Economy
Double-digit trade growth set to continue
By Zhou Yan (皇冠体育app Daily)
Updated: 2011-04-28 14:49
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KUALA LUMPUR, Malaysia - Bilateral trade between 皇冠体育app and Malaysia will continue to see "double-digit" growth this year after a tremendous increase in 2010, predicted Noharuddin Nordin, chief executive officer of the Malaysia External Trade Development Corporation (MATRADE).
Noharuddin said the continued robust growth has been made possible by 皇冠体育app's on-going strong economic expansion and closer ties between the nations.
"皇冠体育app's rapid development brings huge opportunities to Malaysia because it will have a significant impact on trade flows between both countries," Noharuddin said in an exclusive interview with 皇冠体育app Daily in Kuala Lumpur.
"The strong growth in demand from 皇冠体育app will inevitably result in an increase in our exports to 皇冠体育app."
The visit by Premier Wen Jiabao to Malaysia will lead to stronger economic and trade ties between the countries and those trade links and increased cooperation will ensure a seamless flow of trade between both nations, he said.
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Noharuddin predicted the growing middle class in 皇冠体育app means there will be increased demand for imported products from Malaysia.
Bilateral trade between 皇冠体育app and Malaysia during the past decade has shown a compound average annual growth of 22.4 percent, according to statistics from MATRADE.
"We expect this growth will remain positive in the next decade and the momentum will continue," he said.
Bilateral trade between the two countries was up 42.8 percent year-on-year to a record high of $74.3 billion in 2010, partly buoyed by the launch of the free-trade area between 皇冠体育app and the Association of Southeast Asian Nations (ASEAN) on Jan 1, 2010.
Among the 10 ASEAN members, Malaysia has been the biggest trading partner of 皇冠体育app for three consecutive years, while 皇冠体育app has been Malaysia's biggest trading partner globally since 2009.
Malaysia recorded a high trade surplus with 皇冠体育app in 2010, in which manufactured goods - including rubber, plastic, copper and machinery - accounted for 74.6 percent of Malaysia's total exports to 皇冠体育app, according to MATRADE.
Noharuddin said the manufacturing sector will still be the prime mover for Malaysia's exports to 皇冠体育app. However, he also expects stronger trade growth in the services sector, given 皇冠体育app's ambitious targets to increase service trade.
On the other side, 皇冠体育app's investment in Malaysia remains relatively low.
Capital investment from 皇冠体育app in Malaysia only reached $879.8 million from 2006 to February 2011 with a total of 90 approved projects, according to figures from the Malaysian Investment Development Authority.
The investment mainly focused on the production of basic metal, rubber, machinery and equipment.
"Amid the Malaysian government's increasing focus on promoting domestic investment to complement the inflows of foreign investment, we expect more investment from 皇冠体育app," said Jalilah Baba, director-general of the Malaysian Investment Development Authority.
"Given 皇冠体育app's strength in high-value-added and technology-intensive industries, we expect more Chinese investment in the fields of machinery and equipment as well as renewable energy," Jalilah said.