Malaysian small and medium enterprises awareness on the belt and road initiative

Abstract

The Belt and Road Initiative (BRI) is deemed to be one of the biggest investment and infrastructure projects in Asian business trade. The initiative is an economic and diplomatic programme which could transform global trade, with an associated potential economic size amounting to US$21 trillion. China's economic reforms have opened up new investment opportunities and spurred the emergence of new trading zones, particularly along the BRI routes. This study employed a person-administered survey to explore the sources of information regarding the BRI available to Malaysian Small and Medium Enterprises (SMEs) and to gauge their awareness of the initiative. The results of the analysis revealed that the main source of information about the BRI for Malaysian SMEs was the Internet, followed by friends/relatives/associates, magazines, television, radio and others. Furthermore, in general, the sampled SMEs showed a favourable level of awareness towards the initiative. Policymakers from both Malaysia and China, however, are recommended to establish an official platform for local Malaysian SMEs to gain access to information about the available financial support through the BRI, which could further increase their awareness of the financial integration advocated under the BRI.