Australia to strengthen commercial ties with S’wak

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KUCHING: Australia is looking to strengthen trade, investment and education ties with Malaysia and its key state Sarawak, as highlighted by senior representatives from the Australian Trade Commission (Austrade) at the Sarawak Chamber of Commerce and Industry’s 62nd Annual Luncheon in Kuching yesterday.

“The relationship between Australia and Malaysia is strong and getting stronger,” said Australia’s Senior Trade Commissioner to Malaysia, Susan Kahwati, during her presentation to guests at the Hilton Kuching.

Kahwati also pointed out that Malaysia is now Australia’s ninth largest trading partner, with A$17.7 billion (approximately RM53 billion) in annual two-way trade in goods and services, and around A$19 billion (about RM57 billion) in two-way foreign direct investment.

Opportunities for further trade and cooperation will only increase now that the Malaysia Australia Free Trade Agreement (MAFTA) is in effect as of January 1, 2013.

MAFTA is the first trade agreement that Malaysia has signed where it receives immediate tariff-free access for all its goods into another country, while allowing tariff-free entry of 97.6 per cent of goods exported from Australia, with the rate rising to 99 per cent by 2017.

As such, the agreement will further integrate the Australian economy with the fast-growing Asian region and deliver benefits to Australian and Malaysian exporter, importers and consumers alike.

“Many of Australia’s strengths across a diverse range of sectors such as health care, education, financial services and oil and gas, match perfectly with those identified by the government in its Economic Transformation Programme,” emphasised Joel Backwell, Assistant Trade Commissioner on the synergies of trade between Australia and Malaysia.

With products like iron and steel also benefiting from tariff reductions under MAFTA, there are now greater opportunities for both countries to benefit from cheaper goods and inputs into manufacturing.

An example of Australian-Malaysian success is in Sarawak itself whereby Australian-owned OM Holdings together with Cahya Mata Sarawak Bhd, recently secured full funding for its ferro alloy smelting project in Bintulu, representing a significant milestone in the development of the project.

Education links between both countries are also equally significant – with Australia’s major university campuses Curtin and Swinburne being located in Sarawak – and as such, will be strengthened by MAFTA.

There are currently about 21,000 students studying for Australian qualifications in Malaysia, and a further 20,000 studying in Australia.

Over 350,000 Malaysian alumni – many of which are from Sarawak – have benefited over the years from quality Australian education and as such, have helped to increase the people-to-people links between the two countries, resulting in the formation of both personal and professional ties.

Overall, for Austrade and the Australian companies that it supports, the growing relationship between these two countries is an exciting prospect, especially the ties with Malaysia’s key state Sarawak.