1. Malaysia and Canada are deepening their economic ties, with bilateral trade reaching RM8.05 billion as of August 2024, marking a significant 41 per cent increase year-on-year, according to the Ministry of Investment, Trade and Industry (MITI).
2. MITI reported that bilateral trade surged by 25 per cent following Canada’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which also facilitates duty-free access for goods, eliminating tariffs on Canada’s key exports.
3. “This growth was driven by a 68.1 per cent surge in Malaysian exports to Canada and a 16.8 per cent rise in imports from Canada, with key sectors such as clean technology, agriculture, and aerospace fostering closer trade relations,” the ministry said in a statement to Bernama, here.
4. Additionally, MITI highlighted that the halal industry presents new opportunities for collaboration between Malaysia and Canada.
5. The Canadian halal market, valued at 1 billion Canadian dollars (C$1=RM3.12), offers significant potential for Malaysian producers, particularly in food and beverage products.
6. “With over 1.15 million Muslim residents in Canada, the demand for halal products is rising.
7. “Malaysia can play a crucial role in meeting this market’s needs through strategic cooperation and increased investment in the halal sector, thereby bolstering its position in the global industry,” MITI added.
MALAYSIA IN TALKS FOR NEW FREE TRADE DEALS TO BLUNT IMPACT OF GEOPOLITICAL CONFLICTS
1. Malaysia is currently negotiating several new free trade agreements (FTAs) that would help to diversify its trade and investments, and mitigate the impact of conflicts in the Middle East and the Russia-Ukraine war.
2. The FTAs under negotiation include the Malaysia-United Arab Emirates Comprehensive Economic Partnership Agreement and the Asean-Canada FTA, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told the Dewan Rakyat on Monday.
3. “In addition, Malaysia is also in negotiations to upgrade the Asean Trade in Goods Agreement and the Asean-China FTA to open markets for more stable and competitive Malaysian exports,” he said.
4. Malaysia has signed and implemented 16 bilateral and regional FTAs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that covers 11 countries from Australia to Mexico.
5. The government is also in talks for a Malaysia-European Free Trade Association Economic Partnership Agreement.
6. Zafrul emphasised that current geopolitical tensions had minimal short-term impact on Malaysia, as Russia and Ukraine accounted for only 0.5% of Malaysia’s total trade in 2023, while trade with Middle Eastern countries involved in conflicts is also relatively low.
7. “Malaysia adheres to a non-aligned policy, avoiding alignment with any economic or military bloc in addressing geopolitical issues,” he said. “However, as a trade-dependent country, international geopolitical tensions have the potential to affect the economy in the long term.”
8. To blunt the impact, Malaysia is strengthening ties with major trading partners such as Asean, the US, China and the EU, as well as exploring new markets in Central Asia, South America and Africa, Zafrul said.
9. He added that the government is also encouraging local industries to increase the use of domestic resources and reduce reliance on foreign imports, particularly through Asean nearshoring — the outsourcing of business processes to a nearby country.
Source:
https://themalaysianreserve.com/2024/10/11/malaysia-canada-economic-ties-strengthen-with-41-trade-increase/
https://www.mida.gov.my/mida-news/malaysia-in-talks-for-new-free-trade-deals-to-blunt-impact-of-geopolitical-conflicts-zafrul/
