Egypt Welcomes Malaysian Companies to Tap the Growing Business Opportunities There

Egypt welcomes Malaysian companies to tap the growing business opportunities there

CAIRO 11 August - The Vice-Chairman of the General Authority for Investment and Free Zones (GAFI) of Egypt, Neveen El Shafei said the investment climate in her country has improved, where the Egyptian Government’s economic reforms, over the last three years had succeeded in drawing many foreign investors to set up business there.

The establishment of GAFI is viewed as the most prominent move by the Egyptian Government to streamline investment procedures, as the body acts as a one-stop-centre for investment approvals. GAFI, which houses specialized and well-trained officers from different government agencies, acts as a one-stop-centre for investment approvals.

Malaysian companies can also leverage on Egypt’s strategic location within reach of three continents- Europe, Asia, and Africa to manufacture their products there for the Egyptian market as well as gain access into the large markets in China, Europe, North Africa, the Middle East and North America.

Egypt also has a competitive and well-trained workforce, Neveen said.

Malaysian companies could explore opportunities in a wide range of sectors that were expanding such as agriculture, automotive, manufacturing, trading, information communication technology, human capital development and resource planning, tourism, as well as syariah compliance financial structured products.

Investments from Malaysia and Asia as a whole into Egypt were still low, as the main sources of foreign direct investments (FDIs) were mainly from the Gulf countries and Europe.

Currently, 13 Malaysian companies have established their operation in Egypt including Proton Holdings Bhd, Iris Corp Bhd, Tanjong Public Ltd Co and IOI Corp Bhd. These 13 companies accounted for less than US$100 million (RM330 million) of the US$11.1billion of FDIs into Egypt in 2007. The bulk of the Malaysian investments is in the natural gas and energy sector.

Meanwhile, Suez Gulf Power S.A.E and Port Said Power East Power, both wholly-owned subsidiaries of Tanjong were capable of supplying some 2000MW or 10% to the Egyptian Grid, its Managing Director, Collin Parrish said, adding that electricity demand in Egypt is expected to increase significantly over the years.

On Proton’s presence in Eqypt, the Brand General Manager of Proton Egypt, Habib Ibrahim Habib said, sales of Proton Gen2 model was encouraging, and the company targets to sell more Proton models like the Proton Perdana, Proton Waja and Proton Persona, before year-end. Proton Egypt is a joint venture between Proton Holdings and a local Egyptian car distributor.

On trade, the out-going Malaysian Trade Commissioner in Egypt Mr.Idzham Abdul Hamid, said the bilateral trade is in Malaysia’s favour, where last year Malaysia exported some US$476 million to Egypt, of which palm oil constituted 73% of the total trade value, while imports which were mainly crude fertilisers and copper materials amounted to US$48.6million.

- The Star