Malaysia-Sri Lanka: Location advantage can help each other

Malaysia and Sri Lanka have tremendous advantages that could be built on given the strategic location of Malaysia in ASEAN and Sri Lanka in South Asia, Malaysia’s top diplomat based here said recently.

High Commissioner Nazirah Hussain told a group of young Sri Lankan Foreign Ministry cadet officers last month that Malaysia located in the heart of ASEAN provides great opportunities for Sri Lankan businesses to venture into wider regional ASEAN markets and likewise Sri Lanka offers a huge potential to enter the giant Indian market.

She said through the ASEAN Free Trade Area, which has access to a population of 567 million people in the region and a market worth US$876.1 billion, Malaysia offers a unique platform for businesses to venture.

Hussain, returning to Kuala Lumpur later this month at the end of one of the most successful tenure’s of a Malaysian high commissioner in which Malaysia for three years running became Sri Lanka’s biggest investor, was making a presentation in Colombo on “Malaysia, 50 years since Independence and its role in Southeast Asia.”

This year marks 50-years of diplomatic relations between Malaysia and Sri Lanka. Hussain added the two countries faced a similar history in many areas including international trade. (Visit to connected story elsewhere in this section on Rambutan and how it originated from Malaysia.)

She said the passage in the last 50 years was neither easy nor smooth sailing for both countries. “Along the way we faced many trials and tribulations such as the confrontation, the infamous racial clashes and the financial crisis to quote a few, which had in fact enriched our experiences,” the high commissioner said. The text of her comments was given to The Sunday Times FT this week.

She said the number of tourist arrivals in Malaysia this year would reach 22 million, slightly lower than its population but two million more than Sri Lanka’s total population. Sri Lanka, on the other hand, is struggling to maintain 500,000 tourist arrivals annually with the number seen falling by 40 percent this year due to an uncertain security situation.

“I urge Sri Lanka to seriously consider the opportunities and market access that a business relationship with Malaysia can offer. As I look at the structure of trade and investment between Malaysia and Sri Lanka, it seems obvious to me that the full potential of both countries is yet to be explored by both sides of the business community,” she said adding that Sri Lanka should take advantage of the opportunities that exist in the region and use Malaysia as a springboard to penetrate the ASEAN market and enhance business linkages.
She said Sri Lankan companies are welcome to use Malaysia as their regional hub for their business activities.

In terms of trade last year, exports from Malaysia to Sri Lanka amounted to more than 43.7 billion rupees (US$414.3 million) compared to 33.4 billion rupees (US$332.3 million) in 2005, making the country the eighth largest exporter to Sri Lanka. Imports to Malaysia from Sri Lanka totalled 2.3 billion rupees (US$22.2 million) compared to 1.2 billion rupees (US$12.6 million) in 2005.

Malaysia exports petroleum, LPG, palm oil, chemicals and chemical products, transport equipments and non metallic mineral products to Sri Lanka, while it imports textiles and clothing, processed food, crude rubber, chemicals and chemical products.

Hussain said Malaysian car manufacturers, PROTON and PERODUA, have successfully sold their models in this market. “Based on my observation here in Colombo, I believe that Malaysian made cars; both PROTON and PERODUA are getting good responses,” she added.
She told the young recruits to Sri Lanka’s foreign service that Malaysia under the leadership of the Prime Minister Dato’ Seri Abdullah Ahmad Badawi will continue to prosper and further strengthen its economy.