‣ President’s Statement

‣ Editorial

‣ Country Feature: Federal Republic of Somalia

‣ Article: Understanding MSBDF and its Significance for Malaysian Businesses

‣ Diary of Events

‣ 30 May 2024
Meeting with the Malaysian Institute of Economic Research (MIER)

‣ 11 June 2024
Visit to SHRDC – Malaysian Smart Factory (MSF) 4.0 Discovery Day

‣ 12 June 2024
Sharing Session on e-Invoicing Implementation and Solutions at Finexus Campus

‣ 24 June 2024
33rd Annual General Meeting of MASSA

‣ 6 August 2024
Budget 2025 MITI Dialogue with Industry

‣ 7 August 2024
Courtesy Call on H.E. Lisualdo Gaspar, Ambassador of Timor-Leste to Malaysia

‣ 14 August 2024
Meeting at the Embassy of the Federal Republic of Somalia to Malaysia

‣ Forthcoming Events

‣ Remembering the late Tun Michael Chen Wing Sum (1932 – 2024)

COUNTRY FEATURE
FEDERAL REPUBLIC OF SOMALIA
(SOMALIA)

Article by:

Dr. Mohamed Abdi Dahir Sh. Hassan.
Head of the Commercial & Industrial Office
Embassy of the Federal Republic of Somalia in Kuala Lumpur
E-mail: comattache.somembassy@gmail.com;
Malaysia.attache@moci.gov.so

The Commercial & Industrial Office at our Embassy will be dedicated to providing free, comprehensive and confidential information, advice, assistance and all manner of support to all southeast Asian investors.

A Brief on Trade and Investment Opportunities in Somalia – Presented to Malaysian Investors

General Information

Pro-Business Climate – Political and Security Context

Somalia was recovering in the last view years and consolidating gains in peacebuilding, the government was focusing its efforts on setting up strong national institutions and promoting inclusive political & Development processes, ensuring security, promoting equal access to justice and the current government struggles to provide basic social services including security, health, education, water, electricity, employment etc. to ordinary citizens.

Political stability, Peace building, security and the rule of law are among the priority topics listed in the current National Development Plan (2020-2024). The tasks listed by the government include revising the constitution, establishing a multi-party democracy with fair and credible elections, strengthening the federal system and the political dialogue on national reconciliation, and reforming the security sector and the legal system.

The security issues may be a concern for some investors and trade partners, however significant efforts have been made by the FGS in cooperation with international partners, to strengthen security in Somalia. Both the frequency and impact of insecurity incidents are on the decline and the biggest misconception is that Somalia is continuously in a state of conflict and operating in the country is impossible.

The Current Government looks the security as an important aspect to pay attention and the Government aims to eliminate Al-Shabaab by the year’s end as the Somali President Launched in June last year a major Offensive, which liberated a large area of the southern and central Somalia.

Economic Performance

Over the past decade, Somalia has shown resilience and gradual economic improvement despite facing significant challenges. Key indicators such as GDP, GDP per capita, and GNI have increased, reflecting a slow but steady economic recovery. The agriculture and livestock sector remains the backbone of the economy, while the services sector has been growing, particularly in telecommunications and financial services. The industrial sector remains small but has potential for growth with proper investments and stability.

• – According to the International Monetary Fund, Somalia’s “economic activity was expanding and the GDP Growth was good by average of 3.5% per year from 2012 till 2018, driven by growth in agriculture, construction, and telecommunications.
• – From 2019–2022 Real GDP growth has been low and volatile, averaging around 2% per year while real GDP per capita averaged -0.8% per year because of the Covid-19 Pandemic and severe drought.
• – In 2022/ 2023 The GDP in Somalia was worth 10.5 Billion US dollars and the GDP growth was around 2.8%, as the country recovered from drought, however the Somali’s economy is expected to record GDP growth of 3.7% in 2024 and 3.9% in 2025. Fiscal restraint combined with a favorable international environment for food and fuel costs has helped to reduce inflation.
• – Somalia’s GDP by economic Sectors: Agriculture/ Livestock: 58.3%, Services: 23.2%, Industry: 18.5%

IMF, World Bank and African Development Bank group Reports.

Efforts to improve infrastructure, governance, and security are crucial for sustaining this economic growth and ensuring a stable and prosperous future for Somalia.

Government Economic Strategy

The Somali Government’s economic strategy aims to address key challenges and leverage opportunities to foster sustainable development, enhance economic stability, and reduce poverty. Here is a conceptual overview of the strategy based on various sources:

1. 1. Macro-Economic Stability and Fiscal Policy

Objective: Achieve and maintain macroeconomic stability by implementing sound fiscal policies and budgetary processes to enhance transparency and accountability. Implementing tax reforms to broaden the tax base and increase domestic revenue. Reduce external debt and enhance debt sustainability through prudent borrowing and effective debt management.

2. 2. Economic Diversification and Private Sector Development

Objective: Diversify the economy to reduce reliance on agriculture and build a resilient economy by promoting private sector investment in key sectors such as fisheries, manufacturing, and services. Improving the business environment by simplifying regulations, reducing bureaucracy, and enhancing access to finance for SMEs. Fostering public-private partnerships (PPPs) to attract investment in infrastructure and key economic sectors.

3. 3. Infrastructure Development

Objective: Develop critical infrastructure to support economic growth and improve living standards by investing in transportation infrastructure, including roads, ports, and airports, to facilitate trade and connectivity. Enhance energy infrastructure to ensure reliable and affordable access to electricity. Improve water and sanitation infrastructure to support public health and economic activities.

4. 4. Human Capital Development

Objective: Invest in human capital to build a skilled and productive workforce by expanding access to quality education and vocational training to equip the workforce with relevant skills. Improving healthcare services to enhance the overall health and productivity of the population. Promoting gender equality and empower women to participate fully in economic activities.

5. 5. Agricultural and Rural Development

Objective: Enhance agricultural productivity and promote sustainable rural development by supporting smallholder farmers with access to modern agricultural inputs, technology, and training. Promoting sustainable agricultural practices to ensure long-term productivity and environmental protection. Developing rural infrastructure, such as irrigation systems and rural roads, to support agricultural activities and improve market access.

6. 6. Governance and Institutional Capacity Building

Objective: Strengthen governance and build institutional capacity to implement economic policies effectively. Enhance the capacity of government institutions to design and implement economic policies and programs. Promote good governance practices, including anti-corruption measures, to build public trust and ensure effective service delivery. Foster inclusive governance by ensuring participation from all segments of society in the decision-making process.

Foreign Direct Investment in Somalia

Somalia’s NDP outlines the government’s strategic objectives for economic development, including reforms in the business environment, public financial management, infrastructure development, and laws to attract foreign investment.

There has never been a better time to invest in Somalia. The government is determined to restore the country as the regional hub for commerce, transportation, trade and industry.  Our strength in agriculture, fisheries and livestock can help to overcome the food security challenges of many parts of the world, our unique wind and solar capabilities can pioneer a new age of affordable and clean energy to Spur further economic growth across the region. We welcome investors to participate in the rebuilding of hope, opportunity and prosperity in the Horn of Africa.

The Somali Parliament passed a foreign investment law in 2015, to promote and protect foreign investment, the law also provides flexible incentives to ensure the investor’s needs are met effectively and efficiently including Tax advantages, guarantees against expropriation & revenue sharing agreements to attract investment

The FGS has enacted the Investors and Investment Protection Bill into law on 20 March 2023, which will enhance investors’ confidence through providing legal protection to their investments, legal framework for investor-state dispute settlement, fair treatment, and a robust dispute resolution mechanism, as well as it will address Competition and anti-trust laws, expropriation and the transfer and repatriation of investments

The Federal Government of Somalia (FGS) welcomes foreign direct investment and offers a variety of opportunities for investment, especially in the key national priority sectors like Food Security Sectors [Livestock, Agriculture and fishing], Energy, and Infrastructure as well as finance and Health sectors.

The FGS and the Federal Member States (FMS) have a positive attitude towards all foreign direct investment (FDI) forms including public private partnerships, Joint Venture Partnership and other alternative investment financing Modalities. “Somalia is open for business” is the message that the Federal Government of Somalia is sending out to the world loud and clear and In line with this, our Government is making every effort to further enhance the investment environment.

Under the Foreign Investment Law Somalia Investment Promotion Office (SOMINVEST) Was established to promote foreign investment, provide potential investors with guidance on investing in Somalia and continuously advocate for improved investment policies.

Performance Requirements and Incentives

Somalia imposes no performance requirements on foreign investors  all foreign investors with eligibility for incentives and facilities, incentives shall include the ability to have long term leases for up to 99 years for substantial investment in accordance with the applicable legislation governing such incentives and facilities.

Private Ownership Rights

There are no restrictions on the establishment of private businesses, size of investment, sources of funds, marketing products, source of technology, or method of training in Somalia.

Reasons to Invest in Somalia

Investing in Somalia presents a mix of opportunities and challenges, investing in Somalia presents significant opportunities, driven by economic expectations, financing possibilities, strategic location, and government reforms. While there may be some challenges, including political, infrastructure, or regulatory challenges, these can be mitigated through careful planning, due diligence, and leveraging international support. By focusing on sustainable development and building strong local partnerships, investors can tap into the burgeoning opportunities in Somalia and contribute to its long-term economic development.

1. 1. Economic Expectations
   • 1.1 Strategic Location:

• > Gateway to Africa and the Middle East: Somalia’s location along the Horn of Africa provides strategic access to major shipping routes, making it a potential hub for trade between Africa and the Middle East.
• > Ports and Trade: Major ports like Mogadishu, Berbera, and Kismayo are critical entry points for regional trade. Investments in port infrastructure can enhance trade and logistics capabilities.
• > Economic Regional and global integration: EAC (2023), COMESA (2018), IGAD, AFCFTA, AGOA, WTO, MIGA, OIC and Arab League. 
  • 1.2 Government Reforms and Stability:

• > Policy Reforms: The Somali government is implementing reforms aimed at improving the business environment, including regulatory improvements and anti-corruption measures.
• > Stabilization Efforts: International and domestic efforts to stabilize the political and security situation are creating a more conducive environment for investment. 

• 1.3 Economic Growth Potential:

• > Untapped Resources: Somalia has vast untapped resources, including minerals, oil, and natural gas. The potential for exploration and development in these sectors is significant.
• > Agricultural Sector: With appropriate investment, Somalia’s agricultural sector can be revitalized. The country has arable land that can be developed for commercial farming. 
• 1.4 Growing Population and Urbanization:
• > Demographic Dividend: Somalia has a young and growing population, which can be a significant driver of economic growth. A youthful demographic can provide a labor force that is adaptable and trainable.
• > Urbanization: Increasing urbanization is creating new markets for goods and services, driving demand for housing, infrastructure, and consumer products.

2. 2. Financing Possibilities
   • 2.1 Access to International Financial Institutions: 

• > IMF and World Bank Support: Somalia has re-engaged with international financial institutions like the IMF and World Bank, which provide financial support and technical assistance.
• > Development Assistance: Various international donors and development agencies are active in Somalia, providing grants and concessional loans for development projects. 
• 2.2 Private Equity and Venture Capital:
• > Growing Interest: There is increasing interest from private equity and venture capital firms in emerging markets, including Somalia. Investors are looking for high-growth opportunities in frontier markets.
• > Diaspora Investment: The Somali diaspora is a significant source of investment. Remittances from the diaspora contribute to local business funding and development projects.
  

• 2.3 Microfinance and Local Banking:
• > Microfinance Institutions (MFIs): MFIs are expanding their reach in Somalia, providing much-needed credit to small and medium-sized enterprises (SMEs).
• > Banking Sector Development: Local banks are improving their services, and there is potential for partnerships with international banks to enhance access to finance.

National Investment Priority Sectors

Somalia: Trade in goods

Trade Performance

Somalia has traditionally been a net importer of goods, but the government has been working to promote exports of products like livestock, fish, and agricultural goods. In 2016, the government launched the National Export Strategy, which aims to promote exports and increase competitiveness in key sectors such as agriculture, livestock, and fisheries. This has involved investing in infrastructure like ports and roads, as well as providing support to small and medium-sized enterprises (SMEs) that are looking to export.

In the past ten years, Somalia has experienced consistent export growth, averaging 2.4% annually; however, the growth of imports has been much more significant, leading to a negative trade balance. However, Somali Exports are consistent across multiple sources, showing Somalia’s Total Exports at Over 1 Billion with modest growth projected for 2024 and Beyond.

Somalia offers opportunities to invest in its farming sector as it is currently heavily import dependent on food and other food related products. Export promotion and increased investment in domestic supply chain development would be attractive for investors.

Somalia’s exports by product category.

Over the past decade From 2013 to 2023, Somalia’s export landscape have been consistently dominated by a few key product categories, The main exports include live animals, gums and resins, precious stones and metals, fish, and various agricultural products. These categories have remained relatively stable in their contribution to Somalia’s export economy, with minor fluctuations based on market demand and production capacities, reflecting the country’s reliance on its natural and agricultural resources.

The key trading partners for these exports include the United Arab Emirates, Oman and Saudi Arabia, reflecting the regional trade dynamics and the demand for these specific products in these markets.

Somalia’s imports by product category.

Over the past decade, Somalia’s imports have shown significant growth, reflecting the country’s reliance on foreign goods to meet domestic needs. It has primarily included food & fuel (This category has consistently been the largest, accounting for above 50% of total imports.), then construction materials, Electric and Electronics, Manufactured goods, Chemicals & pharmaceuticals and lastly Machines and transport vehicles.

Key import partners were the United Arab Emirates, China, India and Turkey, reflecting Somalia’s trade relationships and geographical trade dynamics. The import trends indicate a consistent increase over the years, from 2013 to 2023, the total value of imports has seen a steady increase with notable growth in construction material categories.

Market Potential for Exporters

1. 1. Strategic Geographic Location: Somalia’s strategic location along major maritime routes enhances its potential as a key market for exporters looking to expand their reach in the Horn of Africa and beyond.
2. 2. Market Growth: With an increasing demand for various manufactured goods, Somalia presents a growing market for exporters.
3. 3. Rising Middle Class: The growing middle class with increasing purchasing power is a significant driver for demand in these categories.
4. 4. Urbanization and Consumer Trends: Rising urbanization and changing consumer preferences leads to higher consumption of modern goods and create opportunities for exporters to introduce new products and brands.
5. 5. Diaspora Influence: The Somali diaspora maintains strong ties with the home country, influencing market preferences and creating demand for international products.

Exporters looking to enter the Somali market should focus on competitive pricing, quality, and understanding local consumer preferences to maximize their potential in this emerging market. These insights highlight the critical role of international trade in Somalia’s economy.

Greetings from MASSA !

In this August newsletter, we are pleased to bring you a Country Feature on the Federal Republic of Somalia. We thank the good office of Embassy of the Federal Republic of Somalia in Malaysia & its Commercial & Industrial Office for this Country Feature. The Country Feature highlights its emerging market potential, and a variety of investment opportunities, among which include the livestock & fishery value chains, and the financial & capital markets.

MASSA is also pleased to have an article from the Cross Border Investment Division, Malaysian Investment Development Authority (MIDA). This article highlights the Malaysia-Singapore Business Development Fund (MSBDF), administered by MIDA and Enterprise Singapore. It details how Malaysian businesses can access this Fund, together with Singapore counterparts, when exploring business and investment opportunities in third countries.

In the month of June, MASSA organised a Visit to the Selangor Human Resource Development Centre (SHRDC) in conjunction with SHRDC’s Malaysian Smart Factory 4.0 Discovery Day on 11 June, and a Sharing Session on e-Invoicing Implementation at Finexus Campus on 12 June. These meetings were attended by MASSA members and other members of the business community. These sessions aimed to introduce & avail to participants the developments across Smart Factory technology, cost-effective Digital Transformation, Generative AI applications and insights & solutions for the National E-Invoicing Initiative (NEI).

MASSA’s 33^rd Annual General Meeting convened on 24 June 2024. It was hosted by MASSA President, YBhg Tan Sri Azman Hashim, at Bangunan AmBank Group. The MASSA 2023/2024 Annual Report can be read here: www.massa.net.my/massa-2023-2024-annual-report/ (or in this issue’s Diary of Events). MASSA was also represented by its members at the Budget 2025 MITI Dialogue Session on 6 August 2024, chaired by YB Senator Datuk Seri Utama Tengku Zafrul Abdul Aziz, Minister of Investment, Trade and Industry.

MASSA made Courtesy Calls on H.E. Lisualdo Gaspar, Ambassador Extraordinary and Plenipotentiary of the Democratic Republic of Timor-Leste to Malaysia on 7 August and also the First Secretary and Head of the Commercial & Industry Office of the Embassy of the Federal Republic of Somalia on 14 August wherein MASSA & its representatives were appraised of the latest developments and inbound investment & partnership focuses of the respective countries.

We want to thank our members, ex-officio, contributors, and partners for your support to date. MASSA remains committed to present to members, trade and investment leads from the South-South countries, as well as keep members appraised of the current and future-forward developments in Malaysia, and the region.

In view of this, several events to keep an eye out for are in the works. Do look for our weekly Circulars and postings in our website www.massa.net.my. We look forward to meet members at MASSA’s upcoming events.

This Editorial message would not be complete without the mention of the passing of Tun Michael Chen Wing Sum. Tun Michael was MASSA’s founding Vice President since MASSA’s inception in 1991. We will cherish fondly the memories of his steadfast commitment and untiring efforts to promote the cause of South-South business relations.

Ng Su Fun

Editorial MASSA

Tan Sri Azman Hashim
President
MASSA 

Global growth for 2024 is projected to be between 2.6 – 3.2% this year according to forecasts by IMF and World Bank, while Asia’s economic growth is predicted to be 4.5% this year, making the Asian region a growth centre of the world. Positive factors including moderating inflation, resilient labour markets, improvements in global trade activity, technology upcycle and tourism recovery may be challenged by the headwinds of geopolitical tensions and uncertainties in the global interest rates.

Malaysia is experiencing robust economic growth. The first half of the year had seen the Malaysian economy grow by 5.0%, with 1Q2024 growth of 4.2% and 2Q2024 surging to 5.9% exceeding estimates. This was supported by robust growth from the construction sector, increased household spending, private investment growth, tourist arrivals, improved net exports and resilience in the labour market.

With the strong performance in the first half, the Malaysian economy in 2024 is expected to be grow within the range of 4-5% driven by domestic expenditure supported by expansion in the labour market and policy, and bolstered by increasing tourism arrivals, strong investment activities & exports benefitting from the spillover effects of the abovementioned global trends.

The Economy MADANI framework policies for economic structural reform include the (i) New Industrial Master Plan (NIMP 2030) which is aimed at increasing the value-add of manufacturing, the (ii) National Energy Transition Roadmap (NETR) outlines energy transition levers, some of which include energy efficiency, renewable energy, hydrogen, bioenergy, and green mobility amongst others, and the (iii) National Semiconductor Strategy (NSS) fast tracking Malaysia to become a global semiconductor hub. The Government of Malaysia aims to enhance fiscal sustainability, attract quality investments, advance green growth and build a prosperous and inclusive society through these and more targeted policies.

MASSA held its 33rd Annual General Meeting on a hybrid basis on 24 June 2024. MASSA will continue its focus on the South-South and direct some of its activities towards highlighting the business opportunities arising from these reform initiatives of the Government. MASSA has expanded its mandate to also be a platform for the promotion and facilitation of inbound partnerships into Malaysia with our South-South partners.

I would like to thank the Office Bearers and Executive Committee Members who continue to serve the Association for the current term till 2025. I appreciate the continuing support of all Members with your involvement at our regular meetings, events and webinars. I also wish to thank article and feature contributors from across the MASSA network, who have provided valuable and insightful articles for our newsletters and not forgetting the sponsors of our website.

Finally, on behalf of my colleagues in Malaysia South-South Association (MASSA), I wish to express our heartfelt condolences to Toh Puan Helen Chen & family on the recent passing of YABhg Tun Michael Chen Wing Sum.

Tun Michael Chen, was a Founding Member of MASSA and served as Vice President on the Executive Committee of MASSA, as well as Deputy Chairman of the Malaysian South-South Corporation Berhad (MASSCORP) since its inception in 1992. He played an instrumental role in spearheading MASSCORP’s business investments into S.R. Vietnam culminating in a very successful business of developing and managing an industrial zone, as well as a housing project in Danang city. He left an indelible mark as Chairman of MASSDA Land Company Limited (Vietnam). His vast insights navigating the government and policy space in the developing countries and his business acumen in the challenging markets of these emerging countries will be greatly missed.

Thank you.

Tan Sri Azman Hashim
President
19 August 2024

Article by the Cross Border Investment Division, Malaysian Investment Development Authority, MIDA

UNDERSTANDING MSBDF AND ITS SIGNIFICANCE FOR MALAYSIAN BUSINESSES

What is MSBDF?

• • The Malaysia-Singapore Third Country Business Development Fund (MSBDF) is a fund designed to support businesses or associations from both Malaysia and Singapore in jointly exploring business and investment opportunities in third countries. Administered by MIDA and Enterprise Singapore, the fund supports activities such as joint missions, joint feasibility studies and joint pilots, which require participation from both Malaysian and Singaporean entities. This collaborative initiative aims to strengthen cooperation between the private sectors of both countries, enhancing their ability to pursue business and investment opportunities abroad.

• • Both agencies serve as the implementing agencies for the MSBDF and act as a facilitator for businesses to tap into the fund and processes the applications received.

Investments that qualify for MSBDF must:

• • Provide access to new or existing technologies
• • Open new marketing channels or acquire existing ones overseas
• • Access overseas resources that support joint venture expansion or diversification

Key considerations for the MSBDF are that investments should create joint economic benefits for Malaysia and Singapore. Favorable investments include:

• • Enhancing R&D, design and engineering capabilities through new facilities, patents and specialised knowledge.
• • Improving access to overseas resources and marketing channels to boost production, export sales and services from both countries.
• • The Fund supports activities in but is not limited to the following sectors:

manufacturing, tourism, infrastructure development, construction, information technology, trading and services, green technology and digital economy which are deemed suitable by Implementing Agencies.

The activities for MSBDF consist of: –

1. 1. Joint Trade Missions

Organise and participate in joint missions to other countries to explore business and investment opportunities.

2. 2. Joint Feasibility Studies

Hire independent experts to conduct due diligence and market feasibility studies in other countries.

3. 3. Joint Pilots

Run pilot projects in the digital and green economy sectors with activities either in third countries, Singapore or Malaysia reviewed on a case-by-case basis.

Activity 1 and 2 must be conducted in third countries with exception to Activity 3. A third country means other country besides Malaysia and Singapore.

The Aims of MSBDF

1. 1. To promote economic cooperation between Malaysia and Singapore businesses in identifying business and investment opportunities.
2. 2. To identify potential business environment, leads and opportunities in third countries.
3. 3. To encourage technological innovation and technological advancements via test bedding activities to demonstrate viability and scalability of solution and/or innovate new solutions or products or services for clients.

Involvement of MASSA

The Malaysia South-South Association (MASSA) is an organisation that promotes economic cooperation among developing countries. MASSA can play a significant role in leveraging MSBDF for its members by providing:

• • Awareness and outreach by informing members about the opportunities and benefits of MSBDF.
• • Collaborative projects by encouraging joint ventures and collaborative projects between Malaysian and Singaporean businesses.

Tips for Malaysian Businesses to Apply for the MSBDF

1. 1. Ensure that the business meets the eligibility criteria set by MSBDF.
2. 2. Ensure necessary documents such as business plans, financial statements and project proposals are provided as required in the guideline and application form.
3. 3. Submit application by applying through MIDA or Enterprise Singapore. Companies must determine who will lead the activities and Lead Applicants shall submit their application based on the country they are registered in with all required documentation.
4. 4. Working closely with MIDA for guidance, feedback and support throughout the application process.
5. 5. Utilising MASSA’s network and resources for additional support and partnership opportunities.

Conclusion

The Malaysia-Singapore Business Development Fund (MSBDF) is a valuable resource for Malaysian businesses looking to expand their horizons and strengthen their ties with Singapore businesses. By leveraging the support of MIDA and MASSA, businesses can maximize their benefits from MSBDF, driving growth, innovation and collaboration in the region.

For more detailed information and assistance, businesses are encouraged to contact MIDA.

The MASSA 2023 – 2024 Annual Report can be read here:

COUNTRY FEATURE
REPUBLIC OF DJIBOUTI
(DJIBOUTI)

DJIBOUTI BUSINESS FORUM 2023

by Export-Import Bank of Malaysia Berhad

Date: 28 November 2023 – 3 December 2023

Country: Djibouti

Background: 

EXIM Bank Malaysia, in collaboration with WAAFI Bank, Djibouti National Investment Promotion Agency (NIPA), and supported by Malaysia External Trade Development Corporation (MATRADE), held the “Malaysia Global Connect: Malaysia – Djibouti Business Forum” on 29 November 2023 in Djibouti, bringing together over 28 delegates to foster economic ties and strategic collaborations between Malaysia and Djibouti. EXIM Bank was represented by Cik Nurbayu Kasim Chang, acting President and Chief Executive Officer (previously Chief Business Officer), Dr Liza Mydin, Chief Strategy Officer and Puan Azmin Hamzah, Head of Corporate Communication and International Relations.

Among the key highlights from the event are:

1. 1. Engaging discussions on economic policies, trade facilitation, and investment incentives.
2. 2. Closed-door dialogue with Djiboutian Ministers addressing Malaysian delegates’ queries.
3. 3. Breakout sessions focusing on Constructions, Health, Power, and Education sectors

EXIM Bank is committed to fostering international trade and investment. The forum signifies the Bank’s dedication to creating platforms for dialogue and collaboration between businesses, government entities and investors.

Key Highlights:

Djibouti Business Forum 2023 witnessed several noteworthy highlights, including:

Networking Opportunities: Delegates had the chance to network with government representatives, business leaders and local entrepreneurs, fostering potential collaborations and partnerships.

Interactive Sessions: The event featured interactive sessions, allowing participants to engage in Q&A sessions and had one-to-one consultations with local companies.

Success Stories: The success story shared by Golden Africa when investing in Djibouti served as guide for the delegates.

Government Assistance: Delegates gained a deeper understanding of the Djibouti market and the support available from government agencies and financial institutions.

Conclusion:

Djibouti Business Forum 2023 proved to be a pivotal event in opening business opportunities for Malaysian companies into the East Africa region, as the information provided by the Djibouti Ministries and agencies’ input on the way forward, as well as Djibouti’s government policies on foreign direct investment, proved to be insightful.

The Malaysian delegates need to continually communicate and follow-up with their respective potential partners, ministries and government agencies to formalise proposals and the transactions to be made.

EXIM Bank played an important role in bridging the financing gaps for Malaysian companies that may seek financing into Djibouti. The financing request may come from Djibouti Government or its agencies. Hence, delegates have the first mover advantage to undertake potential projects or contracts in Djibouti.

Djibouti serves as a platform for Malaysian companies penetrating the East Africa market that has a bigger population of 220 million. The Government looks highly on Malaysia to undertake FDI into the country.

EXIM Bank should undertake the same approach in connecting Malaysian companies into other non-traditional markets in 2024, such as the Central Asia or West Africa regions by working with MITI and MATRADE. This is part of the Malaysia Global Connect Programme’s objective.

Media Coverage on Malaysia and Djibouti Business Forum

Additional Links: 

• •https://www.exim.com.my/resource-centre/exim-bank-fosters-economic-ties-with-djibouti-after-successful-business-forum/
• •https://www.exim.com.my/resource-centre/exim-bank-leads-efforts-to-foster-economic-ties-between-malaysia-and-djibouti/

MASSA congratulates EXIM Bank, MASSA’s member and Executive Committee member for the successful Malaysia Global Connect: Malaysia – Djibouti Business Forum on 29 November 2023, and extends its appreciation to EXIM Bank for consenting to share with MASSA members & readers, EXIM Bank’s report on the Forum.

Prior to the Forum, EXIM Bank had organised a Briefing in the lead-up to the Forum at EXIM Bank’s premises wherein MASSA and its members had participated. MASSA’s report on the Briefing can be read in the December 2023 issue of the MASSA e-Newsletter. At the Briefing, information and data on Djibouti was shared by the presenters, excerpts from which are enclosed below:

BRIEFING ON MALAYSIA-DJIBOUTI BUSINESS FORUM 2023

We record our appreciation to Waafi Bank and the National Investment Promotion Agency (NIPA) for the above information.

‣ President’s Statement

‣ Editorial

‣ Country Feature: Republic of Djibouti

‣ Diary of Events

‣ 17 January 2024
Meeting with InvestPerak

‣ 18 January 2024
SHRDC-MASSA-MAJECA Webinar: COSIRI Framework for ESG towards Sustainable Manufacturing

‣ 22 February 2024
Meeting with the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI)

‣ 29 February 2024
Visit to IJM IBS Sdn Bhd

‣ 27 March 2024
SHRDC-MASSA-MAJECA Webinar: Smart Factory and Industry 4.0: A Practical and Sustainable Approach towards Digital Transformation

‣ 29 March 2024
MASSA Courtesy Call on H.E. Md Shameem Ahsan, High Commissioner of Bangladesh to Malaysia

‣ Forthcoming Events