Asean continues to attract European investment interests

Monday, 09 August 2012 06:30

The immense business opportunities in Asean (Association of Southeast Asian Nations) coupled with its projected growth of between 5.6% and 6.3% this year, would continue to attract investors from Europe, Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed said.

Speaking at the sidelines of the Asean Summit in Phnom Penh, the Minister said the Asean region would remain an important investment destination for foreign investors from Europe, particularly with the robust economic development in the region while the US, Europe and Latin America are facing slowing economies.

The increasing number of middle-class as well as a young population base amidst a strong 600 million population in Asean has further generated interest among European investors.

The Asean free trade agreements with China, South Korea, Japan, India, Australia and New Zealand have also opened up more markets for business, an added factor for consideration.

The European businesses have also considered Asean as one of the four pillars in Asia besides China, India and Central Asia.

The economic liberalisation within Asean, the democratisation process in Myanmar and Cambodia's admission into the World Trade Organisation have further boosted economic potentials in this region, he added.

The strong participation of some 500 representatives from over 50 major European companies at the just-concluded Asean-EU Business Summit in Phnom Penh, was a clear reflection of the European interests in this region.

On Malaysia-Cambodia economic ties, Datuk Seri Mustapa said Malaysia businesses held some US$2.6 billion worth of assets in Cambodia, emerging as the fourth largest foreign investor after China, Korea and Europe, adding that Malaysians had already set foot in the Kingdom even before the country joined Asean in 1998.

Malaysians have to-date registered 1,6000 businesses in Cambodia and these are concentrated in the banking, manufacturing, textile, telecommunications and energy sectors.

A Malaysian company is also managing the country’s three airports including the Phnom Penh International Airport, he added.

Going forward, he called on Malaysian companies to look into business opportunities in the halal products industry, which could be the next important sector, noting that there are some 400,000 Muslims among its 14 million people.

Adapted from StarBiz