RP-Malaysia trade ties remain healthy

Trade and investment relations between the Philippines and Malaysia remain healthy and amicable despite some sour investment partnership in the past, visiting Malaysian Trade Minister Rafidah Aziz said yesterday.

"There are no trade irritants between Malaysia and the Philippines," Aziz said even as she ribbed Trade and Industry Secretary Manuel Roxas II about anti-dumping duties on Malaysian products such as clear float glass, ceramic tiles and some steel products.

Aziz is in the country for a trade and investment mission.

For his part, Roxas agreed that "these are minor issues which can be resolved and that the differences are in the normal course of doing business."

Perhaps, because of the amicable relationship between the two countries, Aziz indicated that Malaysia is not inclined to ask for any compensation in exchange for the Philippines’ request for a deferment of the lowering of tariffs for its petrochemical industry under the ASEAN Free Trade Area-Common Effective Preferential Tariff (AFTA-CEPT).

Aziz also said Malaysian investors remain optimistic about the Philippines despite some bad investments in the past such as the National Steel Corp. (NSC).

"Most Malaysian have not even heard about the NSC investment since it was a private investment," Aziz said.

"For us, one sour deal with a foreign counterpart does not mean anything. It is just wrong partnership at the wrong time," she added.

Aziz also said that "investment cross flow between both countries although small, has been encouraging."

To date, Aziz reported, Malaysia’s cumulative approved investments in the Philippines amounted to $157.8 million or P8.395 billion.

"Malaysia is the Philippines second main source of foreign direct investments among ASEAN countries," Aziz said.

Currently there are 36 Malaysian companies operating in the Philippines. These include Petronas, Maybank, the Shangri-La hotel chain, Metroplex Bhd, and Lityan Holdings Bhd.