China-Malaysia trade, which has grown steadily since 2002, will
enjoy double-digit growth in 2007, driven by trade liberalization
stemming from the China-ASEAN free trade agreement (FTA), a
high-level Malaysian official told China Daily in an
interview.
"Bilateral trade has been growing 25 percent annually and in
2006, amounted to US$27.5 billion, and if the annual growth rate is
maintained at 25 percent, trade volume will reach US$34.4 billion
this year," said Dato Seri Rafdah Aziz, Malaysia's minister of
international trade and industry.
Chen Jian, assistant minister of commerce, has high hopes for
bilateral trade.
"Officials from the two sides have set a goal of increasing
China-Malaysia trade to US$50 billion by 2010, but I think it will
be realized before that," Chen said.
According to Aziz, the opportunities for increasing trade is
vast, especially when the bilateral economic bonds are strengthened
by eliminating tariffs and non-tariff barriers on trade in goods,
services and investment.
As a member of ASEAN, Malaysia has benefited from the
China-ASEAN FTA. The FTA in goods with China was implemented in
July 2005. From July 2007, the FTA in services with China will come
into effect.
Aziz believes trade in goods will be a major driving force
behind bilateral trade volume.
"Trade in services will grow rapidly, but trade in goods will
grow faster," she said.
Between July and December 2005, Malaysia's exports using
preferential Certificate of Origin was US$340 million. Exports were
US$1.04 billion in 2006.
About 8.9 percent of Malaysia's exports to China fell under the
China-ASEAN FTA.
"The utilization rate can be expected to increase further with
the phase-in of more product lines and further reduction in
tariffs," Aziz said.
In terms of trade in services, she hopes economic relations in
areas like tourism and education would especially expand.
In 2006, Malaysia had 17.5 million tourist arrivals, and China
accounted for more than 439,000. The same year Malaysia recorded
economic growth of 5.9 percent, making the country an "attractive
center for investment."
Malaysia and China share a policy that encouragesprivate sector
investment abroad.
In 2006, about 336 projects with Malaysian participation were
approved in China, involving total realized investments of US$393
million, an increase of 8.9 percent year-on-year. During the same
period, about 19 projects with Chinese interest were approved in
Malaysia's manufacturing sector, involving a capital of US$36.5
million.
"Chinese companies with operations in Malaysia will be in a
better position to gain access to the ASEAN markets," Aziz
said.
(China Daily June 14, 2007)