Title:
IMPACT OF BELT AND ROAD AND REVERSED GLOBALIZATION TO MALAYSIA-CHINA ECONOMIC RELATIONSHIP

Authors:
Wai Mun HAR*, Sin Yee LEE , Chong Heng LIM, Ai Lian TAN & Chai Thing TAN

Abstract:
International trade and foreign direct investment are growth catalyst for developing countries like Malaysia. Among common determinants of trade and foreign investment, infrastructure and international relation surprisingly get lesser attention. Institutionalization of Belt and Road Initiative (BRI) could give new attention and importance to Malaysia-China international relation, especially in economic aspect. Reversed globalization trend among developed Western world and changing federal government in Malaysia further added attraction and debate issues to Malaysia-China partnership under BRI. In Malaysia context, doubt remains on whether BRI are compatible with ASEAN Economic Community (AEC) and capable to bring mutual benefits to both China and Malaysia under contemporary scenario. Thus, this paper aims to discuss three related questions. Firstly, is there a “reversed globalization” trend now? Secondly, is BRI compatible with AEC? Thirdly, will BRI mutually benefit China and Malaysia? This paper demonstrates signs of reversed globalization in major Western countries; BRI plays an important and significant role in enhancing ASEAN economic partnership; and Malaysia-China partnership through BRI does potentially brings mutual benefit in term of namely filling up Western de-globalization void, making Malaysia as ASEAN-China Gateway, and trade enhancement..