KAZAKHSTAN KEEN TO BEEF UP DIRECT TRADE WITH M'SIA, SAYS ENVOY

KUALA LUMPUR, March 31 (Bernama) -- Kazakhstan aims to conduct more direct
trade with Malaysia in an effort to boost total trade between both nations, said
its ambassador Beibut B. Atamkulov.

He said a significant portion of the bilateral trade was now conducted
through third parties and this was "such a waste" as it was of no benefit to
both countries.

In an interview with Bernama recently, he said Kazakhstan, one of the
largest producer of uranium in the world, wants to move forward in diverse
fields and increase bilateral investments.

Last year, bilateral trade between Malaysia and Kazakhstan amounted to
RM345.52 million (US$1=RM3.03), up a whopping 307.8 per cent, from RM92.54
million recorded in 2009.

"Actual turnover is higher than the official figure because many Malaysian
products such as rubber, palm oil, electronic items and furniture imported into
Kazakhstan are traded through third parties.

"If you take these businesses into account, total trade will definitely be
higher. Therefore, we will focus on doing more direct trade, without third party
involvement, which means more reasonable pricing as well," he added.

Atamkulov said the Kazakh-Malaysia Chamber of Commerce, set up in October,
would be another platform to boost trade as Kazakhstan was according greater
attention to creating an appealing investment climate to draw more investors.

Kazakhstan is offering a seven per cent interest rate subsidy to Malaysian
investors investing in the country. The interest rate in the central Asian
country at present stood at 14 per cent.

He called on foreign investors to take advantage of Kazakhstan's rich
resources and help diversify the economy which was moving towards emerging among
the top 50 countries with the most favourable business climate by 2020.

Recently, foreign investors have had a considerable interest in the
Kazakhstan market.

Fortune 1000 companies such as General Electric, FedEx, Microsoft and IBM
are among those which have invested in Kazakhstan together with 30 Malaysian
companies.

Unfortunately only 10 Kazakhstan companies are doing business in Malaysia.
Atamkulov said Malaysian companies should penetrate the surging oil and gas,
energy, agriculture, Islamic banking, petrochemicals, pharmaceutical,
construction, transportation and medical industries which offered enourmous
business potential.

"With the joint economic zone between Kazakhstan, Russia and Belarus,
companies can not only enjoy unified taxes but also enhance their business
network as Kazakhstan is well positioned as a transit location to expand.

Besides, Atamkulov said the new China-Asean railroad project linking China
to Laos, Myanmar, Vietnam, Cambodia, Thailand, Malaysia and Singapore would open
many opportunities besides providing convenient and easier transport access for
business players.

"For example, Malaysian businessmen can export products from China to Europe
through the new railroad which would only take 14 days compared with sea which
will take a minimum of 40 days," he added.

Prime Minister Najib Tun Razak is expected to visit Kazakhstan
in June to strengthen bilateral ties and is scheduled to sign various
memorandums of understanding.

The ambassador said with more agreements expected to be inked, the stage
would be set to promote more direct trade and investment ties between Malaysia
and Kazakhstan.