By R. Ravichandran
KUALA LUMPUR, July 19 (NNN-Bernama) — The ongoing conflict in Afghanistan has not stopped the south-central Asian country from continuing to work towards wooing foreign investment, including from brotherly countries like Malaysia.
Afghanistan ambassador to Malaysia Dr Moheb Rahman Spinghar, who took his posting here in September 2019, has since been working tirelessly towards that mission as well as to increase the volume of bilateral trade between Kabul and Kuala Lumpur and strengthening the relations in other fields.
He stressed that in any countries with conflict, there is always various opportunities present, and the Malaysian business community should at least try to get to know and explore these opportunities so that they can enter at a time and environment conducive for them.
Spinghar hopes that some agreements could be signed between the two countries, especially in the field of higher education, trade and business, in the near future.
The ambassador, in an interview with Bernama, said that he had pointed out the various trade and business opportunities that are available for Malaysians in the current ongoing reconstruction process in Afghanistan.
“In this period of time, Afghanistan is seeking for more foreign investments from countries like Malaysia in its efforts to further strategise and develop its nation in hopes of achieving a brighter future,” he said.
The landlocked nation of 35 million people is emerging from decades of civil war with ongoing reconstruction and rebuilding despite domestic political and security challenges. Many Afghans are pinning their hopes for a long-lasting peace on the ongoing peace talks with Taliban – which at times has its own challenges – to move forward.
Among others, the ambassador said that Malaysian investors are welcome to invest in its mining industry as it has up to US$3 trillion worth of untapped mineral wealth, which has huge potential to reshape the country’s future economy, prosperity, and living standards of its people.
Afghanistan is reported to have significant deposits of iron ore, gold, copper, niobium, cobalt, molybdenum, aluminium and silver.
Other sectors for potential investment include agriculture, Agro-processing, infrastructure development, and information technology.
“Investors in these sectors will enjoy direct ownership of their investments and long-term lease title of land,” Spinghar said.
Besides that, the Ambassador said that it was imperative for Malaysia to have a Consulate or Embassy in Kabul to strengthen bilateral relations and also for visa facilitation, especially for businessmen keen on seeking opportunities in Malaysia and Afghan students who wishes to study in Malaysia.
“We suggested that the Malaysian government appoint a Non-Resident Ambassador to Kabul as the first step to boost bilateral cooperation between the two countries, particularly to expand trade and businesses,” he said.
Currently, Afghans, especially students and businessmen, need to travel to India or Dubai to obtain visa to Malaysia.
Spinghar pointed out that the trade relationship between Malaysia and Afghanistan has only been growing stronger – mainly due to palm oil and palm-based agriculture products, which are Malaysia’s biggest exports to Afghanistan.
Agricultural products account for 73.5 per cent of Malaysia’s total imports from Afghanistan. Other items that Afghanistan imported from Malaysia include transport equipment, electrical and electronic products, optical and scientific equipment, and machinery equipment and parts.
On April 8, 2021, the Ambassador paid a courtesy call on the Minister of Plantation Industries and Commodities (MPIC) Dr Mohd Khairuddin Aman Razali.
Following that meeting, Mohd Khairuddin was reported by Bernama as saying that Afghanistan also welcomed the proposal to import more Malaysian palm oil and both sides agreed to explore the potential in expanding Malaysia’s direct palm oil exports to Afghanistan – which currently stood at 75,000 tonnes a year – to 150,000 tonnes a year.
“The understanding thus opens a new chapter for Malaysian palm oil to be marketed to Central Asia with Afghanistan as the ‘golden gateway’ to other countries in the region such as Turkmenistan, Uzbekistan, Kyrgyzstan, Tajikistan and even to Kazakhstan and other countries through the Chabahar port in Iran,” he said in a statement.
During the meeting, the two sides also discussed the potential to make Afghanistan a gateway for Malaysia’s other Agri-commodity exports such as rubber, pepper, cocoa and timber.
Both parties have agreed to sign a Memorandum of Understanding (MoU) for the purpose soon.
Despite the absence of direct access between Kuala Lumpur and Kabul for easier access to exports-imports, developments in the region in recent years have made it possible for Afghanistan to export goods to Malaysia and other countries.
In October 2018, an agreement was signed between Iran, India and Afghanistan on the transit of goods via Iran’s southeastern port city of Chabahar.
The Lapis Lazuli transport corridor which opened in 2018, a trans-regional corridor encompassing railways, highways and maritime routes connecting five countries – Afghanistan to Turkey via Turkmenistan, Azerbaijan and Georgia – is another possible route to transform trade.
It connects Afghanistan to Central Asia, Europe and even China through its Belt and Road Initiative (BRI) project.
Spinghar explained that Afghanistan’s economy has improved significantly in the last decade due to the infusion of billions of dollars as International aids and assistance from Afghan expatriates.
Afghanistan’s main exports are carpets and rugs (45 per cent of total exports); dried fruits (31 per cent) and medicinal plants (12 per cent). Main export partners are Pakistan (48 per cent of total exports), India (19 per cent) and Russia (9 per cent). Others include Iran, China, the United Arab Emirates (UAE), and the European Union (EU).
In May 2017, the Malay Chamber of Commerce Malaysia (MCCM) and Afghanistan Chamber of Commerce & Industries (ACCI) signed a memorandum of understanding to establish the Malaysia-Afghanistan Business Council to help push forward business and trade ties.
— NNN-BERNAMA
