Malaysia Strengthening Ties with Indonesia

Malaysia expects to see more business to business relations with Indonesia. According to local Indonesian media, Malaysia’s Ambassador to Indonesia, Dato Seri Zahrain Mohamed Hashim, said on Friday he expects the two countries to gain from a more integrated Southeast Asian region in the lead up to the implementation the Asean Economic Community in 2015.

Malaysia is the second biggest Asean investor in Indonesia with a majority of its investments in the telecommunication, banking, plantations, hotels, restaurants and oil and gas sectors.

The two countries have plans to achieve bilateral trade worth up to US$30 billion by 2015. The ambassador cited opportunity for investment in Malaysia’s property, manufacturing and technology. 

The Asean Economic Community (AEC) envisages: a single market and production base, a highly competitive economic region, a region of equitable economic development and a region fully integrated into the global economy.

The AEC areas of cooperation include human resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement for the building of the AEC. In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labor, and freer flow of capital.