Malaysia, UAE to increase bilateral trade and investment
02 Aug 2024
Malaysia and the United Arab Emirates (UAE) have reached an agreement that would improve bilateral trade and investment between the two nations.
The Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is anticipated to be implemented by the end of 2024.
“The MY-UAE CEPA, a comprehensive CEPA, encompasses areas such as trade in goods; trade in services; investment facilitation; digital trade; micro and small medium enterprises; economic cooperation, and others.
“Notably, it introduces Malaysia’s first chapter on Islamic Economy in a CEPA, paving the way for collaboration with UAE in the areas of Halal certification, Islamic finance, and digital,” it adds.
Malaysia’s delegation was led by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, while the UAE was represented by His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.
Tengku Zafrul stated that this agreement represents Malaysia’s first Free Trade Agreement with a country from the Gulf Cooperation Council (GCC).
“Given the robust trade growth and rising industrial linkages between our countries, particularly in the areas of renewable energy, digital economy, and electric mobility,.
“I am confident this CEPA will further strengthen our bilateral trade and investment ties. I look forward to the agreement entering into force by the end of 2024,” he said.
In 2023, the UAE became Malaysia’s second-largest trading partner in the West Asia region, with bilateral trade increasing by 5.4 per cent to US$8.67 billion (RM39.63 billion) compared to the previous year.
Malaysia’s main exports to the UAE included electrical and electronic products, jewellery, palm oil and palm oil-based agricultural products, palm oil-based manufactured products, and processed foods.
On the other hand, major imports consisted of crude petroleum, petroleum products, jewellery, metal manufactures, and chemical products.
In terms of investment, 2023 saw 34 manufacturing projects in Malaysia involving Emirati participation, valued at US$0.4 billion (RM 1.5 billion).
These projects, covering sectors such as machinery and equipment, Halal pharmaceuticals, chemicals and chemical products, and food manufacturing, have created 2,039 jobs in Malaysia.
Dr. Thani mentioned that Malaysia is a long-standing and trusted trade partner, similar to the UAE, as both countries aim to boost their economic prospects through expanded trade and targeted investment.
“As the fourth largest economy in the Southeast Asia region, and with economic growth in 2024 set to outstrip forecasts, Malaysia offers substantial opportunity for our exporters, industrialists, and business leaders, especially in high-growth sectors such as energy, logistics, manufacturing, and financial services.
“I look forward to working together with Tengku Zafrul to secure a swift ratification of the CEPA and to realise long-lasting benefits for us both—and our respective regions,” he added.
Source: NST
