Malaysia eyes 50% growth in bilateral trade with Turkey

By P Prem Kumar

KUALA LUMPUR (AA) - Turkey and Malaysia are expected to expand bilateral trade by up to 50 percent this year, supported by both countries' strong economic fundamentals, according to a Malaysian trade promotion agency.

Total trade between the two countries for the first four months of 2016 was up 60.6 percent on the previous year, a rise from $346.26 million to $555.97 million.

Malaysia External Trade Development Corporation (MATRADE) CEO Dzulkifli Mahmud told Anadolu Agency on Monday that global economic uncertainty and geopolitical tensions had not affected the growth in exports and imports between the two.

Total trade between Turkey and Malaysia for the year to December 2015 stood at $1.38 billion, with Turkish exports at $451.11 million and imports at $926.61 million.

Mahmud added that major exports to Malaysia include textiles and clothing, chemical products, machinery and processed food, while imports were comprised of palm oil and palm-based products, textiles and clothing, chemicals and chemicals products, manufactures of metal and rubber products.

"The strong trade was driven by higher Malaysian exports of, among others, palm oil and palm-based products, textiles and clothing and processed food," Mahmud told reporters in Kuala Lumpur.

Turkey-Malaysia total trade rose 54.5 percent from 2014, he said, thanks to a Malaysia-Turkey Free Trade Agreement, which came into force in August 2016.

Mahmud said the stronger momentum is expected to continue this year, with the weakening of the Ringgit granting better value for exports.

Mahmud was speaking after a seminar titled "Exploring Business Opportunities in Turkey", co-organized by MATRADE and the Embassy of the Republic of Turkey in Kuala Lumpur.

The seminar was held prior to MATRADE 's participation at the upcoming 85th International Izmir Fair in Izmir, Turkey on Aug. 26-31, 2016.

Also present was the deputy head of mission of the Turkish embassy, Ahmet Dogan, who told Anadolu Agency that a lot of untapped opportunities remain in Turkey for Malaysian companies, especially in the fields of halal processed food.

"With MATRADE’s assistance, Malaysian companies could have access to market intelligence on Turkey and at the same time they could plan a strategic approach in using Turkey as a gateway to Europe and North Africa," he said.

"This is similar to how Turkish firms look at Malaysia as an entry point for the Southeast Asian region."