Business

Building Bridges: Strengthening UK-Malaysia Economic Relations through BMCC's Strategic Initiatives and Partnerships

Chief Executive Officer, British Malaysian Chamber of Commerce

1. Can you provide an overview of BMCC's mission, objectives, and key focus areas?

The British Malaysian Chamber of Commerce (BMCC), established with a legacy of over 61 years, is dedicated to strengthening bilateral trade relations between the UK and Malaysia. It serves as a pivotal catalyst, providing businesses with extensive networking opportunities, brand exposure, industry advocacy, crucial market intelligence, and bilateral trade support services for UK businesses in Malaysia. With a robust network comprising over 250 member companies and 13,500 professionals spanning 33 diverse industry sectors, BMCC fosters a vibrant business community.

BMCC's mission is to be a key partner in fostering UK-Malaysia trade and investment by serving our expansive network of members through comprehensive high-quality services and solutions. We represent the interests of British and Malaysian business communities and act as a facilitator of bilateral trade between our two nations.

2. How does BMCC perceive the current economic prospects of both Malaysia and Britain?

The BMCC is optimistic about the economic prospects of both Malaysia and the UK, driven by strategic initiatives and collaborative opportunities. The UK's future economic growth is anchored in its industrial strategy, focusing on clean growth, AI and Big Data, and future mobility. BMCC encourages both Malaysian and British companies to leverage these opportunities, alongside Malaysia's emphasis on the digital economy and high-tech industries. Despite recent fluctuations, total trade between the UK and Malaysia remains robust, standing at RM17.3 billion (US$3.79 billion) as of 2023.

The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) aims to significantly boost bilateral trade between the UK and Malaysia. This opens new opportunities for enhanced market access, reduced trade barriers, and streamlined regulatory frameworks. This integration is expected to facilitate smoother and more cost-effective trade flows, as well as encourage greater collaborations in key sectors such as technology, manufacturing, and services, driving innovation and economic growth.

The UK aims to maintain and expand its trade relationships in this part of the world, exemplified by the appointment of the Ambassador of the United Kingdom to ASEAN. This creates a strategic opportunity for Malaysia to position itself as the ideal gateway for British companies seeking to expand into the region. Malaysia’s long-standing business relations with the UK, its robust infrastructure, business-friendly environment, diverse skilled workforce with multilingual capabilities, and strategic location at the heart of Southeast Asia offer unparalleled access to the dynamic and rapidly growing ASEAN markets. Malaysia’s commitment to economic openness and its free trade agreements can further its appeal to British businesses.

By leveraging Malaysia's strategic advantages, British companies can effectively tap into the vast potential of the ASEAN market and the wider Indo-Pacific region.

3. In what ways do you see Malaysia and Britain collaborating and leveraging opportunities in the evolving economic landscape?

At BMCC, we are committed to fostering robust collaborations between Malaysia and Britain in the dynamic economic landscape. Our partnership with InvestKL exemplifies this commitment, as we work together to attract and facilitate investments, promote sustainable business practices and drive innovation. Through joint initiatives and strategic engagements, we aim to create impactful opportunities that benefit both nations and contribute to their long-term growth.

While our partnership with Malaysia Digital Economy Corporation (MDEC) is pivotal in driving forward initiatives that enhance digital talent development and cultivate a strong digital mindset among businesses. These efforts are crucial for both nations as we seek to capitalise on the opportunities presented by digital transformation and innovation.

In addition, BMCC actively supports initiatives like London Tech Week, which serve as catalysts for bilateral investments in the tech sector. These platforms not only facilitate the exchange of knowledge and expertise but also nurture partnerships that drive technological innovation and economic growth.
Furthermore, our engagements in government-to-government (G2G) collaborations, facilitated through the British High Commission, Kuala Lumpur, underscore our commitment to exchanging best practices. For instance, recent collaborations in education and skills development, such as the TVET skills mission held in January, highlight our joint efforts to enhance workforce capabilities and vocational education standards.

In sectors like energy and power, we are working closely with Malaysian and British stakeholders to promote sustainable practices and explore opportunities in renewable energy. These collaborative efforts are essential as we navigate global challenges and strive towards shared environmental objectives.

The UK's strength in the education sector and its robust education partnerships with Malaysia have seen significant growth and evolution over the past decades. Strategic initiatives aimed at enhancing higher education quality and talent development are expected to further strengthen especially in areas such curriculum development, research and innovation, lifelong learning opportunities, talent mobility, and exchange programmes. The UK-Malaysia education partnerships can significantly contribute to the development of a skilled, adaptable, and forward-thinking workforce capable of meeting the demands of the evolving economic landscape and future workforce needs.

Overall, BMCC is dedicated to advancing bilateral relations between Malaysia and Britain across various sectors, leveraging our network and expertise to foster innovation, economic growth, talent development, and mutual prosperity in an increasingly interconnected world.

MoU exchange with MDEC and BMCC

4. Can you share any specific examples of successful collaborations or partnerships between Malaysian and British businesses?

The BMCC has recognised several successful collaborations between Malaysian and British businesses, through the BMCC Business Excellence Awards (BEA), celebrating dynamic partnerships and their significant contributions across various sectors.

Under the BEA, the UK-Malaysia Partnership of the Year award is awarded to an organisation that has successfully partnered with a UK or Malaysian counterpart over the last 2-5 years. The joint-venture collaboration and the synergies created through the partnership, have driven exceptional commercial results and shown significant value-creation to the economy, capitalising on the best of UK & Malaysia expertise through a seamless partnership. Successful partnerships recognised in recent years include:

AstraZeneca Sdn Bhd & Clinical Research Malaysia: Various areas involving advancing clinical trials and governance, leading to significant advancements in medical research and improved health outcomes.

EcoWorld International & Ballymore: Commitment towards continuous improvement in addressing climate change, energy, and water use and protecting our environmental biodiversity by achieving 100% diversion of construction waste from landfills.

AstraZeneca Sdn Bhd & Sunway University: Establishment of the Health Innovation Hub which paved the way for greater access and affordable healthcare.

Sunway Medical Centre & University of Cambridge: Establishment of the first regional Clinical Research Centre for the University.

Alexander Dennis Ltd & Terberg Tractors Malaysia Sdn Bhd: Research & Development initiative involving the development of the first autonomous port terminal vehicle in the region.

BMCC Business Excellence Awards 2024 winner

5. What industries or sectors do you believe offer the most potential for collaboration between Malaysia and Britain?

Several industries and sectors offer promising avenues for collaboration between Malaysia and Britain.

The digital economy, encompassing areas such as AI, cybersecurity, fintech, and data analytics offers vast opportunities. The UK’s tech innovation and Malaysia’s digital economy aspirations align well for collaborative projects in creating smart cities and digital infrastructure. For example, AI is a key sector, complementing the Higher Education Committee’s focus on digital transformation within universities and the integration of AI into educational programmes.

The TVET Sector offers numerous opportunities for collaboration between the UK and Malaysia. Key collaboration can include apprenticeship and work-based learning (industry placements in multinational companies operating in Malaysia), teacher training and professional development, digitalisation in TVET, mutual recognition of qualifications, and research and innovation in TVET.

Niche expertise of our member companies, such as Mott MacDonald for carbon capture and ARUP for hydrogen in the energy sector, are recognised as potential partnership opportunities which support the Government’s priorities as outlined in the National Energy Transition Roadmap (NETR) and the Hydrogen Economy & Technology Roadmap.

In the construction and engineering sectors, collaborations could focus on green building technologies and public-private partnerships to drive innovation, technology transfer, and skills development.

Healthcare also stands as a promising area. The UK’s strong healthcare system and advanced research capability offer collaborative opportunities for R&D on non-communicable diseases (NCDs) and public health challenges, education and training, digital tech, robust health information systems, and electronic health records, as well as sharing expertise and policy development.

6. Are there any initiatives or programmes facilitated by BMCC to promote bilateral trade and investment between Malaysia and Britain?

BMCC Ministerial Roundtables and Government Dialogue Series are one of the flagship event series organised by the chamber. These events facilitate roundtable meetings between our key members, particularly British companies and senior Malaysian government officials. The aim is to address the issues and challenges faced by these companies in Malaysia and to support the expansion of their investments in the country. We have done these roundtables with the Ministry of Economy, Ministry of Investment, Trade & Industry, Ministry of Digital, as well as government agencies such as TalentCorp and MDEC.

In addition to these initiatives, BMCC actively supports government efforts to bolster bilateral trade between Malaysia and Britain. For example, we supported the Malaysian Digital Trade Mission for the recently concluded 2024 London Tech Week, led by the Ministry of Digital. We also assisted in supporting the organisation of bilateral trade missions and meetings between the two nations, by the Ministry of Investment, Trade & Industry, Malaysia as well as the Department of Business and Trade, UK.

7. What challenges do you anticipate for Malaysian and British companies seeking to collaborate or expand their operations across borders, and how do you overcome them?

One of the major challenges involves the streamlining of business support processes/procedures to facilitate foreign direct investment (FDI) and the hiring of skilled foreign workers in Malaysia. Addressing this challenge involves advocating for regulatory reforms that simplify procedures for FDI, provide targeted incentives for foreign companies, and streamline visa regulations/processes to attract and retain skilled talent. These efforts are crucial in enhancing Malaysia's attractiveness as a destination for British companies seeking to expand their operations.

Transparency issues in procurement processes, particularly within sectors like healthcare, pose another challenge. Improving transparency, clarity, and fairness in procurement procedures can build trust and encourage greater participation from British companies in healthcare projects and supply chains. Clarity and consistency in policy direction remain a perennial concern impacting business confidence and investment decisions. Advocating for clear governance, promoting policy continuity, and engaging proactively in constructive dialogues with the industry can help mitigate these risks. By fostering a stable and predictable business environment, both Malaysian and British companies can make informed decisions and plan for sustainable growth.

Concerns related to market access barriers, regulatory uncertainties, and competition from other countries, also present challenges. Addressing these challenges involves constructive negotiations on terms and conditions of ongoing multilateral trade pacts (i.e., CPTPP), promoting unique value propositions, and advocating for regulatory reforms that support fair competition and market entry for British companies. Strategic partnerships with local entities and proactive engagement with regulatory authorities are essential in navigating these complexities.

Boosting infrastructure connectivity, especially in transportation and logistics, should remain a key priority for the government. Collaborating with local governments and private sector partners to improve infrastructure can enhance efficiency, reduce costs, and facilitate smoother operations for both Malaysian and British companies.

Environmental, Social, and Governance (ESG) concerns, coupled with regulatory hurdles in sectors like energy, demand proactive engagement with policymakers to promote sustainable practices and to accelerate regulatory reforms. Advocating for renewable energy options and aligning business strategies with evolving regulatory requirements can position companies favourably in the market.

8. How does BMCC envision the future of economic relations between Malaysia and Britain, and what role does the chamber play in shaping this future?

The BMCC envisions a robust and dynamic future for economic relations between Malaysia and Britain, characterised by growing bilateral trade and investment opportunities. However, it acknowledges that this promising trajectory is not without its challenges, including evolving economic landscapes and regulatory changes.

The BMCC is committed to playing a proactive role in shaping this future by enhancing public-private partnerships. The Chamber actively facilitates dialogue and collaboration between businesses and government entities to ensure a mutually beneficial outcome that supports the economic interests of both nations. Through initiatives such as trade missions, networking events, and advocacy efforts, the BMCC aims to create a conducive environment for businesses to thrive, thereby strengthening the economic ties between Malaysia and Britain.

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