European Countries Remain Attracted To Asean Economy, Says International Trade And Industry Minister

From Jamaluddin Muhammad PHNOM PENH (Cambodia), April 3 (Bernama) -- The momentum of European countries attracted to the Asean economy will remain in the near future due to the latter's sound economic growth and vast economic potentials. Malaysian International Trade and Industry Minister Mustapa Mohamed said Asean economic growth has been forecasted between 5.6 per cent and 6.3 per cent this year, thus making the region an important destination for foreign direct investments among the European business community. While the United States, Europe and Latin America are experiencing slow economic growth, Asean continues with its vibrant economic development, he said on the sidelines of the Asean Summit here. Mustapa said Asean economic liberalisation, the democratisation process in Myanmar and Cambodia's admission into the World Trade Organisation have contributed to greater economic potentials in this region. With a 600 million population and the growing number of Asean's middle-class and young population have further attracted the European companies, he said. Mustapa said Asean free trade agreements with China, South Korea, Japan, India, Australia and New Zealand have also become an important factor for the European businessmen to tap the potential markets linking this region. The Europeans also regarded Asean as one of the four important pillars of Asia besides China, India and Central Asia for their important roles in the world economic development, he said. "People are courting us now due to our vast economic potentials," he said. He said 500 participants from more than 50 giant European companies attended the just-concluded Asean-EU Business Summit here clearly showed their interest in this region. On Malaysia-Cambodia economic relations, Mustapa said Malaysians have registered 1,600 businesses in this country to date. Mustapa said the Malaysian business community in this country owned assets worth US$2.6 billion, the fourth largest after the Chinese, Koreans and Europeans. Malaysians have invested in this country since 1994, even before Cambodia embraced Asean in 1998, he said, adding that they are engaged in banking, manufacturing, textile, telecommunications and energy sectors. "All the three airports in this country, including the Phnom Penh International Airport, are managed by a Malaysian company," he said. Mustapa said the halal industry could be the next important sector that needs to be explored by Malaysian companies as there are some 400,000 Muslims in this nation of 14 million people. -- BERNAMA