KUALA LUMPUR: Alibaba Group Holding Ltd’s establishment of an e-commerce hub here is part of what its founder Jack Ma termed a private-sector initiative to support China’s “One Belt, One Road” initiative, which calls for massive investment and development of trade routes in the Asian region.

“This is Alibaba’s own initiative to support the One Belt, One Road. We are also paying attention to other regions such as the South America,” Ma, who is also the executive chairman of Alibaba, told reporters at the conclusion of the Global Transformation Forum 2017 yesterday.

He added that Alibaba is focusing on countries with small businesses. With the bulk of businesses in Malaysia comprising small businesses, coupled with the country’s digital economy aspiration, locating the hub here provides it with a perfect marriage of the two opportunities it sees, he said.

“The hub in Malaysia is going to be specifically designed for small businesses to export,” he said.

Prime Minister Datuk Seri Najib Razak and Ma both launched the Digital Free Trade Zone, of which Alibaba’s e-commerce hub will be a part of, on Wednesday.

The logistics hub will function as a centralised customs clearance, warehousing and fulfilment facility for Malaysia and the region, to deliver faster clearance for imports and exports.

When asked about the amount Alibaba is investing in the hub, Ma only said Alibaba is looking beyond monetary investment to focus on “commitment, partnership, technology and knowledge”.

“We are also connecting Malaysia with China as we have to work with the government of China to open more doors to Malaysian products,” he said.

Ma also acknowledged that expectations are high for Alibaba to help push for cashless payments to take off in Malaysia.

“We have already signed MoUs (memoranda of understanding) with [our] partners in Malaysia to develop the Alipay system and we hope that it will be ready sooner. The e-payment is beyond just mobile payment. It is inclusive of financing, which opens up opportunities to facilitate business trade. This is one of the key projects we are looking at,” he said.

Ma was referring to the MoUs Alibaba’s affiliate, Ant Financial Services Group, inked with top Malaysian lenders, Malayan Banking Bhd and CIMB Group Holdings Bhd, to explore collaboration opportunities in e-payment and financing services.