Malaysia Pushing to Increase Trade with Cambodia

KHMER TIMES
SOK CHAN

MATRADE Exhibition and Convention Centre. Supplied

In an effort to further enhance trade and investment and the exchange of information in the private sector between the two Asean nations, the Cambodia Chamber of Commerce and Malaysia External Trade Development Corporation (Matrade) officially signed a memorandum of understanding (MoU) last Wednesday. Dato Dzulkifli Mahmud, the chief executive officer of Matrade, talked to Khmer Times’ Sok Chan about the MoU and how the two sides can join hands to promote, spur and urge more investment to flow from Malaysia to Cambodia.

KT: What are the advantages of the MoU?

Dato Dzulkifli: The MoU is to enhance the bilateral trade, economy and investment between Malaysia and Cambodia. We [Matrade] are working closely with the Cambodia Chamber of Commerce and industry to get more businessmen from Malaysia to come to Cambodia to look for trade and investment opportunities. We would like to see how we can help to develop the Cambodian economy, in particular in sectors where we are strong. For example, in construction, engineering and services and also halal products and services.

The MoU is a platform for both parties to work together and we are going to discuss it in detail and bring more people and also take businessmen from Cambodia to Malaysia. Likewise, we will also bring Malaysian businessmen to Cambodia. In terms of training, we can help upgrade the skills of the Cambodia Chamber of Commerce and industry members and officers in Matrade.

KT: Through the MoU, will Matrade bring Malaysian investors to Cambodia?

Dato Dzulkifli: Definitely, yes. We will regularly organize seminars, business meetings and connect Malaysian companies with Cambodian companies. We will invite the Cambodia Chamber of Commerce members to go to Malaysia to participate in programs organized by Matrade, for example the international sourcing program and exhibition in Malaysia. This is a good platform for Cambodia.

KT: What have you observed about the trade between Cambodia and Malaysia?

Dato Dzulkifli: The trade between Cambodia and Malaysia has a lot of potential to grow and we would like to see how we can work together to increase trade. Now we need to have the private sector as the driver to push trade forward between two countries.

KT: How have the chambers of commerce been working to promote the exchange of trade between the two countries?

Dato Dzulkifli: The exchange of information is one of the areas we are looking into. Secondly, we are going to provide and enhance the use of e-commerce to stimulate trade between the two countries in various sectors. Thirdly, we want to encourage more visits by Malaysian companies to Cambodia and also pave the way for Cambodian companies to come to Malaysia.

KT: What are the challenges in this cooperation with Cambodia?

Dato Dzulkifli: The challenges are to provide the right information to Malaysian companies so that they can realize the full potential of trading with Cambodia. At the same time they [Malaysian companies] need to know of the risks in Cambodia. For them to have this information, and the right one, they must get it from the Ministry of Commerce and the Cambodia Chamber of Commerce. We are working closely with the Malaysian Chamber of Commerce to provide support to Malaysian companies. We are bringing the EXIM bank from Malaysia to give some Malaysian companies support on export insurance, investment and other things.

KT: Have some Malaysian companies been given the wrong information? What sort of information has been provided to them?

Dato Dzulkifli: No, they have been getting the right information. We need to disseminate more information, and the right kind, too, so that more companies increase their interest in Malaysia’s tax structure and investment incentives. At the same time, we are also striving to introduce them to the right kind of partners, here in Cambodia.

KT: Cambodia has an open trade policy in Asean, so why is the flow and exchange in trade between Malaysia and Cambodia small?

Dato Dzulkifli: Yes, it is small. But there is more room to develop and explore new areas to increase this trade. Don’t worry about the current numbers in the trade figures. We are looking at things in the long term.

KT: Is investment from Malaysia rising?

Dato Dzulkifli: The investment from Malaysia every year is increasing. We still have a lot of trust in this country.

KT: What sectors are Malaysian companies looking at in Cambodia?

Dato Dzulkifli: Malaysian companies are looking at construction, ICT, healthcare and some manufacturing. And we can expect to increase the trade volume to increase 10 percent every year.

KT: What do you think about the investment climate in Cambodia?

Dato Dzulkifli: It is very interesting and I would say very attractive for investors to come here. I can see a large number of Malaysian banks in Cambodia and that shows how important this country is to us.

KT: Cambodia has been granted duty-free access and pays no tariffs to the EU or United States. Is that an attraction for Malaysian businesses in Cambodia?

Dato Dzulkifli: You have a special tariff to the EU and with America, so this can attract investors to set up factories and manufacture products here because it is a special privilege from the US. Last June, we had a forum in Kuala Lumpur and two ministers were there and 200 Malaysians came to the forum. Today we have a program in Cambodia. I believe that Malaysian companies are interested in investing here, but I don’t know when. They have to study and they have to survey the market. Our role is to provide the information they need.

KT: Through you observations, which sector is the most popular for Malaysians to invest in?

Dato Dzulkifli: There is interest to come here to develop the country’s infrastructure and its light manufacturing sector. Also there is a lot of interest in ICT.