Malaysian Companies Well-positioned To Tap Into Azerbaijan's Emerging Market, Says Envoy

From Samantha Tan Chiew Tieng

BAKU (Azerbaijan), Nov 24 (Bernama) -- It is timely for Malaysia to explore the unique opportunities presented in Azerbaijan with its economy diversifying, abundant resources, and promising economic landscape, says Malaysian Ambassador Extraordinary and Plenipotentiary to Azerbaijan, Ahmad Kamrizamil Mohd Riza.

He said Malaysian companies are well-positioned to tap into emerging market opportunities, particularly in smart city development, by leveraging their expertise in key areas such as renewable energy, solar-powered building materials, and electrical and electronics sectors. 

Furthermore, he said Malaysia's Islamic banking and finance expertise presents significant potential to Azerbaijan and in addition, the Azerbaijan business is also seeking Malaysia's halal industries and halal certificates, alongside opportunities in information and communications technology (ICT) as well as digital platform sectors.

"With the resolution of the 30-year conflict with Armenia, there is a significant potential for trade and investment collaboration between Malaysian and Azerbaijani businesses, especially in developing smart cities in the Karabakh region.

"This presents a hopeful future for our relations. We eagerly welcome potential joint projects and collaborations to benefit both nations in the future," he told Bernama when met at the Malaysia Pavilion during 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29), here recently.

Ahmad Kamrizamil said the relations between Azerbaijan and Malaysia have shown remarkable progress and a promising trajectory after the establishment of diplomatic ties on April 5, 1993, which marked the beginning of a mutually beneficial partnership grounded in shared interests and a commitment to collaboration on various fronts.

Today, he said the relationship between the two nations extends across several key sectors in the economic and trade domain, both countries have engaged in efforts to enhance bilateral trade volumes and explore investment opportunities.

He said the field of education has also emerged as a significant area of cooperation, with student exchange programmes and academic collaborations fostering cultural understanding and capacity-building.

Similarly, he said advancements in technology and innovation have opened up new possibilities for joint ventures and knowledge-sharing.

"Tourism represents another dynamic aspect of the relations, with both countries promoting cultural and heritage tourism to strengthen people-to-people connections," he added.

He said regular visits by officials and participation in international events further underscore the active engagement between Azerbaijan and Malaysia, showcasing their commitment to deepening ties and building a robust partnership.

From an economic standpoint, Ahmad Kamrizamil said the volume of bilateral trade between Malaysia and Azerbaijan has yet to reach a significant level. 

"Historically, Malaysia's total trade with Azerbaijan is relatively small, partly attributed to the geographical distance between the two countries and Azerbaijan's status as a landlocked nation, limiting logistical and trade connectivity.

"However, recent developments show promising growth (where) between January and November 2023, bilateral trade surged by an impressive 215.2 per cent, reaching US$25.8 million compared to just US$8.2 million during the same period in the previous year," he said.

He said despite the challenges, the substantial percentage increase underscores the growing economic engagement between the two nations.

Furthermore, he said Malaysia also recorded a trade surplus, with its key export products including palm oil-based goods, rubber products, machinery, equipment, and parts, as well as electrical and electronic products and computer motherboards and processors.

"While this growth is commendable, it represents only the beginning of what could be a more robust economic relationship. Both nations can explore significant untapped potential," he said.

Ahmad Kamrizamil said to capitalise on this momentum, Malaysia will continue to increase its engagement with relevant government agencies and stakeholders in Azerbaijan, aiming to address barriers, enhance collaboration and unlock new opportunities for bilateral trade.

"My hope for Malaysia-Azerbaijan relations in the next 10 years is for a more robust and dynamic partnership built on mutual respect and shared goals," he said.

He said as Azerbaijan focuses on its development, both nations can enhance collaboration in areas such as trade, education, technology and cultural exchange.

Malaysia's participation in COP29 from Nov 11 to 22 at the Baku Stadium aims to strengthen its commitment to a green economy, as outlined in the Budget 2025. A delegation consisting of more than 200 people was led by Minister of Natural Resources and Environment Sustainability Nik Nazmi Nik Ahmad.

The Malaysian Pavilion at COP29, themed ‘Shift for Sustainability: Climate Action Now!’, is spearheaded by the Ministry of Natural Resources and Environment (NRES) in collaboration with the Malaysian Green Technology and Climate Change Corporation (MGTC) as the implementing agencies.

-- BERNAMA