Erdogan’s visit is set to improve economic ties with Malaysia

By Kazi Mahmood, IOL Southeast Asia Correspondent

KUALA LUMPUR, June 15 (IslamOnline.net) - Bilateral relations between Turkey and Malaysia are set to improve and become even more active in the months to come while both Muslim countries see a sense of urgency in building their economic future together, IslamOnline.net was told Sunday, June 15.

Turkey has always been a major trading partner for Malaysia and the visit of Turkish Prime Minister Recep Tayyip Erdogan to the South East Asian nation is set to boost this relationship, reported the Bernama news agency Sunday.

While Turkey aims to increase bilateral trade between the two countries to U.S. $1 billion (RM3.8 billion) a year, Malaysia has urged local businessmen to make use of Turkey as a gateway to larger markets in Europe.

Erdogan said Malaysia’s Prime Minister Mahathir Mohamad told him that he would like to see trade between the two countries reach the U.S. $1 billion mark.

Erdogan said the primary goal, as far as business was concerned, was to boost trade between the two countries, and "if we follow this goal and work on it we would achieve it."

In Kuala Lumpur, Turkish businessmen operating shops and other businesses said they were glad with the visit of Erdogan to Malaysia as it will help boost their businesses, too.

“His visit is a success and it will also help focus on Turkey as a trading partner not only another Muslim nation that shares similar views with Malaysia on the world arena,” said Hassan a Turkish trader who has been in Malaysia for the past 10 years.

He said Muslims should focus their relationship on business and build stronger relations in the field of economic and social development between nations, adding that Malaysia “is a country where Turkish businesses could progress”.

Erdogan said although relations between the two nations had been stagnant over the past decade, a new chapter had been opened with his visit adding that he wanted closer relations in terms of trade and economic matters, but also on subjects like arts and culture, Bernama said.

Seizing the opportunity of the Turkish Premier’s visit to Malaysia, Mahathir has urged the Malaysian private sector to make Turkey the gateway into the markets of European Union countries, West Asia and Central Asia.

He also invited Turkish companies to use Malaysia as a base to enter the huge Asian market and to tap the opportunities provided by the Asean Free Trade Area (Afta), which will come into effect in mid 2005.

"Based in Malaysia, they can expand and seize the opportunities not only in the Asean market but also the world's largest market, that is China," Mahathir reportedly said.

He said the Afta market, with a population of 400 million and combined Gross Domestic Product (GDP) of US$500 million, had vast trade potential that could benefit Turkish companies.

"We have made efforts to increase investments and bilateral trade but a more concrete and sustained measure should be taken to realize the true potential of the many trade and business opportunities which have yet to be explored by both countries," Mahathir added.
 
He said Erdogan's visit would further strengthen the bridge of friendship between the two Islamic countries, whose capitals Kuala Lumpur and Ankara are twin cities.

As a result of Erdogan’s visit, Turkey is interested to form joint ventures with Malaysian companies to undertake construction in third world countries and in the reconstruction of Iraq, its minister for foreign trade, Kursad Tuzmen said Saturday.

"Iraq is one of our major trading partners for the last two years and this could be a good platform for further joint collaboration in the development of the country now," he said at the Malaysia-Turkey Business Forum here Saturday reported the Bernama agency.

Giving a brief description of the state of the construction industry in Turkey, Kursad said Turkish contractors had undertaken US$50 billion (US$1=RM3.8) worth of projects in 55 countries worldwide, mainly in central Asia and Russia.

An area that Malaysian companies could explore in Turkey, he said is electronic-commerce (e-commerce) or specifically smart cards as the Turkish government plans to implement a new electronic law this month that would create demand for smart cards or e-commerce products and services.

Kursad disclosed that Malaysia's participation in the area of e-commerce is not new in Turkey as a Malaysian company is currently providing such service to the Istanbul airport.

Trade between Malaysian and Turkey could expand to manufactured goods, which would include importation of Turkish dried fruits and nuts, halal foods, construction materials, auto spare parts, home textiles, gift items and machineries.

In 2002, Malaysia's total trade with Turkey stood at US$269.8 million, down 34.16 percent from 2001, with exports from Malaysia totaling US$211.1 million (a reduction of 42.47 percent from 2001). Imports from Turkey were at US$58.7 million, an increase of 36.97 percent over 2001.

Exports from Malaysia to Turkey constitutes mainly of textile yarn and fabric (27.6 percent), palm oil (24.4 percent), electrical and electronics products (14.7 percent), natural rubber and its products (9.8 percent) and tubes, pipes of iron and steel (8.9 percent).

Malaysia's major imports from Turkey are iron and steel and ingots (11.6 percent), tobacco (9.8 percent), food products (9.7 percent), electrical power manchinery and parts (9.2 percent), textile fabrics and accessories (9.0 percent), motor vehicles and parts (6.8 percent) and floor covering (5.3 percent).

There is a small Turkish-Malay community in Malaysia, based primarily in the state of Johor, which borders Singapore. One of Malaysia’s founding father and the founder of the ruling United Malays National Organization (UMNO), Onn Jaffar was of Turkish origin.

The Turks came to South East Asia during the age of the Ottaman Empire and many of them have since them settled in the region to become part of the Islamic tradition here, IslamOnline was told.