Alibaba, MDEC, and the Hangzhou Municipal Government sign agreement, deal to focus on the growth of SMEs and e-commerce
Category: #retail  By Saipriya Iyer  Date: 2017-05-16
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Alibaba, MDEC, and the Hangzhou Municipal Government sign agreement, deal to focus on the growth of SMEs and e-commerce

Alibaba Group, China’s leading e-commerce and retail giant, the Hangzhou Municipal Government, and Malaysia’s Digital Economy Corporation (MDEC), have recently signed an agreement to connect all the e-hubs under the Electronic World Trade Platform (eWTP).

This memorandum of understanding (MOU) including these three key parties has been initiated to ease out and promote a seamless, cross-border trade in e-commerce between China and Malaysia. It will also reportedly help foster strategic alliances between the two countries. The deal is in accord with Alibaba’s Electronic World Trade Platform (eWTP), a trade hub that will operate as a centralized warehousing facility and a customs clearance for Malaysia and China. The announcement has come nearly after a month after Alibaba announced the launch of its key online payment solution, AliPay, in Malaysia, Singapore, Philippines, and Indonesia.

Alibaba, one of the most notable contributors of the retail market in China, intends to empower small and medium sized enterprises to be able to undertake trade activities without discord within Malaysia. Alibaba’s officials state that the partnership with Malaysia’s Digital Economy Corporation (MDEC) is vital for the company, subject to the fact that both the parties intend to work together to develop a framework for digital trade, thereby achieving Alibaba’s vision to create jobs for more than 100 million people, support more than 10 million entrepreneurial ventures, and serve more than two billion customers.

Alibaba’s top executives also added that e-commerce has developed with increased globalization, and is changing the way commerce id being conducted. The development of eWTP will reportedly encourage the construction of digital infrastructure to help novel entrepreneurial ventures succeed. The three-party deal is expected to pave a way to success for small businesses in Malaysia and China.

Malaysia’s intention to sign the three-party agreement was primarily to strengthen its relationship with China, by means of improving the country’s economic growth and e-commerce business. In March, Malaysia had launched the Malaysia’s Digital Free Trade Zone (DFTZ) to support Internet firms that intend to trade products and services and launch innovative digital solutions. As per the MDEC, the DFTZ is likely to create more than 60,000 jobs in the next few years and financially support USD 65 billion worth of exports.

The memorandum of understanding (MOU) between these three major parties will facilitate intensive cooperation between the private and public businesses in Malaysia and Hangzhou in order to ease out inspection formalities, customs clearance, and issue authorized permits for small and medium sized enterprises to undertake convenient cross-border trade.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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