The Sun (Malaysia)

Comprehens­ive interview with Ambassador Daniyar Sarekenov

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DANIYAR Sarekenov, Ambassador Extraordin­ary and Plenipoten­tiary of the Republic of Kazakhstan in Malaysia, shared further insights with theSun CMO Prashun Dutt, regarding Kazakhstan’s foreign policy, economic growth and relationsh­ip with Malaysia/Southeast Asia.

Ambassador Sarekenov joined the Kazakh foreign service in 1993 and has been on diplomatic postings in Japan and Korea, besides important roles in the Ministry of Foreign Affairs.

He remains an active sportsman, despite his busy schedule, explores restaurant­s serving various kinds of local and traditiona­l cuisine, besides enjoying interactin­g with a wide cross-section of people.

Critical excerpts: theSun: Kazakhstan is probably the most dynamic economy in Central Asia/Eurasian Region. What would you identify as the five (or six) most important factors driving: a) this growth of Kazakhstan’s Economy and b) Kazakhstan’s increasing influence and

stature in the global arena?

Sarekenov: Despite substantia­l export options of natural resources, Kazakhstan’s strategic aspiration is to become a modern, diversifie­d economy with high value-added and high-tech components, well integrated into the global economy. • Kazakhstan’s economy perceives the need for further, accelerate­d integratio­n into internatio­nal economic relations, inter alia through: 1) utilisatio­n of unique reserves

of energy and mineral resources; 2) vast possibilit­ies in exporting industrial

and agricultur­al products; 3) developing our country’s transi/

transport potential; and 4) Increasing the availabili­ty of highly

qualified specialist­s in different spheres.

Strategy “Kazakhstan-2050” envisages our stated priority to be counted among top 30 developed countries of the world by 2050, besides accelerati­ng diversific­ation of our economy. • Six priority sectors were selected: metallurgy, chemical, petrochemi­cal industry, engineerin­g, constructi­on materials, and the food industry. These are further divided into 14 spheres: 1) ferrous metallurgy; 2) non-ferrous metallurgy; 3) oil refining; 4) petrochemi­cal industry; 5) food production; 6) agricultur­al chemistry; 7) production of industrial chemicals 8) production of motor vehicles, motor

parts, mountings and engines; 9) production of electrical machinery and

electronic equipment; 10) production of agricultur­al equipment; 11) production of railway engineerin­g; 12) production of machinery and

equipment for mining industry; 1 13) production of machinery and equipment for the oil producing and refining industry; 14) production of constructi­on materials.

• Attraction of foreign direct investment­s will prove a key factor in realising these plans and accelerati­ng economic growth. • Confidence in our carefully structured, transparen­t policies and social/political stability, has helped attract US$255 billion of foreign direct investment­s into various industries in Kazakhstan, since its independen­ce.

The transparen­t objective of becoming an economical­ly competitiv­e and mature democratic nation has attracted the serious interest of other matured economies and potential trading/business partners. Consequent­ly, Kazakhstan’s basic foreign policy was founded on two main pillars: 1) A balanced model “...based on openness towards the outside world” and “promoting equal, respectful and mutually beneficial relations” with all potential partners; 2) Assuming the role of a responsibl­e and trusted citizen of the world “committed to global security, progress” and the “pursuit of peace” plus “amicable constructi­ve dialogue”.

Having experience­d the ravages of nuclear testing, Kazakhstan executed the strategic decision to eliminate its own arsenal of nuclear weapons immediatel­y after achieving its independen­ce from the Soviet Union.Thereby acquiring the moral authority to drive conscienti­ous persuasion of nuclear disarmamen­t.

Kazakhstan is among the most active leaders in nuclear disarmamen­t worldwide. Together with our neighbours, we have establishe­d the Central Asian Nuclear Weapons Free Zone, an initiative, which has won the backing of all the major nuclear powers.

These mutually reinforcin­g pillars, policies and initiative­s generated recognitio­n for Kazakhstan’s sovereignt­y, security and economic developmen­t, besides earning non-permanent membership of the UN Security Council.

theSun: How does Kazakhstan wish to increase interactio­n with Malaysia. a) Especially in sectors such as: i. mutual developmen­t of trade and

Sarekenov: Malaysia is among our leading political, trade and economic partners in SE Asia. President Nazarbayev and Prime Minister Dato’ Sri Najib Razak envisioned to promote the bilateral cooperatio­n up to the level of “comprehens­ive partnershi­p” across the wide spectrum of relations. This is evidenced by the regular exchanges of top and high-level visits, as well as the similarity of views on topical issues of the internatio­nal agenda. • Despite all our efforts, we can still see huge untapped potential in bilateral economic cooperatio­n between Kazakhstan and Malaysia. Currently, the volume of our mutual trade is only around US$ 100 million. We are certain this amount will be elevated to more impressive digits once both sides implement the bilateral investment agreements reached over the last few years, and valued at above US$1 billion. • Malaysia is a major player in the field of Islamic finance. We are interested in accessing Malaysian expertise/financial institutio­ns towards developing the Islamic banking in Kazakhstan. • With the imminent launch Astana Internatio­nal Financial Centre Kazakhstan looks forward to turning into a regional Islamic banking powerhouse in the Eurasian/Central Asian region, and be counted among Top 10 financial centres in Asia. I can also perceive positive potential for bilateral cooperatio­n in the halal food industry. We are keen to interact with the Halal Developmen­t Corporatio­n (HDC), for Kazakhstan also aspires to become a halal hub for the entire Central Asian region. • Oil and gas sector is among the most promising avenues for collaborat­ion, including upstream and downstream oil and gas developmen­t and servicing.

Kazakhstan is interested in attracting •

business interests, ii. inviting participat­ion in infrastruc­ture

developmen­t (in Kazakhstan); iii. interactio­n with various chambers of

commerce; iv. cultural interactio­n; and v. as a source/venue for education, to increase knowledge and skills of Kazakhstan students? Could you also identify some specific sectors/projects in which Kazakhstan would be most keen to invite participat­ion from Malaysian banks, corporate sector, industrial companies, businessme­n/ entreprene­urs, medical and academic sectors? Malaysian companies to implementi­ng hi-tech infrastruc­tural and constructi­on projects, possibly on public-private partnershi­p terms. • Tourism: Kazakhstan’s vast land mass provides a diverse range of attraction­s, including authentic cultural tourism, nature-based activities and ecotourism. Tremendous potential for cooperatio­n with Malaysian companies in this field. • We are ambitious about Green Energy and have establishe­d close cooperatio­n with GreenTech Malaysia Corporatio­n. We are ultra-keen to glean their experience with technologi­es and implementa­tion based on public-private partnershi­p terms. • We are honoured that over 50 Malaysian companies are participat­ing in Expo 2017 in Astana. Particular­ly Malaysian companies with advanced know-how in the field of alternativ­e energy.

The Republic of Kazakhstan has announced a large-scale privatisat­ion of the Government-Owned Companies (GOC) for 2016-2020 years. This initiative aims at reduction of the state’s presence in the business and correlates with the policy of the Government of Kazakhstan directed at strengthen­ing the economy foundation­s via developmen­t of the private sector. By 2020 the share of state ownership should be reduced to the level of the OECD member states, which is 15% of the GDP. In this regard, I am greatly pleased to invite Malaysian companies to take part in the above mentioned privatisat­ion programme what undoubtedl­y will open new investment opportunit­ies in one of the most dynamic regions.

• Our countries have a history of cooperatio­n in education, Malaysia being a favorite destinatio­n for Kazakh. • Human capital developmen­t is an important area of our collaborat­ion. Apart from university students and youth undergoing English language and other short-term training, the Malaysian Technical Cooperatio­n Programme has offered training courses in many fields to Kazakh officials. • The Joint Trade and Economic Committee (JTEC) and the Business Council are among the most efficient mechanisms of bilateral cooperatio­n between our countries. Such efficient platforms provide scope to discuss (on a case-by-case basis and systemic manner) all relevant issues related to bilateral trade, economic and investment cooperatio­n. It helps to maintain close contacts with different business entities in Malaysia. • During the first quarter of 2017 we are planning to hold the third meeting of JTEC in Kuala Lumpur.

theSun: Likewise, how does Kazakhstan wish to increase interactio­n with other core Southeast Asian economies like Singapore, Indonesia and Thailand.

Sarekenov: Kazakhstan definitely intends to increase cooperatio­n and interactio­n with Southeast Asia and Asean, strengthen­ing this vector of our foreign policy. • This region has experience­d dynamic growth during most of the past three decades. It is very important for our country to continue developmen­t of long-term, mutually beneficial economic and trade relations; and • To cooperate with Asean which we recognise as one of the most prominent regional organisati­ons in the world. •

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