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January 05, 2009 15:14 PM

Malaysia, Egypt To Set Up Joint Trade Panel


KUALA LUMPUR, Jan 5 (Bernama) -- Malaysia and Eygpt will set up a joint trade and investment committee to further strengthen bilateral trade and investment ties, Minister of International Trade and Industry Minister, Tan Sri Muhyiddin Yassin, said today.

"It will be an effective mechanism to facilitate and promote more trade, investment and economic collaborations," he told reporters after meeting his Egyptian counterpart, Rachid Mohamed Rachid, here today.

Muhyiddin said the memorandum of understanding has been prepared and "I hope we can agree on the contents in the next few weeks or months."

He said it was agreed that the committee be formed as soon as possible, adding that the first meeting would either be held in Cairo or here.

"There is a lot of scope for us to increase the volume of trade, which currently is still small," he said.

He said Ministry of International Trade and Industry would carry out more promotional activities to boost trade and investment cooperation and urged Egypt-Malaysia Business Council to play its role actively.

Muhyiddin said bilateral trade for January-October 2008 grew to RM2.176 billion from RM1.593 billion in 2007.

He said as at September 2008, Malaysians invested RM636 million in Egypt, mostly in the manufacturing and mining industries.

As at November 2008, Egyptians invested RM22.8 million in six projects in the manufacturing of plywood, wooden furniture and production of souvenirs, he said.

He said Egypt was Malaysia second largest trading partner among African countries.

Muhyiddin said trade and investment relationships between Malaysia and Egypt had grown over the past few years, from RM831.6 million in 2001 to RM1.933 billion in 2007.

Meanwhile, Rachid said the trade figures at the moment did not really reflect the potential of such relationship.

"There is an opportunity for us to really push bilateral trade as well as investment to a new level," he said.

He urged Malaysian companies to participate in infrastructure projects in Egypt by teaming up with the Egyptian counterparts.

"Egypt is fast opening up its infrastructure projects through public-private partnership initiatives in road, airport, port, water, sewerage and electricity sectors," he said.

Other issues discussed during the meeting were the impact of the global financial crisis on both countries, matters related to the World Trade Organisation, regional cooperation under the Organisation of the Islamic Conference and Group of Developing Eight and bilateral cooperation in capacity building between the two countries.

-- BERNAMA