Bhd (PSMB) Act, which will take effect on April 1, 2018.

Under the law, employers are to pay the HRDF a levy of 1 per cent of their total wages on each of its local employees.

Last year, the HRDF established its pool fund to assist SME employers who have insufficient levy payment balance to continuously train and upgrade the skills of their employees.

Kang noted that the HRDF is pumping back retained government funds to SMEs to help them with training.

“Since the HRDF will be doing a lot of programmes for SMEs, we advise our members to register with HRDF. They need to pay the 1 per cent levy to HRDF and the agency will help in training and upskilling of the SME’s workforce competency,” he explained.

Kang went on to say Prime Minister Datuk Seri Najib Razak will announce soft loans for Malaysians youths, aged 18 to 45, to upgrade their businesses to leverage on e-commerce platforms.

The 17th edition of the SME Malaysia’s Platinum Business Awards, which is being audited by Kreston John & Gan, will be held in November 2018.

Among notable sponsors are the HRDF, Exsim Development Sdn Bhd, HP Indigo, RHB Bank and York Malaysia.

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SEPANG: Malaysia Airports Holdings Bhd (MAHB) has allocated RM800 million of its capital expenditure to build infrastructure, facilities, system and equipment for the 32.42-hectare Kuala Lumpur International Airport (KLIA) Aeropolis Digital Free Trade Zone (DFTZ), which is slated to be fully operational in the third quarter of 2020.

Managing Director Datuk Badlisham Ghazali said KLIA Aeropolis DFTZ park, dubbed the world’s first e-world trade platform, was on track for site handover in August this year to the joint-venture company for facilities development.

“It is 20 per cent completed and we foresee that the DFTZ will double KLIA’s cargo volume to 1.5 million tonnes in the next 10 years from the current 700,000 tonnes per annum,” he said at the media conference on the DFTZ pilot project here Monday.

The facility will encompass of 1.2 million sq ft of gross floor area (GFA) for a cargo terminal, sorting centre, warehouse and operations office.

On top of that, MAHB is also looking to develop another cargo facility covering a GFA of one million sq ft within the next three years.

“We are also looking to team up with potential strategic delivery partners to develop high-grade warehousing and distribution centres on a build and lease model that are able to cater to specialised needs such as halal logistics, high-value goods and pharmaceuticals,” he added.

Other infrastructure developments include a free trade commercial zone corridor to cater to business expansion growth, an airport cargo freight station to support intermodal connectivity to seaports and the utilisation of big data analytics to improve operational efficiency.— BERNAMA

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KUALA LUMPUR: The Digital Free Trade Zone (DFTZ) is not just about Jack Ma's Alibaba Group, but is inclusive of other e-commerce industry players, says Communications and Multimedia Minister Gobind Singh Deo.

"The cooperation with Alibaba will allow local small and medium enterprises (SMEs) to conduct cross-border trade and it is not the only platform under the DFTZ.

"There are other players including locals who are creating their own platforms," he said when replying a supplementary question by Syed Ibrahim Syed Noh (PH-Ledang) in Parliament on Thursday (July 26).

Gobind noted that the Malaysia Digital Economy Corporation (MDEC) is also working with other platforms under the DFTZ.

He gave the examples of Amazon, eBay, Jocom, Romman, Lazada, JinBaoMen, Trade India, Dagang Halal, Aladin Street and BuyMalaysia as the other platforms.

As of April this year, Gobind said 70 out of 3,300 SMEs had benefited from eMarketplace platforms under the DFTZ.

"The SMEs have generated sales totalling RM52.1mil with exports of RM18.1mil," he added.

He assured lawmakers that the Pakatan Harapan Government would continue with the DFTZ initiative to make Malaysia the gateway for e-commerce in the region.

"The Government will continue implementing initiatives that benefit SMEs," he added.

Gobind agreed with a suggestion by Mohd Shahar Abdullah (BN-Paya Besar) that there should be new laws to cater to the growing global e-commerce industry.

However, he said that at the moment, his ministry would focus on developing infrastructure for better Internet connectivity.

Malaysia launched the world's first DFTZ last year.

The DFTZ aims to double the nation's e-commerce growth and increase the sector's Gross Domestic Product (GDP) contribution to RM211bil by 2020.

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• First Asian country outside China to initiate program with support of MDEC, Matrade & SME Corp
• Complements eWTP initiatives, enables entrepreneurs to harness digital innovations, technologies

ALIBABA Business School, the education arm of Alibaba Group today announced the establishment of the first Alibaba Netpreneur Training Program in Malaysia. The training program is part of the ongoing eWTP ( electronic world trade platform) initiatives in Malaysia and aims to enable Malaysian entrepreneurs and those who operate businesses within Malaysia to embrace digital innovations to transform their businesses and the country’s economy.

Under the eWTP agreement with Malaysia, Alibaba group is committed to facilitate the development of inclusive trade and the digital economy through the development of electronic trade infrastructure and adoption of best practices. The Alibaba Netpreneur Training Program – jointly organized by Alibaba Business School, Malaysian Digital Economy Corporation (MDEC), Malaysia External Trade Development Corporation (Matrade), and SME Corporation Malaysia (SME Corp) – is programmed to cater to the different needs of different businesses in Malaysia, when it comes to adapting into the digital ecosystem.

“We are excited to be working closely with our partners in Malaysia to help make this new program possible. The Alibaba Netpreneur Training Program is a part of our ongoing initiatives under the eWTP program that aims to address various challenges facing Malaysia’s entrepreneurs, both traditional businesses and digital ventures, and to help convert these challenges into opportunities to propel their business further,” said Brian A. Wong, vice president of global initiatives, Alibaba Group.

“The program will also help entrepreneurs explore opportunities to become more innovative and adaptive in the digital era. By sharing Alibaba’s experience in building the ecosystem in China and by highlighting the transformational journey that many of our ecosystem partners have gone through, we hope to spark new ideas and provide inspiration to the participants in their own digital journey,” Wong added.

The 10-day program, held in Alibaba’s headquarters in Hangzhou, China, will provide participants with first-hand exposure to e-commerce innovations from Alibaba Group that have enabled growth and a more inclusive development model for all.

"As a vital aspect of the road to success is to have the right skills and knowledge, this latest collaboration is another important stride forward to broaden the opportunities for Malaysian businesses and entrepreneurs to reap the benefits offered by the tremendous continued growth of eCommerce and the digital economy," said Ng Wan Peng, chief operations officer of MDEC.

"The program helps equip local businesses with the knowledge to compete globally via the digital platform to achieve a much broader outcome. With the importance of digital economy as an enabler in today's export business, this initiative will help boost Malaysian SMEs contribution in international trade. Ultimately, this will benefit the country economically and socially. Matrade applauds this initiative by Alibaba which other e-Marketplaces should consider to emulate," said Sharimahton Mat Saleh, Deputy CEO of Matrade.

“The rich platform of Alibaba will provide great opportunities for SMEs to learn about best practices as well as create synergy among the SMEs from different industries and backgrounds. This invaluable knowledge-sharing initiative will not only be beneficial for the participants, but will also connect us closely with Alibaba Group and other forward-looking partners who understand the new e-commerce context to embrace critical opportunities in the digital economy,” said Noor Azmi Mat, CEO of SME Corp Malaysia.

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• Four-day workshop at Alibaba’s headquarters in Hangzhou, China.
• Enhancement of existing cooperation between Malaysia and China

IN LINE with the national agenda to further grow Malaysia’s digital economy, delegates from the Government of Malaysia participated in Alibaba Business School’s New Economy Workshop (NEW) held at Alibaba Group’s headquarters in Hangzhou, China.

The Malaysian delegation was led by Minister of International Trade and Industry (MITI) Darell Leiking, and also represented by the Deputy Minister of Agriculture and Agro-Based Industry Sim Tze Tzin and Malaysia Digital Economy Corporation (MDEC) chief executive officer Surina Shukri.

The workshop was aimed at empowering participants through an increase in knowledge and understanding of the key elements for the development of Malaysia's digital economy.

The Malaysian senior officials represented nineteen Ministries and Agencies that have direct involvement in the policy making of Malaysia's national digital economy and e-commerce industry, namely:

1. Prime Minister’s Department
2. Ministry of International Trade and Industry
3. Ministry of Agriculture and Agro-Based Industry
4. Office of the Chief Secretary to the Government of Malaysia
5. Ministry of Economic Affairs
6. Ministry of Foreign Affairs
7. Ministry of Finance
8. Ministry of Entrepreneur Development
9. Ministry of Transport
10. Ministry of Youth and Sports
11. Ministry of Education
12. Ministry of Domestic Trade and Consumer Affairs
13. Malaysia Digital Economy Corporation
14. Royal Malaysian Customs Department
15. Central Bank of Malaysia
16. Malaysian Investment Development Authority
17. Malaysia External Trade Development Cooperation
18. Invest KL
19. Kuala Lumpur City Hall

The workshop was conducted pursuant to the official visit by the Prime Minister of Malaysia Dr Mahathir Mohamad to China in August last year, where he and Jack Ma, founder of Alibaba Group had agreed to cooperate on capacity building programmes in the areas of digital economy and e-commerce.

The Malaysian delegation with Alibaba founder Jack Ma

Speaking at the opening ceremony of the workshop, Leiking thanked Alibaba Group for organising the New Economy workshop which marks a key milestone in the 45th anniversary of diplomatic relations between Malaysia and China.

The workshop elevates the level of cooperation between the two countries, including via public-private engagements, namely with the Alibaba Group, given the latter’s pioneering experience in the global e-commerce sector.

“This programme also signifies another important milestone in the Government’s commitment to drive the country’s digital economy agenda through capacity-building programmes for Malaysian senior officials who are responsible for formulating and implementing policies and programmes in digital-economy related fields, in particular e-commerce,” said Leiking.

He further added, “The workshop encourages senior officials to be sensitised to digital economic friendly elements in formulating and implementing of policies, initiatives and programs at the national level. The participants are expected to become trainers in their Ministries and agencies, which in return enhances the human capital development in the area of digital economy.

“Ultimately, the well-trained officials will strengthen the joint-ministries efforts in implementing the National e-Commerce Strategic Roadmap (NeSR), 2016-2020, towards achieving greater economic growth and societal well-being in Malaysia.”

Ma said, “The digital economy provides a level playing field to economies in Asia. It is also poised to be a huge growth driver for developing economies. We hope more small businesses and young people will embrace the digital economy and achieve the success they deserve.”

According to Surina, "Alibaba’s ecosystem has enabled millions of people to participate in the global economy through the use of technology. Hence, it is important for Malaysia, in our efforts in driving the country’s digital economy, to move up the learning curve rapidly, by using the Alibaba experience as our guide."

The New Economy workshop is the latest example of Alibaba's ongoing commitment to support Malaysia's economic development.

The Digital Free Trade Zone (DFTZ) Pilot Project, which went live in November 2017, under Alibaba’s Electronic World Trade Platform (eWTP) initiative, has institutionalised some of the trade facilitation measures undertaken by the Government.

A growing number of Malaysian companies have started to export via the DFTZ, and this will increase as industry players understand the value of participating in this initiative.

Following on from this workshop, the Alibaba Business School, in partnership with MDEC, Matrade and SME Corp Malaysia will organise a programme called “Alibaba Netpreneur Training Malaysia Programme”, aimed at providing local Malaysian entrepreneurs and business leaders with opportunities to harness digital technology, in order to transform their businesses and the local economy.

The 10-day programme will be held from March 23 – April 3. 2019 and April 13 – 24, 2019 at the headquarters of Alibaba in Hangzhou.

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nazrey said:

https://www.j-propves.com.my/?cur=news/view&id=8277&title=Local_goods_going_places_with_DFTZ

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KUALA LUMPUR (July 15): Two airports and a port are the three latest locations under the Digital Free Trade Zone (DFTZ) 2019 initiative to make Malaysia a regional e-commerce e-fulfillment hub, the Dewan Rakyat was told today.

Communications and Multimedia Minister Gobind Singh Deo said the airports are the Penang International Airport and the Subang Airport and the port is Port Klang. :cheers:

“Up to now, the KL International Airport has been involved in this (DFTZ) effort,” he said in a written reply to a question from Datuk Seri Reezal Merican Naina Merican (BN-Kepala Batas). Gobind had uploaded the reply onto Facebook.

Reezal Merican had wanted to know the latest development on DFTZ and the KLIA Aeropolis in Sepang.

Gobind said the DFTZ is a national initiative to drive cross-border e-commerce through digitalisation by generating an increase in the exports of local small and medium enterprises (SMEs).

He explained that the DFTZ was introduced to help local SMEs to penetrate the world market and to attract global brands and e-marketplace to make Malaysia a global market gateway.

“In the 2017-2018 period, major developments were achieved under the DFTZ initiative through the Malaysia External Trade Development Corporation (Matrade), Malaysia Digital Economy Corporation (MDEC) and SME Corporation.

“Malaysia has facilitated more than 6,200 SMEs to be trained in cross-border e-commerce,” he said.

On the KLIA Aeropolis, Gobind said Malaysia Airports Holdings Berhad (MAHB) had prepared several key plans.

“Besides, the Mitsui Outlet Park has been in operation since 2014 (MICE and Leisure) and the Maintenance, Repair and Overhaul (MRO) facility has been developed at KLIA,” he said.

The KLIA Aeropolis is designed as an integrated, complete and synergistic ecosystem comprising three core clusters, namely Air Cargo & Logistics; Aerospace & Aviation, and MICE & Leisure; aligned with the national master plans and blueprints with the aim to elevate Malaysia as a magnet for foreign direct investments and as a high-income nation. — Bernama

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KUALA LUMPUR (July 31): The KLIA Aeropolis Digital Free Trade Zone (DFTZ) development is expected to be completed by June 2020.

Cainiao KLIA Aeropolis Sdn Bhd chief executive officer Johnson Chen said the project, which is currently 50% completed, is expected to be operational by September 2020.

“Once the project is completed, it would enable logistics and our business partners to export more products to China and outside the region,” he said on the sidelines of the Alibaba Cloud Summit Malaysia here, today.

In 2017, Malaysia Airports Holdings Bhd (MAHB) signed an agreement with Cainiao Smart Logistics Network (Hong Kong) Ltd and MA Elogistics Sdn Bhd.

Cainiao HK and MA Elogistics had completed their subscription of shares in the joint-venture company, Cainiao KLIA Aeropolis Sdn Bhd at 70% and 30%, respectively.

MAHB also announced that its wholly owned subsidiary, Malaysia Airports (Sepang) Sdn Bhd has entered into a sublease annexure of a 24.28-hectare land in Bandar Lapangan Terbang Antarabangsa Sepang with the lease of 30 years.

The site is set to be the world’s first e-world trade platform outside China with the development cost of over RM200 million.

The KLIA Aeropolis is expected to receive an additional RM700 million worth of investment once it is fully operational.

Chen said the site developed by them totalling 100,000 square metres (10 hectares) will have cargo and warehouse facilities.

“We have engaged with traditional logistics players such as GDex, online shopping platform Lazada, and have strong collaboration with MAHB and Malaysia Digital Economy Corporation,” he said.

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