theSun | FRIDAY JUNE 5 2009
business
PM wants broader trade base
between Malaysia and China
BEIJING: Prime Minister Datuk Seri Najib Abdul
Razak says the current narrow base of the
Malaysia-China trade should be broadened.
This is because close to 67% of Malay-
sian exports to China consist of electrical
and electronic products, and commodities,
primarily palm oil.
And similarly, 65% of Malaysian imports
from China comprise electrical and electronic
products, and machinery, appliances and
parts, he told the one-day Malaysia-China
Business Forum here yesterday.
About 900 participants attended the
forum and International Trade and Industry
Minister Datuk Mustapa Mohamed described
the response as overwhelming.
Mustapa said it was the biggest business
forum organised by Malaysia in Beijing since
2004.
In a speech where Najib provided an over-
view of trade and investment opportunities,
he began by saying that he does not intend to
walk at the same pace as his late father Tun
Abdul Razak in terms of managing bilateral
relations with China but would walk even
faster as China had advanced so much in its
development over the last three decades.
He said Malaysia views China as a stra-
tegic partner not only in trade but also in
investment.
Chinese investment in Malaysia totalled
US$134 million (RM469 million) from 2000
to 2008 while Malaysian investment in
China was 10 times more at US$1.36 billion
(RM4.76 billion). Malaysia was also the 19th
largest investor in China and the second
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Najib
delivers 27 services sub sectors like tourism and con-
struction which he had announced recently.
his
keynote He also urged the business communities of
address both countries to collaborate and take advan-
tage of the Asean Free Trade mechanism as
at the
Malaysia- the Asean Free Trade Area has a market of 570
China million people and a gross domestic product
Business exceeding US$1 trillion (RM3.5 trillion).
Forum in Given that scenario, he said it makes
Beijing business sense for Chinese companies
yesterday. seeking to expand in Asean to consider using
Malaysia as their base.
He reminded the participants of the
forum that with the Asean-China Free Trade
Agreement in progress, import tariffs will
be reduced.
For instance, China will reduce import
tariffs on more than 7,000 products from
Asean, of which the tariffs on more than 60%
of all the products had been eliminated.
By the end of 2010, the bulk of duties on
goods entering China from Asean countries
largest foreign investor from Asean. will be reduced to zero.
But Najib said the main concern today Najib said in the Malaysian context, the
is how to promote cross-border trade and tariff reduction also meant that more than
investment between the two countries. 9,000 products imported from China to
He said there is obviously scope to Malaysia would also be duty free.
expand beyond this relatively narrow range Najib said while the global economic crisis
of goods, and to include higher value and is giving cause for uncertainties, Asia will not
hi-tech products. only survive this crisis better than Europe or
the Americas, it will also take the lead to pull
Besides manufacturing, the prime min-
ister said, both countries should capitalise the world out of this downturn.
on each other’s strengths in construction, “I myself have no doubt that China will
engineering and other services sectors. be at the forefront of this revival,” he said.
Najib also encouraged Chinese investors – Bernama
13
Aviation industry to face
more turbulence this year
KUALA LUMPUR: The aviation industry is set to face more
turbulence this year.
Losses loom on the horizon even as the International Air
Transport Association (IATA) gets ready to revise its forecast
for 2009 to a further pessimistic note next Monday, in view of
the current economic difficulties worldwide.
In December last year, IATA had forecast a loss of US$2.5
billion (RM8.75 billion) for this year and had then revised it to a
loss of US$4.7 billion (RM16.45 billion) in March.
IATA director-general and chief executive officer Giovanni
Bisignani said yesterday a “substantially worse forecast” is
expected, despite the cargo market stabilising at -21% from
-22% previously and probably touched bottom.
He said cargo is important as it is the clearest indicator as to
how the economy is progressing. This is especially so, he added,
with aviation handling 37% of the world’s cargo in terms of value.
“The economy is not moving forward and we have piles of
inventory lying around. That is the reason why the industry is
still in a difficult situation,” Bisignani told a media briefing here
in conjunction with the upcoming IATA annual general meeting
(AGM) from June 7 to 9 here.
For January to April this year, cargo dropped 22.2% globally
and declined 24.7% in Asia.
He said the industry is in the “intensive care unit” as airlines’
posted a US$3.3 billion (RM11.55 billion) loss in the first quarter
of this year and will be seeing more red ink.
He said the Sept 11 tragedy was a shock to the industry, but the
financial meltdown and global economic difficulty, is a crisis.
At the AGM, more than 500 aviation industry leaders will
discuss and debate prospects and strategies to ensure the
industry emerges stronger.
Bisignani said Prime Minister Datuk Seri Najib Abdul Razak
will address delegates as part of the meeting’s formal opening
and Singapore’s Minister Mentor Lee Kuan Yew will hold a
special dialogue session with delegates on Monday.
Confirmed speakers include:
» Airline CEO Forum: Chiefs of Air Canada parent ACE, Air New
Zealand, Etihad and Swiss, as well as Lamberto Dini, former
Italian prime minister and current president of the Foreign
Relations Committee of the Italian Senate.
» Managing through the Crisis: CEOs of Jet Airways, JetBlue,
SAS and Qantas as well as James Cherry, CEO of Aéroports de
Montréal and chairman of the ACI World Governing Board
» Environment: CEOs of Cathay Pacific, British Airways, Qatar
Airways, CFM International and Tengku Sainal Adlin, vice-presi-
dent emeritus of WWF Malaysia.
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