KUWAIT, Oct 26 - "We are not seriously affected by the global financial turmoil. We are not saying nil, but on a minimal level." So disclosed Mohammad Rafik Kadir, Deputy Governor of Bank Negara, speaking with the local media on the sidelines of a seminar conducted at the Sheraton Hotel here recently.
Rafik's delegation of over 30 Malaysian businessmen visited the country with the aim of strengthening bilateral economic ties with Kuwait.
Rafik was accompanied by a high-level delegation comprising of Omar Merican, Chief Operating Officer of Malaysian Stock Exchange, Raja Nazrin Shah, Jalila Baba, Director General Malaysia Industrial Authority and Kris Azman Abdullah, Securities Commission Malaysia. Malaysian Ambassador to Kuwait Ashaary Sani hosted the economic delegation.
"We are not seriously affected. Only 12 per cent of our total export is with the US. We have 11 per cent trading
with the EU and about 15 per cent in the Arab world. The majority of our trade is with the Association of South East Asian Nations (Asean), which constitutes about 64 per cent of our trading overseas," he said.
The Malaysian Stock Exchange, however, admitted to a downfall of 38 per cent on their stock index. But Omar Merican noted that Malaysia is still very fortunate compared with their neighbours.
"The Philippines' stock market is down by 45 per cent, Jakarta is 51 per cent negative, Korea is down by 44 per cent and Taiwan is 44 per cent off," he said.
Foreign direct investment according to Jalilah Baba, is thriving. "Despite the global financial turmoil, we have a mass of inquiries from abroad and we have some positive and ongoing negotiations. We might experience a slowdown in foreign direct investments in 2009 since many are cautious on spending, but it won't affect us much," she said.
Asked on the status of their meetings with their counterparts here, Rafik said "everything went well'.
"Our meeting was very successful. Our mission here was to create awareness about the Malaysia International Islamic Financial Centre (MIFC) initiatives. MIFC was introduced by the Malaysian government in 2006 aimed at issuing licences to Islamic banking in Malaysia. With this regard, we have met with the chairman of the
Al-Aquila and Leasing Company and we briefed them about business opportunities in Malaysia," he added.
Taking the lead as a centre for Islamic Finance, MIFC provides for a coordinated regulatory framework, fiscal incentives and facilitative business environment. It has also actively initiated dialogues, road shows and spoken at seminars throughout the world in showcasing economic and trade opportunities leveraging on Islamic finance.
"We are keen to share with our Kuwaiti counterparts and key stakeholders the many opportunities and mutual benefits available under the MIFC initiative, in advancing the trade relationship and investment opportunities between our countries," Rafik added.
Kuwait and Malaysia enjoy a growing bilateral trade relationship that has seen Kuwait accounting for 0.2 per cent of Malaysia's total trade in the first seven months of 2008. Exports to Kuwait consist of fats and oil (dairy products and palm oil), electrical products and furniture, while imports from Kuwait are mainly minerals, plastics and ships.
Kuwaiti investments continue to play a growing role in Malaysia's financial market, insurance, real-estate and business service sub-sector, accounting for some 0.2 per cent of total foreign direct investment since 2004. This proportion, however, is expected to rise in the coming years.
Kuwait's largest bank, Kuwait Finance House was granted the first foreign Islamic bank licence to set up operations in Malaysia in 2004 and continues to be a key player forging new heights in Malaysia. - Kuwait Times
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