Kuala Lumpur, Riyadh to Finalize 9 Development MoUs

Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
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Kuala Lumpur, Riyadh to Finalize 9 Development MoUs

Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)

A Malaysian diplomat revealed that discussions with Saudi Arabia were underway to finalize nine memoranda of understanding to enhance bilateral cooperation.

He noted that Kuala Lumpur and Riyadh have signed agreements on 18 industrial projects since December 2021, with total investments of $1.65 billion, which are expected to generate around 2,560 job opportunities.

In an interview with Asharq Al-Awsat, Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia Riyadh, said: “Malaysia and the Kingdom have signed a total of 26 MoUs and agreements, and there are around 9 MoUs currently being discussed by the two sides based on the mutual visits that took place this year.”

“The two countries look forward to increasing their cooperation, including in the field of diplomatic training, health, housing development, and many other areas in the coming year.”

Datuk pointed that the two countries signed three new agreements in March 2021 during the official visit of then-Prime Minister Tan Sri Muhyiddin Yassin to the Kingdom. Those included the establishment of the Saudi-Malaysian Coordination Council, an MoU on the Umrah pilgrims, an another on Islamic affairs.

According to Datuk, the projects were mainly focused on chemical industries, food processing, electronics, electrical products, textile, and plastics.

He noted that the Kingdom’s main investments in Malaysia include Petronas, a joint venture with Saudi Aramco in the Pengerang Integrated Complex (BIC), as well as a partnership in Al-Rajhi Bank.

On the two countries’ cooperation in the fields of electronic industries, technology, mining, green economy, hydrogen and renewable energy, the ambassador explained that Riyadh and Kuala Lumpur signed the minutes of the establishment of the Saudi-Malaysian Coordination Council in March 2021, during the official visit of the former Prime Minister to Saudi Arabia, hoping that the council would serve as a comprehensive bilateral forum for consultations, chaired by the foreign ministers of the two countries.

“Malaysia enjoys close relations with the Kingdom, based on common values and aspirations to strengthen the unity of the Islamic nation. The deep-rooted ties are built on extensive contacts between the peoples of the two countries,” Datuk told Asharq Al-Awsat.

“The massive economic transformation in the Kingdom over the past decades, which coincided with the economic development of Malaysia, has greatly contributed to this multifaceted bilateral cooperation.”

He added that in 2021, Saudi Arabia was Malaysia’s 17th trading partner, the 25th largest export destination, and the 15th largest source of imports, while Malaysia was Saudi Arabia’s 12th trading partner and the 21st export destination in 2020.

Datuk continued: “From January to September 2022, the total trade between the two countries increased by 135.1 percent, to $7.32 billion, compared to $3.11 billion in the same period in 2021… Exports increased by 51 percent to $1.3 billion, compared to $860 million for the same period last year.”

He explained that the main Malaysian exports to the Kingdom included palm oil agricultural products, petroleum products, processed foods, electronics, and palm oil-based products.

Imports from Saudi Arabia include, according to Datuk, chemical and petroleum products, metal industries, and rubber merchandises.



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.