UAE, Malaysia Launch Negotiations to Establish a CEPA

UAE Minister of State for Foreign Trade Thani al-Zeyoudi and Malaysian Minister of Investment, Trade, and Industry Tengku Zafrul Aziz during the signing ceremony (WAM)
UAE Minister of State for Foreign Trade Thani al-Zeyoudi and Malaysian Minister of Investment, Trade, and Industry Tengku Zafrul Aziz during the signing ceremony (WAM)
TT

UAE, Malaysia Launch Negotiations to Establish a CEPA

UAE Minister of State for Foreign Trade Thani al-Zeyoudi and Malaysian Minister of Investment, Trade, and Industry Tengku Zafrul Aziz during the signing ceremony (WAM)
UAE Minister of State for Foreign Trade Thani al-Zeyoudi and Malaysian Minister of Investment, Trade, and Industry Tengku Zafrul Aziz during the signing ceremony (WAM)

UAE Minister of State for Foreign Trade Thani al-Zeyoudi and Malaysian Minister of Investment, Trade, and Industry Tengku Zafrul Aziz have signed a joint statement agreeing to launch negotiations to establish a Comprehensive Economic Partnership Agreement (CEPA).

Zeyoudi underlined on Tuesday the developing relations between the UAE and Malaysia, stating that the negotiations have built upon solid growth in bilateral trade and investment over recent years, which witnessed a positive development in various areas of cooperation.

Non-oil trade between the UAE and Malaysia continued its upward trajectory over the past five years, reaching $4.6 billion in 2022, a growth of five percent compared to 2021 and up 31 percent and 18 percent compared to 2020 and 2019, respectively.

The UAE is Malaysia's 17th trade partner globally and the second in the Middle East, accounting for 32 percent of Malaysia's trade with Arab countries.

"The UAE is also the first destination for Malaysian merchandise exports to Arab countries, accounting for 40 percent of its exports to the region. The other way, Malaysia ranks eighth globally for UAE exports and 19th in re-exports," said the Minister.

Zeyoudi highlighted that the value of Malaysian investments in the UAE amount to $150 million across sectors of industry, building and construction, real estate, trade, transport, storage, financial activities, insurance, and professional and technical activities.

UAE investments in Malaysia amount to more than $220 million, including more than $51 million in the industrial sector.

He stressed that the CEPA with Malaysia comes as part of the UAE's plans to expand its network of trade partners with strategically essential markets, noting that Malaysia is the fourth largest economy in the Southeast Asian region.

The CEPA agreement will contribute to the consolidation of trade and investment relations between the two countries, launching a new era of partnership that will accelerate opportunities for the business communities in the two countries, especially in priority sectors, said the Emirati Minister.

The Malaysian Minister indicated that with the start of negotiations for the Malaysia-UAE CEPA, Kuala Lumpur is committed to enhancing the longstanding economic partnership with the UAE.

He explained that the agreement would set the stage for a comprehensive and mutually beneficial economic framework to forge stronger strategic collaborations, foster innovation, spur economic growth, and create job opportunities for both nations.

The negotiations with Malaysia are the latest under the UAE's ambitious foreign trade agenda, which has seen the conclusion of four CEPAs with India, Israel, Indonesia, and Turkey.



US Treasury's Bessent Urges IMF, World Bank to Refocus on Core Missions

 Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
TT

US Treasury's Bessent Urges IMF, World Bank to Refocus on Core Missions

 Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)

US Treasury Secretary Scott Bessent on Wednesday called on the International Monetary Fund and World Bank to refocus on their core missions of macroeconomic stability and development, arguing that they have strayed too far into vanity projects such as climate change that have reduced their effectiveness.

Bessent, in remarks outlining his vision for US engagement with the IMF and World Bank on the sidelines of the institutions' spring meetings, said that they serve critical roles in the international financial system.

"And the Trump administration is eager to work with them - so long as they can stay true to their missions," Bessent said in prepared remarks to the Institute of International Finance.

"The IMF and World Bank have enduring value. But mission creep has knocked these institutions off course. We must enact key reforms to ensure the Bretton Woods institutions are serving their stakeholders - not the other way around," he said, calling on US allies to join the effort. "America First does not mean America alone."

Bessent said the IMF needed to focus on its key mandate and adhere to strong standards in its lending.

"The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues. These issues are not the IMF's mission."

"And sometimes, the IMF needs to say 'No.' The organization has no obligation to lend to countries that fail to implement reforms."

Bessent added that the World Bank must be "tech-neutral and prioritize affordability in energy investment. In most cases, this means investing in gas and other fossil fuel-based energy production."

He added that it could also finance renewable energy projects along with systems to manage energy latency in wind and solar.