Enhancing Bilateral Trade to Combat COVID-19 Economic Impact

Qatari Commerce and Industry Minister Ali bin Ahmed Al Kuwari (right) with International Trade and Industry Minister Mohamed Azmin Ali

Senior Minister and Minister of International Trade and Industry, The Honourable Dato’ Seri Mohamed Azmin Ali was on a three-day Trade and Investment Mission (TIM) to Qatar with the objective to promote Malaysia as an investment destination of choice, as well as further enhance bilateral trade and economic ties.

On the first day of TIM, the Senior Minister concluded a bilateral meeting with his counterpart, His Excellency Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry and Acting Minister of Finance. The discussion covered a broad spectrum of matters including the current state of the COVID-19 pandemic and how best to create joint efforts for a sustainable economic recovery.

In addressing the current state of the pandemic, the Senior Minister and his counterpart exchanged views on the various measures undertaken to deal with the challenges including accelerated immunisation programmes as well as the economic stimulus initiatives. Dato’ Seri Azmin shared with His Excellency Ali that Malaysia has allocated RM530 billion in stimulus packages to assist continuity of economic activities and the livelihood of the people during the pandemic. As a result, Malaysia’s GDP was projected to reach 6.0% in 2021. However, due to the latest surge of cases, it is currently revised to 4.5%. Nonetheless, Senior Minister highlighted that Malaysia has fundamental strength which resulted in record-breaking exports of more than RM100 billion for the months of March, April and May this year. Going forward, the Senior Minister reiterated Malaysia’s clear and comprehensive exit strategy through the National Recovery Plan.

Both Governments are committed to resuming efforts on operationalising the strategies through the 3rd Malaysia-Qatar Joint Trade Committee (JTC) meeting, necessitating stronger private sector participation in the dialogue. Both Governments will also jointly facilitate and continue to work on the Investment Guarantee Agreement to encourage more investment crossflows between Qatar and Malaysia.

The Senior Minister emphasized that Qatar could use Malaysia as its trading hub in the ASEAN region, underscoring that Malaysia offers the best location in the region. With the signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement, Malaysia has become more attractive as it is connected to a market size of over two billion people. On bilateral investment, Senior Minister advocated Malaysian projects as the key to advancing Malaysia’s interest where, pursuant to the MOU signed between the Malaysian Investments Development Authority (MIDA) and the Investment Promotion Agency of Qatar (IPAQ), both agencies could take this to the next level.

The Senior Minister was also scheduled to meet the Prime Minister of Qatar, His Excellency Sheikh Khalid Bin Khalifa Bin Abdulaziz Al Thani. The meeting is key to start the discussion on Malaysia’s National Investment Aspirations (NIA) that will drive and deepen the strong partnership with Qatar. The NIA consists of five key outcomes for the country, namely, to increase economic complexity, create high-value job opportunities, extend domestic linkages, develop new and existing clusters, and improve inclusivity. The NIA aspires to champion equitable growth for the nation by ensuring equal opportunities, as well as adequate safeguards for the people.

The TIM continued with targeted one-on-one business meetings on new opportunities and collaboration that are paramount for the expansion of public-private strategic partnerships. The meetings were held with prominent leaders of Qatari companies in the retail service, cybersecurity and other areas that will expand Malaysia’s footprint in the global halal industry.

As the world remains confronted with the challenges of the COVID-19 pandemic, Malaysia being a global trading nation, must take proactive action to strengthen economic resilience and enhance our efforts to attract quality, high value and high-impact investments to the nation. 

In 2020, the State of Qatar was Malaysia’s sixth-largest trading partner and seventh source of import in the West Asia region. The total trade between both countries was recorded at RM2.10 billion (USD0.50 billion) with Malaysia’s exports to Qatar amounted to RM1.13 billion (USD0.27 billion) and imports totalled at RM0.97 billion (USD0.23 billion). Majority of the investments from the State of Qatar are in commercial real estate development and insurance services.