Join us at the JS-SEZ: Joint Business and Investment Forum, where YB Liew Chin Tong, Deputy Minister of Investment, Trade and Industry Malaysia (MITI), will deliver the opening address. This forum is a pivotal event for fostering business and investment opportunities within the Johor-Singapore Special Economic Zone (JS-SEZ).
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00:00Yang berbahagia Dato' Baharia Muhammad Tamir, Deputi Sat Jan of MITI,
00:09Excellencies Malaysian High Commissioner to Singapore and Singapore High Commissioner to Malaysia.
00:16Yang berbahagia Dato' Sheikh Samsu Ibrahim, CEO of Maida.
00:23Yang berbahagia Tan Sri Dato' Sri Zamzam Zairani Muhammad Isa.
00:30Chairman of Maybank, and also Ms Ng Wehwe, CEO of UOB Malaysia.
00:38And many friends who I see here, which I don't intend to name everyone, but I welcome your presence.
00:44I see so many friends and so many important leaders from Singapore and from Malaysia.
00:49And I would like to say that this is a great gathering.
00:54Salam Sejatra, Salam Malaysia Madani.
00:55This gathering is very timely.
01:00This gathering is very timely, especially we are dealing with a global headwind that we all now recognise.
01:10and we probably also recognise that what we are dealing with is not just a short-term effect,
01:17but we are probably seeing a major shift in global trading system.
01:23I want to come back to just reflect on Johor and Singapore economic relationship.
01:30There are many people who ask me, will JSSEC succeed given that this is not the first time we try to integrate Johor and Singapore economy.
01:45Since 1965, this is probably the third major effort to try to integrate Johor and Singapore economy.
01:52In 1989, the then Deputy Prime Minister, Go Jok Tong, who later became Prime Minister,
02:01proposed the idea of Sijori.
02:04And the idea of Sijori is to integrate Singapore, Johor and Rail Islands.
02:08That didn't go very far because by 1994, Singapore was already in Succo.
02:18And the China team became so important to Singapore and the Sijori idea gradually faded away.
02:27In 2006, the late Tun Abdullah Badawi, under the premiership of the late Tun Abdullah Badawi,
02:37Malaysia proposed Iskandar region.
02:40And that was a great idea.
02:42The idea initially seems very promising.
02:47But after a while, it became property playing.
02:50And it became, the idea was about attracting Singaporeans to spend and attracting Singapore high spender to spend in Johor.
03:00There was no integration of supply chain or there was no integration of the workforce.
03:07But I think this time is different.
03:09This time is different because both sides recognise that the world has changed.
03:15The world has changed in a way that we have not seen in generations.
03:20Or at least in a generation.
03:23The world has changed from prioritising or having this general assumption of just in time.
03:34Of having just one single global supply chain.
03:37The one that is now focusing on or putting as a premise from just in time to just in case.
03:51We are now dealing with risk.
03:54Everyone is worried about risk rather than efficiency.
03:57Or efficiency is no longer the only priority.
04:02Risk is also a very major concern for corporations.
04:05We are dealing with thinking of a single global supply chain.
04:13To now thinking of multiple regional supply chains.
04:19The idea that you can move container boxes anywhere, everywhere in the world without hindrance.
04:27I think that idea is there.
04:30And the situation is not just about supply chain.
04:34It is also about geopolitics.
04:37Suddenly those who study international relations, those who study politics like myself,
04:41has more chance to make a living.
04:48Suddenly geopolitics is at the centre of global trade.
04:54And we are not going to be able to avoid it.
04:57And therefore, the integration of Johor and Singapore economies become very important.
05:08It becomes very important and it becomes beneficial to both sides.
05:12Which is why I think this time is different.
05:14This time, if we do it well, if we can integrate the Johor and Singapore economy well,
05:21we will be able to create something very meaningful for both Johor and Singapore,
05:28for Malaysia and Singapore, and for ASEAN,
05:31and perhaps adds to the global change.
05:35I look at our economy.
05:38I think we can probably divide our economy into the following phases.
05:47For the longest of time, up until probably the 1970s,
05:54the Malaysian-Singapore economy was essentially a mercantile or resource-based economy.
06:01We were doing trading for colonial economy.
06:10We were doing trading based on resources,
06:13thin, rubble, later on palm oil.
06:17But that has moved to a more outsourced manufacturing economy,
06:23with Singapore leading the way in the early 60s
06:26and Malaysia followed suit in the 70s and subsequently.
06:29the idea was we became outsourced manufacturing hubs for,
06:38particularly for the US economy.
06:40Of course, eventually that was taken over by,
06:42the role was taken over by China,
06:44and Singapore also became a financial hub
06:47and not just a manufacturing hub.
06:50But I think this is a time for us to think of a 3.0.
06:54A 3.0 for Malaysia and Singapore economy,
06:57and perhaps for the world economy,
06:59given the context I have outlined earlier.
07:03A 3.0 is not just about make in Malaysia.
07:08The first phase was about
07:10colonial mercantile trading system or trading economy based on resources.
07:15The second phase was about make in Malaysia,
07:17make in Singapore,
07:18make for the United States,
07:21make for the global market.
07:23but I think we are entering into a potential third phase.
07:27It is about make by Malaysia,
07:30by creating our own IP,
07:34by creating our own innovation.
07:36And I think Singapore share the same aspiration
07:38to create our own technology,
07:42to no longer just think about being a user
07:45but also being a creator.
07:47and if we imagine that Johor and Singapore
07:51can become a very strong cluster,
07:54if we imagine that the financial capital in Singapore,
07:58the financial capability in Singapore,
08:02together with Johor,
08:03if we can create innovations,
08:06if we can create new technologies here,
08:10we will be a very important region.
08:12and we may have to now shift the way we think.
08:17We have always been thinking about exporting to the United States
08:20because the United States is the consumer of the last resort
08:25and in many instances the consumer of the first resort.
08:28But it is time for us to think about
08:29creating technology for ASEAN,
08:33creating technology for India, Bangladesh,
08:37for Brazil,
08:39for the bottom billions.
08:41and if we can imagine that
08:44Malaysia and Singapore combined,
08:46we can create technology giants,
08:49we can create technological companies
08:51that will provide
08:52not necessarily the high tech,
08:55but middle tech,
08:56provide technology,
08:58create technology
08:59for the rest of the world,
09:01will be in a very interesting position.
09:05And for Malaysia and Singapore economy to succeed
09:08and to succeed in a new era,
09:11it is important that we always keep in mind
09:16that combined Malaysia and Singapore economy
09:20can actually help power change in ASEAN.
09:24the world is shifting.
09:27The world is shifting
09:29and ASEAN is an interesting work in progress.
09:35If we can strengthen ASEAN
09:37and if we can create ASEAN as a very strong
09:40and coherent unit,
09:43it will help everyone.
09:45and to make ASEAN
09:48a very strong unit,
09:50we need to be able to create
09:52a middle class in ASEAN.
09:54We need to see
09:55the Indonesian being rich.
09:59We need to see
09:59the Cambodians being a middle class
10:02or having a middle class.
10:03And when I say middle class,
10:04what do we mean by middle class?
10:06We mean by having people,
10:08having enough people
10:10who have discretionary power
10:12to spend,
10:14who have discretionary spending,
10:16and who have enough disposable income
10:18so that they can make
10:19discretionary spending.
10:21And that,
10:22they are actually very few in ASEAN.
10:25So imagine that in 20 years time,
10:27by 2045,
10:28we can create a middle class in ASEAN.
10:30That means ASEAN will have consumers.
10:32ASEAN becomes a consumer base
10:35and we are not seeing ourselves
10:37just as producer.
10:39We are also seeing ourselves
10:40as consumer.
10:42And we will be able to create
10:44a lot more
10:46two-way, three-way trade
10:49with other regions.
10:51And if the world has
10:52a strong ASEAN,
10:54if the world has an ASEAN
10:55that is not just producers
10:57but also consumer,
10:59the world will also be
11:00an interesting place.
11:00Then you will imagine that
11:02United States is a consumer market,
11:04EU is a consumer market,
11:06China is a consumer market,
11:08India is a consumer market,
11:09ASEAN is a strong consumer market,
11:11and of course,
11:12Africa may be able
11:13to get its act together
11:14and it may be
11:15an interesting region.
11:17And with the Middle East,
11:19the world becomes not
11:20in the current structure
11:22but in a very different structure.
11:24Which is why I
11:26take you around the world
11:28because I see the importance
11:30of what we are doing.
11:32you are actually
11:32in my constituency,
11:34my stick constituency,
11:35I am both MP
11:35for Iskandar Poetry
11:37and also Adun for Berlin.
11:40But I want to take you
11:41to this broader picture
11:42because I think
11:42what you are doing now today,
11:44what we are doing together today
11:45is important.
11:47It's not just about Johor
11:48and Singapore,
11:50it also has
11:52wider implication
11:53and if we do well,
11:56we play a small role
11:58in creating a better world.
12:00Thank you very much,
12:01thank you to Maybank
12:02for sponsoring
12:02and thank you everyone
12:03for attending.
12:04and thank you very much,
12:05for being in the future.
12:07Thank you so much,
12:07I think that's going to be
12:09great.
12:10Before you go to April,
12:12thank you very much,
12:13thank you very much.
12:14Thank you.
12:15Thank you very much.
12:16Thank you for watching me
12:16and thank youayaxper että