KUALA LUMPUR, Nov 27 (Bernama) -- Malaysia can further co-operate withPeru in the palm oil, food, rubber and natural gas sectors, said theDeputy Minister of International Trade and Industry, Datuk Ahmad HusniHanadzlah.
Speaking at a seminar on Malaysia-Peru Business Opportunities on Thursdayin the Peruvian capital of Lima in conjunction with a trade mission toPeru and Brazil from Nov 24 to Dec 1, Ahmad Husni said this was especiallyso in the context of palm oil amid increase interest in its usage in theLatin American country.
The text of his speech was received here Saturday.
Ahmad Husni also suggested the greater use of the Bilateral PaymentsArrangement (BPA) in increasing palm oil trade for todate only US$2.45million out of a total of US$10 million in credit limit had been utilisedsince the BPA was signed between Malaysia and Peru in 1991.
He said the BPA could also be used to source Malaysian-made rubber-basedor plastic-based products, furniture, cocoa-based products, electricalappliances and telecommunications equipment.
Malaysia is also offering Peru its expertise in the development of itsdomestic rubber industry through the Rubber Research Institute of Malaysiain view of the Peruvian government's intention to seek private sectorparticipation to develop rubber plantations to reduce dependence on rubberimports.
Ahmad Husni said the recent discovery of natural gas reserves in the Piscoregion of Peru was another area of co-operation which could be looked intowith Malaysian companies.
"Business opportunities are also available in the manufacturing sector asMalaysia is presently promoting investments in high value-added andhigh-technology products."
Ahmad Husni also said the Malaysian government had identified services asa new area of growth with many Malaysian service providers gainingacceptance overseas.
Services with export capabilities include construction and relatedconsultancy services. education, healthcare, ICT, franchising andprofessional services such as architecture, engineering, finance andaccounting.
In infrastructure development, Ahmad Husni proposed that collaborationbetween Malaysian and Peruvian companies be made to undertake projects inPeru or in third countries.
Currently, a Malaysian company is undertaking a township projectcomprising 4,000 units of houses in Chile.
Total trade between Malaysia and Peru grew by 7.7 percent in 2003 and asimilar trend had continued into 2004 where from January to September2004, Malaysia's trade with Peru reached US$52.1 million, which was 86percent higher than the whole of 2003.
Malaysia's exports to Peru from Jan to Sept 2004 stood at US$45.9 million,up by 105.4 percent while Malaysia imported US$6.2 million worth of goodsfrom Peru during the first nine months of 2004, a rise of 9.4 percent overimpoprts for the whole of 2003.
Among Malaysia's major exports to Peru were electrical and electronicproducts, which represented 30 percent of total Malaysian exports to thatcountry.