JEDDAH, 28 March 2006 — A protocol on the preferential tariff scheme was signed between the Organization of the Islamic Conference (OIC) and Malaysia yesterday.
With Malaysia acceding to the protocol, the number of countries signing the protocol increases to five, which include Turkey, Egypt, Jordan and Tunisia.
“The implementation of this protocol is a small step toward further enhancing trade among OIC countries,” Malaysia’s Minister of International Trade & Industry Rafidah Aziz, who signed the protocol at the OIC headquarters yesterday, said.
The minister and her delegation met ambassador Ali Akbar Salehi, assistant secretary general of OIC. Salehi commended Malaysia’s role in supporting the activities of the OIC and efforts being made to improve the performance of the organization such as increasing intra-OIC trade from the present level of 14.7 percent to 20 percent in 10 years.
The minister expressed her disappointment that only five states had signed the protocol so far and that another five states still had to sign it before it became operative.
She was, however, happy with the trade level between Malaysia and the Kingdom but urged businessmen to explore further possibilities of expansion.
Earlier, presenting a seminar on the scope of business opportunities available in her country, at Jeddah InterContinental, she said: “I find an overwhelming interest between the business communities of the two countries to boost trade and investment.”
The 85- member mission that she headed represented a wide spectrum of activities related to education, food and beverages, building materials, cosmetics and herbal products electrical and electronic products, information and communication technology products and services, and construction and engineering services.
Malaysia is committed to establishing itself as the regional center of excellence in areas such as ICT, financial services, insurance, transport and communication, travel and tourism, health and education. “We’re also committed to open up new opportunities in the manufacturing sector, particularly in areas where there is vast scope for innovation and enhancement in technology,” she said.
The minister identified Islamic financial sector, ICT, tourism and health care as some of the areas in her country that offered vast scope for Saudi investment.
In 2005, the Kingdom was Malaysia’s third largest trading partner among OIC countries. During the year, Malaysia’s total trade with the Kingdom increased by 37.3 percent to $2.01 billion from $1.47 billion in 2004.
The Kingdom maintained its position as Malaysia’s second largest source of imports within OIC countries, accounting for 18.4 percent of Malaysia’s total imports. In 2005, imports from the Kingdom increased by 56.5 percent to $1.54 billion from $0.98 billion in 2004, the minister said.
According to Rafidah, Malaysia’s investment in the Kingdom amounted to $11.95 million in the last five years, in fields like electricity, gas and water; financing, insurance, real estate, business services and manufacturing.
On the other hand, Saudi investments in Malaysia totaled $41.6 million in nine projects today, including in sectors like food manufacturing, electrical and electronic products, plastic products, and textiles and textile products.
With a view to promoting trade in halal products, Malaysia is hosting the Malaysia International Halal Showcase in Kuala Lumpur from May 10-14. Over 500 Malaysian and OIC countries will showcase their products and services. This is part of the Halal Malaysia Week that will run from May 8-14.
