Russia Expects Trade With M'sia To Reach US$2.4 Billion In 2012

By Santhia Panjanadan KUALA LUMPUR, March 14 (Bernama) -- Russia, which is looking to further enhance bilateral economic cooperation with Malaysia via joint ventures in small and medium enterprises (SMEs) sector, anticipates total trade between the two countries to return to pre-crisis level of US$2.4 billion this year. The total trade between Russia and Malaysia amounted to US$1.9 billion in 2011. Ambassador of the Russian Federation to Malaysia, Lyudmila Georgievna Vorobyeva said the country is not satisfied with the existing level of export trade as there is a vast gap. She said there is enormous potential to expand bilateral trade given the economic strength of the two countries. She said there is a need to increase engagement at the SME level between the two nations, particularly in high technology and biotechnology, and urged the business community to look into exploring this sphere. "Three quarters of total exports between the two countries came from Malaysia (to Russia) and only one quarter was from Russia to Malaysia. "Last year, Russia's turnover was US$855 billion and Malaysia's share of the amount was only 0.31 per cent. "We are not satisfied with this because there is a big room for improvement...there are tremendous existing opportunities that can be tapped," Vorobyeva told Bernama, Wednesday. Malaysia is one of Russia's main trading partners in Southeast Asia while Russia is Malaysia's leading trading partner in the Commonwealth of Independent States region. The two countries should also focus on foreign direct investments (FDIs) as this is greatly lacking, Vorobyeva stressed, adding that there are hardly any Malaysian company's projects in Russia. "We need to narrow down this gap," she said. Diplomatic relations between the USSR and Malaysia were established on April 3, 1967. Malaysia declared its recognition of the Russian Federation as the successor to the Soviet Union on Dec 31, 1991. Russia's exports are mostly dominated by chemical fertilisers and other chemical products as well as minerals, while imports mainly consist of electrical and electronic appliances, palm oil and palm oil products. Vorobyeva also said Russia aims to reciprocate Malaysia's 30-day free visa travel given to Russians, to make it easier for Malaysians to visit the federation. "We hope to finalise the agreement this year and this move will indirectly spur further cooperation," she said. -- BERNAMA