POTENTIAL TO STRENGTHEN INTRA-OIC TRADE DURING GLOBAL ECONOMIC CRISIS

By Samantha Tan

KUALA LUMPUR, April 30 (Bernama) -- The weakening of the global economic
fundaments would be an exceptional opportunity to strengthen the economic
integration of the Organisation of the Islamic Conference (OIC) countries.

"There is also a great potential to expand the intra-OIC trade, which is
currently at 16.7 percent," said Professor Mohamed Aslam Haneef from the
Economics Department of the International Islamic University Malaysia (IIUM).

However, the 57 member states of the OIC must work together to
remove obstacles which can limit trade activities, he said.

Among the issues are tariff liberalisation limited in scope, non-tariff
barriers, different efforts by different regional groups, lack of economic
policies convergence and also the lack of political will and commitment.

"Muslim countries need to commit themselves not only in words but to
translate into action," Professor Mohamed Aslam told Bernama at the last session
of the International conference on Islamic Economics and Economies of the OIC
Countries 2009, here Wednesday.

According to Professor Mohamed Aslam, the intra-OIC trade has a potential to
reach up to 60 percent by 2015, but industry players were making only a forecast
of 20 percent. This is not an ambitious target, he said.

Professor Mohamed Aslam also said that there is a need to get more OIC
countries involved actively in the trade.

Currently, 10 countries including Malaysia are the active countries involved
in trade, accounting for 75 percent of the intra-OIC trade.

Among the areas for potential in intra-OIC trade are goods and services.

Some of the promising categories of goods include agriculture, textile,
petroleum products, electrical and electronic equipment, motor vehicles,
transport equipment and chemicals and chemical products.

As for the services sector, there is potential in communications, tourism
and travel, educational, financial and distribution services, he added.

-- BERNAMA