KUALA LUMPUR – CARI, which focused on ASEAN Research and Advocacy, in partnership with ASEAN Business Club hosted a webinar under its flagship Invest ASEAN series on ‘Italian Industry Expertise in Malaysia’.
Moderated by Tan Sri Dr. Munir Majid, Chairman of CARI, the discussion emphasised the recently signed Regional Comprehensive Economic Partnership (RCEP) Agreement providing an outstanding platform for multinationals to tap into the regional trading area that represents 30% of the world’s GDP. Malaysia as a vibrant RCEP member provides significant trading and investment opportunities, including for the Italian businesses operating in the region.
Furthermore, Italian investments in Malaysia have ventured into various sectors like oil and gas, petrochemicals, aerospace, and the green and circular economy. Greater collaboration between Malaysia and Italy will further open Malaysia’s private sector to tap into Italy’s advanced technological expertise and expedite the momentum of Malaysia’s digital economy.
ASEAN as a Growing Trade and Investment Hub
Tan Sri Dr. Munir stated in his opening statement that the Invest ASEAN series intends to provide an active forum for influential policymakers and corporate leaders to share and identify key opportunities for growth and development in the ASEAN region through an analysis of the emerging trends affecting global business and markets.
Italy Remains Committed to Malaysia as Trading and Investment Partner
H.E. Cristiano Maggipinto stressed that Italy has pursued a strategy to strengthen relations with ASEAN, as demonstrated by the fact that, at the 53rd Session of the ASEAN Ministers of Foreign Affairs Summit, Italy’s candidacy as Development Partner of the Association was unanimously approved.
Moreover, he points out that despite the COVID-19 pandemic, bilateral trade between Italy and Malaysia in the first seven months of 2020 remained at similar levels to 2019. Italian companies currently
operating in Malaysia are found in a wide range of sectors including oil and gas, defense and aerospace, construction, automotive, and chemicals.
Government Undertaking Major Initiatives to Drive Investments into Malaysia
Dato’ Azman Mahmud stressed that Malaysia continues to be a competitive investment destination despite the global uncertainties, with US$26.4 billion worth of approved investments in the overall economy in the first nine months of 2020. Investments approved in the manufacturing sector for the period of January to September 2020 saw an increase of 16.6% in capital investments, compared to the corresponding period in 2019 which saw an increase of only 3.2%.
The Malaysian government is currently undertaking additional initiatives to drive further foreign investments, such as easing the operating of businesses through digitalising selected government services, providing tax incentives for the pharmaceutical and services sectors, and implementation of a One Stop Centre (OSC) to facilitate the entry of business travelers into the country.
Dato’ Azman also urged Malaysia’s private sector to leverage upon Italian technological expertise to help facilitate Malaysia’s digital economy, which is projected to grow by 21% between 2020 and 2025, reaching an estimated US$30 billion gross merchandise value (GMV) by 2025.
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