BREXIT Will Not Significantly Affect Malaysia-EU Trade

KUALA LUMPUR, June 23 (Bernama) -- Malaysia-Europe trade will not be significantly affected if Britain choses to exit the European Union as the country is not Malaysia's main trading partner in the union, said Malaysia External Trade Development Corporation (MATRADE) Chief Executive Officer Dzulkifli Mahmud. He said Britain was the third largest destination for Malaysian exports in Europe after the Netherlend and Germany. "For now, I don't see any significant impact but if Britain really leaves the European Union, there is the possibility of other elements surfacing that might influence bilateral trade between Malaysia-Britain," he told reporters after breaking fast with ambassadors from Islamic countries on Tuesday. Dzulkifli said the impact from Brexit would have to be looked at over a period of time. The issue would have some impact on the movement of the pound sterling and it may have a positive or negative impact on Malaysia. If the pound sterling were to depreciate, it would reduce cost for parents who have children studying in England but it may affect the revenue of Malaysian real estate companies. "It's difficult to anticipate what the impact will be. Britain still has its own attractions especially for real estate investors," he said. Dzulkifli said if the referendum results in Britain leaving the union, Malaysia may establish a seperate free trade agreement alongside the Malaysia-EU FTA. If Britain exits the EU, the country would then impose taxes for imports coming into the union and this would make Britain uncompetitive. However, whatever the decision that will be announced on Friday, two-way trade between Malaysia and Britain would remain intact. In 2015, Malaysia's trade with EU stood grew 3.1 per cent to US$36.95 billion (RM148.52 billion). Exports to EU rose 8.4 per cent or US$1.51 billion (RM6.09 billion) to US$19.63 billion (RM78.92 billion), with exports to the United Kingdom expanding 17.6 per cent. -- BERNAMA