Malaysia-Afghanistan bilateral trade to grow 10 pct this year

KUALA LUMPUR: Bilateral trade between Malaysia and Afghanistan is expected to increase 10 per cent this year from the US$ 85.1 mi l l ion recorded in 2016 and driven by enhanced cooperation between the two countries.

Deput y Mi n i s t e r of Internat ional Trade and Industry Datuk Ahmad Maslan encouraged local businesses to look at Afghanistan as an export destination with massive opportunities in the sectors of palm oil, electrical and electronic products, chemical and chemical products, as well as, optical and scientific equipment.

“Palm oil and palm- based agriculture products were our signi f icant exports to Afghanistan, accounting for 90.6 per cent of the total for last year,” he told reporters after delivering his opening remarks at the Afghanistan- Malaysia Business Forum yesterday.

Agriculture was among the significant imports, accounting for 73.5 per cent, followed by transport equipment, electrical and electronic products, optical and scientific equipment, as well as, machinery, equipment and parts.

Ahmad said companies from Afghanistan had participated in two manufacturing projects worth US$ 2.28 million here, which created 166 jobs.

Malaysian investments in Afghanistan, on the other hand, were valued at US$1.05 million, primarily in Islamic financial and insurance or takaful activities.

Meanwhile, Afghanistan’s Deputy Minister for Commerce, Mohammad Qurban Haqjo hopes the two- day business forum, which started today, would help boost economic ties between both countries by highlighting Afghanistan’s business friendly environment and liberal legal framework.

He welcomed the participation of Mal aysian investors in Afghanistan’s mining, agriculture, agri- processing, infrastructure development and information technology sectors, while enjoying 100 per cent ownership of their investment and long-term lease of land up to 100 years.

Mohammad Qurban said Afghanistan is rich in natural resources and the mining sector is widely untapped, which presents a huge opportunity for Malaysia, considering the country’s expertise in machinery and technology.

“For the agri- processing sector, we export 80 per cent of our production as raw materials. There is also a huge potential in this sector if we can process these raw materials and export them as finished materials.

“We are keen to establish a jointventure between Afghanistan and Malaysian companies in this regard and export the finished products to the world,” he added. — Bernama