OBOR

by  Sze Yun,  Yan Yi, and  Shaw Keat Dylan

Synopsis

In 2013, China announced the Belt and Road Initiative (BRI) or One Belt One Road (OBOR), otherwise known as the New Silk Road. It proposed by Chinese paramount leader Xi Jin Ping. The Belt and Road Initiative is a development strategy and framework that focuses on connectivity and cooperation among countries primarily between the People's Republic of China and the rest of Eurasia. The plan consists of developing two trade routes, one through land and the other through sea linking over 60 countries. As this is a project that could potentially lead to as much as $8 trillion in investment for infrastructure in 68 countries or, 65% of the global population and a third of global GDP. The initial step is to additionally link Central Asian states to the Chinese economy, while the more extended distance initiatives include railway connections between China and Europe. The objective is of advancing a superior economic integration between the various countries included.

            One Belt One Road policy not only bring benefits to China itself but it also beyond China. OBOR policy provides vast opportunities for the global. This policy is an appropriate solution to offsetting some of this overcapacity, as it provides them the opportunity materials and equipment, construction and engineering expertise. In addition, this improved connectivity will lead to a major boost in trade across Asia, Europe, and Africa. China itself can gain from the similar favorable advantages by exporting out materials and equipment. OBOR policy creates the platform for policy, facilities, trade, financial and cultural cooperation in the world.

Besides, the policy helps ASEAN countries to strengthen the infrastructure and use up the available resources without waste. The policy also delivers massive benefits for Malaysia to access new market and strengthen the connectivity, diversify local products and services and attract foreign direct investment. It allows for better trade facilitation and investment in infrastructure project with Malaysia with consist of East Coast Rail Line (ECRL), Malaysia External Trade Development Corporation (MATRADE), Melaka gateway, MCA Belt, and Road Centre (Mbrace), Xia Men University Malaysia and Malaysia-China Kuantan Industrial Park (MCKIP).

These were several challenges faced by One Belt One Road (OBOR) policy. The challenges of the policy are a large scale of development or project causing negative externalities, pressuring in Small and Medium Enterprise (SME), and labor market risk.

In short, One Belt One Street arrangement assumes a vital part to build up the global economy. This policy will open up the opportunities and convey a lot of advantages to China, developed and developing countries.