Latin America outlook seen attractive
KUALA LUMPUR: Latin America continues to be an attractive market to many foreign companies despite the sluggish global economy, said International Trade and Industry Deputy Minister Datuk Mukhriz Tun Dr Mahathir.
He said Latin America has demonstrated a high level of resilience despite the global financial crisis due to its stable macroeconomic policies and prudent fiscal measures.
“According to the Economist Intelligence Unit Report, the gross domestic product of Latin America is predicted to grow from 4.3% to 4.5% in the next five years.
“The World Economic Outlook released by the International Monetary Fund has projected that Chile, Mexico and Peru will register a modest 4.3%, 3.6% and 5.5% growth this year, respectively,” he told a news conference after opening a seminar entitled Business Opportunities in Chile, Mexico and Peru: The Moment is Now, he said.
Mukhriz said Chile, Mexico and Peru offered exciting business and investment opportunities due to key factors such as sustainable economic growth, clear legal framework, robust free trade agreements, strategic location and vast natural resources.
On bilateral trade with Chile, he said, Malaysia’s exports to Chile recorded a double-digit growth, which contributed a positive 40.8% increase to Rm377.48mil vis-a-vis the same period last year.
This is the highest export growth posted since 2005.
Electrical and electronics products were the major contributors to Malaysia’s exports to Chile, posting 33.4% growth last year.
Bilateral trade with Mexico grew 41.74% to Rm6.1bil in 2011.
Among Latin American countries, Mexico is Malaysia’s second largest trading partner, the largest export destination and the fourth largest import source after Brazil, Costa Rica and Argentina.
Electrical and electronics, clothing, chemical products, manufactures of metal and machinery were the top five exports to Mexico in 2011 while transport equipment, machinery, appliances, chemical products and seafood were Malaysia’s major imports from Mexico.
Trade balance between Malaysia and Peru has been in Malaysia’s favour for the past 10 years due to high exports of manufactured goods. Malaysia was ranked 30th import source and 74th export destination for Peru. — Bernama