Malaysia has eye on trade

Press, 23 September 1988, Page 7

Malaysia has eye on trade

The deregulation of importing in New Zealand might be an opportunity for Malaysia to redress the trade imbalance between the two countries, say two Malaysian trade representatives. Mr Mohd Sidek Hassan and Mr Abdol Rahman Moharem, both of the Malaysian Consultate in Syndey, were in Christchurch yesterday to meet business groups in the city. Mr Sidek said the balance of trade had always favoured New Zealand. Part of the purpose of their trip was to interest importers in Malaysian products, which would help redress the balance. He hoped New Zealand importers would take advantage of the removal of import licensing and reduced import tariffs, to import more Malaysian goods.

Mr Rahman said the Malaysian Government wanted to attract New Zealand businesses to Malaysia, and had prepared a package of investment incentives aimed at oversas businesses. The incentives included pioneer status for companies setting up business in Malaysia, which could exempt them from income tax for up to 10 years. At present income tax on companies in Malaysia is 45 per cent. Companies also were entitled to reductions on income tax if they set up business in designated development areas, or used Malaysian raw materials. Mr Sidek said Malaysia wanted people involved in manufacturing finished products in Malaysia, rather than haing the country’s resources sent overseas to be processed.