VAST POTENTIAL FOR MALAYSIA-CHILE BUSINESS

From Abdul Aziz Harun

SANTIAGO (Chile), April 24 (Bernama) -- The King Tuanku
Mizan Zainal Abidin and Queen Tuanku Nur Zahirah's state visit
which concluded here Wednesday, opens a new chapter in bilateral relations
between Malaysia and Chile, especially in trade.

Looking at the warm response received by the royal couple during their
visit here, there is no doubt the bilateral relations between the two countries
will flourish.

Malaysian Ambasador to Chile Abdullah Faiz Mohd Zain said that last year,
the bilateral trade between the two countries amounted to USD336 million
(US$1=RM3.59), with
Malaysia's export to Chile registered at USD186.8 million while import from
Chile was at USD148.7 million.

He said Chile and Malaysia shared a lot in common, such as both being
democratic countries, look forward to the Foreign Direct Investment (FDI), and
send peacekeepers under the United Nations' banner in the common quest for
peace.

He said, Chile was an open market just waiting for Malaysian investors to
venture into, with vast potential in certain areas such as
manufacturing, furniture, education and finance.

"I would say there could be two problems in trading with the Chilean, that
is, language and distance (both countries are separated by thousands of miles),
but this issue should not be a barrier. The potential is vast, the Malaysian
businessman just needs to brace himself to grab the chance," he told Malaysian
journalists at his residence here Friday.

Abdullah Faiz, who has been here since February 2006, said in general,
Chileans had very little knowledge of Malaysia, other than the story of
Sandokan, a famous novel written by Italian author Emilio Salgari in 1895 and
the iconic twin towers of Petronas.

However, with several initiatives such as the Malaysian Technical
Cooperation Programme (introduced in Chile in 1997), endless efforts by the
embassy to promote Malaysia, and the recent state visit of the royal couple,
more and more news about Malaysia find its way into the local media.

Abdullah said China, Middle East, America and Europe were Chile's
traditional partners in trade, but the Chilean now should look into other
markets with great potential that can be explored.

Existing Malaysian investments in Chile are confined to real estate
development and the seafood industry. Recently, though, a Malaysian company,
MyCopter Aviation Sdn Bhd, secured a contract to refurbish three Chilean Navy
Dauphine helicopters.

A Malaysian-based WiMax operator, Packet One, in a joint venture with
Inverca Telecom, has been awarded a 56 billion-peso (USD93 million) deal to
provide wireless broadband in rural Chile recently.

The ambassador said the project would involve providing connectivity to
1,470 rural communities comprising more than 850,000 household, three million
individuals and 800 schools.

Meanwhile, Abdullah Faiz said among the agreements signed by Malaysia and
Chile were the Trade Agreement in June 1992, Investment Guarantee Agreement in
December 1992 and Avoidance of Double Taxation Agreement (DTA), while the Free
Trade Agreement (FTA) that was still under negotiation, had entered into its
fifth meeting in Kuala Lumpur recently.

He said Chilean President Michelle Bachelet was scheduled to attend the APEC
meeting in Singapore by the end of the year, and her attendance in the region
might have an impact to speed up the FTA, the first to be signed by Malaysia and
a Latin country.

Bachelet, in her speech during an audience with Tuanku Mizan and Tuanku Nur
Zahirah recently, said Chile would always remember Malaysia's invaluable support
when it joined Asia Pacific Economic Cooperation (APEC) in the course of the
Bogor Summit in 1994.


-- BERNAMA