Trade & Investment
From The Report: Malaysia 2016
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As a leading force in regional integration through the ASEAN trading block, Malaysia has managed to consolidate its position as the principle gateway to South-east Asia. Though smaller in terms of market size than its neighbours, it has consistently punched above its weight in attracting foreign direct investment dollars. Despite external headwinds in 2015 and the beginning of 2016, Malaysia has managed to grow its overall trade volumes in local currency by 1.2% in 2015, reaching a total of RM1.5trn ($371.3bn), equivalent to 127% of GDP. This chapter contains a viewpoint from US President Barack Obama, and interviews with Le Luong Minh, Secretary-General, ASEAN; Thongsing Thammavong, Former Prime Minister of Laos and 2016 ASEAN Chair; Cecilia Malmström, European Commissioner for Trade; and Dzulkifli Mahmud, CEO, Malaysia External Trade Development Corporation.

Articles from this Chapter

Overview

ASEAN gateway: Despite challenges the country remains committed to regional integration
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As a leading force in regional integration and the promotion of the ASEAN trading block, Malaysia has managed to consolidate its position as the principle gateway to South-east Asia. Though smaller in terms of market size than its neighbours, it has consistently punched above its weight in attracting foreign direct investment (FDI) dollars, with trade accounting for more than 100% of its entire economy. Despite external headwinds in 2015 and the beginning of 2016, Malaysia has managed to grow its…

Viewpoint

Ties that bind: US President Barack Obama, on the Trans-Pacific Partnership (TPP) and regional cooperation
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South-east Asia holds a special place in my heart. As a boy, I lived in Indonesia, where for many years my mother dedicated herself to empowering rural women. And as president, I’ve worked to deepen America’s engagement in this region. Four ASEAN nations are already part of the TPP: Brunei, Malaysia, Singapore and Vietnam. Along with the US, it also includes Australia, Japan, New Zealand, Canada, Mexico, Peru and Chile. When implemented, it won’t just boost trade and support jobs in our 12…

Interview

Community spirit: OBG talks to Le Luong Minh, Secretary-General, ASEAN
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Interview:Le Luong Minh What is the ASEAN Secretariat’s role following ASEAN Economic Community (AEC) integration? LE LUONG MINH: It is the role of the ASEAN Secretariat, led by the secretary-general of ASEAN, to facilitate and monitor the progress in the implementation of ASEAN agreements and decisions. In the AEC, the ASEAN Secretariat, through the ASEAN Integration Monitoring Office, provides core support to monitor and track the implementation of ASEAN agreements and decisions, and…

Analysis

Regional goals: Greater cooperation is key for ASEAN’s continuing success
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During its time as chair of ASEAN in 2015, Malaysia helped to achieve its goal of launching the ASEAN Economic Community (AEC) by the start of 2016. The main challenge, long identified by economists and politicians, remains the vast difference in levels of development among the countries in the regional body, with Singapore enjoying GDP per capita of $70,000 and Myanmar still at $800 per capita, while Malaysia sits in between at $15,000. Malaysia has a strong incentive to bridge the gaps; however,…

Interview

Wider and deeper: OBG talks to Thongsing Thammavong, Former Prime Minister of Laos and 2016 ASEAN Chair
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Interview:Thongsing Thammavong Where do you see the greatest potential for expanding Laos-Malaysia trade and investment? THONGSING THAMMAVONG: Since the establishment of diplomatic relations between Laos and Malaysia 49 years ago, cooperation between the countries has continuously developed, particularly in trade and investment. In 2014 Laos-Malaysia trade reached $26m, of which Laotian imports totalled $19m; exports totalled $6m, while trade volume for the first six months in 2015 was valued…

Interview

Talking trade: OBG talks to Cecilia Malmström, European Commissioner for Trade
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Interview:Cecilia Malmström What steps can be taken to ensure that current EU-ASEAN free trade agreement (FTA) negotiations do not end in another impasse? CECILIA MALMSTRÖM: During the 13th ASEAN Economic Ministers-EU Trade Commissioner Consultations held in Kuala Lumpur on April 26, 2015, all parties agreed that events had moved on since the negotiations had been put on hold, and there was a need on both sides to take stock of these developments. Senior officials reported to ministers…

Analysis

Weighing the benefits: Free trade agreements grow in importance and scope
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Despite a heated domestic debate on the costs and benefits of the Trans-Pacific Partnership agreement (TPP), the Malaysian government has been forging ahead with its plan to join the US-led regional trade agreement, which is expected to have a high impact on export and import flows. A comprehensive document, the TPP covers 30 chapters, ranging from issues such as trade in services, investment and government procurement to labour and intellectual property. The agreement will have far reaching consequences…

Interview

Market expansions: OBG talks to Dzulkifli Mahmud, CEO, Malaysia External Trade Development Corporation (MATRADE)
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Interview:Dzulkifli Mahmud How is Malaysia looking to enhance and expand its trade relationship with China? DZULKIFLI MAHMUD: China is a very important market. It is Malaysia’s largest trading partner for the eighth consecutive year, with trade expanding by 11.1% to RM230.89bn ($57.2bn) in 2015 and accounting for a 15.8% share of Malaysia’s total trade. Our strategy to increase trade with China includes reaching out not just to first-tier cities, but also now to second- and third-tier…