Chang Peng Kee, Advisor of the Center for Advanced Studies and Research Malaysia and a professor at the National University of Malaysia, speaks at an event. (Photo/Chang Peng Kee)
Kuala Lumpur, Malaysia - Chongqing and Malaysia should expand cooperation beyond logistics and exports by localizing both production and branding while strengthening cultural ties and mutual trust, Chang Peng Kee, Advisor of the Center for Advanced Studies and Research Malaysia and a professor at the National University of Malaysia, said at the 2026 Land-Sea Finance Forum, which opened in Kuala Lumpur on July 30.
In Chang’s view, entering a market does not mean a company has taken root there. Logistics corridors can carry products overseas, but long-term cooperation requires companies to become part of local industrial systems, social networks and consumer awareness.
Chinese products reach ASEAN, but do their brands?
Chang said the New International Land-Sea Trade Corridor (ILSTC) has helped redefine the economic distance between Chongqing and ASEAN. According to his presentation, the ILSTC has reduced logistics time between Chongqing and ASEAN to about five to 10 days.
Last year, trade between Chongqing and ASEAN reached 132.65 billion yuan (about 19.6 billion U.S. dollars), with ASEAN retaining its position as the municipality’s largest trading partner for several consecutive years.
But as logistics infrastructure matures, Chang said a new challenge is emerging. In an interview with Bridging News, he noted that some products had already entered ASEAN markets, but local consumers might not know where they came from. Products had crossed borders, but their brands had not entered consumer awareness at the same pace.
He described this gap as “soft connectivity.” Unlike “hard connectivity,” which involves railways, customs and bills of lading, soft connectivity requires companies to translate product specifications, technical capabilities and functional value into uses and cultural meanings that local consumers can understand and trust.
Malaysia has a population of about 34 million. Chang said its value lies not only in the size of its domestic market, but also in its ability to connect companies with the wider ASEAN region.
Local Chinese business communities can communicate with Chinese companies in Mandarin while also understanding Malay, government policies and the local business environment. English can help companies reach markets including Singapore, Indonesia, Brunei, the Philippines and Thailand.
“4R” turns overseas expansion into local partnership
Chang argued that Malaysia could serve as a hub for production, content, certification and regional distribution, rather than merely a destination for product sales.
The automotive industry was a key example in Chang’s presentation. Malaysia is tightening entry requirements for imported electric vehicles while extending incentives for completely knocked-down (KD) production, in which vehicles are shipped as parts and assembled locally.
New plants must also gradually undertake welding, painting and final assembly in Malaysia. Chang said these measures were not simply market barriers, but reflected Malaysia’s goal of developing more advanced domestic manufacturing capabilities.
For Chongqing automakers, Chang said the next stage cannot rely solely on complete-vehicle exports and supply chain networks. It must also involve deeper cooperation in local assembly, supply chain development, job creation and technology transfer. Malaysia welcomes investment from Chinese companies with advanced technologies, he said, but expects more than capital. It also seeks industrial capabilities and technology transfer.
Chang proposed a “4R” framework: Relation, Real investment, Reciprocity and Rootedness. Companies need to build trust with local governments, universities, communities and suppliers, make real investments in capital and technology, ensure value flows in both directions, and ultimately localize their brands, talent and industrial relationships.
He cited the partnership between Geely and Malaysia’s Proton as an example of rootedness. Geely did not replace Proton with its own brand. Instead, it helped adapt vehicles for right-hand-drive markets, conduct local testing and upgrade suppliers, while preserving Proton’s identity as a Malaysian brand. Chang described the model as “empowered symbiosis.”
Chang also cited Chongqing Beer’s entry into Malaysia as an example of the importance of understanding market conditions. Malaysia has a Muslim-majority population, which limits the direct consumer base for alcoholic products. Companies should not view Malaysia only as an end market, he said, but also make use of its business networks to enter other regional markets.
Food and beverage companies should also pay attention to Malaysia’s halal certification system. Once certified, products can enter not only ASEAN markets, but also the Middle East and other Islamic markets.
Chang said localization also requires companies to understand local working rhythms, religious practices and cultural differences. Chinese companies should seek partners that are genuinely rooted in Malaysia and familiar with local policies and neighboring markets, rather than simply looking for distributors able to sell their products.
Artificial intelligence can help companies analyze inventory, markets and product demand, but it cannot replace human judgment, Chang said. He warned that poor data could lead to poor decisions and said companies must use AI with a clear purpose while carefully evaluating its recommendations.
Content hub proposed for Chongqing brands in Malaysia
In his forum presentation, Chang also discussed Generative Engine Optimization (GEO). As consumers shift from searching webpages to asking AI systems direct questions, brands will need to compete not only for search rankings, but also to become trusted sources cited in AI-generated answers.
This requires companies to provide reliable data, authoritative sources and structured content. Media, meanwhile, connects companies with consumers, translates product value and builds trust, Chang said.
Based on this approach, Chang proposed building a multilingual content service platform, a content and trust hub in Malaysia, a cross-border multi-channel network alliance and a dual-landing evaluation system.
Cooperation, Chang said, should not be measured only by the number of freight trains and trade value, but also by brand awareness, content reach, market conversion and local value creation. The long-term goal is to move Chongqing-Malaysia cooperation from a “corridor economy” toward a “hub economy.”
“We do not land on Malaysia; we take root with it,” Chang said.
At the 2026 Land-Sea Economic Forum, guests network, deliver remarks, and exchange views. (Photo/ 2026 Land-Sea Economic Forum)