Effendy has lived and worked in Hong Kong during the tumultuous yet interesting handover years (Photo: Low Yen Yeing/The Edge Malaysia)
There is no shortage of sights and sounds to explore in China. And while scores of Malaysians have taken up the offer of visa-free travel to the Middle Kingdom following the announcement by its Ministry of Foreign Affairs that passport holders from 12 countries, including Malaysia, can enter China for leisure, business or transit travel for lengths of 15 days or less until the end of 2025, there are many others who have yet to make the trip.
Certainly there is no time like the present and it is a sentiment Effendy Shahul Hamid, CEO of group consumer and digital banking at CIMB Group and chairman of TNG Digital, agrees with. Indeed, as 2024 marks 50 years of relations between what were then two vastly different countries, few things inform and educate better than a personal visit.
“There are so many areas of commerce, business and the very social fabric that links China and the rest of Asean,” he says. “Even if you look at just Malaysia, the origins of the country and its different ethnicities, there are so many Chinese elements. Kuala Lumpur itself can trace its history of immigration very well and it is these relationships, which have continued from then until now, that have really morphed us into the multicultural, multilingual and multifaceted society of today.”
Musing on the strong relationship that has grown out of the initial trade agreements that began in 1971 after Tengku Razaleigh Hamzah, then chairman of Perbadanan Nasional Bhd, visited China on a successful mission that quickly paved the way for China to reciprocate by sending a delegation to import rubber directly from Malaysia, Effendy points out trade and bilateral relations are fundamental to cultivating a healthy business environment for all. “It is also about finding the mutual opportunities that will culminate in countries and regions coming together. And we cannot ignore the opportunities that exist.”
eWallet elbow room
CIMB’s elbow room in which to commercially manoeuver with ease in China may be attributed to its stake in Touch ’n Go (TNG), clearly the market leader in the cashless revolution. From its initial investment in 2008 when TNG was just a toll collection company, the gamble by CIMB proved to be fortuitous as the digital payment revolution, which took off in China, began to rapidly influence payment systems around the world. The coronavirus pandemic that brought the world to its knees in 2020 only made going cashless — as contactless payments became not just a convenience but a literal lifesaver — a veritable juggernaut.
Today, the TNG eWallet, a joint venture launched in 2017 between CIMB’s 100%-owned subsidiary Touch ’n Go Sdn Bhd and Ant Group, the parent company of Alipay, China’s largest digital payment platform, is undoubtedly Malaysia’s largest and most successful e-wallet and all you need to enable effortless travel to the Middle Kingdom. For a quick financial recap, TNG eWallet is Malaysia’s first e-wallet provider to obtain approval to operate as a recognised market operator by the Securities Commission Malaysia, giving the company the right to directly distribute capital market products through its platform.
While the Ant Group partnership makes the TNG eWallet usable in many countries, what gives it an undeniable boost is its user-friendliness in China, an immensely digitised destination. Foreign credit cards are only accepted in foreign-owned institutions (for example, you may use your Visa or Mastercard at a Hyatt or Four Seasons hotel) and cash is increasingly unpopular as legal tender. QR code payments are undeniably the primary mode of payment. So, for Malaysians who wish to make the most of the 18 months before the visa-free mandate ends, there is zero need to worry.
With the cross-border partnership between TNG and Ant Group, travellers using the TNG eWallet will instantly find the app switching to Alipay once they are in China. “Absolutely right,” says Effendy. “In fact, I was just there, visiting Shenzhen, Hangzhou and Shanghai, and it is always amazing each time. Every visit, [I see] some new innovation being launched, and not just for a small catchment but at scale! There are so many things to learn from the Chinese, especially their approach to and handling of technology. It is this never-ending focus on not just progress, but also the customer experience.”
He thinks the seamlessness of making cashless payments is “a really fantastic thing. It is almost as if the country bypassed the credit card stage completely in its payments industry. You have an entire economy and a sizeable group of people moving towards an exceedingly robust and very accountable way of commerce. We mustn’t ignore [the fact that] the number of ideas coming out of China, not just to Asean but the global community, is also very, very high. There is no shame in looking at, learning from and being inspired by it all.”
Five decades of growth
Most children of the 1960s and 1970s would remember being issued Malaysian passports that clearly stated how the documents were not valid for travel to China. “And look at how things have changed since,” says Effendy. “Remember how ping-pong diplomacy helped serve as the precursor to improved relations between the US and China in the early 1970s? Now, fast forward five decades, look at the sheer trajectory of the country’s evolution.”
Citing the growth of cities like Shenzhen over 40 years ago to today, he chalks it down to “an iron will to get things done and getting it done right. This is something we should always think about”, he muses. “As a financial services and banking group, there is so much to learn even from China’s resiliency perspective. Just imagine its ability to process so many transactions — we are talking in the billions here — without ever having a major systems glitch. So, it is really important that we adopt this same attitude in the way we do things. Launching a successful product and one with such scale are two very different things and this is what the Chinese digital players have been very good at doing.”
On the go
For credit card-loving Malaysians still unsure about travelling to China, Effendy has this to say: “Don’t be daunted. Don’t fear going to China. From my own experience, I would advise: Use Google Translate, use your Google Lens. Both will take you far. Also, in most cities, there are ample halal restaurants. It is easy to find food. And underpinning all that is a very vibrant retail environment. There is no need to worry at all as long as you have your TNG eWallet. It works like magic, I can tell you that.”
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A history buff, he also shares how he must head to the Forbidden City every time he is in Beijing. “I love visiting areas for their historical sights and I must say the Forbidden City is a true wonder. The first time I went, I was probably in my early twenties. Now, if ever I find myself in Beijing with time to spare, that’s the first place I will hit. I know a bit of imperial Chinese history here and there but, yes, I am a fan.”
As for the other major city of Shanghai, Effendy cites the historic neighbourhood of Puxi as his favourite part. “I love being in its old heart, looking out towards the new,” he says, referring to the awe-inspiring view one is treated to when standing on the Bund and looking out onto the space-age skyline that defines Pudong. “What is also amazing is that, going back 20 or 30 years ago, none of this was there,” such as now-iconic skyscrapers like Oriental Pearl TV and Radio Tower, the Shanghai World Financial Center and Jin Mao Tower. “Less than 50 years ago, if you were standing on the same spot, all you could see was probably the Peace Hotel and with nothing across the Huangpu River. I will always marvel at the sight of modern-day Shanghai. It is literally a concrete sign of progress.”
Another experience he highly recommends to travellers is to make a trip to the north of the country for its famed Harbin International Ice and Snow Festival, an annual event that is the largest of its kind in the world. “That was really an eye-opening experience. You will also find out that any jacket you own will just not cut it in temperatures of -30°C and under. But however low the mercury drops, the spectacle of the ice show is simply fantastic.” What remains on his to-visit list include Xi’an, home to the first Qin Emperor’s famed terracotta army, as well as China’s famed Shangrila in its northwestern province of Yunnan. “You read and you learn, and these are all places I have yet to visit but would love to go to — one day.”
Live + learn
Having lived and worked in Hong Kong during the tumultuous yet interesting handover years, it comes as no surprise that the Fragrant Port holds special place in Effendy’s heart. “It is and always will be a central business hub and a very interesting place to be, although I can tell you that people definitely speak more Mandarin there than before,” he remarks.
Another observation he is keen to share is how “the more you see, for better or worse, the more you will invariably end up knowing. And if you think about connecting with people, what better way than by going to a country that has a population of 1.43 billion? Some might think China is not unlike other countries, with different cultures and ethnicities. Sure, but don’t forget that in China, many of the provinces are larger than some nations in terms of size and population. If you need a reminder, just do what I did and visit during a Golden Week holiday, when the sheer mass exodus of people is a sight to behold. For many of us Malaysians and Southeast Asians, I always recommend visiting China — at least once, if not regularly — to see for yourself what’s going on. I have always believed that one of the biggest hallmarks of successful commerce is when you see dynamism and engagement. And nowhere will you see that happen as fantastically as in China”.
This article first appeared on June 24, 2024 in The Edge Malaysia's 'Loong Report', which commemorates 50 years of Malaysia-China relations.
