Malaysia, Oman set to develop economic ties

Malaysia, Oman set to develop economic ties

There is a huge potential to develop economic and investment relations between Oman and Malaysia for mutual benefit. 

Oman Chamber of Commerce and Industry (OCCI) Director-General Mohamed al Shuraiki said there were ample opportunities available for Malaysian companies to undertake joint-venture projects in the tourism and heavy industrial sectors. 

The projects include those in the microelectronics, computer programmes and systems, vessels, aluminium, ship manufacturing and textile industries. 

Mohamed said Oman had been liberalising its economy in a bid to expand the non-oil base and make the private sector an important player in the national economy. 

He said nearly US$11bil had been budgeted for infrastructure, industrial and logistics facilities for the Sohar industrial port, which had been earmarked as a new economic zone. 

“There is an aluminium smelting plant, a port, an oil refinery, an airport as well as a petrochemical complex.  

“Some of them are already under construction while some are in the pipeline,” he said, adding that Oman's industrial sector grew by 18.9% in 2005 as compared with 17.5% in 2004. 

He said the Sohar Port would complement the Port of Salalah, a massive hub in the south of Oman that was currently undergoing a major infrastructure upgrade to maintain its position as a transshipment hub. 

The Salalah Port has been operating at near optimum capacity, having handled around 1.18 million 20-ft equivalent units (TEUs) in the first six months of last year compared with 1.08 million in the same period of 2004. 

Mohamed said there were also plans to develop the Salalah Free Zone to offer a mix of industrial and light manufacturing facilities, freight station, commercial offices, as well as retail, recreation and housing products. 

He said the Salalah Port would act as the entry-and-exit points for most of the free zone-related cargo, while US$400mil had been invested in a commercial port to be built in Al Duqm. 

“The government envisages that industrialisation will become more widespread and is creating the infrastructure beforehand.  

“With greater maritime trade, ship repairs are becoming an attractive business line and Al Duqm will have two dry-docks, for which Daewoo has been commissioned to provide consultancy and design services,” Mohamed said. 

He said the Oman government was also providing facilities and investment incentives to foreign investors to encourage them to participate in the country's development projects. 

Mohamed said although Oman and Malaysia enjoyed good relationships, the trade between the two countries did not reflect that. 

“The OCCI is making an effort to strengthen the cooperation and partnership between the businessmen and the private sector establishments. 

“We are also trying to boost the joint investments and exchange of expertise, especially in the technology, information, oil and gas, tourism and services sectors,” he said. 

Mohamed said Malaysian companies should consider setting up operations in Oman. 

“The cost of production in Oman is reasonable and would benefit them as there is a lower tax rate.  

There would be savings in transportation costs as well as reduced costs for exports to other countries in the region,” he said. 

Malaysian companies could consider investing in the production of halal foodstuff, he added. 

Mohamed said Malaysian businessmen should visit Oman to provide information on the products available in Malaysia as many Oman businessmen were in the dark.  

“If the Oman businessmen know what is available, they would be able to source it from Malaysia. We are willing to be host to the Malaysian businessmen by arranging trade meetings with their Oman counterparts,” he said, adding that OCCI hosted 70 trade delegations annually.  

Mohamed said the OCCI had been in close contact with the Kuala Lumpur Chamber of Commerce and Industry, and plans were under way to sign a memorandum of understanding soon to boost economic ties.  

BY: A. LETCHUMANAN

Source: The Star Online