�AY-JUNE . 2024 � �AGROBiz

Egypt wants Malaysia to set up palm oil hub in its SCEZ

Egyptian Ambassador Ragai Tawfik Said Nasr emphasised the strategic importance of the Suez Canal Economic Zone , expressing the Egyptian government ’ s desire for Malaysia ’ s public and commercial sectors to establish a refinery and distribution centre for crude palm oil to serve Egypt and its neighbours .

The robust network of free trade agreements ( FTAs ) that Egypt has inked with nearly all its neighbouring nations will facilitate trade and investment between Malaysian companies and their Middle Eastern and South African counterparts .

This includes streamlined customs procedures , reduced tariffs , and mutual recognition of standards , making it easier for Malaysian palm oil to enter these markets .

The FTAs are the Common Market for Eastern and Southern Africa ( COMESA ), the African Continental Free Trade Area , the Egypt-European Union Free Trade Agreement , and the Greater Arab Free Trade Area ( GAFTA ).

“ This also includes the plan to serve the food industries in the SCZone that depend on palm oil as a manufacturing input ,” said Said Nasr , according to Business Times .

“ We had a long discussion with the Malaysian stakeholders and arranged site visits for several government officials and business leaders .

“ We are hopeful that these efforts will succeed shortly , especially after the recent visit of Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani to Egypt .”

During his visit to Egypt , Johari emphasised that Egypt may serve as a gateway to North Africa for Malaysia , providing ample potential to produce pharmaceuticals , cosmetics , processed foods , personal care , and consumer brand products made from palm derivatives .

According to the Malaysian Palm Oil Council ( MPOC ), Malaysian palm oil

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was Egypt ’ s most imported palm oil in January 2024 , accounting for 51.9 per cent of total imports , slightly more than Indonesia ’ s 48.1 per cent .

These suggest that Malaysian palm oil exports will continue to perform well in 2024 .

Said Nasr said Egypt had hosted online events showcasing business opportunities between the two nations to compensate for the lack of frequent in-person meetings between Egyptian and Malaysian businesspeople .

“( We also ) raised awareness of the incentives that the Egyptian government is granting for the investors , especially within the Suez Canal Economic Zone , to many Malaysian companies ,” Said Nasr added .

He did not limit himself to the palm oil industry when he mentioned other sectors that can improve bilateral trade , such as automobile , green energy and ICT .

“ We see Malaysia as an inspiring economic and industrial model . We aim to develop a stronger strategic partnership , especially in areas such as advanced technology manufacturing and the Industry 4.0 applications in the manufacturing sector as well as data centres and ICT sectors ,” he said .

A Proton assembly plant is expected to commence in Egypt by the end of this year , thanks to the parts and technical support supplied by Malaysian automaker Proton Holdings Bhd to its Egyptian business partners .

“ In the ICT sector , we would like to position Egypt as a hub for data centres

Datuk Seri Johari Ghani with Ahmed Samir Saleh , Minister of Trade & Industry , Egypt .

“( We also ) raised awareness of the incentives that the Egyptian government is granting for the investors , especially within the Suez Canal Economic Zone , to many Malaysian companies .”

– Ragai Tawfik Said Nasr and cloud computing in the Middle East , North Africa ( MENA ) region . Malaysia recently attracted giants like Google to build data centres , and we learned that Microsoft is also interested in working in the country .

“ As for green energy , the focus is to attract wind and solar power companies to work in Egypt as this sector is well-established and receives Egyptian government support , plus we already enjoy the strong natural sun and wind power sources ,” he said .

Said Nasr stressed Malaysia ’ s need to select a chairperson for the Egypt- Malaysia Business Council .

He said that the business council could fulfil its critical function of suggesting measures to improve investment and commerce between the two nations with this change .

“ We are looking forward to attracting the attention of the business community in both countries to the non-traditional business cooperation and opportunities , which includes joint ventures and long-term business plans ,” he added . – @ AGROBiz