At the Smart Nation Expo 2024 in Kuala Lumpur from November 21, GE Jun, Co-Chair of the Board of TOJOY Holding and CEO of TOJOY Enterprise Services, delivered a bold message about the role of China’s unicorns in shaping the future of productivity and innovation across Asia.

His speech, part of a wider presence by the company at the expo, shed light on the transformative potential of these high-growth firms and the need for stronger cross-border collaboration in the region.

China’s unicorns – companies valued at over US$1 billion – are not just the poster children of economic success but are increasingly seen as drivers of technological transformation.

Speaking to a diverse audience of policymakers, business leaders and innovators, GE explained the Chinese government-backed concept of “new quality productive forces”, a term describing advanced productivity models that go beyond traditional growth models.

“Unicorns are no longer just about innovation in business models,” GE said. “They are delivering technological breakthroughs capable of transforming entire industries.”

A recently published White Paper on the Growth Path of China's Unicorn Enterprises, co-authored by TOJOY and the GuoYan Institute of Economic Research, backs this view.

The report reveals that China is home to 523 unicorns, ranking second globally. These firms are recognised as crucial indicators of a nation’s innovation strength and major drivers of local economic growth.

"Unicorns are delivering technological breakthroughs capable of transforming entire industries," says GE when addressing an audience of policymakers, business leaders and innovators in Malaysia.

The “Second Curve”   

GE outlined TOJOY’s approach to supporting unicorns as they navigate what he calls the “second curve” of growth.

While the first curve focuses on rapid, capital-driven expansion – scaling up, capturing market share, and attracting investment – he argued that this model eventually runs into diminishing returns.

“The second curve is about moving beyond dependency on capital and leveraging resources more effectively,” Ge explained. This could be achieved by forming strategic partnerships, diversifying revenue streams, or rethinking operational models.

TOJOY’s platform, GE noted, is designed to facilitate this transition.

“We do more than connecting companies with capital. We provide access to technological expertise, market networks, and skilled talent, unlocking the next phase of growth through resource sharing,” he said.

This resource-driven approach, GE believes, is a more sustainable and practical model for long-term success compared to traditional reliance on financial injections.

The “second curve", GE explains, focuses on reducing reliance on capital and making the most of resources available.

Malaysia: a bridge to Southeast Asia   

Speaking at the expo, GE described Malaysia as a strategic gateway to Southeast Asia, citing its linguistic diversity, strong infrastructure and pro-investment policies as key reasons it appeals to Chinese businesses.

“Malaysia’s ports and strategic location make it a key player in global trade,” GE said, citing success stories such as the partnership between China’s Geely and Malaysia’s Proton, which has introduced hybrid vehicles to the local market.

To build on this momentum, GE led a delegation of eight leading Chinese enterprises to Malaysia, showcasing projects spanning diverse sectors, including AI health examinations, AI-driven education, entertainment, residential water treatment, automotive cleaning robots, traditional Chinese wellness therapies, and biopharmaceuticals.

GE expressed confidence and optimism about the delegation's entry into the Southeast Asian market, citing the region’s potential for growth and collaboration.

GE leads a delegation of eight Chinese innovative businesses and other entrepreneurs to Malaysia, presenting projects in AI health, education, biopharmaceuticals and other sectors, exploring opportunities for cross-border collaboration in Southeast Asia.

Hong Kong and the productivity equation  

Turning to Hong Kong, GE discussed its vital role in driving productivity and innovation in the region. With its “One Country, Two Systems” framework linking mainland China to global markets, Hong Kong is uniquely positioned as a bridge between East and West.

However, GE pointed out that some Hong Kong businesses remain cautious about adopting disruptive innovation.

“Many are comfortable with the local market or hesitant about mainland-led innovations,” he observed. “But this reluctance could hold them back from seizing new growth opportunities.”

He encouraged Hong Kong businesses to embrace change, noting that hesitation to adapt could hinder their ability to explore what he calls the “second curve” of growth.

The next wave of innovation  

Generative AI models such as ChatGPT have sparked a race among Chinese firms to develop similar innovations. “AI is the hottest area right now,” Ge remarked. “Unicorns that successfully integrate AI will lead the next wave of progress.”

He noted that TOJOY’s platform is designed to support companies in adopting advanced technologies, providing the tools needed to tackle implementation and integration challenges.

GE reiterated the importance of partnerships, citing the collaboration between China and Malaysia as an example of how complementary strengths can achieve meaningful progress.

“This partnership isn’t just about economic gains,” he said in his closing remarks. “It’s about building a future where nations innovate and thrive together.”

As TOJOY continues to advocate for resource empowerment and foster cross-border collaboration, GE remains optimistic about the opportunities ahead.

“Our goal is to help businesses achieve more through partnerships, innovation, and resource sharing,” he said. “The future holds immense promise, and we’re ready to make an even greater impact.”