POLICY statements made concerning bilateral relations with China, China’s investment in Malaysia, the Forest City project and the Belt and Road Initiative (BRI) should take into consideration that the 21st century is likely to be known as the Asian Century.

The concept of the Asian Century refers to the dominant role of Asia’s involvement, linked to gross domestic product (GDP) and middle-class dominance. According to the IMF World Economic Outlook Database April 2018, the gross world product this year was projected at US$134.98 trillion (RM560 trillion), with a number of Asian countries among the top ranked.

Calculated based on purchasing power parity (PPP), China occupies the top spot with 18.7%, making it the world’s largest economy, pushing US to second place. India is in third position (7.69%), Japan in fourth (4.16%) and Indonesia in seventh (2.59%). Malaysia occupies a commendable 26th position and contributes to 0.74% of the global economy.

According to an Asian Development Bank report in April last year, fast-developing economies in Asia contributed to 60% of global growth. Overall growth in Asia is forecast to remain an impressive 5.7% for 2018, while growth in the US and EU stagnates around 1.9%.

The current trend of the robust growth of developing economies in Asia is strong indication that Asia as a whole is likely to claim the throne to the 21st century.

A second indication, equally important, is placed on middle-class dominance of the 4.5 billion population. By 2015, more than 95% of the population in Asia will live in middle-income economies. Credit Suisse reported that the size of China’s middle class at 109 million exceeded the US’ 96 million for the first time in 2015. A large middle-class population base is crucial in terms of purchasing power as well as market place for growth sustenance.

Sustained rapid growth is necessary to see the economies of Asia become high-income nations. The growth dynamics has to focus on infrastructure, innovation and education, while high investment will still serve as an important driver of growth. Advancing from middle income to high income, it is necessary to maintain continual infrastructural development and continual education, along with innovation and technological creativity.

Unlike innovation and education that is more necessary for high-income growth, the push for infrastructure development is necessary to facilitate growth at all levels in an economy.

Disparity and uneven growth within an economy may see the less developed or low-income regions prioritising basic needs of infrastructure, like water, sanitation, basic transport and power supply. High-income economies are accustomed to seeing advanced infrastructure with close connectedness in transport, modern ports to facilitate trade, satellite and high-speed communications. Advanced infrastructure, coupled with innovative skills and high education levels of the population, are the necessary ingredients to transition from a middle-income to high-income economy.

In this second decade of the 21st century, Asia is in its transitional stage from a middle-income to high-income economy. Even with China taking the lead, not one country out of the 48 in Asia can stand alone if the Asian Century of the 21st is to be realised. Nations are interdependent and should mutually benefit in trade and synergistic existence.

The fact remains that China is an economic powerhouse. Since its inception in 2013, the Belt and Road initiative has been a focal point for diplomatic, financial and commercial cooperation between China and some 70 countries in Asia and Europe.

Malaysia has long been a part of this economic and infrastructure initiative, which landed us in unfortunate lopsided contracts, unfair terms and possibly secret deals uncovered from “red” files. What was necessary to say has been said during the recent five-day trip of our prime minister to China, including the screaming of superlative “stupidity” of contracts inked by the previous administration. Enough has been said to warrant China’s officials to reciprocate.

The mention of Chinese nationals not allowed to occupy properties purchased in Forest City and not allowed visas is rather unfortunate. It is reflective of cabinet members’ unreliability of making policy statements on bilateral relations with China, and who are dependent on the prime minister to do so. Actions and statements should take into consideration the possibility of an impending Asian Century. – September 6, 2018.

* Captain Dr Wong Ang Peng is a researcher with an interest in economics, politics, and health issues. He has a burning desire to do anything within his means to promote national harmony. Captain Wong is also a member of the National Patriots Association.