Kazakhstan Offers Vast Prospects For Malaysian Investors

By Norshazlina Nor'azman ASTANA, Nov 20 (Bernama) -- Natural resource-rich economy, Kazakhstan, is keen to attract more Malaysian expertise and investments to the various sectors in the country, particularly the manufacturing, oil and gas, banking, agriculture and halal industries. According to its Minister of Foreign Affairs, Erlan Idrissov, Kazakhstan sees Malaysia as a model nation in the country's development agenda, as well as a major investor and potential economic partner for its growth. He said there were vast prospects for cooperation between the two nations in the energy field, especially in oil and gas production, refining and related services. In fact, in this respect, Petroliam Nasional Bhd (Petronas) has already gained a strong foothold in Kazakhstan. MALAYSIAN INVESTMENTS GROWING "Malaysian investments are growing in Kazakhstan, especially in sectors related to oil and gas, including the supply chain... oil and gas processing is one important area and Petronas is a very familiar name in this area. "But there are other areas we are focusing on now... like manufacturing, agriculture and palm oil production, in which Malaysia has a lot of experience," he told Bernama, here recently. To date, Malaysia has investments worth an estimated US$440 million in Kazakhstan. According to statistics provided by the National Bank of Kazakhstan, Malaysian direct investment in the Central Asian republic amounted to US$1.7 million and US$500,000 in 2013 and 2012 respectively. Statistics given by Kazakhstan's Ministry of Foreign Affairs indicate a steady growth in the total trade turnover between Kazakhstan and Malaysia. In 2013, Kazakhstan's total exports to Malaysia and imports were valued at US $122.7 million, which was 14 per cent higher than the US$107.3 million recorded in 2012. Malaysia External Trade Development Corporation (Matrade) has stated that Malaysia's exports to Kazakhstan stood at US$55.12 million and imports at US$2.72 million in 2013, with total trade growing 6.2 per cent from the previous year. ENHANCE TRADE AND ECONOMIC COOPERATION Malaysian ambassador to Kazakhstan, Hidayat Abdul Hamid, however admitted that both investment and bilateral trade figures were not at satisfactory levels although there was great potential to enhance trade and economic cooperation between the two countries. It is worth noting that during an official visit to Kazakhstan by Prime Minister Najib Razak in May this year, Malaysian companies had signed three memoranda of understanding with local companies there to undertake business projects valued at US$1.1 billion. "It clearly shows our seriousness to invest in that country," said Hidayat, who also urged Malaysian entrepreneurs to introduce Malaysian brands to Kazakhstan through the franchise system. "Malaysia has a number of high quality home-grown companies, especially in the food and beverage sector... there's a good chance of them penetrating the Kazakhstan market as not many Asian franchises can be found here." HALAL AND ISLAMIC BANKING Idrissov also singled out his country's halal and Islamic banking sectors, saying that they offered huge potential to Malaysian businessmen. "The halal sector fits into our agriculture industry and we need expertise in this area. There's great demand for halal products in Kazakhstan," he said. Idrissov said Malaysia has become a successful model with regard to the development of an efficient Islamic financial system, alongside the well-established conventional banking system. He said Kazakhstan was keen to cooperate with Malaysian financial institutions to emulate their Islamic banking system. Kazakhstan was also convinced that the participation of Malaysian experts in high-tech architectural and construction projects would open a new era in Kazakhstan's progress, he added. EXPO 2017 Idrissov also said that Malaysia's support for Kazakhstan's bid to host Expo 2017 was ample proof of the special character of the bilateral relations between the two countries. In November 2012, the Bureau International des Expositions voted to select Astana (the capital city of Kazakhstan) as the host of Expo 2017. It will be Kazakhstan's first such international exhibition, and also the first time it is being held in Central Asia. Themed "Energy of the Future", Expo 2017 is scheduled to take place from June to September 2017, and is expected to attract over five million visitors and participants from more than 100 countries and 10 international organisations. "We are counting on the active participation of the Malaysian government and companies in Expo 2017, taking into account that Malaysia has great experience in the development of green technology," said Idrissov. Hidayat, meanwhile, reminded Malaysian investors that this was an opportune time for them to head to Kazakhstan as Astana would need more infrastructure and buildings to be constructed in conjunction with the upcoming Expo 2017. "This is the right time for Malaysian investors to harness opportunities in the infrastructure sector as more roads and railway tracks need to be built. They could also set their sights on the power generation sector and manufacturing of building materials," he said. Commenting on Kazakhstan's decision in July this year to provide visa-free travel for up to 15 days to citizens of 10 countries, including Malaysia, Hidayat said it would not only lure more tourists to the country but also businessmen. "In this short period (from July), we have been seeing more Malaysian businessmen from various sectors coming to Kazakhstan... this is a favourable and encouraging development as they can tap the business opportunities available in the country," he said. -- BERNAMA