BUSINESS

MALAYSIA-PHILIPPINES TRADE TO GROW BY DOUBLE DIGITS

25/09/2018 07:27 PM

KUALA LUMPUR, Sept 25 (Bernama) -- Bilateral trade between Malaysia and the Philippines is expected to continue recording a double-digit growth this year, said Deputy International Trade and Industry Minister Dr Ong Kian Ming.

Last year, the countries’ two-way trade increased 26.2 per cent to US$5.94 billion (US$1=RM4.135). 

In his keynote speech at the Philippine Investment Forum 2018 today, Ong said despite the engagement in bilateral relations as well as a sub-regional programme (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area), the potential of trade and investment between the two nations remained largely untapped.

“Therefore, it is important to deepen bilateral economic relations between both countries,” he said, adding that one of the areas to look at was the halal industry. 

Ong noted that Malaysia could work together with the Philippines in improving the market access and production capacity of halal products and related services.

He said apart from consumer products, Malaysian companies could explore the halal services sector, including halal restaurants and the halal food franchising business, in the Philippines.

Ong also invited Philippine businesses to set up operations in Malaysia, especially in designated halal parks.

This, he added, would allow them to take advantage of the accessibility to raw materials, halal ingredients and services, and well-developed logistics infrastructure to reach the major Muslim markets of Indonesia, Indian sub-continent, and the Middle East.

Malaysia was ranked as the second largest investor in the Philippines last year among the ASEAN countries, with foreign direct investment (FDI) of RM196 million. 

Commenting on the impact of the US-China trade war on ASEAN, Ong said Malaysia and the Philippines were exposed to the ramifications brought by such conflict.

However, both countries, alongside other ASEAN members, should see the US-China trade tension from a positive angle -- as a prospect for trade potential, he said. 

“ASEAN should grasp this moment to be the next hub for future investments and export markets, and with the escalating trade war, Malaysia foresees there will be a diversion of capital into ASEAN. 

“This is where ASEAN countries should work together to attract FDI from China and the US into the region. Instead of ASEAN member states competing against one another, we can take this opportunity to work together and offer an attractive package for foreign investors,” he added. 

Meanwhile, the Philippine Trade and Industry Department Undersecretary Nora K. Terrado said her country welcomed Malaysian investors, particularly in the halal development and export, agribusiness, infrastructure development and services industry, as well as Mindanao-focused investment and trade activities. 

“Of course, we are looking at infrastructure development as Malaysia is known for its expertise in building infrastructure... and with the infrastructure expenditure projection of between six and seven per cent of gross domestic product growth, I believe there will big opportunities for Malaysians to work with the Philippines,” she noted.

Commenting on an earlier report that the Philippines sought to rebalance bilateral trade with Malaysia, Terrado said the country was importing essential goods from Malaysia, including crude palm oil, and it would continue to import as the country needed the commodity. 

“There are other opportunities in rebalancing the trade whereby the Philippines could export more to Malaysia, and there are many areas where we can work together,” she added.

In 2017, Malaysian exports to the Philippines grew by 21.2 per cent year-on-year to RM16.53 billion while imports expanded by 36.1 per cent to RM8.98 billion.

-- BERNAMA

 


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