Matrade Expects Positive Growth In Trade With Saudi Arabia

KUALA LUMPUR, Jan 10 (Bernama) -- The Malaysia External Trade Development Corp (Matrade) expects bilateral trade between Malaysia and Saudi Arabia to experience positive growth this year. In 2010, bilateral trade amounted to RM9.32 billion while for the first 10 months of 2011, it rose 47 per cent to RM10.5 billion compared with the corresponding period in 2010, said its trade commissioner to Saudi Arabia, Amran Yem. "Currently, there is a lot of demand for various sectors in Saudi Arabia that we could tap into like construction, food and beverages and automotive sectors," he told reporters after a seminar on "Kingdom of Saudi Arabia -- The Emerging Market for Malaysian Companies". Saudi Arabia recently unveiled its 2012 budget totalling US$184 billion, the biggest budget in its history. The huge allocation is consistent with the kingdom's double-pronged economic development plan to develop its non-oil sector and at the same time to improve the living standards of its citizens. As a result, demand is expected to increase for foreign products and services that could not be met by domestic suppliers in areas such as construction, oil, gas and petrochemicals, and healthcare. However, Amran said, a lot of local companies are still unaware of the huge investment opportunities in the kingdom as they always look at Saudi Arabia as the last investment choice. Saudi Arabia, he said, offers a better business opportunity than European countries as the Saudis usually prefer to do business in huge volumes. He also urged local financing companies to be more flexible to local investors who wish to invest outside Malaysia. "This problem is the main constraint for investors to make loans for the purpose of international investment," he added. (US$1=RM3.15) -- BERNAMA