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Tuesday Sep 24, 2024
Friday, 27 February 2015 00:27 - - {{hitsCtrl.values.hits}}
Minister Bathiudeen in discussion with Dato’ Seri S. Samy Vellu (second from left)
Sri Lanka’s largest global FDI partner, Malaysia, has come forward to introduce its successful industrialisation model to Sri Lanka and, with a keen eye on the huge South Asian market, is also moving to renew trade.
“The 12 national industrial parks we created in Malaysia are successful. We intend to introduce the same model to Sri Lanka as well. It is time that we also renew bilateral trade, apart from the strong investment bonds that we already have,” said Malaysia’s Special Envoy of Infrastructure for India and South Asia attached to Prime Minister’s Office, Dato’ Seri S. Samy Vellu, who is currently leading a Malaysian delegation to Colombo.
Special Envoy Vellu was addressing Minister of Industry and Commerce Rishad Bathiudeen yesterday during his courtesy call to the Minister at the Export Development Board (EDB). Joining Vellu at the discussion were Malaysian High Commissioner Azmi Zainuddin and the Head of Chancery of the High Commission of Malaysia in Colombo, Azhar Mat. Others present at the meeting were EDB Chairman and CEO Bandula Egodage and Department of Commerce Director General R.D.S. Kumararatne.
“We are bidding for the Northern Highway on a BOT basis. We want to do a good job if we get it. Even the 1,100 km Kuala Lumpur highway saw very few vehicles at first but now every day a million vehicles are passing through,” Vellu said.
“We like to partner on Government to Government (G2G) projects, having done such projects in Bangladesh and India. We can jointly identify new industrial sectors and create industrial parks in Sri Lanka with our partnership. The 12 national industrial parks we created in Malaysia are also equipped with housing and social infrastructure for people employed in the industrial parks including housing, sanitation and water, one reason that our parks are successful. We intend to introduce the same model to Sri Lanka as well. The industrial layout needs to describe not only the types of industries to be set up but the social and community infrastructure as well. This is how we started industrialising the Malaysian economy,” he added.
Minister Bathiudeen, in his comments to Special Envoy Vellu explained: “President Maithripala Sirisena’s vision of development is inclusive of industrial and export promotion. Sri Lanka welcomes investments from Malaysia for infrastructure which is a designated ‘targeted investment sector’ from Malaysia. Other sectors called on by Sri Lanka from Malaysia are tourism and recreation, BPO/IT and IT-enabled services, education, electronic and electrical equipment manufacturing and rubber-based manufacturing.
“I welcome your suggestions and keenness to partner with us through Malaysia’s successful industrial parks model. The Ministry of Industry and Commerce already operates 27 industrial parks across the country and we are especially keen about investments and partnerships for our newest zones. Some new zones too are also being planned in other areas. The Ministry of Industry and Commerce aims to take industries from beyond the Western Province to the rest of Sri Lanka. Malaysian investors can invest here and access the massive Indian and Pakistani markets for more than 8500 products through our FTAs with these two markets. And most of the products you manufacture could be used as input in our manufacturing processes.”
Among the well-known Malaysian investments in Sri Lanka are Dialog Axiata, Merbok Mdf Lanka, Lion Brewery (Ceylon), Hemas Hospitals, Dankotuwa Porcelain, Sunshine Ventures and APIIT Lanka Ltd. Malaysia ranks first among countries that have invested in Sri Lanka through BOI. Realised total FDI from Malaysian projects exceed $ 1.28 billion by the third quarter of 2014. Annual FDI flow to Sri Lanka from Malaysia almost quadrupled in 2013 (from 2012) to $ 176.2 million.
Special Envoy Vellu responded: “It is time that we also renew bilateral trade, apart from the strong investment bonds that we already have. Of course South Asia is a massive zone of people and Sri Lanka is lucky to sit so closely to this huge market.”
Sri Lanka’s bilateral trade with Malaysia increased by 31% to $ 757.2 million in 2014 from 2013’s $ 577.66 million.
