Political relations good, but high time to strengthen economic ties - Azerbaijan ambassador
19 Apr 2023 12:19pm
Baku Azerbaijan - AFP
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In expressing these wishes, Azerbaijan ambassador to Malaysia Irfan Davudov said the time is ripe for the Malaysian business community to seriously explore the trade and investment opportunities in Azerbaijan, as the country is actively implementing various rebuilding, restoration and reconstruction projects in the liberated areas of the Second Karabakh War in 2020.
"We have huge untapped potential... I hope the Malaysian business community will visit and see for themselves,” he told Bernama in an interview in conjunction with the 30th diplomatic relations anniversary.
Azerbaijan and Malaysia established diplomatic relations on April 5, 1993. Azerbaijan opened its embassy in Kuala Lumpur in June 2007, while Malaysia’s embassy in Baku opened on April 1, 2014.
Davudov explained that the government of President Ilham Aliyev prioritises renewable energy development of smart cities to run completely on renewable energy, telecommunications, Information and Communication Technology (ICT), development of healthcare technology, and infrastructure development such as roads, bridges and buildings as well as hotels and residential buildings in the development of liberated areas.
He said the Azerbaijan government has embarked on diversifying its economy by developing the non-oil sector, and renewable energy was one of the priorities of the government.
He said Malaysian companies could also explore the possibility of exporting electrical and electronics (E&E) products as there was a huge need for such products for the development of the liberated areas.
Malaysian investors are also welcome to invest in food production, agriculture and in high technology areas as these are also the focus of the economic development of Azerbaijan especially in the liberated areas.
Davudov pointed out that the government had created a conducive environment for investors, such as the establishment of the Alat Free Economic Zone (AFEZ), located next to Baku International Sea Trade Port for investors in high value added and export-oriented manufacturing.
He said many foreign countries have invested in Azerbaijan such as the United Kingdom (UK), Turkiye, the United States, Italy, China and Russia, with the UK being the largest foreign investor in Azerbaijan .
On Azerbaijan-Malaysia bilateral trade, the ambassador said it is still very low - around US$87.5 million in 2022, with both sides having an almost equal share in the volume of trade.
"In 2021, out of US$77 million bilateral trade, about US$68 million are Malaysia’s exports while our exports to Malaysia were only about US$9 million.
"We continue to buy more, mainly petrochemical products, palm oil, EE and semi-conductor products, while our exports are crude oil, foodstuff, and petrochemical products,” he explained on the trade gap between the two countries.
Oil and gas-rich Azerbaijan, with some 10 million people, is the largest country in the South Caucasus. Located on the crossroads of Southwest Asia and Southeastern Europe, it shares borders with Armenia, Georgia, Iran, Russia, and Turkiye.
Commenting on this strategic location, Davudov said Malaysian exporters should leverage this and use Azerbaijan as a hub to export their products to the neighbouring and nearby countries.
"In a globalised world, distance should not be an obstacle in doing business, trading or investments,” he opined.
Touching on the focus of Baku-Kuala Lumpur relations from now and in the coming years, Davudov said besides expanding trade and investment, education and tourism should be other priorities.
"In education, cooperation among universities such as joint training and research and exchange of students and academics of our two countries can bring good results. In this regard, Malaysian universities must do more aggresive promotional activities to attract more students. I also believe direct flights can contribute to attract more Azerbaijani students to study in Malaysia,” he further said.
The ambassador also explained that several events have been arranged to celebrate the 30th anniversary of Azerbaijan-Malaysia diplomatic ties such as an exhibition on the National leader and the founder of the independent state of Azerbaijan Heydar Aliyev, and a chess tournament.
May 10, 2023, marks the 100th anniversary of the birth of Heydar Aliyev. On Sept 29, President Ilham Aliyev signed an Order to declare 2023 as a "Year of Heydar Aliyev”.
Besides that, Davudov said there will be an exhibition of young Azerbaijani painters, a roundtable talk on Azerbaijan-Malaysia relations, and a concert of Azerbaijan music to be held at a university in Malaysia.
"We hope all these events will bring the people-to-people relations between our two brotherly Muslim countries closer,” Davudov said - BERNAMA
