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Published on August 30, 2007

 

At a Malaysia-Thailand business forum entitled "Growth through partnership - building mutual strengths" in Bangkok yesterday, both Malaysian and Thai panellists shared the view that both countries could boost trade and economic growth by establishing more cooperation.

Malaysian Foreign Minister Seri Syed Hamid Albar said he was looking forward to seeing initiatives in the formation of business ventures by entrepreneurs in various sectors to ensure trade and investment growth in the two nations.

Albar also said the Malaysian government was very positive about the Thai government's announcement of a general election as promised.

"The Thai government is taking a very positive approach to political moves. This implies that Thailand is stepping forward to democracy, which will increase foreign investors' confidence," he said.

Albar urged Thai investors to invest more in Malaysia, saying there was plenty of room for business success, particularly in agricultural and agro-industrial areas as well as services.

"Thailand is considered an agriculture-based country, while the Kuala Lumpur government has a policy to expand its agricultural produce and agro-based products globally. Bangkok and Kuala Lumpur are amongst the world's leading players in the global commodities market," he said. "For instance, both nations control 70 per cent of the world's production and output of rubber."

Malaysian investment in Thailand reached US$177.7 million (Bt6.11 billion) last year, while Thailand's investment in Malaysia was only $29.8 million. In the first half of the year, Malaysia's investment growth in Thailand jumped to $324.9 million, while Thai investment in Malaysia amounted to only $16.9 million.

Thai Deputy Foreign Minister Sawanit Kongsiri said both countries had similar development plans to promote sustainable economic growth. Collaboration would encourage not only trade and investment growth but also cooperation in education, private entrepreneurship and employment.

Malaysian Agriculture Minister Haji Muhyiddin bin Haji Yassin said food and agricultural products remained the mainstay of both economies. These sectors were strategic priorities for both countries' cooperation.

Each nation has sought to ensure food security for the region. Collaboration in the sector, as well as in forestry products, would place Asean amongst the leading producers of agricultural products and promote sustainable development, he said.

Ajarin Pattanapanchai, executive investment adviser of the Board of Investment Office, said that strong opportunities for Thai investors existed in Malaysia as both governments had policies to facilitate foreign investors.

Investment opportunities for Thais in Malaysia are in the agro industry, food processing and services and tourism. Investment opportunities for Malaysians in Thailand are auto parts, electrical and electronic products, halal foods, palm-oil products and rubber products.

Azlan Hamid, senior general manager of Puncak Niaga (Malaysia), which is in the water-development business, said his company was interested in investing in Thailand by establishing a joint-venture company. However, the Thai government should promote more stable politics in order to increase foreign investors' confidence.

Prayoon Damrongchietanon, managing director of Global Real Estate Partners - a consultancy for foreign investors - said Thai investors should invest more in halal foods in Malaysia.

Malaysia is acknowledged as a Muslim country among Islamic nations. Thai food industries could be more accepted globally if they invested in Malaysia, he said.

Petchanet Pratruangkrai

 The Nation