Malaysia and China in digital economy pact
By Digital News Asia May 12, 2014
- MDeC inks deal with Institute of Digital Guangdong (IDG) for govt-to-govt cooperation
- Digital Malaysia partner SMTrack Berhad inks deal to develop food ‘traceability’ platform
MALAYSIA’S national ICT custodian Multimedia Development Corporation (MDeC) has signed a Memorandum of Understanding (MoU) with the Institute of Digital Guangdong (IDG) to spur government-to-government cooperation in the ICT sector.
The signing ceremony also saw SMTrack Bhd (formerly known as Smartag Solutions Bhd), a company leading Digital Malaysia’s Trusted Mobile Digital Wallet project, ink a deal with IDG and Canton Fair Import Export Co Ltd to develop Malaysia’s first “cross-border end-to-end food traceability” system capable of delivering from “farm to fork” to Southern China, MDeC said in a statement.
MDeC’s partnership with IDG aims to establish a platform that promotes business opportunities for Malaysian and Chinese digital enterprises, serving the industry, government and consumers at large, MDeC said.
Aligned with this, SMTrack’s collaboration with IDG and Canton Fair Import Export will develop a specialised online food traceability linkage to enable food exporters from Malaysia and other countries outside of mainland China to link up their supply chain and logistics system to the Guangdong government-initiated Southern China Modern Logistics Public Information Platform.
“The collaboration between MDeC and the Institute Digital of Guangdong marks an important milestone in strengthening Malaysia’s ICT ties with China and advancing the digital economies of our respective countries,” said MDeC chief executive officer Badlisham Ghazali.
“We are also excited for SMTrack – a valued Digital Malaysia partner – on their achievement as the first Malaysian company to enable food traceability in Southern China, opening the doors for Malaysian businesses to import and export in this vast market,” he added.
SMTrack chief executive officer Yow Lock Sen said, “Malaysian coffee producers, oil palm exporters as well as edible birds nest processing plants can now have direct linkages via SMTrack’s International Traceability Platform to the Southern China traceability platform.
“[This platform] would enable them to export their products to enjoy the benefits of customs and CIQ clearance in Guangdong, as well as to be able to offer their products via the Canton Fair e-Commerce portal and distribution network,” he added.
SMTrack anticipates its offices in the United States, Hong Kong as well as partnership offices in Indonesia and Saudi Arabia will benefit from the link-up with the Canton Fair e-Commerce system and facilitation with other worldwide food traceability programmes.
“We anticipate that SMTrack will be able to penetrate at least 20% of the food traceability market between Malaysia, the United States, Saudi Arabia and China within the next two years as there is virtually no other system that is government-sponsored in Southern China,” said Yow.
“The expected volume of food exports as well as imports using the system is expected to be around RM140 billion (US$43.4 billion) annually once it is fully implemented.”
In April, SMTrack announced an agreement to build the first China International Halal Online Trade and Traceability Platform with the Ningxia Salimy Muslim Commodity Trading Co Ltd, a company based in Ningxia, which is the Beijing Federal Government’s designated Muslim Halal hub for China.
With this more recent agreement, SMTrack will have two points of entry for Malaysian exporters to China which can handle logistics coupled with traceability supply chain facilities – in the North through Ningxia and in the South with Guangdong, the company said.
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