Kuala Lumpur: Malaysia is poised to become a pivotal entry point for Pakistani exports seeking penetration into the lucrative ASEAN market, a strategic move anticipated to assist Islamabad in addressing its ongoing trade imbalance with Malaysia.
According to BERNAMA News Agency, Usman Ahmed, the acting chairman of the Malaysia-Pakistan Business Council (MPBC), highlighted the potential benefits of Malaysia’s ASEAN chairmanship this year. This development offers a significant opportunity for Pakistani businesses to gain access to Southeast Asian markets. Last year, trade between Malaysia and Pakistan reached a substantial US$1.5 billion, with Malaysia exporting mainly palm oil, chemicals, and electrical and electronic products to Pakistan. In return, Pakistan’s exports consisted primarily of rice, refined petroleum, and onions.
Despite its role as a sectoral dialogue partner since 1993, Pakistan has not yet achieved full dialogue partner status, which limits its ability to export products to ASEAN as a singl
e market. Usman Ahmed expressed Pakistan’s commitment to upgrading its partnership with ASEAN, aiming for deeper engagement and enhanced ties within the bloc.
He further elaborated on the strategic advantage of utilizing Malaysia as a springboard for Pakistani exports into Southeast Asia, a strategy currently under serious consideration by the Pakistani government. A crucial step in this direction would be the establishment of the Malaysia-Pakistan Joint Chamber of Commerce and Industry, recognized by both nations as a formal entity.
Usman Ahmed, who also serves as the CEO of Gamalux Oils Sdn Bhd, noted that Pakistan’s Ministry of Commerce is actively working towards this goal. The MPBC is focused on establishing this joint chamber to facilitate business matchmaking, streamline bilateral trade and investment initiatives, and extend these efforts to the broader ASEAN region.
Usman emphasized the role of chambers of commerce and business councils like the MPBC in advocating for legislative reforms, highlight
ing the need for immediate changes to support current business needs. He suggested innovative approaches to further enhance Malaysia-Pakistan trade, investment, and economic cooperation, identifying the halal industry and tourism as potential areas for growth.
The annual review of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) revealed ongoing challenges in strengthening economic cooperation. Usman Ahmed pointed out the trade imbalance favoring Malaysia and the robust economic agreements Malaysia holds within ASEAN, as well as with China and India.
He stressed the necessity for both public and private sectors to adopt ‘out-of-the-box’ thinking to overcome these challenges, emphasizing the critical role of governments in implementing policies that facilitate trade. Usman Ahmed also highlighted the shared Commonwealth membership and Muslim-majority populations of both countries as factors promoting collaboration.
Additionally, he underscored the importance of cultural understanding and
people-to-people connections in building sustainable economic alliances. Usman acknowledged the challenges Pakistan faces, including economic pressures, regional security issues, and geopolitical complexities, which necessitate navigating bureaucratic hurdles and non-tariff barriers.
Establishing a joint chamber would streamline trade and investment processes, ensuring representation from both governments and the private sector. Currently, the MPBC is only registered in Malaysia, making it the sole trade body driving collaborative efforts between the two nations.