Kazakhstan, A Young Country With A Big Future

By Fadzli Ramli KUALA LUMPUR, Jan 20 (Bernama) -- Not many would think that a country that gained independence only about two decades ago could grow into one of today’s most rapidly developing nations. The Republic of Kazakhstan has become an economic powerhouse as one of the world's leading energy producers, with natural resource riches such as oil, gas and uranium. Recently, this writer had the opportunity to talk to the Kazakhstan Ambassador to Malaysia, Beibut B. Atamkulov, on bilateral relations between the countries at the Kazakhstan's Embassy here. KAZAKHSTAN Kazakhstan is located in Central Asia, deep in the Eurasian continent, with a population of more than 16.6 million. Its original capital city was Almaty, before being replaced by Astana in 1998. It is the biggest landlocked country in the world -- entirely enclosed by land, whose only coastline lies on closed seas -- with a territory of more than 2.7 million square kilometres. Atamkulov says 44 percent of Kazakhstan is desert. The rest is steppes at 26 per cent followed by semi-deserts (14), forests (5.5) and others. "There are 8,500 big and small rivers in the country, with the longest rivers being the Ural and Emba, which flow into the Caspian sea, and Syr Darya, which flows into the Aral sea. "We have 48,000 lakes in the country. Among the largest are Aral, Balkash, Zaizan, Alakol and Tengkiz. The largest part of northern coast and half of the eastern coast of the Caspian sea, the world's largest lake, belongs to Kazakhstan," he said. "Our country has significant reserves of oil and gas concentrated in the western region, and the republic is one of the largest oil-producing countries in the world," Atamkulov says. KAZAKHSTAN'S ECONOMY The country has the 9th largest oil reserve in the world and ranks 19th in terms of production. It also has the world's largest chromium reserve and is third in production. "We also have the second largest uranium reserve in the world, and are the third largest producer. We are in the world's top 10 in zinc, lead, silver, iron and gold reserves. "These vast resources help our economy so much by boosting our main economic sector with mining and metallurgy, chemical and petrochemicals, machinery, construction and pharmaceutical," he said. Besides the mineral reserves, the country is also enjoying a promising economy from the livestock industry, because of the vast areas of steppes in the country. Kazakhstan achieved a Gross Domestic Product (GDP) of US$146.5 billion in 2010, and GDP per capita of US$9,009 in the same year. Kazakstan received US$ 18 billion in Foreign Direct Investment (FDI) for 2010, and US$9.9 billion as of the second quarter of last year. From 1993 to 2010, Atamkulov said, the Netherlands is the country that contributes the highest FDI to Kazakhstan, with 23 per cent, followed by the United States at 16 per cent, United Kingdom at 8 per cent, France at 6 per cent, Italy at 4 per cent and Austria at 2 per cent. Russia is Kazakhstan's top trading partner, with 18 per cent of all trade Turnover, followed by China at 16 per cent, Italy (12), France (6), Netherlands (5), Germany (4), and Austria (3). TRADE WITH MALAYSIA Atamkulov said this year Kazakhstan hopes to achieve RM500 billion in trade with Malaysia, as against RM300 billion last year. "Rubber, furniture, seafood and tropical products are the promising areas. We are optimistic of business engagement to take place with several Malaysian companies. "Currently there are 60 Malaysian companies investing in Kazakhstan," he said. Malaysian investors are set to undertake several major projects in Kazakhstan -- for example, Petronas' venture into oil and gas, Genting Group's plan to build a power plant, and a Malaysian financial institution’s plan to set up an Islamic bank. Last year, Malaysian company Melewar Integrated Engineering Sdn Bhd entered into a memorandum of understanding with Kazmy Steel Company, to develop and build a plant to manufacture steel re-bars in Almaty. Atamkulov said Kazakhstan is ready to collaborate with Malaysia in exploring the possibility of constructing nuclear power plants to generate electricity. "Malaysia, like Kazakhstan, has oil and gas resources, but in the future, these resources will decline. So, we created a programme to explore new alternatives for generating power. Nuclear is one of them," he said. EXPLORING THE SPACE TOGETHER On Oct 10, 2007, the first Malaysian cosmonaut, Dr Sheikh Muzaphar Shukor, was launched to the International Space Station from Baikanor Space Centre, Kazakhstan, in an agreement between Malaysia and Russia. "The launch has become a landmark in Malaysia's aerospace industry. Now we want to work together with Malaysia so this country can take the next step in the aerospace industry," he said. Atamkulov said it is important that bilateral relations between Kazakhstan and Malaysia are strengthened to benefit both countries. "The people in the two countries have a lot in common, so we must use this common ground to work together to rapidly develop both of our countries. "I strongly hope our relationship will last many years to come," he added. -- BERNAMA