ISLAMABAD, March 24 (APP): Board of Investment (BOI) in collaboration with Malaysian Industrial Development Authority will be holding an investment seminar in Kuala Lumpur (Malaysia) on March 31 to woo potential Malaysian investors for investment in various sectors of economy for the mutual benefit of the people of the two brotherly countries.
This was stated by Chairman Board of Investment (BOI), Saleem H Mandiviwalla while addressing a press conference here at Media Center of Press Information Department (PID) on Thursday.
He was flanked by Ambassador of Malaysia to Pakistan Dato Ahmad Anwar Bin Adnan.
Saleem H Mandiviwalla highlighting the objectives of the seminar said that the seminar is being organized for the businessmen seeking lucrative investment opportunities in power, IT, Education, Construction and Halal food sectors in Pakistan.
He said that Malaysian Industrial Development Authority (MIDA) is providing services to the Malaysian companies pertaining to overseas investment.
More than thirty (30) top ranking companies of Pakistan are attending the seminar to interact with their 250 Malaysian counterparts for building business linkages and contacts to facilitate and explore business and investment opportunities in Pakistan,he added The Chairman BOI said that a Business to Business (B2B) interaction with Malaysian investors would hopefully allow the initiation of joint ventures in trade and investment in different sectors.
He said that Malaysia is the second largest economy of Southeast Asia, next to Singapore with GDP of US $ 193 billion (2009) and per capita income of US $13,800 (2009).
He said that Malaysia made outward foreign direct investment of US $ 14 billion in 2008, out of which an investment of US $ 656.4 million was made in Pakistan, which was the second highest foreign investment in Pakistan during the year 2007-08. However, he said, the Malaysian investment declined to US $ 211.2 million in 2008-09 and 2009-10 only US $ 15.4 million FDI received from Malaysia which was mainly due to global economic recession.
He said that there are 17 Malaysian companies working in Pakistan in the sectors like Housing & Construction, IT, Energy, Agriculture and various other sectors. Due to high cost of manufacturing in Malaysia a number of Malaysian companies are relocating their units abroad.
“There is a vast potential of Malaysian investment in Pakistan. This can be exploited with the concentrated and targeted approach and the holding of the Investment Seminar is a “step in the right direction”.
He said that Malaysians are scrutinizing investment opportunities in livestock and dairy sectors, as they understand that Pakistan could cater to their halal meat and dairy demand.
Pakistan could easily export roughly $1.0 billion per annum halal meat to Malaysia if only abattoirs are upgraded to international standards.
Pakistan’s exports to Malaysia comprise cotton yarn, fabric, rice, fruits, vegetables. sports goods, carpets, fish and fish preparations, leather and leather products and chemical, etc.
Imports from Malaysia include palm oil, electronic items, timber, chemicals, machinery, animal and vegetable oil, crude rubber, cork and wood, non-ferrous metals, synthetic yarn.
Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) was signed in Nov 2007 and it came into force from January,1, 2008. It encompasses liberalization in trade in goods and services, investment, as well as bilateral technical cooperation and capacity building.
A Joint Feasibility Study to assess the viability of an ASEAN – Pakistan FTA was conducted and submitted to ASEAN Secretariat in 2008-09.
Replying to a question, Saleem H Mindiviwalla said that declining in the Foreign Direct Investment trend has stopped as during the past six months Pakistan has attracted US $ 1 billion.
Speaking on the occasion the Malaysian Ambassador to Pakistan Dato Ahmad Anwar Bin Adnan welcomed the BOI and its business delegation at the investment seminar to be held in his country on March 31.
He expressed the hope that this seminar would help boost further economic and trade relations between the two brotherly countries.
Replying to a question, he denied that Petronas a Malaysian exploration company exited due to security reasons.
He clarified that company left Pakistan due to unavailability of gas in the exploration site and the company than decided to exit.
However, he said that Malaysian companies are keen to exploit the investment potentials being offered in Pakistan in different sectors – Ftpapp