Mon, Aug 28, 2017 page15

• INTERVIEW: Malaysia enthusiastic about New Southbound Policy

  • By Crystal Hsu / Staff reporter
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  Malaysia has greeted the government’s New Southbound Policy with enthusiasm, as it is seeking to become a stepping stone for foreign firms that want to make inroads into the Muslim world.

  “While not new, the policy is an enhancement under President Tsai Ing-wen (蔡英文) because it expands from trade and economic ties to education, cultural and tourism links,” Malaysian Friendship and Trade Center president Datuk Adeline Leong (馮淑娟) said in an interview on Monday last week.

  Taiwan is Malaysia’s eighth largest trade partner and vice versa, with Taiwanese investment in Malaysia reaching at least US$12 billion since 1980.

  Taiwanese exports to Malaysia amounted to US$4.77 billion in the first six months of this year, an increase of more than 30 percent from the same time last year, largely on robust demand for electronic parts, the Ministry of Finance said. Taiwanese investments in Malaysia are concentrated in the electronics, machinery, chemical and petrochemical industries, it said.

  However, Taiwanese investors have begun to diversify into aquaculture, furniture and food processing, particularly halal food.

  Malaysia exports electronics, palm oil, rubber product, timber and natural gas to Taiwan.

  “Taiwanese can do business in Malaysia speaking Mandarin because Chinese are its second-largest ethnic group,” Leong said.

  Malaysia’s multilingual and multicultural population gives the nation a competitive edge as a location for companies to set up operational headquarters.

  Malaysian companies in technology sectors have always favored Taiwan as a stepping-stone to the global market, she said.

  Food and beverage businesses have flourished in recent years, and Malaysia’s instant coffee mix brand Oldtown White Coffee and the PappaRich restaurant chain have reached Taiwan.

  OPPORTUNITIES

  The global Muslim population is more than 1.6 billion, accounting for one-fifth of the world’s population, and will approach 2.9 billion by 2050.

  Taiwan has made preparations for doing business with Muslim countries and Taiwanese enterprises have established export routes to Muslim markets, Leong said.

  “There are scores of halal industrial parks in Malaysia and we encourage Taiwanese companies to set up a presence and export halal products to Muslim consumers in ASEAN and all over the world,” she said.

  Halal refers to what is permissible or lawful under Islamic law, including dietary requirements. Halal certifications are aimed at preventing Muslim consumers from inadvertently violating dietary restrictions.

  Various countries, seeing favorable business opportunities, have been vying to make inroads into the enormous halal market, Leong said.

  Taiwanese participation in Malaysia’s certification program would help extend the reach of Taiwan’s biotech, health foods and cosmetics sectors, she said.

  Food choices for Muslim tourists are still limited in Taiwan and the Malaysian trade office in Taipei has called for the incorporation of a halal certification system that is friendly and attractive to the Muslim world.

  The Taiwan Halal Center began operations in April as part of the government’s effort to help local firms tap the Muslim market worldwide, according to the Taiwan External Trade Development Council (外貿協會), a cofounder of the center.

  The center aims to offer market intelligence, assist exporters, facilitate halal certifications and serve as a match-making platform between Taiwanese firms and customers in Muslim nations, the council said.

  “Taiwanese hospitals and hotels are in talks about entering the Malaysian market,” Leong said, declining to elaborate.

  Sinyi Realty Inc (信義房屋) opened an outlet in Malaysia last month to take advantage of property fund flows to the market and other ASEAN nations.

  EDUCATIONAL LINKS

  Taiwan has increased the number of scholarships for Malaysian students and eased requirements for them to work here after they finish their courses.

  “Taiwan’s enhancement of educational links with Malaysia is especially important because more than 16,000 Malaysian students attend universities in Taiwan, making them the largest international student group,” Leong said.

  Taiwan is a top choice for Malaysians who want to study overseas because it has quality colleges and universities that charge more affordable tuition than those in the US and Europe. Going to Taiwan for university has been popular among ethnic Chinese Malaysians since the 1950s.

  These students have exercised a powerful influence after they return home. The Federation of Alumni Associations of Taiwan Universities, Malaysia (FAATUM), was formed in 1974 and lobbied for the recognition of Taiwanese degrees.

  Taiwan and Malaysia in 2012 agreed to recognize one another’s post-secondary degrees.

  “Private-sector firms in Malaysia generally recognize Taiwan degrees, although applying for government positions is a different story,” Leong said.

  Taiwan is offering 185 scholarships to students from New Southbound Policy countries.

  There are 82 Mandarin-language scholarships, in addition to special projects aimed at helping 100 lecturers from Southeast and South Asia study for a master’s or doctorate in Taiwan, education officials said.

  TOURISM

  Visits by Malaysian tourists to Taiwan rose 19.2 percent in the first half of the year to 256,703, faster than the pickup for the whole of last year, as new visa measures paid off, the Tourism Bureau said.

  Taiwan’s 13 national parks led the way by providing prayer rooms and installing hand showers in toilets. Muslim prayer rooms have been installed at important transportation hubs such as Taiwan Taoyuan International Airport, Taipei Railway Station, the Taichung High Speed Rail Station and the freeway rest stop at Cingshuei (清水) in Taichung, the bureau said.

  Creating a Muslim-friendly environment requires the cooperation of the private sector, and the bureau has organized seminars and provided subsidies to spur interest.

  In 2011, only 15 restaurants in Taiwan had obtained halal certifications. Today, there are more than 100 Muslim-friendly restaurants such as Silks Palace at the National Palace Museum, a restaurant at the Grand Hotel in Taipei and less expensive eateries such as the Kun-ming Islamic Restaurant (昆明園).

  “There is still ample room for people-to-people exchanges to improve,” Leong said.

  Indigenous Malaysians and Taiwan’s Aborigines share Austronesian origins and Aboriginal culture could be an appealing aspect to encourage Malaysian tourists to visit, she said.

  Taiwan can promote its leisure farms, theme parks and do-it-yourself activities, as Muslim tourists appreciate nature and place emphasis on family life, she said.
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