KUALA LUMPUR, May 16 (Bernama) -- Bilateral relations between Malaysia andOman will be facilitated by a better understanding of the economicscenario in both countries and opportunities each has to offer,International Trade and Industry Deputy Minister Datuk Ahmad HusniHanadzlah said.

He said that as the economies of Malaysia and Oman continued to grow anddiversify, the volume and range of products as well as services tradedcould be further expanded.

Stronger linkages between the two countries could also be fostered throughvarious initiatives of the Organisation of Islamic Conference (OIC), whereboth countries can assume important roles in the promotion of trade,investment and economic linkages among Muslim nations, he said.

Speaking at a seminar on "Malaysia-Oman Business Opportunities" at Muscat,Oman on May 14, Ahmad Husni said that the objectives of the trade missionare to apprise the participants of the developments in the Malaysianeconomy.

The text of his speech was made available, here Monday.

Ahmad Husni said it was also to highlight potential areas forcollaboration, particularly among the business communities of the twocountries.

The seminar was part of the programme of the trade and investment missionled by Ahmad Husni and co-organised by Oman Chamber of Commerce andIndustry.

He said that total trade between the two countries grew from US$30.3million (US$1=RM3.80) in 1995 to US$468.8 million in 2004.

During that period, Malaysia's exports to Oman increased from US$25.1million to US$71.4 million; and imports increased from US$5.2 million toUS$397.4 million.

In 2004, Oman was Malaysia's 6th largest trading partner among members ofthe OIC.

Malaysia's major exports to Oman were palm oil, machinery, appliances andparts, electric and electronic products, manufactures of metal andprocessed food while major imports were crude petroleum, non-metallicmineral products and manufactures of metal. Ahmad Husni said that theMalaysian international reserves which stood at US$72.4 billion as atMarch 31, 2005, was sufficient to finance 8.6 months of retained importsand are 6.2 times the short-term external debt.

The sustained strong economic performance had also enhanced Malaysia'scompetitiveness, he said.

The 2004 World Competitiveness Report published by the InternationalInstitute for Management Development based in Switzerland, ranked Malaysiaas the 16th most competitive nation among 60 countries surveyed and themost competitive nation with a per capita gross domestic product (GDP) ofUS$10,000 and below.

"Today, Malaysia is one of the world's largest exporter of semiconductordevices, electrical goods, and appliances, and the government hasambitious plans to make Malaysia a leading producer and developer ofhigh-tech products, including software," he said.

Knowledge based-economy is also expected to open up new opportunities inthe manufacturing sector, particularly in areas where there are scope forinnovation and enhancement in technology, Ahmad Husni said.

Furthermore, Malaysian products are competitively priced and produced tomeet the quality standards of international markets and are marketed inmore than 230 countries worldwide.

Malaysian companies have also developed a strong reputation in theinternational services market.

"Of particular relevance to Oman are their expertise in the constructionand oil and gas sectors and related services. Malaysian constructioncompanies have successfully undertaken construction projects in countriessuch as India, China, Indonesia, Singapore, South Africa, Taiwan,Thailand, and also the Gulf countries," he said.

Since 1995, Malaysian construction companies had completed 204 projectsabroad worth US$2.85 billion and are currently undertaking 40 projectsworth US$2.94 billion, making an overall total of 244 projects valued atUS$5.79 billion.

The financial sector is another area that offers a lot of potential forthe participation and collaboration of Oman and Malaysian companies, hesaid.

Malaysia is also actively involved in the promotion of Islamic financialactivities among OIC countries, he said. Ahmad Husni said that businessvisitors and tourists from Oman should take advantage of their stay inMalaysia, which is a shopping haven and avail themselves of a wide rangeof healthcare services available in the country.

He added that Malaysia is fast becoming a major center for education inthe Asian region and invited students from Oman to pursue their highereducation in Malaysia as an alternative to studying in the Westerncountries.

He said that June this year will be a good time to visit Malaysia, whichwill host an OIC Trade Forum from June 20-21 and a Trade Exhibition fromJune 20-24 at the Putrajaya International Convention Centre, Putrajaya.

He said that both events are held in conjunction with the 30th IDB Boardof Governors Annual Meeting scheduled from June 23-24 in Putrajaya.

-- BERNAMA