Pakistan Malaysia Strong Relations Longstanding Deep Rooted Relations

Dr.Syed Mehboob                                  

Economic and Political analyst

Senior Editor  TheNewsLark

http//:www.theneweslark.com

Pakistan and Malaysia are two friendly brother Muslim countries and have deep-rooted, time-tested, and all-weather strong relations. Both countries are active members of UNO, OIC, and the Commonwealth and have a strong desire to build a strong foundation for economic development, people’s betterment in their living standard, eradicating poverty, illiteracy,and extremism. Both countries have great potential to turn their ties into strong trade relations and to leave no stone unturned to enhance their bilateral trade volume and to avail opportunities available in both countries in business and investment.

Malaysia is a country in South East Asia. It consists of thirteen states and three federal territories separated by the South China Sea into two regions, Peninsular Malaysia and Borneo’s East Malaysia. Peninsular Malaysia shares a land and maritime border with Thailand and a Maritime border with Singapore, Vietnam, and Indonesia. East Malaysia shares a land and maritime border with Brunei and Indonesia and a maritime border with the Philippines and Vietnam.  Kuala Lumpur is the national capital and its largest city. Malaysia is the founding member of the Association of Southeast Asian Nations(ASEAN) and the Organization of Islamic Cooperation (OIC). It plays a very active role in UNO, The Asia Pacific Economic Cooperation (APEC) The Developing Eight countries. It is also a member of The Commonwealth. Malaysia is the 66^th largest country by total land area, with a land of 329,613 sq km.

Economy

Malaysia had one of the best economic records in Asia, with GDP growing an average of 6.5% annually from 1957 to 2005. Its economy was one of the most competitive in Asia in 2014-15. It ranked 6^th in Asia and 20^th in the world, higher than countries like Australia, France and South Korea. Tourism is its third largest source of foreign exchange. The country is the center of Islamic Banking. Labour productivity in Malaysia is significantly higher than in neighboring countries Thailand, Indonesia, The Philippines, and Vietnam due to the high density of knowledge-based industries and the adoption of cutting-edge technology for manufacturing and the digital economy. Malaysian citizens enjoy an affluent lifestyle compared to almost all other ASEAN countries except Singapore and Brunei.

ECONOMY OF MALAYSIA

GDP Nominal: $ 445.52 billion (2024)

GDP PPP: $1,306 billion( 2024)

GDP growth:   4.4% ( 2024) 3.7% ( 2023) , 34.7 % (2018), 4.3% (2019), -3.11(2020) 6.9 % (2021)

GDP per capita: $ 13,315(Nominal)

                                $ 39,030(PPP)

GDP by Sector: Agriculture 8.8%, Industry 37.6%, Services 53.6%

Exports: $ 312.91 billion ( 2023)

Export partners: China 21.5 %, Singapore 9.2%, USA 8.72%, Japan

7.69 %,

Imports: US$ 265billion  ( 2023)

Import Partners: China 16.8%, Singapore 14.45%, USA 11.10 %,

                                Japan 6.36%, Hong Kong 6.93%

Export Items: Semiconductor and electronic products, Palm oil,

                         Liquefied Natural Gas, Chemicals, Machinery,

                         Vehicles

Import Items: Electronic Goods, Machinery, Chemicals, Petroleum 

Products

Both countries collaborate in many sectors, especially, in higher education. Thousands of Pakistani youth are studying PhD and Master level programs in Malaysia. Malaysia has become one of the major contributorsto human resource development for Pakistan. The educational standard in Malaysia is equivalent to British in quality almost but at a much more affordable price. At the same time, many leading professors from Pakistan are serving in Malaysian Universities. Collaboration between two brotherly nations is excellent and will grow further in the future.

Malaysia has very good experience in the tourism industry, while Pakistan wanted to exploit its natural beauty for tourism. Collaboration in the tourism Industry may be beneficial for both countries. Pakistan has offered incentive-based opportunities in this sector. Malaysian investors may avail this opportunity to make more profit and at the same time help Pakistan to boost tourism.

Mahathir Muhammad was guest of honor at the Pakistan Day celebrations in Islamabad on 23^rd March 2019 and conferred Pakistan’s highest civil award, “Nishan e Pakistan”. Both the Prime Ministers of Pakistan and Malaysia signed a series of Memorandums of Understanding (MoUs) worth an estimated US$ 1.22 billion about telecommunication, information technology, Power, Halal Food, and agriculture sectors. Mahathir also led the foundation stone for Proton’s first South Asian manufacturing assembly plant which would produce 20,000 cars per year. In 2007, the two countries signed a free trade agreement known as theMalaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA).The MPCEPA covered trade in goods and services investments and economic cooperation. This was the first Free Trade Agreement of Malaysia with any South Asian country. Malaysia is not only a potential market for Pakistani goods but also an avenue towards reaching markets in Southeast Asia. It is noteworthy that Malaysia has been a stronger supporter of Pakistan’s bid to be a full dialogue partner of the Association of Southeast Asian Nations. In line with the MPCEPA Pakistan eliminated or reduced tariffs on several imports from Malaysia chiefly from Palm oil which is 50% of total exports from Malaysia to Pakistan.

Malaysia Pakistan Trade Statistics US$ Billion

Source: SBP, PBS

There is a dire need to make serious efforts to enhance Pakistani exports to Malaysia. Also, there is a need to build a university in Pakistan that should be affiliated with Malaysia and should be on Malaysian pattern. More students should be sent to Malaysian universities for Ph.D. to enhance the quality of Pakistani Human Resources. I am proud that one of my students did a Ph.D. in finance from Malaysia University and he admires very much the standard of Malaysian education.