Economic And Trade Links To Strengthen Malaysia-Oman Ties

Economic And Trade Links To Strengthen Malaysia-Oman Ties

MUSCAT (Oman), Jan 19 (Bernama) -- Having enjoyed close relationships as Muslim nations in the past years, Malaysia and Oman can further strengthen ties by focusing on economic and trade linkages going forward.

In making this call, International Trade and Industry Minister Datuk Seri Rafidah Aziz said there was currently unbalanced two-way trade which favoured Malaysia.

"We have come to West Asia because Malaysia believes that there is much potential for deepening bilateral trade and investment engagement with countries in this region, specifically Oman," Rafidah said.

"The volume of trade (between Malaysia and Oman), though increasing, is relatively small, making up only 0.3 percent of Malaysia's total trade," she said, adding that exports to Oman currently accounted for less than one percent of Malaysia's total exports.

"There are certainly immense opportunities for Omani companies to source for more products and services from Malaysia," the minister said at the "Malaysia-Oman Business Opportunities" seminar held here today.

The seminar was organised by Malaysia External Trade Development Corporation (Matrade) in conjunction with the trade and investment mission to West Asia led by Rafidah.

The mission, comprising 106 representatives from the public and private sectors, covers the three key cities of Sharjah in the United Arab Emirates, Kuwait City in Kuwait and Muscat in Oman.

Rafidah said Malaysia, as an industrialising nation with an open economy, has established trade relations with more than 200 countries and could offer Oman a variety of good qualilty products.

"Malaysia offers a wide range of globally accepted quality products such as electrical goods and appliances, furniture, iron and steel products and processed food and beverages," she said.

"Malaysia is not only an exporter of quality merchandise but also a provider of wide range of services which include construction, finance, information and communications technology, tourism, health and education."

Oman is Malaysia's third largest trading partner among members of the Gulf Cooperation Council (GCC) countries.

Total trade between the two countries grew from US$28.1 million (US$1.00=RM3.26) in 1995 to US$1.06 billion in 2006.

During this period, Malaysia's exports to Oman increased from US$26.4 million to US$108 million and imports expanded from US$1.7 million to US$956 million.

Malaysia's major exports to Oman in 2006 were palm oil at 32.8 percent, manufactures of metal (14 percent), machinery, appliances and parts (11.9 percent), electrical and electronics products (8.5 percent), iron and steel products (8.3 percent), and processed food (6.0 percent).

Major imports from Oman were crude petroleum at 99.7 percent and non-metallic mineral products at 0.1 per cent.

-- BERNAMA