KUALA LUMPUR, Jan 9 (Bernama) — Malaysia-Indonesia’s total trade for 2022 is likely to exceed 30 per cent year-on-year (y-o-y) growth compared with 2021 as both countries fully reopened their borders in 2022, facilitating better bilateral flow of goods and services, according to the Ministry of International Trade and Industry (MITI).
Minister Tengku Zafrul Abdul Aziz said within ASEAN, Indonesia is Malaysia’s second-largest partner in trade and third-largest source of Foreign Direct Investment (FDI).
He said the total trade between Malaysia and Indonesia was roughly US$23 billion (USD1=RM4.40) in 2021, a 45.5 per cent y-o-y increase compared with 2020.
“For the period of January to November 2022, bilateral trade between both countries had already exceeded US$27 billion, approximately 33 per cent more than the corresponding period in 2021,” he said in a statement Sunday.
Tengku Zafrul said in conjunction with the Malaysian Prime Minister Anwar Ibrahim’s official visit to Indonesia on Jan 8-9, 2023, the ministry and its related agencies have expressed their commitment to continue facilitating the expansion of trade and cross-border investments with Indonesia.
The visit by Anwar to Indonesia is the first official visit since taking office on Nov 24.
In terms of investments, he said the ministry is looking forward to facilitate more mutual crossborder investments between Malaysia and Indonesia, where collaboration lies in areas such as pharmaceuticals, aerospace, palm-oil processing, consumer goods as well as defence and security.
He said these were reflected in the exchanging of nine memoranda of understanding (MOUs) between Malaysian and Indonesian companies with a total potential investment value of more than RM1.6 billion (US$366 million).
Tengku Zafrul said MITI has also spearheaded bilateral talks on Malaysia’s possible investments and co-investments in Indonesia’s planned new capital in East Kalimantan.
“On this, the Prime Minister also witnessed the handing over of 11 Letters of Intent by 10 Malaysian companies, who have expressed interest to contribute to the development of Indonesia’s planned new capital.
“These companies have built their expertise and credentials in areas such as E&E, automotive, manufacturing of industrial goods, waste management, smart city technology, housing, healthcare, M&E engineering, utilities and renewable energy,” he said.
He said these areas of possible mutual collaboration and benefit were discussed when MITI met with Indonesia’s Minister of State-Owned Enterprises and the Minister of Maritime and Investment Affairs.
“In the coming days, MITI also looks forward to meeting Indonesia’s Minister of Industry, Minister of Public Works and Housing and Minister of Trade,” he added.
— BERNAMA