Construction, Halal And Services Among Potential Sectors To Tap In Saudi Arabia

By Azizul Ahmad PUTRAJAYA (Malaysia), Feb 28 (Bernama) -- Construction and halal products, as well as services, are among the potential sectors for Malaysian businesses to seize further opportunities in Saudi Arabia. Malaysian Minister of International Trade and Industry, Mustapa Mohamed, said Malaysia could now hope to export not just more halal goods but also expertise in the construction and property development and know-how in manufacturing and oil and gas services to Saudi Arabia. "There are also opportunities in healthcare and education and for sub-sectors -- processed food, palm oil, furniture, electrical and electronics," he said. Mustapa said this after the signing of the memorandum of understanding (MOU) between Malaysia and Saudi Arabia on economic cooperation here Monday. The MOU aims to promote cooperation in trade and investment, particularly in five key areas -- construction, healthcare, education, small and medium enterprises and halal industry. The cooperation between the two governments, as outlined under the MOU, will cover exchange of information and experience, visits involving experts and professionals as well as to host seminars and meetings to further promote opportunities available in two countries. The MOU was signed in conjunction with the state visit of Saudi Arabia's King Salman Abdulaziz Al Saud, the Custodian of the Two Holy Mosques. Mustapa and Saudi Arabia's State Minister Dr Ibrahim Abdulaziz Al Assaf signed the MOU. Malaysian Prime Minister Najib Razak and King Salman witnessed the signing of the MOU. Other MOUs signed were on labour and human resources, scientific and educational cooperation and on exchange of news. "The construction sector is big, not only on infrastructures such as trains... but specifically for Saudi Arabia now is on housing. "Saudi Arabia's requirements are huge. Some Malaysian companies have already approached Saudi Arabia's housing minister who has a big programme to build more houses in the country," Mustapa told Bernama. The last Saudi ruler to visit Malaysia was King Abdullah in 2006. King Salman's trip to this region, starting with Malaysia, was reportedly aimed primarily at enhancing trade ties with the world’s fastest-growing economic region as the kingdom seeks investment to fuel its Vision 2030 economic diversification plans. "Saudi Arabia long-term prospects are good. We believe the challenges that they are facing on oil price are temporary. "King Salman's visit to Malaysia is significant. This good bilateral relationship will be translated into concrete outcomes. "More Saudi Arabia investments can be expected to come to Malaysia, and as trade improve, subsequently bring benefits to the rakyat (people), in term of businesses and job opportunities," he said. Mustapa said following the signing of the MOU, a working group to identify methods to boost trade and investment between Malaysia and Saudi Arabia would be set up. The kingdom is Malaysia's second largest trade partner in West Asia after United Arab Emirates. Malaysia' total trade with Saudi Arabia increased by 27.8 per cent to RM13.99 billion last year from RM10.95 billion in 2015. Trade data from Malaysia External Trade Development Corp showed Malaysia’s exports declined by 1.4 per cent to RM3.37 billion (2015:RM3.42 billion) while imports increased by 41.1 per cent to RM10.62 billion (2015:RM7.53 billion). The kingdom's most important asset, oil company, Saudi Aramco is expected to sign an agreement for investment worth US$7 billion (US$1 = RM4.44) to collaborate in Malaysia's Refinery and Petrochemical Integrated Development project run by Petroliam Nasional Bhd here Tuesday. --BERNAMA