Singapore, Thursday, 21 May 2009 - Against the backdrop of economic challenges, Malaysia had announced various changes to open up the country's financial and services sectors, signifying the path towards greater liberalization said Malaysian Minister of International Trade and Industry (MITI) Dato' Mustapa Mohamed today during a Business Roundtable with a select group of Singapore business leaders.
The newly appointed minister, who led the MITI delegation from Malaysia, was in Singapore to gather feedback from the Singapore business community and to share with them the recent developments in Malaysia. He was also part of the Malaysian delegation which accompanied Prime Minister Najib when he made an official visit here. Minister Dato' Mustapa met 11 Singapore business representatives led by Mr. Tony Chew, Chairman, Singapore Business Federation (SBF) together with Mr Cheng Wai Keung, SBF Honorary Secretary and Co-Chairman of Malaysia-Singapore Business Council (please refer to the Annex for the full list of attendees)
The Roundtable provided an excellent opportunity for the Singapore business leaders to understand the new thrusts and directions of MITI and the Minister spoke candidly and clarified several key economic and business issues. The key issues discussed included the economic liberalization thrusts of the new Malaysian administration under Prime Minister Najib which aims to generate new and more business opportunities for Malaysians and foreigners alike.
The minister also heard the business leaders' call for the Green Lane Pilot Project between the two countries to be given more support towards its successful conclusion. This initiative would strengthen the supply chain, reduce business costs and serve as a catalyst for the creation of a seamless and borderless business environment in the ASEAN region. Currently, businesses operating in the region face considerable time lag when their goods pass through the customs of various ASEAN countries. The uncertainty over how long it takes to clear customs leads to inefficiencies in business planning and operations. They noted that the ASEAN Green Lane will make ASEAN a competitive location for FDIs. MNCs invested in ASEAN will benefit from better connectivity as they tend to produce different components for a product in different ASEAN countries. This will allow ASEAN businessmen to compete with China, which does not face such problems as their manufacturing components can move seamlessly from state to state.
The minister took note of this suggestion and this issue will be further discussed during the 5th Joint Meeting of the Malaysia-Singapore Business Council (MSBC). The minister also urged greater Singapore participation in Iskandar Malaysia, noting that Malaysia views this as an important project and he recalled that the joint ministerial committee and ministers from both sides met four times in the last two years to discuss regulatory issues.
Aside from highlighting Malaysia's human resource issues of foreign workers and a lack of qualified personnel, the businessmen present also gave feedback on the safety issue in Johor where they had to hire security personnel to oversee the transportation of their goods. The minister gave assurance that the security and safety problem in Malaysia would be addressed by the new Najib administration without exception.
Minister Mustapa wrapped up the dialogue by reiterating that the bilateral relationship between Singapore and Malaysia was improving and advised Singapore businessmen to capitalize on opportunities arising from the warming bilateral relationship between the leaders.
He would be revisiting Singapore in either August or September 2009 for the annual MITI Business Road Show in Singapore. This annual event was started by the former Minister for International Trade and Industry, Dato' Rafidah Aziz for several years and the last road show in 2008 was helmed by then MITI Minister Tan Sri Muhyddin Yassin, now Malaysia's Deputy Prime Minister. It hosted around 1,200 participants last year.
Malaysia-Singapore Business Council (MSBC)
Background
MSBC was formed on 2 July 2004 at the signing of the agreement of the Malaysia-Singapore Third Country Business Development Fund between the Ministers of Trade of Malaysia and Singapore to forge closer economic ties between the two countries. To date, MSBC had met 4 times. The last joint meeting of Malaysia-Singapore Business Council was in Singapore on 16 January 2007.
The council is responsible for identifying areas of co-operation which will facilitate industrial expansion, modernization and productivity improvement, discussing problems and difficulties confronting industrialists' operations in Singapore and Malaysia and suggesting measures to alleviate these problems.
Terms of Reference
- Provide private sector perspective and feedback to deepen economic co-operation and economic growth of Malaysia and Singapore; and
- Strengthen co-operation among the private sectors in both countries.
Activities
- To examine ways and means of generating great cross border flows of trade and investments between Malaysia and Singapore and third countries and to provide feedback and recommendation to the Government
- To identify areas of co-operation which will facilitate industrial expansion, modernisation and productivity improvement
- To exchange information and views on Malaysia and Singapore current industrial development and policy so that implications arising from there can be highlighted
- To discuss problems and difficulties confronting industrialists' operations in Singapore and Malaysia and to suggest measures to alleviate these problems.
- To assist and facilitate wherever possible, contacts between industrialists of the two countries, especially those who intend to enter into joint venture partnership and other forms of collaboration
- Promote the interest of Malaysia in Singapore and Singapore in Malaysia through activities, events, visits involving Government leaders and prominent corporate figures of both countries
Annex
MITI Delegation from Malaysia:
- Yang Amat Berhormat (YAB) Dato' Mustapa Mohamed, Minister for International Trade and Industry (MITI)
- Datuk Dr. Rebecca Fatima Sta Maria, Deputy Secretary General (Trade) Ministry of International Trade and Industry
- Mr. Irwan Mansor, Senior Private Secretary to MITI Minister
- Mr. M. T. Rajah, Trade Commissioner, Malaysia External Trade Development Corporation (MATRADE) in Singapore
- Ms Nor Marieta Nor Maidin, Assistant Trade Commissioner, MATRADE Singapore
- Mr. Mohd Zahid Abdullah, Counsellor (Economy), High Commission of Malaysia in Singapore
Singapore Business Representatives:
- Mr. Tony Chew, Chairman, SBF; Executive Chairman, Asia Resources Corporation Pte Ltd
- Mr. Cheng Wai Keung, Co-Chairman Malaysia-Singapore Business Council (MSBC); Honorary Secretary, SBF; Chairman & MD, Wing Tai Holdings Limited
- Mr. Stephen Lee, President, Singapore National Employers Federation; Chairman Singapore Airlines Ltd
- Dr. Robert Yap, Council Member, MSBC and SBF; and CEO & MD, YCH Group
- Mr. M. Rajaram, Council Member, MSBC; and Senior Director, Straits Law Practice
- Mr. Renny Yeo, Council Member, SBF; President, Singapore Manufacturers' Federation; Chairman, Draka Cableteq Asia Pacific Holdings Pte Ltd
- Mr. Umar Abdul Hamid, Council Member, MSBC; and Founder & Executive Chairman, Criterion Management & Advisory Services Pte Ltd (Singapore)
- Mr. Abdul Rahim Tahir, Council Member, MSBC; and MD, DHL Supply Chain Indonesia
- Mr. Wong Ngit Liong, Council Member, MSBC; and Chairman & CEO, Venture Corporation Limited
- Mr. Ng Keng Hooi, Group CEO, Great Eastern Holdings Limited
- Mr. Neo Bock Cheng, Senior Vice-President, Group Transaction Banking, OCBC Bank Limited
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