19 September 2018 07:32 AM

Economic Relations

Monday، 30 November 2015 - 12:00 AM


On the Economic level, in 1962 Egypt and Malaysia signed a trade agreement and in 1991 the Egyptian Commercial Bureau was opened in Kuala Lumpur. In 1997 the economic issues were top priorities of the Egyptian-Malaysian relations. Ex-president Mubarak visited Malaysia to attend the 7th summit of the Group of 15 (G-15) in Kuala Lumpur, where Egypt and Malaysia signed 9 agreements on technical and trade cooperation. Egypt is one of the most important trade partners of Malaysia in the Arab World, due to the remarkable activities by the Malaysian businessmen and their keenness to find available export opportunities to Egypt, in addition to the opening of office for the Malaysia External Trade Development Corporation (MATRADE) in Cairo.

The main Egyptian exports to Malaysia are aluminum alloys, oranges, phosphates, mineral salts, processed fertilizers, cotton yarns, carpets, moccasins, textile products and spices.
Malaysia's main exports to Egypt are palm oil, wood, electrical appliances, computers, cocoa, tires, industrial detergents, copper.

Trade Exchange:

The volume of trade exchange between the two countries does not reflect  the distinguished relations between Egypt and Malaysia. The volume of trade exchange between the two countries in 2008 reached 825.2 million dollars. Egyptian exports to Malaysia reached 108 million dollars.

The volume of trade exchange during the second quarter of 2009 increased to 441.3 million dollars and the Egyptian exports do not exceed 15 million dollars.

The volume of trade exchange between the two countries in 2014 reached $ 1bn.

• The most important items of Egyptian exports to Malaysia are: Metals - vegetables and fruits - fertilizers, inorganic chemicals - raw metals, while the most important items of Malaysian exports to Egypt are: palm oils - wood and its products - rubber and its products - textiles - electronic and electrical products.

Businessmen Council:
The Egyptian-Malaysian Businessmen Council was formed in 2003.

Joint Sub-Committee on Trade and Investment:

The Joint Sub-Committee for Trade and Investment between Egypt and Malaysia (of the Egypt-Malaysia Joint Committee) was held in Cairo from 7-8 October 2009, during which the Ministers of Commerce and Industry of the two countries chaired the Committee. This came during the Malaysian Minister of International Trade and Industry, Mustafa Mohamed’s visit to Egypt in October 2009.

Malaysian Minister's visit witnessed the signature of 5 cooperation protocols, a memorandum of understanding s to establish the Joint Sub-Committee for Trade and Investment , the I-NAI-ALANDALUS Partnership Agreement for the establishment of the International Center for the Development of Islamic Arts and Architecture, a memorandum of understanding between the National Bank of Egypt and the Malaysian Export and Import Bank, a memorandum of understanding between the Egyptian Trade representation and the MATRADE for the Promotion of Trade and a memorandum of understanding between ITC and the Furniture Industry Technology Center of Malaysia FITEC.

Investments

Malaysian investments in Egypt are represented in the following projects:

The investments of Petronas the national Malaysian company for petroleum and natural gas in Egypt.
- Three projects worth $ 20mn in the fields of:
- Palm oil storage in Suez
- Cars body manufacturing project in Tenth of Ramadan
- Wood industry project in Damietta 

A joint share worth $ 3.5mn for refining and manufacturing edible oil, margarine and cocoa butter.

A joint share of edible oil production worth US $ 6.8 million.
The investment of the Malaysian Proton Company in Egypt for assembling car parts.

The volume of Malaysian investment in Egypt since 2005: one million dollars worth)

The visit made by the Minister of investment to Malaysia in 2008 resulted in:

Signing a Memorandum of Understanding between General Authority For Investment and Free Zones (GAFI) and Malaysian Investment Development Authority (MIDA), to explore means of enhancing  economic cooperation between Egypt and Malaysia, and exchange of information on possible areas of investment in both countries.

Agreeing upon promoting cooperation between the Malaysian Chamber of Commerce and GAFI to develop the activities of the small and medium enterprises in the two countries, in the cooperation with the authority for small and medium enterprises. 

Discussing the possibility of making use of the Malaysian experience in the field of Islamic fund, where the activation of the technical cooperation between Egypt and Malaysia through the educational centers affiliated to the Central Bank of Malaysia was agreed upon.
Agreeing on the application of the Malaysian experience in developing the Malaysian authority responsible for the capital market. 

Discussing the alternatives for Egypt's membership in the Islamic Financial Services Board (ISFB).

Agreeing on the importance of using the expertise of AMAN Advisory Board of the Supreme Council of Islamic Finance Services in the field of establishment of a regulatory legislation for the issuance of sukuk.

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