RIYADH, 31 August 2007 — Malaysia is enjoying excellent bilateral ties with Saudi Arabia as it marks today the 50th anniversary of its independence, according to Ambassador Ismail Haji Ibrahim.
“The visit of Custodian of the Two Holy Mosques King Abdullah early last year was a high point in Malaysian-Saudi bilateral ties,” the envoy said.
He said that the visit strengthened the relationship, which has steadily grown in depth and dimension over the years and reflected the success in which Malaysia’s truly multiracial and multicultural population has lived and prevailed in harmony despite diversity.
“We are keen to further develop the existing excellent bilateral relationship for the mutual benefits of both Saudis and Malaysians,” he said.
He added that under the leadership of Dato’ Seri Abdullah ibn Haji Ahmad, Malaysian prime minister, Malaysia continues to gain commendable and outstanding overall progress and developments and that Malaysia has proven to the world that it is politically stable and prosperous.
He called on Malaysians working in Saudi Arabia to redouble their efforts to promote the country.
“Your contribution is invaluable in our nation-building efforts. Let me once again take this opportunity to convey the very best wishes to all Malaysians and to each and everyone throughout the Kingdom on this memorable day. May Allah (SWT) bless us all,” he said.
Ibrahim also extended his cordial greetings to the Kingdom’s leadership and the “Saudi people for their courtesy, cooperation and goodwill toward the Malaysian Embassy and Malaysian nationals working in Saudi Arabia.”
In trade, Saudi Arabia has the edge. Malaysia recorded trade deficits with Saudi Arabia since 2000, due mainly to the higher value of imports from the Kingdom in which majority of imports were petroleum and petroleum products.
In 2006, Malaysia’s exports to Saudi Arabia valued at $529.7 million, up 10 percent from $481.7 million in 2005. Imports from Saudi Arabia, on the other hand, increased by 47.8 percent to $2.3 billion from $1.6 billion the previous year.
Saudi Arabia kept its ranking to be Malaysia’s 19th-largest trading partner, the same rank it has in 1005. Trade with Saudi Arabia accounted for almost 1.0% of Malaysia’s global trade of $291.5 billion. Saudi Arabia also remained as Malaysia’s 30th largest export destination, absorbing a 0.3 percent share of Malaysia’s total global imports.
Moreover, Saudi Arabia continued to be the 2nd largest trading partner after the UAE in Malaysia’s trade with West Asia. The Kingdom absorbed an increased share from 25.9 percent in 1005 to 27.1 percent of Malaysia’s trade with the region.
Saudi Arabia has remained as the 3rd largest export destination for Malaysia to the region, after UAE (1st) and Turkey (2nd), representing a 10.5-percent share. In addition, it maintained its top ranking as the largest source of imports for Malaysia from the region with a share of 42.3 percent, overtaking the UAE since 2005.
Malaysia continued to be the net exporter of all manufactured goods to Saudi Arabia, except chemical and chemical products and petroleum products, whose imports from Saudi Arabia was higher than exports to the Kingdom.
Manufactured goods that registered growth of exports to Saudi Arabia in 2006 include jeweler (216 percent growth), metal manufactures (71.9 percent), textile & clothing (27.8 percent), transport equipment (7.5 percent), E&E products (9.5 percent) and processed food (6.4 percent).
Furniture overtook palm oil for the first time to be the largest export item to Saudi Arabia. Television receivers; veneers, plywood and particle boards; and pump, centrifuges & parts followed the ranking respectively to be the 2nd, 3rd and 4th top export item. Collectively, these items represented a value of $142.2 million or 26.8 percent share of exports to Saudi Arabia.
Moreover, for imports from Saudi Arabia, refined petroleum products topped crude oil to be the largest item imported by Malaysia in 2006. These two items have been dominating imports from the Kingdom for years. In 2006 alone, these items accounted for a value of $2.1 billion or 91.6 percent of the total imports.