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June 23, 2009 18:07 PM

Asean Market Offers Immense Opportunities For Malaysian Business Community

KOTA KINABALU, June 23 (Bernama) -- The Association of South-East Asian Nations (Asean) continues to be an important market for Malaysia, accounting for 25 per cent of its external trade, said Deputy Minister of International Trade and Industry, Datuk Jacob Dungau Sagan.

"With a population of 578 million and a gross domestic product of US$1.47 trillion (US$1=RM3.51), the Asean market offers immense opportunities for the Malaysian business community," he said in his keynote address at Sabah Investment and Trade Dialogue on Manufacturing and Services Sector here today.

Jacob said significant milestones would be achieved in Asean's internal integration as well as in linkages with its dialogue partners next year.

"Among them are elimination of import duties on all except a few agricultural products by Asean-6 (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand), realisation of the Asean-China and Asean-South Free Trade Agreements (FTAs) and the implementation of the Asean-India and Asean-Australia-New Zealand FTAs," he said.

Jacob said the Malaysian business community must also take note of the bilateral FTAs that had been implemented, namely, Malaysia-Japan and Malaysia-Pakistan.

"Malaysia had also recently concluded negotiations with New Zealand, and this FTA is expected to be implemented next January," he said.

He said with the reduction and elimination of tariff and non-tariff barriers, transparency of investment regimes and liberalisation of the services sectors, Malaysian businessmen could look forward to increased business opportunities in the Asean countries as well as with the FTA partners.

Intra-Asean trade currently amounted to US$451 billion, he said.

Jacob said from January to April this year, Malaysia's global trade amounted to RM285.0 billion.

"Total exports amounted to RM162.5 billion, while total imports were RM122.5 billion, resulting in a trade surplus of RM40.07 billion for the country," he said.

He said it was imperative for Malaysian businessmen to diversify their trade ties to new and emerging economies in order to have a broader trading base.

"This will be a cushion against any adverse effects brought upon by uncertainties such as the current financial and economic crises.

"It is important for they make further inroads into markets such as China, India, the Commonwealth of Independent States, South America, Africa and the Middle East," he said.

-- BERNAMA

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