HIGH-PROFILE ITALIAN DELEGATION TO STRENGTHEN COOPERATION WITH MALAYSIA

BY MANIK MEHTA

KUALA LUMPUR, June 11 (Bernama) -- Management gurus often like to say that
every crisis offers an opportunity.

The ongoing global economic crisis also offers opportunities to those
countries searching for newer markets in regions, which they would have paid
little attention to in the past, due to foreign policy and trade priorities.

Though many European countries are still enamoured by what is euphemised as
the Chindia factor -- the two giant Asian markets of China and India -- there is
a growing realisation amongst Europeans that this fixation should not
preclude them from looking at the 500-million consumer strong ASEAN group,
particularly Malaysia.

This is because ASEAN plays a pivotal role in the region, thanks to its
well-developed infrastructure, a broad-based industry, availability of raw
materials, and easily accessible distribution outlets in other countries within
it.

In pursuing this objective, a high-profile Italian delegation comprising
corporate representatives and senior government officials, led by the deputy
minister for economic development, Adolfo Urso, will arive in Malaysia on a
two-day visit starting June 16.

Urso is one of Italy's most seasoned politicians and the seniormost deputy
minister with considerable experience in international trade, according to
Italy's ambassador to Malaysia, Alessandro Busacca.

"The deputy minister will have meetings with the Ministry for International
Trade and Industry , the Ministry of Foreign Affairs and the Ministry of Energy,
Green Technology and Water.

"Italy discerns good potential for increasing trade and investments,"
Busacca explained in an exclusive interview.

Besides representatives of some 80 companies, the delegation includes senior
representatives of a number of public institutions such as Italy's Institute of
Foreign Trade - the Italian counterpart to Malaysia's MATRADE (Malaysia External
Trade Development Corporation) -- the Italian Banking Association and SIMEST,
the official agency that assists Italian companies identify foreign investments.


Also included in the delegation are representatives of the General
Confederation of the Italian Industry, (Confindustria), headed by its
vice president Paolo Zegna.

The delegation to Malaysia is fully supported by the Italian Ministry of
Foreign Affairs as part of a joint effort to promote Italy abroad.

"We hope to be able to chalk out a new framework to institutionalise regular
talks with Malaysia.We are closely following the statements of Malaysian
leaders, particularly the Prime Minister, with regards to upgrading and
diversifying the economy," Busacca said.

The programme for the delegation will also include specialised
workshops/seminars on industry segments, followed by matchmaking in direct
business-to-business meetings on June 17, between company representatives from
both sides on industries such as mechatronics, electronics, precision
engineering, biotechnology, bio-medical,renewable energy, logistics, hospitality
and consumer goods.

Two-way trade touched 1.650 billion euros in 2008, with Italian exports to
Malaysia showing an upward trend.Malaysia's exports however declined, mainly,
because of falling demand in Italy resulting from the global economic crisis.

Besides increasing trade and identifying areas for Italian investment,
Busacca said Italy would "greatly welcome" Malaysian investments.

Italy, one of the world's leading machinery suppliers, is keen to supply
machinery and equipment to meet Malaysia's ambitious plans to expand and further
modernise its infrastructure and industry.

"Italian companies are considered pioneers in the area of machine building
and Malaysia can benefit from the advanced technology which we can offer.Italy
views investment as a vehicle for promoting trade," the envoy elucidated.

Apparently, the Italian industry is closely monitoring the pattern of
consumer behaviour in Malaysia, whose cash-rich middle class is seen as a large
constituency of potential buyers of upper-end "Made-in-Italy" brand products.

The strong presence of Italian fashion companies in Malaysia, with showrooms
and other sales outlets, bears testimony to the consumption propensity of
Malaysia's middle class for brand products.

There are some 450 Italians, mostly businesspeople, living in Malaysia.

The growing number of Italian restaurants -- usually under Italian
stewardship-- and the more than 70 Italian companies in Malaysia provide a
strong base for expanding future relations.

"This is the first-ever delegation of this size led by a senior deputy
minister to visit Malaysia," the ambassador stressed.

The Confindustria will also explore the formalisation of cooperation with
the Federation of Malaysian Manufacturers (FMM).

Italian banks, which do not have a presence yet in Malaysia, will examine
setting up an operation. Malaysia's strength and pioneering work in
Islamic finance has attracted the attention of Italy's banking sector.

"I believe the visit will enable Italian bank representatives to better
understand Malaysia's Islamic banking system," Busacca said.

Italy is also eyeing business in civil aviation, including civil
transportation -- the production of turboprop plane is a booming business in
Southeast Asia -- and defence.

Emphasising that the delegation's visit was "not a one-time event but part
of an ongoing process", the envoy reinforced the view that the joint
Italian-Malaysian declaration on economic cooperation, signed in June 2007
constituted a sound basis for intensifying bilateral cooperation.

Malaysia could also enhance its international profile by tapping Italy's
presidency of the G-8 this year.

Italy is interested in strengthening its cooperation with Malaysia to
resolve regional issues such as in Mindanao (the Philippines), Myanmar and North
Korea, as well as global issues such as climate change, food security and reform
of the global governance architecture (including the United Nations).
-- BERNAMA