Malaysia-Zim economic co-operation brewing

MALAYSIA has expressed interest in building stronger bilateral economic co-operation with Zimbabwe and the Southeast Asian island nation is keen on creating opportunities for investors in both countries.

Trade between Zimbabwe and Malaysia, the world’s 27th biggest economy, remains low with the former’s exports to Malaysia peaking at $15,6 million in 2014, while imports reached a high of $30 million in 2015.

However, ZimTrade said the demand for shelled garden peas in Malaysia increased last year and exporters should take advantage of that to earn the country the muchneeded foreign currency.

Malaysian imports of fresh peas rose by 29 percent from $5,9 million in 2014 to $7,7 million in 2016.

ZimTrade chief executive Mr Allan Majuru said Malaysia’s trade with Zimbabwe is still low, but growing.

Malaysia’s Deputy Chief Minister Datuk Ahmad Zakiyuddin Abdul Rahman told delegates attending a network session of the Malaysia-Zimbabwe Business Network early last week that the South East Asian country is open to economic cooperation between his country and Zimbabwe.

This falls in line with President Mnangagwa’s vision of reintegrating Zimbabwe into the global business community following decades of isolation and economic stagnation.

“The result of (a good) environment and political movement has created an enthusiastic feeling for business representatives from Zimbabwe to be more aggressive in new opportunities in Malaysia.

“This (has) echoed their business interest to find opportunities in Kuala Lumpur, Johore Bharu and also Penang,” said the Deputy Chief Minister Ahmad.

He was addressing delegates during the business matching session at St Giles Wembley Hotel in George Town last week.

“Opportunities are everywhere. We are willing to work with representatives from Zimbabwe. We would like Zimbabwean investors to do business in our country and vice versa,” he stressed.

The business matching session in Penang, Malaysia, saw some 100 business representatives from Zimbabwe taking part in the two-day match up event, which was organised by Invest Penang.

Representatives from Invest Penang shared information like the Penang’s Talent Initiative (Preparing Talent for Initiative 4.0).

The representatives also briefed the Zimbabwean delegation on Penang Cat Centre, Penang Future Foundation, Scholarship Malaysia Master Programme and Penang Affordable Housing during the hour-long question and answer session.

Another similar event was held in Johore Bharu, also in Malaysia.

The Malaysian economy continues to perform strongly, with higher than anticipated growth of 5,4 percent in 2017, and a projected growth rate of 4,8 percent for 2018 and 2019.

The growth is being driven by strong global demand for electronics, increased demand for commodities such as oil and gas, an improving labour market, a pro-cyclical budget and ample infrastructure spending.

Malaysia has one of the highest standards of living in Southeast Asia and a very low unemployment rate of 3 percent. However, the New Economic Model introduced by the current Prime Minister Najib seeks to improve the Malaysian economy further, by doubling per capita income by 2020.

Zimbabwe is also pursuing Vision 2030 which seeks to turn the Southern African nation into a middle-income economy in the next twelve years.

The 11th Malaysia Plan charts a path toward advanced economy status and greater inclusion, through a range of development issues such as equity, inclusiveness, environmental sustainability, human capital development, and infrastructure.

Zimbabwe’s agricultural sector, just like Malaysia’s, contributes to a significant portion of the country’s GDP.

Agriculture employs around 12,2 percent of the Malaysian population and contributes 8,6 percent of the country’s Gross Domestic Product. Malaysia ranks amongst the world’s main producers of palm oil, cocoa and rubber.

The country is also one of the main exporters of tropical wood. Malaysia has successfully developed its economy based on raw materials - the export of rubber and tin, significant reserves of oil and gas, copper and bauxite.

Industry contributes around 36 percent of the country’s GDP and employs 27,4 percent of the population.

Malaysia is one of the world’s largest exporters of semi-conductor devices, electrical goods and appliances, and has ambitious plans to be a key producer and developer of high-tech products, including software.

Malaysia is a major outsourcing destination for components manufacturing, after China and India. The country has attracted significant foreign investment, which has played a major role in the transformation of its economy.

The service sector employs the majority of the population (more than 60%) and accounts for 55 percent of GDP, which is due mainly to healthcare services, transport, distributive trade and tourism (4,2 percent of GDP).

Malaysia has become one of Southeast Asia’s major tourist destinations and is targeting 36 million tourists by 2020.