KUALA LUMPUR: There are untapped business opportunities that Malaysia can explore with Russian businesses, particularly amid concerns about rising tariffs, offering both countries a chance to grow trade volumes and strengthen economic ties. The Electrical and Electronics Association of Malaysia (TEEAM) president Chang Yew Cheong said several established Russian businesses in Malaysia present opportunities for closer ties between businesses from both countries, while the geographical proximity of Russia to Malaysia offers a strategic advantage for trade between these economies.
According to BERNAMA News Agency, Chang highlighted that Malaysians are familiar with products from Russian companies such as Kaspersky. He suggested that similar to how Malaysian businesses conduct transactions with Chinese counterparts using ringgit-yuan transactions, a similar system could be established with Russia through ringgit-ruble transactions. This would be feasible given the advanced technology in Russia and the capability
of Malaysian banks to handle transactions in various currencies. However, he stressed the importance of ensuring that the transaction volume would be significant enough to warrant this change.
TEEAM, which comprises around 1,800 company and individual members across 10 state associations, participated in a panel discussion titled ‘Prospects for Cooperation between Russia and ASEAN Countries in the Field of Digital Transformation.’ The event was part of the ‘World of Opportunities: Russia-ASEAN’ International Business Forum.
Chang further emphasized that Malaysia should consider forging a trade agreement with Russia to facilitate seamless business transactions. This suggestion comes in the backdrop of Prime Minister Datuk Seri Anwar Ibrahim’s working visit to the Russian Federation on September 4-5 to attend the 9th Eastern Economic Forum in Vladivostok. Chang mentioned that such arrangements could simplify export and import activities between the two nations.
During the panel session, First Group CEO Alexe
y Poroshin spoke on the importance of sovereign cybersecurity, highlighting that it encompasses not just data protection but also the development of sovereign technologies and expertise. He indicated that Russian cybersecurity companies could assist Malaysian businesses in building necessary sovereign technologies, infrastructure, and regulations.
In 2023, trade turnover between Russia and Malaysia increased by 11 percent to US$3.11 billion from US$2.79 billion in 2022. Malaysia’s exports to Russia grew by 13 percent to US$619.3 million, while Russia’s exports to Malaysia rose by 10.8 percent to US$2.49 billion. Notably, Malaysia’s exports in the electric and electronics sector to Russia surged by 96.9 percent to US$154 million, with industrial goods forming the backbone of Malaysia’s exports, increasing to US$575.1 million in 2023 from US$499.3 million in 2022. Meanwhile, imports from Russia climbed to US$2.05 billion in 2023 from US$1.4 billion in 2022.