Malaysia - Eurozone crisis prompting Italians to look East

MILAN: While there is currently a lack of awareness among Italians about Malaysia, the weak economic outlook of the eurozone is increasingly prompting Italians to look East as a new outlet of growth.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Malaysia welcomed investments from Italy, especially in the areas of alternative energy, regional establishments, the setting up of data centres, market support services, tourism and environmental management, among others.

It was also under such circumstances that the minutes of the First Joint Economic Committee was signed on Monday by Mustapa and Italy's Minister of Economic Development Paolo Romani at the Milan Chamber of Commerce. The joint committee will create new conditions for mutual growth, especially in the automotive, biotech, furniture design, medical care and infrastructure sectors. In return, Malaysia will help Italian small and medium enterprises expand and grow in Malaysia.

Mustapa said that Malaysia wanted technology from Italy for innovation and to create new products.

 “We want to collaborate with Italy in design, for example in auto and in furniture manufacturing, as we want Italy's technical expertise to enhance our quality and gear up the value chain. We want to speed up this process. I am personally very excited with this collaboration,” he added.

“Between our two countries, there is a strong and solid relation of friendship and cooperation that can be further developed. Malaysia may also present an excellent logistics base for our companies that want to grow in South-East Asia and Asean,” said Romani.

On the same day, the Milan Roundtable Meeting was also held, with Mustapa meeting 25 Italian companies which expressed interest in investing in Malaysia.

R. Marelli Motor Spa managing director Roberto Ditri said Malaysia was a suitable hub for Italians, particularly to penetrate a larger market in Asia.

“We are more interested in doing business now. It is very important now, and has increased in priority. The small and medium enterprises in Italy can contribute to the Malaysian business model,” said Ditri.

Marelli Motor has already invested RM20mil in Malaysia. It started its first marketing office in 1997. Last year, it established its manufacturing centre in Shah Alam, which now employs about 70 employees, but is set to increase to 150 come March next year.

Massimo Giannelli, who is president of the Italian Malaysian Business Association, said Malaysia offered a stable political and economic environment where businessmen could thrive.

“Malaysia is also the leader worldwide in Islamic banking. Malaysia can be the centre or bridge for Italian people wanting to do business in Asia,” he added.

At present, Italy is not a large market for Malaysia, and is ranked 10th in terms of Malaysian exports to Europe. Some of the major exports to Italy include rubber gloves, which make up some 10.5% or 74.4 million euros as of December 2010.

“We have good incentives to offer. We have a young population and a middle class segment that is growing. Economic wise, we have a sound banking system, liberal investment policies and skilled labour forces. There is no extremism. We discourage extremism. We are a very open economy and we love foreigners,” said Mustapa.

Also present during the roundtable meeting were representatives from Malaysian Industrial Development Authority, Malaysia External Trade Development Corp, Ministry of International Trade and Industry, the Sabah Development and Investment Authority, Iskandar Regional Development Authority and the Malacca state government. During the meeting, Mustapa invited Italian companies to come to Malaysia and gave his commitment that he would assist the Italians in setting up a follow-up meeting.

By TEE LIN SAY

linsay@thestar.com.my

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