EUROPEAN COMPANIES URGED TO EXPLOIT OPPORTUNITIES IN MALAYSIA

From Minggu Simon Lhasa

LONDON, April 28 (Bernama) -- Malaysia's strategic location in the middle of
Asean countries provides the logical base for UK companies to penetrate the
Asean and East Asia markets.

International Trade and Industry Minister Mustapa Mohamed, in stating this,
said Malaysia also offers opportunities for UK businessmen through a proactive
government that is friendly to businesses and foreign investors.

The huge market potential within Asean placed Malaysia in the right place at
the right time for business opportunities going forward, he said in a keynote
address at the Seminar on Trade and Investment Opportunities in Malaysia.

He encouraged the business communities in the United Kingdom and the
European Union to take advantage of Malaysia's position as an important business
partner within the framework of Asean, which has a population of 575 million and
gross domestic product (GDP) of US$1.2 trillion and envisaged to be an economic
community by 2015.

The seminar is held in conjunction with the ongoing trade and investment
Mission to Europe organised by the Malaysian Industrial Development Authority
(Mida) and Malaysian External Trade Development Corporation (Matrade).

Mustapa said UK importers should look into sourcing higher value-added
products from Malaysia and a wide variety of quality halal products and services
available in Malaysia.

"There is huge potential for growth in the halal market when one considers
that the wholesome, hygienic and contamination-free principles associated with
halal products and services also make them appealing to non-Muslims," he said.

He also invited UK businessmen to the annual Malaysia International Halal
Showcase (MIHAS) which will be held from May 6 to 10 in Kuala Lumpur.

Malaysia'ss total trade with the UK last year amounted to US$5.14 billion,
with exports at US$2.85 billion and imports at US$2.3 billion.

Mustapa said Malaysia also continued to remain a competitive destination for
foreign direct investment inflows in manufacturing sector last year, accounting
for RM46.1 billion or RM73.4 percent of the RM62.8 billion worth of investment
approved in the manufacturing sector last year.

He said that 2008 marked the fifth consecutive year of increase in foreign
investments into Malaysia, which received RM33.4 billion in investments in
2007.

The minister said the UK was ranked the eighth largest source of foreign
investment in nMalaysia and third largest from the EU, with 355 manufacturing
projects worth US$1.221 billion implemented, mainly in chemicals and chemical
products; electronics and electrical products; petrochemical producrs;
non-metallic minerals products; food manufacturing; pharmaceuticals; and
aerospace.

He said the Malaysian government was aggressively promoting and developing
new sources of growth for the economy, and current focus was mainly on high
value added, knowledge-intensive and high technology industries where potential
partners could come from the UK.

Malaysia, he added, was also promoting new products and technologies in the
information and communications technology (ICT) sector, especially those using
wireless and convergence technology, biotechnology industry to capitalise on its
status as one of 12 mega biodiversity centres in the world, renewable energy,
and aerospace.

Mustapa highlighted opportunities in service-based operations in Malaysia to
serve the regional market such as in areas of business and professional
services, integrated logistics, ICT services, education and training, health
services, and tourism services.

He also invited UK companies to set up regional entities such as operational
headquarters, international procurement centres, regional distribution centres,
regional offices and representative offices to serve as affliates and
subsidiaries in the region.

To date, more than 2,600 regional establishments have set up operations in
Malaysia, including 46 from the UK.

Mustapa also highlighted the strength of the Mlaaysin banking sect0r, in
particular its Islamic financial industry which is the fastest growing segment
in the banking industry with assets now accounting for 17.4 percent total
banking assets in the country compared to just three percent a decade ago.

According to him, it is timely to explore optimising the synergies between
London, an international financial centre, and Malaysia, an international
Islamic financial hub.
-- BERNAMA