Mr Zulkepli Mohd Perai and Mr Dato’ Mah Siew Keong in Yangon last week. Yadanar / The Myanmar Times

30/10/2012 (Myanmar Times) - Mr Dato’ Mah Siew Keong and Mr Zulkepli Mohd Perai – the chairman and director of Malaysia’s trade promotion agency – talk to The Myanmar Times about the country’s plans for Myanmar on the sidelines of the Showcase Malaysia trade show in Yangon.

How many companies are involved in this showcase?

Mr Dato’ Mah Siew Keong: We have 51 companies showcasing their products and services at this event. Responses from people have been very good and most exhibitors are finding potential partners. We hoped to increase the level of cooperation between our two countries because we see big potential in Myanmar, and many business opportunities as increasing incomes of the people will lead to more demand for consumer goods.

Malaysia is organising many delegations to visit – 40 representatives from the manufacturing federation were here only days ago and we have more than 50 delegates here for business matching. This is our first time showcase in Myanmar. It has been successful and we are looking forward to more programs in Myanmar. Malaysian products are cost competitive and we believe our pricing is good.

What is the role of the MATRADE and what kinds of business does it promote?

Mr Zulkepli Mohd Perai: Our function is basically to promote the export of Malaysia’s products and services. We focus on promotion activities, such as trade fairs and exhibitions, and we also organise trade missions and specialised marketing missions, which we have done several times in Myanmar. This has been our first major exhibition in Myanmar.

What kinds of products does Malaysia export to Myanmar?

Mr Dato’ Mah Siew Keong: Generally, the volume of trade is quite small. Our exports are focused on palm oil and rubber.

What’s your perspective on Myanmar’s economic situation?

Mr Dato’ Mah Siew Keong: It is moving forward so fast and in the near future Myanmar’s economy must grow. A lot of Malaysian businesspeople are coming here to exploit opportunities because Myanmar has so many natural resources and hard working people.

Under the latest draft of the amended foreign investment law, joint venture businesses will be capped at 50-50 ownership for foreigners – can that work for Malaysian businesses?

Mr Dato’ Mah Siew Keong: I am sure that our companies want to work with local partners – it’s in everybody’s best interest. Malaysian companies investing overseas have a history of sharing technology and know-how with local companies. So in that sense, I think that 50-50 joint ventures will work for Malaysian businesspeople.

What kind of businesses is interested in investing in Myanmar? And what kinds of companies are already operating here?

Mr Zulkepli Mohd Perai: We are already invested in Myanmar. Petronas [Malaysia’s state-owned oil company] already has investments here. We are also looking into other areas where we can invest, such as palm oil plantations. A company owned by the Malaysian government has already been looking to develop plantations in southern Myanmar. And that could make Myanmar a palm oil distribution centre for other markets, such as India and China. But it depends on the investment laws too.

If you set up the palm oil plantations here, what kinds of benefits would be passed on to communities nearby?

Mr Zulkepli Mohd Perai: Palm oil plantations can provide jobs for many people and they need refineries to finish the oil too.

If you set up palm oil plantations here and export to other countries, what will be the main challenges?

Mr Zulkepli Mohd Perai: Cost is the biggest challenge. We have to look at the cost of setting up compared with other nations, which often depends on the tax structure in a country.