KUALA LUMPUR: The government encourages Malaysian companies to collaborate and expand trade and investment ties abroad, particularly in South-South countries, said International Trade and Industry Minister Datuk Seri Rafidah Aziz.

“The government has offered incentives, such as tax exemption on income from overseas investment repatriated to Malaysia and start-up expenditure, like feasibility studies,” she said in her keynote address at the opening of the Familiarisation programme for officials of investment promotion agencies of South-South countries yesterday.

The government had also concluded investment guarantee agreements (IGAs) with many developing countries to encourage and foster the flow of investments between Malaysia and these countries, she said.

In her speech read out by Malaysian Industrial Development Authority (Mida) director general Datuk R. Karunakaran, she said to-date, 56 IGAs had been signed with South-South countries.

Last year, Malaysia's investment in South-South countries amounted to US$4.8bil (RM17.6bil). The major sectors invested included transport and communication, agriculture, mining and quarrying, infrastructure projects, manufacturing and services.

Rafidah said through South-South cooperation, developing countries could, in the long term, increase their economic well being by investing jointly in infrastructure and the manufacturing sectors.

Today, Malaysia had established close relationship and cooperative linkages with many South-South countries in the fields of manufacturing, services, banking and finance, marketing of commodities, exchange of information, technical cooperation and trade, she added.

Mida had organised cross-border investment seminars and missions to facilitate Malaysian investment overseas.

The familiarisation programme, from July 2 to 13, has attracted some 30 participants from 16 countries, including Asean, South Asian Association for Regional Cooperation, Africa, West Asia and the Pacific Islands.

Later, Karunakaran told reporters there was tremendous scope for Malaysians to tap the business opportunities in South-South countries, particularly in the manufacturing sector.

He said, over the years, Malaysia had developed a strong manufacturing sector and many Malaysian companies were doing well in this sector.

Besides, he added, Malaysia was also well developed in the services sectors like construction, medical and health, telecommunications services as well as the petroleum industry.

“In the long run, for us to continue to expand our domestic companies, they have to also go global. Therefore, they must tap opportunities in these growing and emerging economics,” he added.

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