"For this reason, we look ahead into the future with more optimism. The two brotherly countries share a common aspiration for world peace and have the same stance on regional issues," the ambassador said in an exclusive interview.
Referring to the bilateral trade standing at SR7.8 billion, he said Saudi Arabia has emerged as Malaysia's top trading partner in the Middle East, with new avenues opening up the frontiers of cooperation between the two countries. Late last year, the Malaysian government and Saudi Arabia’s Petro Saudi International set up a fund to invest in Malaysia and other countries with Malaysia selling $1 billion in bonds to finance its share of the deal.
“Incentives are also offered to Saudi companies developing infrastructure in an industrial park,” the ambassador said. They include 100-percent income tax exemption for ten years starting from the year the company derives statutory income, investment tax allowance (ITA) of 100 percent on qualifying capital expenditure for five years and stamp duty exemption on instruments of acquisition or leasing of property relating to an industrial park.
He also said that like the Kingdom, Malaysia is also a strong advocate of clean and green environment as well as diversification of marine resources in the interest of future generations. He noted that his country is also a destination of choice for Saudi tourists because of its mild weather and a wealth of tourist attractions.
His statement also finds support from Muhaideb bin Ali Al-Muhaideb, director general of Al-Sarah Travel and Tourism Company, according to whom many families prefer Malaysia to Western countries, thanks to the reasonable airfare and cheap accommodation in addition to the availability of side trips.
Referring to other aspects of their bilateral relations, the ambassador said education was a promising sector, with many Saudi students pursuing higher studies in top universities in Malaysia. "They have enrolled in different courses, such as engineering, agriculture, information technology, finance, among many others," he said.
Many Saudis, including officials in various sectors in the Kingdom, have also trained at the Malaysian Technical Cooperation Program (MTCP).
"Saudis started undergoing training at the MTCP starting 2001. As of last year, 53 trainees from Saudi Arabia have participated in short-term courses which included customs administration, multimedia technology, diplomatic relations, tax administration, veterinary medicine, among others," the ambassador said. The MTCP was launched in 1980 to promote and facilitate technical cooperation among developing countries based on self-reliance.
On the economic front, Saudi Arabia and Malaysia have set out a new vision of cooperation in Islamic finance, money market and trade. The accession of Al-Rajhi Investment and Banking Corporation Malaysia Berhad, the wholly-owned Islamic bank of the Kingdom’s Al-Rajhi Bank in Malaysia, as a commodity trading participant (CTP) with Bursa Malaysia Islamic Services (BMIS) trading on its Bursa Suq Al-Sila' commodity Murabaha trading platform, could give a significant boost to commodity trading between the two countries based on sukuk, or Islamic fixed-income securities.
Canned fruit juice drinks producer Metro Perda Sdn Bhd (MPSB) is setting up a joint venture company aimed at helping local small and medium food manufacturing companies find markets for their products in Saudi Arabia. Malaysia has been ranked as the 13th largest foreign investor in Saudi Arabia in 2008. The total number of Malaysian companies registered with the Saudi Arabian General Investment Authority (SAGIA) is 87, of which 17 are involved in the industrial sector with a total investment value of $4.3 billion.
At the same time it further cements the links between Al-Rajhi Bank and Malaysia, where the Saudi Islamic financial institution has made impressive progress since it was licensed in 2006. Khazanah Malaysia, the Malaysian government's investment arm, has also invested 10 percent in Jadwa Investment and Maybank, Malaysia's largest bank.
Raja Nazrin Shah, the Crown Prince of Perak (Malaysia), told Arab News in a previous interview that "Cagamas Berhad, our mortgage corporation and securitization house, is currently collaborating with Al-Rajhi Bank to develop the first-of-its-kind sukuk that is not only widely accepted and tradable in the secondary market but also meets the most discerning investors' requirements," he said, adding: "Our sukuk market is the largest in the world, accounting for 62 percent of the global sukuk outstanding".
The crown prince, who is also the ambassador of Malaysia International Islamic Financial Center (MIFC), said: "The New Economic Model (NEM) of Malaysia now aims to raise per capita income to $15,0000 from the current $7,000 within 10 years." Against this backdrop, he pointed out that the Islamic finance is uniquely positioned to expand its role and presence. He also referred to MIFC’s mandate to promote Malaysia as an Islamic financial hub, noting that his visit to the Kingdom was within the framework of its objective to further strengthen the linkages and cooperation between the two countries.
