Muzzafar, whose mandate as a Malaysian trade envoy also requires him to look after trade issues in Bangladesh, gave an exclusive interview to UNB during his recent visit to Dhaka.
Bangladesh, he said, can also use Malaysia as a gateway to other Southeast Asian countries like Singapore, Thailand and Indonesia.
The geographic location of Bangladesh also makes it significant for Malaysia as the country can be entry point for Malaysia to many other countries including Pakistan, Nepal and northern part of India which will help Malaysia with reduced shipping cost and time, he added.
Muzzafar Shah Hanafi suggested organizing seminars and business meetings frequently between the two countries that will help create better understanding about Bangladesh’s trade and investment opportunities.
He noted that people in Bangladesh are willing to pay higher prices for high quality products. He came up with the observation considering the steady economic growth of Bangladesh having huge population with higher purchasing capacity.
According to Muzzafar, the trade relations can be boosted with the implementation of the proposed free trade agreement (FTA) as consumers can enjoy Malaysian products at fair price with its enforcement.
Malaysia is waiting for the response from Bangladesh to hold the first official meeting on the proposed FTA, which might be arranged after the national election this year, hopes Muzzaffar adding that putting FTA in place will create win-win situation and prosperous trade relationship between the two countries being beneficial for both sides.
Pointing out high tax rate as one of the main obstacles that hinder Malaysian investors to explore the Bangladeshi market, Muzzafar said there are other scopes for Malaysians to consider the country as a huge export destination as countries like Japan and China are also exporting here despite of high tax.
He said Malaysian products such as foods, cosmetics, toiletries, luxury items and some other items have high demand in Bangladesh, but there are not much Malaysian products in the Bangladeshi Market currently.
Among the food products, fast-moving consumer goods such as biscuits, noodles, chips and snacks of Malaysia are of high quality, Muzzafar said.
Though Malaysian investors know about the opportunities of the market, he said, they do not have proper knowledge on how to enter into the market and invest here.
A platform to promote the opportunities of Bangladesh needs to be floated so that they know there are much more positive things in Bangladesh besides the high tax such as the purchasing power of the population, the high GDP growth and the facilities of economic zones, he suggested.
Muzzafar also considered halal market sector as a great opportunity to invest in Bangladesh.
Not only halal food, there are other halal products such as cosmetics, luxury products etc. as well as Islamic fashion such as hijab are the scopes for Malaysia to find market in Bangladesh.
Malaysia considers Bangladeshi textiles as of high quality, he said adding that, as the manufacturing cost of RMG products in Malaysia is very high, Malaysian manufacturers can utilize the facilities of the economic zones of Bangladesh and export their manufactured products back to Malaysia.
Mentioning that Malaysian women are being empowered through their involvements in business, having women owned companies and exporters, the trade consulate said, women entrepreneurs from both the countries also have good opportunities of business and partnership.
When asked about the opportunities Bangladeshi investors have in Malaysia to do business, Muzaffar said Malaysia is an open market with one of the best investment packages to offer the investors where anyone is free to invest and it also allows majority of foreign staffs in the industries.
As the entrepreneurs and Small and Medium-sized Enterprises (SMEs) of Bangladesh are emerging massively, stronger trade relationship between the two countries can also create platform for Bangladeshi businessmen to go global with diversified business opportunities, he added.
Muzzafar said Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) is working to promote opportunities both for Bangladeshi and Malaysian investors through various initiatives.