KUALA LUMPUR: Malaysia and the United Arab Emirates (UAE) should further elevate their robust ties, said analysts, noting that there’s room to expand bilateral economic cooperation.
Principal adviser at the Pacific Research Centre of Malaysia Dr Oh Ei Sun deemed Malaysia and the UAE the shining models of Muslim-majority countries that have attained a high level of development for others with a similar background.
“They should deepen and broaden their economic ties. Malaysia could learn a lot from the UAE in terms of making itself a transport hub and a financial centre.
“UAE could send more students to Malaysian universities. The trade of goods can also be improved. They could also join hands in their diplomatic efforts,” he told Bernama.
Oh, who is also a senior fellow of the Singapore Institute of International Affairs, pointed out that the two countries need to be bold and creative in substantiating their cordial bilateral ties.
“The strategic partnership must be filled with substance and not merely reduced to a slogan,” he added.
According to the Foreign Ministry’s website, the UAE and Malaysia enjoy excellent bilateral relations that date back to the early 1970s, with both countries having diplomatic representations afterwards.
Malaysia established its embassy in Abu Dhabi in January 1983 and upgraded its presence in the UAE to ambassadorial level in July 2000.
The UAE established its embassy in Kuala Lumpur in October 1995.
The relations between both countries have been elevated to Strategic Partnership since Sept 27, 2022, said the ministry.
Geostrategist Prof Dr Azmi Hassan concurred that Malaysia and the UAE have been enjoying cordial bilateral relations, with total trade between the two countries being relatively equal, even though the balance of trade favours the UAE.
“There is no significant difference in the balance of trade between the two countries. The total trade between the two countries increases every year,” he said, adding that the UAE is one of Malaysia’s largest trading partners in West Asia.
Last year, the UAE was Malaysia’s second-largest export destination and second-largest import source among West Asian countries, according to the ministry.
From January to October 2022, total trade with the UAE increased by 79.2% to RM32.57bil (US$7.43bil), compared to RM18.18bil (US$4.40bil) for the corresponding period in 2021.
The senior fellow at the Nusantara Academy for Strategic Research said currently, the UAE has closer economic ties with Singapore, but Malaysia has more advantages in strengthening its position in the bilateral ties.
“First, because we have the expertise and logistic facilities equivalent to Singapore but our advantage is more in culture and religion.
“When compared to Singapore, UAE investors may be more comfortable with Malaysia because of the religious and cultural factors with which they are familiar. With these advantages, we can make Malaysia a hub for UAE investors,” he said.
Prof Azmi said Malaysia, through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), could also use its position as a hub for UAE trade and investment.
Meanwhile, the UAE itself is bolstering its presence in Malaysia and the South-East Asian region through high-level delegation visits and showcasing its products and services at major events in the region.
Abu Dhabi-based EDGE, one of the world’s fastest-growing advanced technology and defence groups, will be participating in the 16th edition of the Langkawi International Maritime and Aerospace Exhibition (Lima) 2023 from May 23 to 27.
Malaysia, too, has made some inroads in the UAE’s petroleum sector.
Last December, PETRONAS Abu Dhabi Sdn Bhd, a wholly-owned subsidiary of Malaysia’s PETRONAS, and Abu Dhabi National Oil Company inked an agreement to explore and appraise a 2,000sq km concession area in the Al Dhafra region.
The agreement brings PETRONAS’ unconventional expertise to the UAE.
