Malaysia eyes Lao market potential
Malaysia eyes Lao market potential
Malaysia is looking to tap more of Laos’ market potential in a bid to boost the growing trade between the two countries, which is expected to record two-digit growth this year.
Malaysian Minister of International Trade and Industry, MrMustapa Mohamed, said this week that Laos has extensive market potential, especially in the tourism, infrastructure, agriculture and private healthcare sectors, the Non-aligned Movement News Network (NNN) reported on Tuesday.
The minister made the comment after attending the Laos-Malaysia Business Forum on the same day, according to the NNN – the news agency managed by BERNAMA, the Malaysian National News Agency.
Lao Prime Minister ThonglounSisoulith, who was on a two-day official visit to Malaysia, officiated at the forum.
MrMustapa said Malaysian companies should leverage this opportunity to explore Laos' extensive market potential.
"Laos is one of the Asean countries that has been forecast to grow beyond 7 percent per annum over the next few years. This speaks volumes about the huge potential that this resource-rich country could bring.”
"Among key areas we are targeting to boost our exports to Laos are building materials, machines, consumer products and disposable medical items," he was quoted as saying.
Malaysia’s Ministry of International Trade and Industry is confident that trade between Malaysia and Laos will continue to grow by two digits this year despite the challenging economic landscape.
Malaysia-Laos trade in 2016 increased 76 percent to US$30.9 million from US$17.7 million in 2015.
Malaysia invested US$570 million in Laos between 2011 and 2015, making it the fourth largest investor in Laos, according to the NNN.
MrMustapa said Malaysia and Laos are currently undertaking economic liberalisation initiatives at national and regional levels, and the two sides need to continue promoting bilateral trade cooperation for the benefit of their economies.
Some 25 Malaysian companies are actively operating in Laos in key areas such as hydropower, mining, and developing economic zones and infrastructure projects, notably a railway, he added.
Malaysia’s Giant Consolidated Limited signed an agreement with the Lao government in 2012 to build a 220km railway linking Savannakhet province to the Vietnamese border at a cost estimated somewhere between US$5.5-6 billion.
Both nations have registered a significant number of tourist arrivals from one another’s countries.
In 2016 Malaysia recorded 31,061 Lao tourist arrivals, an increase from 24,228 in 2015, according to BERNAMA.
Meanwhile, 24,391 Malaysian visitors came to Laos in 2016, up from 24,095 in 2015, according to the Lao Ministry of Information, Culture and Tourism.
