Malaysia’s bilateral trade with Canada rises by 25%
Published on: Monday, March 25, 2024
By: Bernama
A total of 96 manufacturing projects with Canadian participation have been implemented, with total investments worth US$274 million, says Tengku Zafrul Aziz. (Bernama pic)
PETALING JAYA: Malaysia recorded a 25% increase in bilateral trade with Canada since 2018, bolstered by the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), which came into force for Malaysia in November 2022.
In the past 15 months, there was an encouraging uptake of the issuance of the Certificate of Origin (CO) by Malaysian businesses for exports to CPTPP partners, including Canada.
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Investment, trade, and industry minister Tengku Zafrul Aziz said that although Malaysia’s overall trade with Canada dipped in 2023 compared to 2022, this year’s projections look brighter with the World Trade Organization’s (WTO) forecast of 3.3% in merchandise trade growth for 2024.
Tengku Zafrul said Malaysia is proud to host Canadian companies like Celestica, Sun Life and other companies that have been thriving here for more than a decade.
“As of today, a total of 96 manufacturing projects with Canadian participation have been implemented, with total investments worth US$274 million (RM1.295 billion).
“The top three sectors for Canadian investments are electrical and electronics (E&E), basic metal products, as well as wood and wood products. These projects have generated employment for 11,027 people,” he said in his keynote address at the launch of The Team Canada Trade Mission (TCTM) today.
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Tengku Zafrul said the TCTM is a platform to up the Malaysia-Canada game on both trade and investment.
“We warmly welcome Canadian investors to collaborate with us in sectors such as semiconductors (IC design and wafer fabrication); speciality chemicals; advanced materials; aerospace; pharmaceuticals; and medical devices,” he said.
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Tengku Zafrul said disciplined execution on investments saw “quite a few” manufacturing projects taking off earlier than the typical 18 to 24-month timeline.
“In the past year alone, due to our disciplined execution, there were quite a few projects that were successfully implemented in a shorter period of less than 18 months, some within 12 months. These include Enovix; Ferrotec Manufacturing; and Ultra Clean Technology.
“Whichever sector you are looking at in terms of investment or trade, you can count on our strong, disciplined execution, as well as rule of law, should you consider making Malaysia your regional trade or investment hub,” he said.
Meanwhile, Canada’s export promotion, international trade and economic development minister Mary Ng said TCTM is a platform to create opportunities to strengthen trade and investment ties between the two countries.
As part of the Indo-Pacific strategy which deepens and diversifies Canada’s partnerships, she said Malaysia will enhance Canada’s trade, investment and supply chain resilience.
“This is the fastest growing part of the world and for us to be here in Malaysia is a very important part of the work that Canada is doing.
“In addition, Malaysia, with your resilient economic fundamentals, growing middle class, talent pool, and infrastructure support is such an attractive regional hub for Canadian companies and investors,” she added.
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