MATRADE TEAMS UP WITH ITFC TO BOOST INTRA-TRADE COOPERATION WITH OIC MEMBERS

KUALA LUMPUR, July 18 (Bernama) -- The Malaysia External Trade Development Corporation (MATRADE) plans to boost intra-trade cooperation with the Organisation of Islamic Cooperation (OIC) countries by joining forces with the International Islamic Trade Finance Corporation (ITFC).

Today it inked a memorandum of understanding (MoU) with ITFC, a member of the Jeddah-based Islamic Development Bank group, to achieve that objective.

Under the MoU, they will collaborate on trade promotion facilitation programmes and specific projects; exchange of trade information and business delegations visits; identification of project opportunities for Malaysian companies as well as trade promotion. 

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MATRADE chief executive officer (CEO) Datuk Wan Latiff Wan Musa said the initiative was a continuation of its effort to strengthen trade ties with the OIC countries after forming a partnership with the Islamic Development Bank on a programme called Reserve Linkage earlier this month.

This partnership, he said, aimed to create business opportunities for Malaysian exporters and serve as a catalyst to create more market access for local companies into the 57 OIC member countries.

“As one of the OIC members, Malaysia wishes to be at the forefront of growing trade with our trading partners in the OIC,” he told reporters after the MoU signing ceremony here today.

Wan Latiff said the OIC had a combined market size of 1.8 billion people and there were many opportunities yet to be explored in areas such as agrotechnology, information and communications technology, e-commerce, renewable energy, infrastructure as well as oil and gas.

This marked the second MoU signed between MATRADE and ITFC since 2009.

ITFC CEO Hani Salem Sonbol said the new MoU would leverage on the country’s considerable strength in key areas such as digital economy and create strategic opportunities for Malaysian companies to expand trade with other OIC member nations.

ITFC has provided US$325 million (US$1 = RM4.11) in trade financing to seven Malaysian companies over the the past 10 years.

Malaysia’s trade performance with the OIC countries grew by 22.6 per cent over the past five years -- from RM149.79 billion in 2014 to RM183.71 billion in 2018.

Malaysia's main exports to the OIC countries are palm oil and palm oil-based products, petroleum products, and chemical and chemical products. The country’s major OIC trading partners include Indonesia, Saudi Arabia, the United Arab Emirates, Turkey and Bangladesh.

-- BERNAMA