15 April 2024 03:58 PM

Bilateral Relations

Egypt and Malaysia

Friday، 05 May 2023 - 12:17 AM

The Egyptian-Malaysian relations began in the thirties of the 20th century, when the Malaysian students came to study in Al Azhar University.

The diplomatic exchange began in 1959 and the Malaysian government appointed its first Ambassador to Cairo in 1960.

President Gamal Abdel Nasser was granted the Order of the Crown of the Realm in 1965. The Most Exalted Order of the Crown of the Realm (Darjah Utama Seri Mahkota Negara) is a Malaysian Federal Award. It is the second order in term of precedence after the Most Excellent Order of the Royal Family of Malaysia.

The government of Malaysia has chosen the Embassy of Egypt in Malaysia to sponsor Indonesian interests in the Federation of Malaysia, in the period of severing the relations between the two countries due to Indonesia's opposition to the Federation.

The Malaysian government supported Egypt in the problem of freezing Egypt's membership in the Organization of Islamic Cooperation, known back then as Organization of the Islamic Conference, (OIC). At a press conference held by the Deputy Prime Minister of Malaysia during his visit to Egypt in 1982, he announced that his country is interested in the return of Egypt to the membership of the OIC based on the fact that Egypt is an Islamic state and one of the founders of the OIC.

Political Relations

Egypt and Malaysia maintain close political relations. Ex-president Mohamed Hosni Mubarak (a vice president back then) made an official visit to Malaysia in 1979. Prime Minister of Malaysia Mahathir Mohamad paid a business visit to Egypt in 2003.

Before the establishment of the Malaysian embassy in 1960, a Malay Association in Egypt was established in 1930.  The headquarter of the association was a gift from late president Gamal Abdel Nasser in 1959.

The number of business visits have increased in the last decades, besides, participating in forums and conferences held in the two countries.

Egypt and Malaysia share common points of view on the international level and in the multinational gatherings. Egypt and Malaysia are members of the Organization of Islamic Cooperation (OIC), Non-Aligned Movement (NAM) and the United Nations (UN),  which boosts the cooperation between the two countries and the other states’members contributes to finding solutions for the international issues and helps settling joint principles to cement the relations.

Egypt and Malaysia share the same point of views regarding international issues like human rights, environment issues, terrorism, refugees and democratization. They also have a joint vision regarding the UN being the international organization concerned with issues of international development, world peace and security, humanitarian fields' line of actions, international crises and investigating the violations of UN Charter and the principles of the International Law.

Mutual Visits

The Egyptian Social Solidarity Minister visited Malaysia in September 2007.

Malaysian Minister of Foreign Affairs Rais Yatim headed the Malaysian delegation in the first joint committee between the two countries in 2008. The visit  resulted in the signing of  the minutes of the first joint committee meeting, which included a number of government representatives, from the two countries, representing  all fields of cooperation.

International Cooperation Minister Fayza Abul Naga in July 2008 visited Malaysia on behalf of the Egyptian president to head the Egyptian delegation in the sixth summit meeting of the D-8 Organization for Economic Cooperation held in Kuala Lumpur.

Minister of Investment and a delegation of businessmen visited Kuala Lumpur in August 2008.

Minister of Trade and Industry of Egypt in January 2009 visited Malaysia heading a delegation of officials and businessmen to explore ways to boost the bilateral trade.

Prime Minister of Malaysia Najib Razak and his lady visited Egypt to head the Malaysian delegation to the 15th Summit of the NAM which was held in Sharm Elsheikh.

Malaysian Minister of International Trade and Industry Mustapha Mohamed in October 2009 headed a delegation to Cairo, where his Egyptian counterpart Rashid Mohamed Rashid headed the first meeting of the joint trade and investment committee.

Minister of Trade and Industry of Egypt Visited Malaysia in January 2010 heading a delegation of officials and businessmen to explore ways to boost bilateral trade and attended the first meeting of the joint business council.

The Egyptian Minister of communication and Information Technology in March 2010 visited Malaysia heading a delegation of the ministry and businessmen to explore means of cooperation with Malaysia in the fields of communication and information technology.

Economic Relations

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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