CHAPTER 4. RESULTS
4.5 FRAMES
4.5.1 Economic Incentive Frame
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in reporting on BRI. Since objective samples reveal a less obvious tone on BRI, and to further identify frames in BRI articles, only positive, negative and mixed samples will be analyzed in the following section. Four frames, including economic incentive, economic concern, political stability and political threat, are proposed. This section will first listing examples for each of the four frames and then display the table of frames distribution for each country. A summary of arguments for each frame will be listed in the discussion section.
4.5.1 Economic Incentive Frame
The economic incentive frame includes the positive sides of BRI, such as increasing trade, jobs, wealth, or talent exchange. It has the premise that BRI promotes globalization, which is regarded as positive for local economy by users of this frame.
The following excerpts are extracted from BRI reports of the three countries.
BRI is important for Malaysia because China is regarded by some as the only country in investor mode and with excess capacity in the region (Malaysiakini, 2017, July 20), and it has invested in infrastructure development along BRI countries.
"Today, which other countries in the world right now are in investment mode? Tidak ada (none)…. (But) China is in investment mode….It will create employment, stimulate the economy during difficult times and bring capital,” (Malaysiakini, 2017, July 20)
According to Singaporean officials, the role of Singapore is different than other Southeastern countries. Singapore has the financial capital and services to be an investor in BRI.
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Singapore's competitive advantage lies partly in the fact that it is well-governed, upholds the rule of law, has a highly educated population and is a respected financial centre and port, he said (Toh, 2017, August 28)..
a. BRI can fill infrastructure needs
Most ASEAN members are lack of infrastructure connectivity according to reports, and there is a need of infrastructure improvement. Due to the lack of capital, BRI helps promote local economy and get rid of poverty. Several economic benefits are mentioned while using the economic incentive frame.
The Asian Development Bank (ADB) has estimated the infrastructure needs in the region as requiring US$750 billion in investments annually until 2020, which it cannot finance on its own. The Philippines’ infrastructure financing needs from 2010 through 2020 was placed at $127.12 billion (or P5.98 trillion).
This will require an annual investment of $11.56 billion (P543.5 billion), which the government failed to fill in the past six years (Philippine Daily Inquirer, 2016, July 4).
‘…China’s program on infrastructure development with the One Belt, One Road is creating better connectivity making all the nations be able to reach out in terms of transporting people and goods’, he (ASEAN Business Advisory Council chairman Joey Concepcion) said in response to a reporter’s question.
(Quismorio, 2017, November 12)
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… getting the entirety of Asia thinking about how interstate cooperation can bridge the gap between countries with intense infrastructure needs (e.g., the Philippines and many other countries) and one country with excess capacity (China). (Manhit, 2017, May 22)
"The Belt and Road initiative offers tremendous economic opportunities. If connectivity improves, people travel, investment flows increase, we (Singapore) will benefit if we are ready and smart," said Mr. Shanmugam, who is a former foreign minister (Toh via The Straits Times, 2017, August 28).
For some from Malaysia, the goal is boosting economy through improving infrastructure level.
The (East Coast Rail Link, ECRL) rail line will drive connectivity and economic growth for Malaysia's underdeveloped east coast, and act as a land-bridge enabling cost- and time-efficient transport of goods between Africa, the Middle East and Asia.
(Razak, 2017, May 12)
b. BRI can help sell local products
According to Malaysian reports, the exports of electronics, oil and gas, palm oil, fisheries (Foon, 2017 November 20), halal products (Rasid, 2017 May 28), bird net (Yusof, 2017 October 28) increased due to the opportunities BRI has offered. Sales of bananas and pineapples to China from the Philippines also climbed (Kabiling, 2017, March 14).
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…with Chinese Internet entrepreneur Jack Ma appointed as the adviser to the Malaysian digital economy, expanding the business will benefit and impact the business ecosystem in Malaysia as a whole, from wholesaling to retailing, both online and offline, as this will create more entrepreneurs to start e-commerce businesses (Begum, 2017 July 20)
Sales of bananas and pineapples to China from the Philippines also climbed (Kabiling, 2017, March 14). In addition, BRI can help SME and other economic activities such as e-commerce.
…as countries like China take the lead in creating this infrastructure and improving connectivity, it presents opportunities for our smaller entrepreneurs to access these markets… China’s massive project on really putting this infrastructure, to connect all these countries together actually enhances the chance of many of our SMEs in the ASEAN region to benefit from it,” Concepcion explained. (Quismorio, 2017, November 12)
c. BRI attract Chinese investments and tourists
The economic influence of China is deemed positive by some reports.
Official data shows Chinese foreign direct investment into Malaysia surged more than 700 percent in the past decade to 9.9 billion ringgit last year, a far bigger increase than any other source country… Chinese tourists are now the third-largest group of visitors to Malaysia after Singaporeans and Indonesians… For Chinese investors, Malaysia is a cheaper alternative to real-estate markets in
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lower entry cost for property and cultural ties that make food and language familiar to Chinese buyers. (BLOOMBERG, 2018, July 25)
Chinese tourists are valued because of the positive economic effects they can bring.
The Melaka Gateway is another venture by Chinese investors that will help spearhead the development of the tourism sector while the Pengerang Integrated Petroleum Complex development drives global shipping and supply chain activities. (Sani, 2017, November 29)
The chief minister said the state was looking to further strengthen its bilateral ties with China through exchange of technology. At the same time, the
government will enhance connectivity in the state to boost tourism and attract more tourists from China among others. (Ogilvy, 2018, April 9)
Keeping Chinese investment coming to Malaysia is also stressed. It is often to see the argument that if BRI projects were deferred, canceled, Chinese investors will be in dilemma and discomfort.
As most Chinese companies believed the Barisan Nasional government of Najib would win the May 9 election, they are now caught in a dilemma….As the new Malaysia is chopping off mega projects, local infrastructure projects where Chinese firms have undertaken contracts or keen to participate may be in jeopardy. (Foon, 2018, June 3)
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latter would likely respond by barring its tourists from Malaysia and cease importing Malaysian palm oil should Malaysia cancel the ECRL project.
(Malaysiakini, 2018, May 11)
d. BRI help create jobs
Chinese investments are claimed to be beneficial for the local job market.
China is considering building an industrial park in the Philippines, promising to boost the local manufacturing sector and create more jobs as bilateral ties improve, according to Chinese Ambassador to the Philippines Zhao Jianhua. (Canivel, 2017, February 27)
e. Chinese projects can even the economic, development gap
This argument is based on the fact that there is unbalanced development with ASEAN, China and other countries along the BRI. For example, the income gap (per capita median income) between Singapore and Myanmar is around 40 to one (The Straits Times, 2016, August 21). BRI is regarded as a way to even this wealth and development gap according to reports.
In Malaysia, ECRL, which aims to have a transportation ratio of 30 per cent passengers and 70 percent freight (Bernama, 2018 April 6), is seemed as a major tool to boost the development of its east coast.
(Former Transport Minister) Ong also said that the ECRL would also act as a catalyst for more aggressive economic growth for Kelantan, Terengganu and Pahang and help close the economic gap between the states in the east coast and
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f. BRI reduces poverty
For some countries, accepting BRI seems to be a possible way to solve the problem of poverty.
Even though there are concerns that China may become too economically dominant, some poor countries see China as offering a once-in-a-lifetime chance to get out of perpetual poverty and under-development. (Foon via the Star, 2017, November 20)
Based on ASEAN reports, around 32 million people in Southeast Asia are living below the international poverty line, and they are mostly living in the Philippines and Indonesia (Buan, 2017, November 19). China is reported to solve this by enhancing infrastructure building.
China is willing to fulfill its duty as a responsible major country and engage more in cooperation on reducing poverty and promoting development. (People’s Daily via Manila Bulletin, 2017, May 14)
“China is ready to work even more closely with ASEAN countries to seek greater synergies between the Belt and Road Initiative and the Master Plan on ASEAN Connectivity 2025, enhance infrastructure building and connectivity across the region,” said Xu Bu, the Permanent Representative of the Mission of China to ASEAN (Buan, 2017, November 19).
g. China offers opportunities and capital for joint development
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Some Philippine officials have been seeking joint development with China in the South China Sea.
“It is obvious as members of the Asean that today, with China, we must find ways and means to jointly develop the area’s hydrocarbon potentials to help lessen our common dependence on distant petroleum sources in the Middle East,” De Venecia said. (Corrales, 2017, May 14)
h. BRI helps countries embrace globalization, countering isolationism
China hosts on Sunday, May 14, a summit showcasing its ambitious drive to revive ancient Silk Road trade routes and lead a new era of globalization, just as Washington turns inward in favor of "America First" policies. (Rappler & AFP, 2017, May 12)