How Hong Kong infrastructure, AI firms are tapping Malaysia’s growth prospects

Hong Kong's infrastructure and AI firms are well positioned to capitalize on Malaysia's expanding growth prospects. Recent developments, such as the opening of Hong Kong's Economic and Trade Office in Kuala Lumpur and the country's New Industrial Master Plan 2030, indicate a strong push towards high-value, sustainable, and innovation-led growth.

Three infrastructure-related companies shared with the South China Morning Post that they are actively seeking business opportunities in Malaysia. The country's vast geographic landscape, traffic congestion, and strategic border connections with Thailand and Singapore have made it a promising market for rail infrastructure expansion, offering substantial commercial opportunities for international transit operators, according to Chang Che-son, executive chairman of railway systems consultancy Key Direction.

His firm's experience working with Hong Kong's MTR Corporation provides a vital competitive edge in bridging regional experience gaps. Malaysia and Hong Kong were each other's ninth-largest trading partners in 2022, with trade worth HK$220 billion (US$28.2 billion). Stanley Ng, CEO of robotics firm AI Cities, highlighted the strong demand for robotics solutions in Malaysia due to local labour shortages and reliance on foreign workers.

He noted that the country's open market and strong multilingual talent pool make it an ideal destination for introducing robotics. Ng also stressed the importance of adapting to local workplace culture and leveraging an open mind to succeed in Malaysia, which has a lower-cost workforce compared to Hong Kong. Yardway, a Hong Kong-based firm that manufactures equipment for wheel and track maintenance, established a regional hub in Malaysia due to the country's strategic advantages, including a common law framework, clear regulatory environment, and strategic location.

However, entering the Malaysian market requires a shift in corporate culture, moving away from high-pressure management towards adapting to local workplace norms. The Hong Kong Trade Development Council held its flagship "Think Business, Think Hong Kong" event in Malaysia earlier this month to boost bilateral business relations.