Malaysia looks to strengthen economic cooperation

“For better cooperation, we need to know each other first. It is very similar to love. To love someone, you must know him well first. Love comes later. Now we are here. But you can also come to Malaysia,” said Syed Ali Alattas, president of the Malaysia Chamber of Commerce, who led the delegation.
“The future is very bright. What we need is cooperation and understanding each other.”
“Investments are mainly concerned with the private sector….Asean countries are like brothers and sisters. Perhaps Malaysia will become the biggest investor in Myanmar in the future. Who knows?”
During the trip, which lasted from May 26 to May 29, the team had discussions with their Myanmar counterparts. Another Malaysian business delegation will visit Myanmar in August.
Alattas said the rubber, garment, construction, property, engineering, ICT and infrastructure sectors are drawing huge interest from Malaysian businesses. However, regulatory conditions and land are the biggest concerns for Malaysian investors eyeing investment opportunities in the newly-opened country.
“Regulations to build factories, taxation and money transferring (bringing in and taking out money), transportation, shipping ports and a shortage of skilled workers are our major concerns. Land is also an issue, as apartment rents are very high in Yangon. You will need proper management to solve them,” he said, suggesting implementation of more housing projects.
He noted that the visa-free agreement between the two countries should be signed as soon as possible.
“I came here with a visa. But I can go to all the other nine Asean countries without any visa. The first step should be visa-free [travel],” he said.
As of April 30, 51 Malaysian firms have been allowed to invest US$1.66 billion in Myanmar, accounting for 2.94 per cent of the total foreign direct investment. Malaysia ranked 7th on the top investors list, with an inflow of $6.72 million investment in the 2014-15 fiscal year, which ended on March 31. In April, Myanmar allowed a $3.57 million investment from a new entrant from Malaysia.
Alattas sees the opening of Myanmar’s banking sector as a huge opportunity.
“Now, as you have opened up the banking sector, Maybank will be here. I think you should invite more banks. I suggested we cooperate in opening SME [small and medium enterprise] banks to support SMEs, which account for more than 95 per cent of Myanmar and Malaysia businesses,” said Alattas.