STRONGER tourism, investment and trade relations between Malaysia and the Philippines were underscored by the reopening of the Philippine Trade and Investment Centre in Kuala Lumpur (PTIC-KL) in 2016.
The renewal of economic ties is a push by the current administration to bring in investment and consequently economic development in Mindanao. The most recent hallmark in the business relations between the two countries is the launch of new Philippine-Malaysia flight routes by Philippine Airlines (PAL) and AirAsia.
The reopening of PTIC-KL is very timely, as connectivity between the Philippines and Malaysia received a boost from the resumption of PAL’s daily flights between Manila and Kuala Lumpur on June 8 after a three-year respite. As such, the role of PTIC-KL has become more relevant as it expects to facilitate and assist a significant number of Malaysian businesses interested in the Philippines, and vice versa.
A case in point is the assistance it extended to the Malaysian business delegation during the Fourth Davao Investment Conference at the SMX Convention Center Davao. During that conference, AirAsia’s top executive, Tony Fernandes, announced the launch of AirAsia’s direct Kuala Lumpur-Davao flight. Beginning on December 21, 2017, AirAsia will have four flights a week for its Kuala Lumpur-Davao route.
Philippine businessmen from Davao have expressed their interest in conducting business missions to Malaysia to explore opportunities with one of the country’s closest neighbors. A number of Malaysian businessmen have also signified their intent to visit Davao and see what the Mindanao region has to offer.
Agri-business, renewable energy, and infrastructure are the key sectors of interest to many Malaysian companies in the Philippines. The bilateral relationship between the Philippines and Malaysia has remained steadfast over the years. In 2016, Malaysia was the Philippines’s 10th major trading partner (out of 226), 11th export market (out of 213), and 9th import supplier (out of 207).
In terms of trade, the top Philippine exports to Malaysia are electrical and electronic products, processed food, and chemicals and chemical products. Also, halal-certified products (including food, beverages, beauty, and healthcare products) and professional services (information technology, education and training services, healthcare or medical services, hospitality and tourism services, and creative arts) are now being introduced to the Malaysian market. The total bilateral trade in 2016 amounted to US$4.6 billion. This figure is expected to become much bigger with more connectivity and mobility brought about by the launch of the new flight routes.