JEDDAH, 17 May 2007 — Malaysia announced yesterday its plan to organize the second Malaysia Technical Cooperation Program for promoting trade among the member countries of the Organization of the Islamic Conference (OIC)
The program, which Malaysia External Trade Development Corporation (MATRADE) is hosting from Oct. 21-31, is aimed at sharing information and experience in trade promotion among the OIC member countries, Naim Abdul Rahman, trade commissioner at the Consulate General of Malaysia, told reporters yesterday.
“Being held for the second year in a row, the program is Malaysia’s commitment to promote and focus on capacity building among all the OIC nations,” Naim said.
“We all will be sharing information and experiences about how to promote and expand trade among the OIC countries,” he added. The first such program was held in Malaysia in May 2006 in which 30 OIC countries were represented by their government officials. Aside from the Kingdom, whose Saudi Export Development Center was represented, there were other officials from countries including Jordan, Syria, the UAE, Tunisia and Egypt.
Malaysia, with 15 exhibitors, is the largest among the countries taking part in the ongoing Food Arabia show at the Jeddah International Exhibition and Convention Center.
The country has marked a strong growth in bilateral trade which stood at 10.5 billion Malaysia ringgit ($3 billion) in 2006. Malaysian exports to the Kingdom were 1.9 billion ringgit ($0.6 billion), up 8.5 percent, and imports from the Kingdom recorded 8.4 billion ringgit ($2.4 billion), up 45.8 percent.
“Palm oil, which traditionally topped Malaysia’s list of exports, now ranks number five due to its falling demand in the Kingdom,” Naim said. “Likewise, oil, which was number one in the list of imports from the Kingdom, has now been relegated to second position after petroleum products,” he said, adding that 92 percent of Malaysia’s imports from the Kingdom constitute oil and petroleum products.
The bilateral trade in the first quarter of 2007 grew compared to the same period last year. “This is partly due to a big demand for steel and metallic structures required for the Kingdom’s booming construction sector,” he said. “With the ongoing trend, we hope to further increase our trade volume this year.”
Naim said Malaysia was promoting drinks made from essence of “Tongkat Ali,” a root traditionally used for health and medicinal values, at the Food Arabia Show, which ends today. This is for the fifth consecutive time that MATRADE has organized the country’s participation at the annual exhibition.
Other food and beverage products promoted by Malaysian companies include palm oil and palm oil-based products, frozen seafood items, Ipoh white coffee, sweetened condensed milk, milk powder, canned pineapple, margarine and shortening, energy drinks, candies, Menglembu groundnuts, and disposable food service packaging products.
Processed food ranks fifth in the Kingdom’s import of products from Malaysia, with processed food imports totaling 159.5 ringgit ($45.6 million). “Potential also exists for Malaysia’s franchise sector,” Naim said, adding that some Malaysian originated fast-food chains are already operational in the Kingdom including Marrybrown, Nelson Corn In-A-Cup, and Daily Fresh. “Many more such franchises are expected to enter the Kingdom,” Naim said.