MARKET DEVELOPMENT
India-Malaysia Trade In Malaysia's Favour
India-Malaysia Trade In Malaysia's Favour
19/08/2015 (Bernama) - The trade balance between Malaysia and India continued in favour of Malaysia in the first half of 2015, with total trade and exports showing an increase of 3.3 per cent and 3.9 per cent respectively.
Despite the tough external environment, Malaysia External Trade Development Corporation (MATRADE) Trade Commissioner Mazlan Harunin Mumbai expressed confidence that the trend would continue albeit at a slower pace for the rest of the year.
Mazlan stressed that India continues to be a very important market and will remain Malaysia's biggest trading partner in the Indian sub-continent.
"Malaysia-India bilateral trade has increased by more than three-fold over the past 10 years, and the trade balance has always been in Malaysia's favour. With the implementation of the Malaysia India Comprehensive Economic Cooperation Agreement (MICECA), bilateral trade has grown tremendously by 17.97 per cent from 2011 to 2014," Mazlan said in a statement.
He said in 2014, Malaysia's trade with India expanded by 7.5 per cent to US$45.24 billion (RM185.48 billion) from US$42.08 billion (RM172.53 billion) in 2013 boosted by better export performance, making India Malaysia's 11th largest trading partner.
India was Malaysia's eighth biggest export destination with exports growing by 23.9 per cent to US$31.9 billion (RM130.79 billion) in 2014, on the back of higher exports of palm oil; crude petroleum; electrical and electronics products; and chemicals & chemical products. India has also become the biggest importer of Malaysian palm oil.
Citing data from the Department of Industrial Policy and Promotion (DIPP) of India's Ministry of Commerce and Industry, Mazlan said Malaysia was the 23rd biggest investor in India from April 2000 to February 2015 with investments worth US$732.77 million (RM3 billion).
However, he added, this figure does not include a substantial flow of Malaysian investments via establishments in third countries which will bring Malaysia's cumulative investments in excess of US$6 billion (RM24.6 billion).
Malaysian investments in India are mainly in non-conventional energy, construction, metallurgical industries, services, power and telecommunications. Landmark projects with Malaysian companies' involvement include the Mumbai Monorail; power plant in Chhattisgarh; MCD Civic Centre building in New Delhi; Western Transport Corridor in Karnataka; airports in New Delhi and Hyderabad; a mixed development project in Hyderabad; and First City in Nagpur.
Overall, Mazlan said, Malaysian companies have completed 81 projects worth US$3.8 billion (RM15.58 billion), with 14 projects worth US$1.61 billion (RM6.6 billion) still at various stages of completion.
Despite the tough external environment, Malaysia External Trade Development Corporation (MATRADE) Trade Commissioner Mazlan Harunin Mumbai expressed confidence that the trend would continue albeit at a slower pace for the rest of the year.
Mazlan stressed that India continues to be a very important market and will remain Malaysia's biggest trading partner in the Indian sub-continent.
"Malaysia-India bilateral trade has increased by more than three-fold over the past 10 years, and the trade balance has always been in Malaysia's favour. With the implementation of the Malaysia India Comprehensive Economic Cooperation Agreement (MICECA), bilateral trade has grown tremendously by 17.97 per cent from 2011 to 2014," Mazlan said in a statement.
He said in 2014, Malaysia's trade with India expanded by 7.5 per cent to US$45.24 billion (RM185.48 billion) from US$42.08 billion (RM172.53 billion) in 2013 boosted by better export performance, making India Malaysia's 11th largest trading partner.
India was Malaysia's eighth biggest export destination with exports growing by 23.9 per cent to US$31.9 billion (RM130.79 billion) in 2014, on the back of higher exports of palm oil; crude petroleum; electrical and electronics products; and chemicals & chemical products. India has also become the biggest importer of Malaysian palm oil.
Citing data from the Department of Industrial Policy and Promotion (DIPP) of India's Ministry of Commerce and Industry, Mazlan said Malaysia was the 23rd biggest investor in India from April 2000 to February 2015 with investments worth US$732.77 million (RM3 billion).
However, he added, this figure does not include a substantial flow of Malaysian investments via establishments in third countries which will bring Malaysia's cumulative investments in excess of US$6 billion (RM24.6 billion).
Malaysian investments in India are mainly in non-conventional energy, construction, metallurgical industries, services, power and telecommunications. Landmark projects with Malaysian companies' involvement include the Mumbai Monorail; power plant in Chhattisgarh; MCD Civic Centre building in New Delhi; Western Transport Corridor in Karnataka; airports in New Delhi and Hyderabad; a mixed development project in Hyderabad; and First City in Nagpur.
Overall, Mazlan said, Malaysian companies have completed 81 projects worth US$3.8 billion (RM15.58 billion), with 14 projects worth US$1.61 billion (RM6.6 billion) still at various stages of completion.