Enhancing Partnership With Africa
SPEECH
YB DATO’ SRI MUSTAPA MOHAMED
MINISTER OF INTERNATIONAL TRADE AND INDUSTRY
ENHANCING PARTNERSHIP WITH AFRICA
MATRADE HALL, 3RD FLOOR, MENARA MATRADE,
KUALA LUMPUR
26 FEBRUARY 2016
Excellencies
Distinguished Guests
Ladies and Gentlemen
1. Good morning. I am delighted to be here today among so many friends and distinguished guests at this important programme to enhance the partnership between Malaysia and the countries of the African continent.
2. If I recall correctly, this is the third programme organised by MATRADE to foster Malaysia's trade with the continent, although we've also had several similar programmes over the years with respective African embassies.
Ladies and Gentlemen,
3. Malaysia’s trade with Africa as a whole has expanded from just RM12.02 billion in 2006 to RM30.1 billion in 2015, registering an average annual growth rate of 10.6 per cent. South Africa, Egypt, Nigeria and Angola are among our top trading partners and export destinations. Our main products exported to Africa were palm oil and palm oil based products, petroleum products, chemicals & chemical products, processed food and machinery, appliances & parts. Malaysia main imports from Africa were LNG, petroleum products, crude petroleum, manufactures of metal, metalliferous ores and metal scrap.
4. Apart from trade in goods, services that Malaysian companies have exported to Africa include construction and professional services, energy and power generation, environment management services, oil and gas, ICT services and education.
5. There are numerous Malaysians either serving or settled in several countries in Africa. I fondly recall my meeting with more than 70 members of the Malaysia diaspora in Nairobi last December when I was in Kenya to attend the WTO conference. Among those who attended, some were involved in trade and investment, others in industry. Eleven were professionals serving with the UN Environment Programme and the UN Human Settlements Programme.
Ladies and Gentlemen
6. The presence of a large number of Malaysians in African countries, and the thousands of students from Africa in our Malaysian institutions of higher learning, indicate a growing people-to-people connectivity between Malaysia and the African continent. It is a strong foundation on which to build a firmer economic relationship, given that in 2015, Africa accounted for just 2.1 per cent of Malaysia’s total trade.
7. The establishment of the Malaysian-African Professional & Entrepreneur Association on 17 September 2015 is a major step towards fostering these closer business ties. MAPE endeavors to become the driving force to foster a strategic Malaysia-Africa partnership through their members and also via their strategic affiliates. MAPE serves as the point of contact for Malaysian and Africans entrepreneurs and professionals exploring opportunities.
8. I hope that the exchange of MOUs today between MAPE andHi Tech Global Sdn Bhd and Kindia Resources Sarl, and between Kindia Resources and Powerus Sdn Bhd will help set the stage for more strategic business collaborations between Malaysia and African nations.
Ladies and Gentlemen
9. The African continent with its 54 countries is home to more than one billion people. Africa’s GDP is expected to grow to 5 per cent in 2016 from 4.5 percent in 2014. The integration of African economies through several regional agreements and the institution of reforms indicate the Continent’s commitment towards market liberalisation and facilitating commerce.
10. These initiatives mirror similar efforts being undertaken in ASEAN. The ASEAN Economic Community came into effect on January 1 this year. The AEC aims to create a single market and production base in the region. As a single entity, ASEAN currently is the 7th largest economy in the world, home to a consumer market of more than 620 million people and a combined GDP estimated at US$2.5 trillion. By 2020, ASEAN's GDP is forecast to nearly double, to USD 4.7 trillion.
11. While the AEC opens up a market of 620 million consumers, the Trans-Pacific Partnership Agreement or TPPA -- which Malaysia and 11 other participating nations officially signed on 4 February 2016 in New Zealand -- will enhance opportunities in a market of 800 million.
12. The regional economic integration in Africa, in ASEAN and across the Asia Pacific will bring immense benefits and opportunities for the business community, particularly those in Africa and Malaysia. I urge African entrepreneurs and corporations to view Malaysia as their "gateway" to these huge markets in ASEAN and across the Asia-Pacific region. Malaysia offers unmatched advantages to those seeking to do business in this part of the world. These include our strategic geographic location, our pro-business government policies and our unparalleled connectivity.
13. In closing, I hope this programme has provided the platform to share knowledge and experiences built over the years to further enhance Malaysia-Africa business cooperation, and create new and profitable market opportunities. I wish all present here every success in your business endeavours in Malaysia and in the African continent.
