Free trade agreement another boost to business

Sino-Malaysian trade will reach a new high this year, said the Malaysian ambassador to China.

"In recent years, Malaysia has remained China's largest trading partner in ASEAN (Association of Southeast Asian Nations). And I am confident that bilateral trade this year will reach greater heights given that trade volume in the first seven months reached over 67 percent of the total in 2010," said Datuk Iskandar Sarudin, Malaysian Ambassador to China.

The bilateral trade relationship is deepening, he explained.

"For 2010, China was Malaysia's largest trading partner, second largest export destination and largest source of imports. And based on Chinese statistics, in 2010, Malaysia was China's eighth largest trading partner, 16th largest export destination and seventh largest source of imports," he said.

"The traditional traded goods such as electrical and electronic products, palm oil, chemicals, rubber, machinery and equipment, and iron and steel will continue to top trade between Malaysia and China," he added.

According to Chinese statistics, bilateral trade grew at an annual average of 18.9 percent over the last four years to $74.2 billion in 2010. In the first seven months of 2011, the figure reached $50.1 billion, an increase of 21.8 percent over the corresponding period in 2010.

Sarudin said there is ample room for both sides to diversify trade, particularly in areas such as new materials, energy conservation and environmentally friendly products, chemicals, pharmaceuticals, transport equipment and halal food.

"Apart from these manufactured products, trade in services particularly in areas such as business and professional services, logistics, information and telecommunication services, education and training, healthcare and tourism will further contribute towards greater economic and business collaboration between Malaysia and China," he said.

He also expressed optimism about the free trade agreement (FTA) between ASEAN and China, which was fully implemented in January 2010.

"It is an important regional integration mechanism. With over 90 percent of goods traded at zero tariff, it provides market access opportunities for all participating member states including Malaysia," he said.

"Apart from free trade in goods, ASEAN and China also concluded and implemented the agreement on service trade and investment. Both arrangements further facilitate services, investment and protection of participating member states," he added.

"All in all, the FTA opened up a new chapter for further regional and economic integration," he said. " I am confident that with the continuing efforts by both our governments and business communities, the economic impact of the arrangements will be very significant in the coming years."