Speech by SCED at "Hong Kong: Your Strategic Springboard to Chinese Mainland and Malaysia" business seminar and networking lunch in Kuala Lumpur
Following is the speech by the Secretary for Commerce and Economic Development, Mr Algernon Yau, at the "Hong Kong: Your Strategic Springboard to Chinese Mainland and Malaysia" business seminar and networking lunch in Kuala Lumpur today (August 12):
The Secretary for Commerce and Economic Development, Mr Algernon Yau, Photo source: reference image
YB Sim (Deputy Minister of Investment, Trade and Industry, Mr Sim Tze Tzin), Mr Shamsul (Chief Executive Officer of the Malaysian Investment Development Authority, Mr Sikh Shamsul Ibrahim Sikh Abdul Majid), distinguished guests, ladies and gentlemen,
Good morning. It is a great pleasure to join you all here in Kuala Lumpur for this important event.
First, let me extend my warmest welcome to our friends from Malaysia, the Chinese Mainland and Hong Kong. We are honoured to have with us today so many esteemed business leaders, investors, professionals and pioneers from various fields. Your presence here speaks volumes about the shared ambition and the deep economic ties that bind these three economies.
I have always loved visiting Malaysia, both for business and for leisure. This is my second visit in 2026 and fourth visit to the country during this term of Government, reflecting the significance of this market and how much I value the connections I have built here.
Hong Kong and Malaysia have enjoyed close business ties for decades, with Malaysia being Hong Kong's eighth-largest trading partner. With our strong ties, both of our economies are growing rapidly. In the first quarter this year, Hong Kong's economy recorded its most substantial quarterly expansion in this decade, with GDP (Gross Domestic Product) surging 5.9 per cent year-on-year as driven by the strong export performance. Malaysia has also turned in an impressive first-quarter result, expanding 5.4 per cent and exceeding market expectations for the second quarter in a row. Also, bilateral trade between our economies amounted to US$21.5 billion in the first 10 months of last year.
These figures clearly demonstrate that our bilateral relations possess genuine dynamism and mutualism. It is therefore imperative that we continue to explore and develop new avenues for economic growth, which is the very purpose of our presence here.
Hong Kong has always been serving as a "super connector" and a "super value-adder" connecting the East and the West, and bringing together both capital and opportunities. With this strategic role, coupled with the many strengths of Hong Kong, Hong Kong is prepared to serve as the ideal springboard linking the Chinese Mainland and Malaysia.
For Chinese Mainland companies looking to go global, Hong Kong is your ideal launch pad, as we offer a unique combination of advantages that no other city can replicate: the practice of the common law system, the free flow of capital, a simple and low tax regime, world-class professional services, a quality pool of international talent, and sophisticated business networks for trade and investment. And these are some advantages on top of our international reputation as the freest economy and one of the most competitive cities in the world.
As such, Hong Kong is in the best position to assist Chinese Mainland enterprises to expand overseas businesses.
Hong Kong, Photo source: reference image
To turn this vision into reality, I am leading the GoGlobal Task Force (Task Force on Supporting Mainland Enterprises in Going Global) which was set up last October, providing a one-stop platform and tailored support services for Chinese Mainland enterprises to expand into overseas markets, including Malaysia. The GoGlobal Task Force provides Chinese Mainland enterprises with Hong Kong's world-class professional services including legal, accounting, testing and certifications. We assist them to set up the necessary corporate functions like regional headquarters and corporate treasury centres, raising funds for overseas expansion, and building strong reputation in the international market, thereby getting them ready for international business development. With our broad business networks, we also curate introductions to established Malaysian industry players, trade associations, and government agencies, to accelerate the trust-building process essential for successful partnerships and encourage knowledge exchanges between the two places.
In addition, the GoGlobal Task Force organises various outbound missions to enable Chinese Mainland enterprises planning to visit target overseas markets to gain a better understanding of the local market situation. The Kuala Lumpur mission this time round is one of them.
This time I am bringing a delegation of representatives from Hong Kong and Chinese Mainland enterprises spanning across sectors such as finance, professional services, healthcare, automobile and innovation and technology. They are here to meet with and establish collaboration and partnerships with the Malaysian business community, thereby enhancing mutual benefits and opportunities.
The go global initiative will create vast opportunities for Malaysian businesses and industries to join hands with Chinese Mainland counterparts wishing to establish a presence in Malaysia. For instance, Malaysian business and professional service providers will benefit from the new demand for services from incoming Chinese Mainland enterprises. Enterprises from both countries can form joint ventures and partnerships to jointly expand businesses in Malaysia and across the ASEAN (Association of Southeast Asian Nations) region, or reciprocally venture into the Chinese Mainland market. The key is that, we see new opportunities arising from collaboration and investment from Chinese Mainland companies, and this collaboration will translate into stronger bonding and mutual benefits that will be a win-win outcome for both countries.
Additionally, Hong Kong will always serve as the premium gateway for Malaysian companies to enter the vast Chinese Mainland market. Hong Kong has established deep connections with the Chinese Mainland, particularly through the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). CEPA is nationality-neutral and does not impose any restrictions on the source of investments. A foreign company may also establish itself in Hong Kong, optimise its business with Hong Kong's comprehensive professional services, and gain convenient access to the Chinese Mainland market.
Besides, we are proactively driving the 30 000-hectare Northern Metropolis development, which will serve as a strategic location to foster the growth of strategic industries and economic opportunities. We also introduce preferential policy packages covering concessionary land premium, land grant and tax incentive to attract strategic industries and enterprises to establish a presence in Hong Kong.
I sincerely encourage you all to leverage the new opportunities in Hong Kong. Our newly-established Hong Kong Economic and Trade Office in Kuala Lumpur (Kuala Lumpur ETO) will provide you with all the necessary advice and support.
Ladies and gentlemen, Hong Kong is fully committed to facilitating two-way investment flows between our two economies. With the opening of the Kuala Lumpur ETO, and with events like this one today, we are building the bridges that will connect businesses and opportunities, and elevate the partnership and mutual prosperity of Malaysia and Hong Kong to a new level.
I wish you a productive seminar, a fruitful networking lunch, and many long-lasting partnerships to come.
Thank you.
Hong Kong, Photo source: reference image
