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EWTP: China Thanks - Digital Free Trade Zone by Ma

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22 march 2017 jack Ma, Malaysia Jack Ma launched Digital Free Trade Zone "72-hour delivery anywhere in the world in 20 years"

Transcript

Good afternoon prime minister friends from Malaysia and china

Its my great honor I am so excited today here to launch the free trade zone

4 months ago prime minister and I were in Beijing- we talked about deciding to do something (it took us 10 minutes to agree) that Malaysia launch the digital free trade zone (DTFZ)

At that time I think my team and I thought is it possible to do in 4 months

because we had been discussing that project with many countries in europe and asia

for 4 months to launch that its almost impossible there are so many things to do the bureacratics, all the technology, all the suspicions but after 4 month this thing happened

and I want to share some ideas here

while it only took us 10 minutes to agree on this project

but I have been thinking about this for more than 10 years

and I am pretty sure prime minster has thought about this for long long time

you prepare it for long time and then when the chance comes you can make it happen

Malaysia inspired me in 1996/7 when I was starting my internet business in 1995 I remember reading news in china in 1996 about Mounting Media Corridor out of Malaysia- while it didn’t work lout but it made me feel that country has a great idea for the digital world

And the thing that I learned many years ago when I was first invited to davos’ world economic forum, at that time china had not joined WTO- I though the world is going to welcome the globalisation but that day hundereds of people were against it , people were demonstrating on street hating globalisation – so I had no idea,

Because I was thinking globalisation was good but the people didn’t like it so I started to think what is globalisation, how can we do it in a better ways?

Thas was 2001… but I think today a lot of people hate cross border trade, people say globalsiation is no good

I am a strong believer in globalization, I think it is still only a baby,

Its only 20 or 30 years, we should give it another 20-30 years we should make globaslisation more inclusive more people involved in it

In history, those countries who had great emperors or kings they controled trade, AND if they loved to do cross-border trade, their nation’s business would grow and the people would be happy

In the past 50 years the world trade was controlled by 60000 big companies, and only big companies have this opportunity

so the small businesses didn’t have this opportunity,

so developing countries did not have this opportunity,

--what if we can make 90% of the small business , the developing countries benefit from globalisation., what if we give another 30 years to the globalsiation to be more inclusive

This is what I believe

The first globalization was the silk road

And at that time they were using the traditional way the silk road

Today with the internet we should transfer silk road to e-road’

the eroad should connect every country,

the eroad is to give inclusive opportunity for everyone,

you know in old time on oceans we have seaport,

airplanes we have an airport,

bus we have a bustop,

on the er-oad we need an ehub--- that ehub will empower everybody if you have a dream and working hard and have a dream outside your country please join an ehub

so today the DFTZ (digital free trade zone) is the first digital trade free zone outside china –and its amazing and i would really love to thank prime minister of malyasia and thank everybody here to give commitment to this project=this is the first hub specifically designed for small enterprise and young people, we know in the whole world every government says ah small business is important, we should find real solutions for the real ;policies for the real facilities to empower the small business

this ehub, this digital freed trade that we feel excited about and we promise we will work together to improve it

and this is the new beginning

and the other thing I want to say in this Digital Global Free Zone we will use the new technology to empower small business and young people there will be logistic hubs, one stop service, we will have big data, as long as you have a good product, good ideas, this facility is going to enable you

and people say why Malaysia..of course, I sat 4 months ago in Beijing and I wondered if we could make it happen but I have found malaysia is very business friendly

the other thing is this SILK ROAD story

the silk road which china is famous for , but without malaysia it would not have been so successful;

why?

The silk road main trade was tea leaves- very expensive very diffucult to preserve but Malaysia had the best mine of tins- because of tin plus tea – the TT =- made the silk road happen –without the tin of Malaysia the silk road tea trade would never have been that big .and of course without tea tradinh in 18^th c Malaysia would never have been number 1 in market of tea

So this is the amazing outcome of trade and of busienss and I feel sorry for the wto negotiation because when you put 200 governmenyt officers in one room to agree on something it is very difficult, but if we can put 200 business people in the room we can negotiate something

And by working with government business people can do better, this is a perfect project that a globalisation company like ali baba and a country with great leaderip/vision, that we make this thing happen in 4 month=- of course this is only a beginning

And I am a strong believer that if trade stops, wars starts

Trade is to make people respect the other peoples culture (trade is not inaudible)

Trade is about idea exchange

I believe if one day if trade stops wars start; and if wars stop trade begins== so in alibaba history its our first time our ceo of ali baba group and ceo of ali financing and senior management of alibaba together with 16 logsitics companies from china come to Malaysia for this great event …we think today symbolises that government and business can work together, this sympbolises that a nation would commit the digital period to be inclusive for everybody

If we start from today things can happen

And I want to say in the last 10 years many thing changed

..nobody would believe ecommerce could happen in china

people keep on asking why alibaba go that way of ecommerce, bigger than the united states not because we are not smart, I am not smart, we didn’t have a lot of smart people 15 years ago, its because 15 years ago the business infrastructure in china was that bad – in usa in 2000 the commerce infrastructure was very good so very difficult for ecommerce to survive in usa.. ecommerce is just a desert but in china it is the main course

and I think the same can be in Malaysia – I heard that 97% of business in Malaysia are small business but they control less than 40% of GP, I think that the 97% can produce at least 80% of gdp –then if we have more sme we have more jobs, if we have more sme we have more middle class, if we have more sme the country’s economy can be sustainable

SO DFTZ is trying to make business more inclusive, trying to make small business more sustainable , trying to make the business world more happy and healthy.

-eg ebusiness grows so fast in chain we also grow the business of logistics, today the 16 companies coming here get 70% of logistics bsuienss delivered in china- NB 15 years ago china only did 1 billion package deliveries a year , today its 30 billion packages, and 70% of the logistics is done buy these 16 businesses none of which existed 10 years ago

this is the magic of tech, of the entrepreneurship so if you really want to do it you can make this happen, we want to make this hub ensure that "72-hour delivery anywhere in the world in 20 years" –this will be the hub of the region and working together

and finally I wanted to say the first time the wrong defintion of ali baba was in malaysia- they think ali baba is a thief – peopel called me thief and liar 18 years ago when I tell about what is the internet in the fuuire what ecommerce will do in the world’

so lets wwork together to change the dictionary in malaysia of alibaba

and I also want to add that last year I fly in the air for more than 8000 hours I travelled around the world and I learnt what globalisation mean – its not to go to another place because of cheap laboir, its not about factories where there are cheap raw materianls. Glolbalisation does mean create jobs, create values for local people, globalization make technology/financing inclusinve in everything

globalization means respect the other culture so this is what we want to do in next decade –use technology making young people below 30 years making small businesses below 30 people, this can be the great period for human life, lets do it in a good way

so the silk road .one belt one road , is something we should think about, we should use technology, empower young people , lets mobilise small business its about inclusive friendship peace, and I think this country this location so friendly to business not only today, in history, and in the future –because of the digital , this country this regon can grow, and finally people keep asking in future which side will win the west side or the east side? – and I am believer its NOT west wing or east wing –if we work toetrher we both win

and there is nothing we cannot do if we are working together making sure the world is for young people and the world is for small bsuiness and everything we do is inclusive

ast Facts about the Malaysia e-hub

The e-hub involves multiple partners carrying out numerous functions to facilitate cross-border trade. They include:

an e-fulfillment hub based near Kuala Lumpur International Airport, which will function as a customs clearance, warehousing and fulfillment center for the region
a one-stop, online, cross-border trading services platform that will link the Malaysian e-hub to the original one in Hangzhou, allowing for easier trade for SMEs between the two countries
e-payments and financing to facilitate business-to-business trade for Malaysian SMEs
training programs for startups and works to support Malaysia’s digital ambitions

The e-hub is just a first step in the move toward a more-robust eWTP. Alibaba and Malaysia expect further cooperation in the areas of logistics, cloud computing and online finance. Cainiao and Lazada Group, the leading Southeast Asian e-commerce company owned by Alibaba, will work with Malaysia Airports Holdings to set up an e-commerce and logistics hub at Kuala Lumpur International Airport Aeropolis as a part of the DFTZ.

Alibaba Cloud will build a cloud-computing platform in Malaysia to support SMEs, while also offering training to potential engineers in the country. Also, in addition to offering financial support for B2B trade between Malaysia and China, Ant Financial, CIMB and Maybank will look to offer payment services to China tourists visiting Malaysia.

Alibaba said it wants to establish these special trading areas in markets around the world, creating an “e-road” between them. Last year, the company helped to launch the China (Hangzhou) Cross-Border E-Commerce Comprehensive Pilot Free Trade Area, which will now be connected to the DFTZ in Kuala Lumpur.

“With innovation throughout the supply chain, support from governments and important private sector collaborations, we will achieve our aim of enabling SMEs and young people to thrive and enjoy in the fruits of the next phase of globalization,” Ma said.

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Alibaba founder Jack Ma unveils ambitious plan

Mission: 100 million new jobs

By Dana McCauley

He already runs the world's biggest online shopping company, but Alibaba founder Jack Ma is not satisfied.

The Chinese billionaire has unveiled an even more ambitious plan to expand the company's reach across the globe, creating 100 million new jobs and transforming the global economy to create a more equitable world.

It may sound pie-in-the-sky, but the goal forms part of mission statement of the US$261 billion company's visionary executive chairman.

In a letter to shareholders, Ma outlined Alibaba's achievements of the past financial year - including a gross merchandise turnover of more than $195 billion (1 trillion RMB), an "unprecedented" figure - before looking to the future.

"We have more than 430 million annual active buyers, which means one out of every three individuals in China has made a purchase on our retail marketplaces," Ma wrote.

But, he said, while proud of Alibaba's online shopping achievements, "we want to do far more", saying that the benefits of globalisation had not been spread evenly, but that "digital disruption will bring us closer to a level playing field for young people and small businesses".

"We are not merely trying to shift buy/sell transactions from offline to online, nor are we changing conventional digital marketing models to squeeze out a little additional profit," he wrote.

"We are working to create the fundamental digital and physical infrastructure for the future of commerce, which includes marketplaces, payments, logistics, cloud computing, big data and a host of other fields."

The Alibaba group of companies, founded in 1999, accounts for 60 per cent of all Chinese online sales, and this year overtook Walmart as the world's largest retailer.

It has made Ma the second richest man in Asia, with a net worth of US$28.5 billion.

THE NEW 'NATURAL RESOURCE'

It's through cloud computing that Alibaba aims to expand its reach, and the company has been investing in the technology as part of a strategy that sees shoppers' data as the contemporary equivalent of mineral riches.

"Over the next 30 years, with computing power as the new 'technology breakthrough' and data as the new 'natural resource,' the landscape of retail, financial services, manufacturing and entertainment will be transformed," Ma wrote, forecasting a decades-long period of transformation.

"The internet revolution is a historical inflection point, much like when electricity was introduced, and it may have an even greater impact," he predicted.

Alibaba's mission, he said, was to "empower merchants with the ability to transform and upgrade their businesses for the future" and "help companies all over the world to grow".

"We believe, the commerce infrastructure we have created in China - marketplaces, payments, logistics, cloud computing and big data, all working in concert - can be applied on a global scale to lift up small and medium businesses and ordinary consumers around the world."

Eight years after launching, Alibaba Cloud hosts 35 per cent of Chinese websites, while delivering cloud computing and big data services.

'100 MILLION NEW JOBS'

Ma said Alibaba was constantly adapting to the changing e-commerce environment, as staying at the forefront of innovation was key to its continued success.

"In the coming years, we anticipate the birth of a re-imagined retail industry driven by the integration of online, offline, logistics and data across a single value chain," he said.

"With e-commerce itself rapidly becoming a "traditional business," pure e-commerce players will soon face tremendous challenges."

A shift to mobile revenue was one such change, he said, with mobile climbing from a single-digit percentage to three-years of total revenue from Alibaba's Chinese retail marketplaces, in the space of two years.

"This is why we are adapting, and it's why we strive to play a major role in the advancement of this new economic environment," Ma said.

Innovations like Alibaba's Qianniu app, which helps online businesses to improve sales and marketing while enhancing efficiency, were an example of the type of projects the company aimed to focus on.

"In 20 years, we hope to serve two billion consumers around the world, empower 10 million profitable businesses and create 100 million jobs," Ma said, adding: "This will be an even more difficult journey than the one behind us."

LISTEN : Newstalk ZB Political Editor Barry Soper speaks to Andrew Dickens on KPMG Early Edition

Mr Ma - who's worth around $50 billion - met with John Key in Beijing late yesterday. He made his money through founding the online commerce platform Ali Baba.

Standing alongside the Prime Minister, he heaped praise on the country, which he says is loved by many Chinese.

"At least 20 of my colleagues retired from Ali Baba. They're all very young, in their 40s, they all go to New Zealand."

"I asked what they do apart from the golf and green things and they say it's the people there."

It wasn't all social, with the Chinese billionaire also talking business.

Jack Ma told the entrepreneurs luncheon Kiwi businesspeople find it difficult to access the Chinese market.

Mr Ma said he wants to make that easier with his multi-platform organisation.

"We have Ali Baba University. We would either have courses in New Zealand or invite the entrepreneurs in New Zealand to stay in China for two weeks for training."

"The second is that we're going to open an Ali Baba business embassy next year in New Zealand."

John Key is in China meeting business and political leaders.

Innovation "Made in China" - The Case of Alibaba and the role of Net-based Small Business

Innovation is a key driver for economic development and social progress and small business is one of the best ways for people to express their willingness and capability to innovate. Pervasive business ownership has, therefore, been the foundation in many societies for the continued improvement of people’s economic wellbeing. In the People’ Republic of China, however, private business ownership was prohibited between 1957 and 1978. Productive innovations were extremely restricted and as a consequence, China’s economy was on the verge of collapse by the end of 1978. The Chinese people had suffered a historic setback.

Alibaba’s growth, driven by unleashing grassroots entrepreneurship, has become an exemplar of China’s innovation in the 21st century. Started by 18 young people in 1999, Alibaba has grown into a giant global internet platform and has made many invaluable contributions to China’s progress. Highlighting the importance of pervasive small business ownership in unleashing grassroots innovation and improving economic wellbeing, Professor Lowrey will discuss Alibaba’s innovative strategies and explain the economic theory behind its inspiring success.

Dr. Ying Lowrey is Professor of Economics at Tsinghua University and Deputy Director of the Tsinghua Research Center for Chinese Entrepreneurs, and a member of the Academic Committee for Alibaba Group Research Institute. Her teaching and research interests include economics of innovation and entrepreneurship in the internet and platform economy, the modern microfinance market, business demographics, characteristics of business owners, and the role of free enterprise and competition in the macroeconomy.

She received her economics Ph.D. from Duke University, economics MA from Yale University and mathematics BS from Wuhan University. Before joining Tsinghua University in 2012, she served as senior economist at the Office of Advocacy, U.S. Small Business Administration and has taught economics at George Washington University and San Diego State University.

Selected publications

100millionjobcrisis

Founder of Ali Baba commits his work for Chinese on internet to generate 100 million microentrepren…chris macraeNov 23, 200950 views

Founder of Ali Baba commits his work for Chinese on internet to generate 100 million microentrepreneur jobs in 2010s - who else would you vote at the centre of 100 million job creation leagues?
=====================update sumer 2016:
unlike oiher years spent with bangaldeshi inspired youth, i spent 2015-2016 mainly with a class of chinese female students - what brilliant minds and tirelss sources of human energy - i hope this summary of why the whole world can celebrate what jack ma is doing is near to the mark - but as always look forward to editing any errors which are mine alone
chris.macrae@yahoo.co.uk washington dc text 240 316 8157
======================
was english language tutoring

In 1995 he was sent to the usa on an exchange mission and encountered the worldwideweb - then unknown in China. He determined the www would be the biggest job creating innovation of his (or his generations) life and hopefully of every Chinese entrepreneur he could valuably link into.

Over the next 15 years his wizard coding teams went from something that was little more than an electronic yellow pages for small businesses to conceiving sustainability generation's 2 greatest retailing platforms china or the world may ever have seen..

the taobao platform is the most valuable job creating concept retailers have ever mediated because it reverses the western trend of globalisiation of retailers, bankers and big corporations squeezing out local and small enterprises from having a market; how taobao did that is an extraordinarily detailed story but note how Ma was concerned to ensure even the most cut-off of Chinese villagers could start up on tao bao (rural ecommerce is one of the innovations that Ma has led the www purpose to linkin)

His other mall was pitched at the more usual high cost fashions of big global merchandisers. Because of complex property laws in chinese cities, most expensive retailers are not much of a joy to shop in. So ali baba created a lifestyle -eg celebrate singles day 11/11 shopping virtually rather than the physically exhausting interaction in The West's biggest shopping days of the year)

SO 365/24/7 consumers of ali baba can choose who they value developing most with their purchasing power as well as searching merchandise with global image or local cultural joy

Alibaba has become china's and probably the word's largest retailing channel. It does this with next to no merchandise but brilliant coding so that every store front on its platforms delivers with equal reliability. Hunting out exactly how Ma forms partnerships so that big data analysis benefits the smallest enterprises and most local consumers ought to be a job of whomever is sustainability goals greatest economist.

Intriguingly to ensure he could compete with the chinese internet companies that raced to co-create the www that Ma had opened space for in china, Ma IPO'd Alibaba through a process 2010-2015 while developing his secret sustainability weapon under private ownership. AlIpay is china's number 1 financial inclusion delivery system and maybe global youth most humanly productive coding achievement to date.

Comparing china's top 10 internet properties with the west's is very interesting. Are the consuming behaviours on ali baba more sustainable than those on amazon or ebay or paypal? Are the learnng behaviours on baidu more sustaining of youth than on google or coursera or microsoft's linkedin. Time will tell but note how speaking english, chinese and coding (as well as mother tongue) are probably what educators anywhere on planet earth should NOW be most valuing their global youth's future freedom to thrive entrepreneurially around.

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