By Rosemarie Khoo Mohd Sani and Mikhail Raj Abdullah
KUALA LUMPUR, June 24 (Bernama) -- Malaysia can serve as a springboard for Pakistani exports to penetrate the broader ASEAN market, a move that will also help Islamabad rectify its persistent trade deficit with Putrajaya.
Malaysia-Pakistan Business Council (MPBC) acting chairman Usman Ahmed said that Malaysia’s chairmanship of ASEAN this year is a potential game changer for Pakistan, offering a leverage point for its businesses to gain access to Southeast Asia.
Trade between Malaysia and Pakistan last year reached US$1.5 billion (US$1 = RM4.29), with exports to Pakistan mainly comprising palm oil, chemicals, and electrical and electronic products, while the main imports from Pakistan included rice, refined petroleum, and onions.
As a sectoral dialogue partner only and not yet a full dialogue partner, Usman said that Pakistan was unable to export its products to the lucrative ASEAN region as a single market.
He told Bernama after appearing on Bernama TV’s “The Nation” programme hosted by Nadiah Abdul Latif that Pakistan was actively working on upgrading its partnership with ASEAN from a sectoral dialogue partner to a full dialogue partner.
Pakistan has held its sectoral status since 1993 and is now seeking deeper engagement with ASEAN, reflecting its commitment to regional cooperation and expanded ties within the bloc.
Usman said going through Malaysia would give Pakistan a huge opportunity to launch its exports into Southeast Asia, an approach his government was seriously considering.
A prerequisite to this end would be setting up the Malaysia-Pakistan Joint Chamber of Commerce and Industry, which is recognised as a formal body by both Malaysia and Pakistan.
MPBC is aiming to establish this dedicated joint chamber as the next step forward to facilitate business matchmaking and streamline bilateral trade and investment initiatives and, by extension, with ASEAN.
“Pakistan’s Ministry of Commerce is already working on it. Hopefully, there will be some good and practical headways into it,” said Usman, who is also the chief executive officer of Gamalux Oils Sdn Bhd.
Halal industry and tourism potential areas to raise Malaysia-Pakistan economic ties
Usman emphasised the importance of chambers of commerce and business councils, such as the MPBC, in advocating for legislative reforms that support trade and business.
“Government-to-government agreements often plan 10 to 20 years ahead, but the needs of businesses are immediate, and that is why we need to keep pushing for changes that reflect current realities,” he added.
He opined that Malaysia and Pakistan, which established diplomatic ties in 1957, should adopt innovative approaches to further boost trade, investment, and economic cooperation, adding that potential areas for increased cooperation include halal trade as well as two-way tourism.
The annual review of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) showed that both countries faced challenges in stepping up economic cooperation.
Usman highlighted that foremost for Pakistan was the trade balance being tilted in Malaysia’s favour.
He noted that, as part of ASEAN, Malaysia has robust trade relations and economic agreements with the other ASEAN members, as well as with China and India.
Out-of-the-box thinking is imperative for Malaysia and Pakistan’s public and private sectors, he said.
“For Pakistani exporters, it’s difficult to navigate around these established ties to see the benefits MPCEPA offers, especially when other markets like North America also demand attention,” he said.
Beyond this, Usman emphasised the need for both public and private sectors to “think out of the box” to elevate their cooperation, stating that the role of governments was critical in implementing appropriate policies to facilitate trade.
This, he said, was more so since both countries are members of the Commonwealth and share Muslim-majority populations.
Usman also emphasised the importance of cultural understanding and people-to-people connections in fostering sustainable economic alliances.
“While Malaysia is generally considered more business-friendly with neutral policies, Pakistan faces its own challenges, such as economic pressures, regional security issues and geopolitical complexities amid a rising population,” he said.
“Currently, we have to go through red tape and bureaucratic hurdles. For instance, if we lobby for a trade law in Malaysia, the response might be that the corresponding ministry in Pakistan isn’t aligned, and without legal recognition in both countries, we cannot effectively advocate in either,” he said.
Usman also said that non-tariff barriers remained a challenge between the two countries.
He added that a joint chamber would not only facilitate smoother trade and investment processes but also ensure representation from both governments and the private sector.
Currently, the MPBC is registered in Malaysia but not in Pakistan, making it the sole trade body driving collaborative efforts between the two countries.
-- BERNAMA
