Cooperation Between Turkey and Malaysia to Expand

OVERCOMING BARRIERS TOGETHER DURING THE PANDEMIC

Cooperation Between Turkey and Malaysia to Expand

The CEO of the Malaysia External Trade Development Corporation (MATRADE), Rosmizah Mat Jusoh, stated:"Our total trade volume increased from $1.68 billion to $2.83 billion between January and September 2021. Companies on both sides have been strongly encouraged to establish long-term commercial relationships."

"For Malaysians, Turkey is not just a destination famous for its cuisine and attractions. Turkey also offers extraordinary opportunities for Malaysians to expand their businesses internationally. Malaysian businesses see Turkey as a gateway."

Positive and Complementary Trade Relations

The trade relationship between Turkey and Malaysia has been very positive for decades. A free trade agreement signed on August 1, 2015, has significantly contributed to the trade performance, as bilateral trade rapidly moves towards excellent levels.

Strategically, the bilateral trade relations between the two countries lean more towards complementary trade rather than competitive trade. Most of the exports and imports between the two countries consist of products that complement each other's market needs.

Although the trade balance favors Malaysia, the majority of products exported to Turkey are intermediate goods needed by Turkish manufacturers for domestic sales and exports. Similarly, Malaysia imports raw materials and finished goods from Turkey to meet the needs of its local industries and consumers.

Despite global economic uncertainties and the impact of the COVID-19 pandemic, bilateral trade between Malaysia and Turkey continues to record positive growth. Between January and September 2021, the total trade volume rose by 72.8%, increasing from $1.68 billion to $2.83 billion. Companies on both sides have been encouraged to intensify marketing and promotional efforts to foster long-term commercial ties.

Rosmizah Mat Jusoh’s Insights

In an interview, the MATRADE CEO answered the following questions:

- How do you evaluate Malaysia's economy, particularly its role in the Islamic finance sector?"Thanks to Malaysia's experience in Islamic finance, other Muslim countries can consult us and benefit from our expertise. Islamic finance is one of the strong pillars supporting Malaysia's economy."

- Malaysia is a multicultural and multi-religious society. What is the secret to this peaceful coexistence?"I believe mutual respect and an environment conducive to tolerance play a significant role in the peaceful coexistence of our society."

- Recently, Malaysian companies have shown great interest in Turkey. How do you assess this trend?"Turkey is not just known to Malaysians for its TV series, historical sites, magnificent attractions, and delicious cuisine. It also offers outstanding business opportunities for Malaysians to expand their operations globally. Malaysian businesses view Turkey as a gateway to Europe and surrounding regions."

- What message would you like to convey to the Turkish people?"We are pleased with the growing interaction and would like to encourage more Malaysians to visit Turkey and more Turks to visit Malaysia. We invite the Turkish people to learn more about Malaysia and explore our country, which offers a wide range of experiences, from vibrant urban life to majestic tropical landscapes."

Opportunities for Further Collaboration

There is significant potential to further enhance the trade relations between Malaysia and Turkey. Many sectors, fields, and products hold promise for deeper integration. The strongest potential lies in:

1. Consumer Markets: Many Turkish brands have great potential to succeed in Malaysia and its neighboring regions. Turkish companies are encouraged to prioritize this market and establish commercial activities in the region. MATRADE Istanbul is ready to facilitate trade relations between the two nations.

2. Malaysia as a Gateway: Despite being a smaller market compared to Turkey, Malaysia serves as a gateway to a much larger ASEAN market with over 680 million people. Turkish companies investing in Malaysia can benefit from proximity to raw materials and access to this vast market.

3. Lifestyle Consumer Products: Malaysian consumers are increasingly interested in lifestyle consumer products, along with heavy industrial goods like iron, steel, machinery, and equipment.

Future Plans for Turkey

MATRADE Istanbul will continue promoting Malaysian products and services in Turkey. For 2022, several programs and activities, both physical and virtual, are planned. MATRADE aims to collaborate with all relevant parties in Turkey to increase trade volume and achieve the $5 billion trade target.

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