Malaysia seeking to enhance digital trade ties
KUALA LUMPUR: Malaysia is enhancing trade with Asean countries amid the United States-China trade war, given the region’s market potential of 642 million people.
International Trade and Industry Minister Darell Leiking said Asean economies were increasingly tapping the convenience of the digital market, set to be worth US$200 billion (RM840 billion) by 2025 from US$31 billion in 2015.
“My team and I will be going to Indonesia soon to discuss ways to enhance bilateral trade. We are focusing on what we (Asean countries) have while other nations (such as the US and China) are going through rough times.
“With the talent we have, we must embrace the digital marketplaces to enhance our economy,” Darell said at the opening of the “Unlocking the Potential of e-Commerce” seminar in conjunction with the 51st Asean Day celebration here yesterday.
He said his team was formulating the Asean Agreement on e-Commerce with counterparts from neighbouring countries.
“We should finalise this agreement by the end of this year,” he said, adding that the Asean Agreement on e-Commerce sought to improve trade and close economic development gaps among member countries using digital technologies.
To a query if online purchases would be subjected to the proposed Sales and Services Tax (SST), Darell said he was not aware of the matter.
“I have not read that it will (be subject to SST). But if it is, we will address it accordingly. At the moment, the government has not touched on the issue. I am not sure if our other trading partners (within Asean) have done the same.”
Darell, who will be visiting Jakarta from Friday to Sunday, will meet Indonesia’s Trade Minister Enggartiasto Lukita.
“I will also meet the Council of Palm Oil Producing Countries (CPOPC) and see how we at the International Trade and Industry Ministry can forge closer collaboration in promoting free trade in our liaison with the World Trade Organisation.”
The CPOPC is a governmentto-government body set up in 2015 to fight barriers to palm oil trade that could harm exports.
The exports are produced by millions of smallholders in Indonesia and Malaysia.