Malaysian investors ready to set up free trade zone

by Gamini Warushamana

Malaysian investors who see more opportunities in investing in Sri Lanka are ready to set up a special free trade zone of their own. This was revealed by a Malaysian trade and investment mission that visited Colombo last week to promote trade and investment between the two countries. The delegation discussed the implementation of this investment plan with the BOI officials.

Representatives of leading Malaysian companies on this visit were seeking joint venture partnerships, suitable products and services to import and promote Malaysian products and services in Sri Lanka.

Head of the delegation, Tan Sri Dato said that Malaysian investors see the advantage of free trade agreements Sri Lanka has entered into with India and Pakistan as well as the GSP+ concessions that it gets from EU in investing in Sri Lanka.

Dato, a manufacturer of machinery for palm oil and crude rubber processing is looking for joint-venture partners to manufacture cold roll steel section for furniture and housing, coke fired cupola for cast iron foundry, agricultural products processing machinery and paint manufacturing.

Dato wishes to buy agricultural products, specially peanuts from Sri Lanka while selling palm oil machinery, hollow steel sections for furniture and housing, re-tread tyres, passenger cars and heavy trucks in Sri Lanka and seeks a business partner here.

Dato, who is also the Chairman of the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM) said that Sri Lanka and Malaysia have been friendly nations over a long period of time and now the time has come to turn the friendship to economic development. Both countries can get mutual benefits from economic co-operation. Malaysia has niche knowledge of technology as a result of economic development where Sri Lanka can get benefits. Malaysia can enter into a large market through Sri Lankan FTAs, he said.

If a country is highly dependent on agriculture it will remain poor and to fast develop a country it should turn to manufacturing industries.

This is what Malaysia started in 1970s, he said.

Dato said his company will invest in palm oil refinery in Sri Lanka. He sees a high demand for palm oil in the future as a bio fuel due to increasing crude oil prices.