Dear Readers,

Nestled in Southeast Asia in between Indonesia and Australia, Timor-Leste is approximately the size of our state of Kelantan. It is not only a young but is a vibrant democracy; an oasis of peace, tolerance and freedom. The Economist magazine’s Democracy Index ranks Timor-Leste as the most democratic country in Southeast Asia.

Working towards full membership of ASEAN in coming years, Timor-Leste is on course to become the 165^th member of the World Trade Organisation (WTO) in February 2024. A member of the Community of Portuguese Language Countries (CPLP), Timor-Leste is the only country in Southeast Asia with Portuguese as its official language. Coupled with its expanding diplomatic presence worldwide, this half-island state is increasingly taking its rightful place on the world stage.

Bilateral Relations

Relations between Malaysia and Timor-Leste predate the restoration of Timor-Leste’s independence, during which Malaysians stood in solidarity with our Timorese brothers and sisters in their quest for self-determination. Malaysia was the first country to set up a Liaison Office in Dili on 13 April 2001 – well before Timor-Leste’s restoration of independence, and was the first ASEAN country to establish an Embassy in Dili on the eve of Timor-Leste’s independence on 20 May 2002.

In turn, Timor-Leste established its Embassy in Kuala Lumpur on 7 August 2002. Soon after, Malaysia responded swiftly to Timor-Leste’s request for peacekeeping troops, whom together with our Embassy flew our flag high, and further sowed the seeds of fraternal bonds between the peoples of our two countries.

Under the Malaysian Technical Cooperation Program (MTCP), over 600 Timorese officials have been trained in Malaysia in a variety of short and medium-term courses. In September 2023 and in cooperation with Australia, 14 Timorese officials were trained at the Institute of Diplomacy and Foreign Relations (IDFR) in Kuala Lumpur, as part of ASEAN membership readiness.  Moving forward, the Embassy will continue to identify further areas for capacity building of Timorese officials.

Business in Timor-Leste

For more than two decades now, Timor-Leste has warmly welcomed hundreds of Malaysian entrepreneurs, who have established and continue to operate their business; and provide employment to a substantial number of Timorese. To date, there are some 200 Malaysian business entities registered here. The lure of a US dollar economy, low corporate tax rate of 10%, and low labour costs continue to attract foreign business people – Malaysia included.

Boasting abundant natural resources, Timor-Leste is a treasure trove for industries such as agriculture, fisheries, and energy. The country’s vast coastline offers tremendous potential for fisheries, while its fertile land supports the cultivation of a wide range of crops. Additionally, Timor-Leste is rich in oil and gas resources, ripe for investment in the energy sector, including for renewable energy. The Timorese government is aggressively promoting foreign investment by offering a range of incentives to attract FDI- managed by one-stop centre TradeInvest.  

The tourism sector is possibly the lowest hanging economic fruit for the country while awaiting the much-anticipated breakthrough on the Greater Sunrise oil field negotiations with Australia Timor-Leste’s pristine beaches makes it an attractive tourist destination. The annual whale-watching season between October-November, and untouched coral reefs present immense opportunities for investment in this and supporting sectors.

Whether you are an established entrepreneur or a visionary start-up, Timor-Leste provides you an opportunity to be a part of its growth story. ASEAN’s commitment to support Timor-Leste in fulfilling a comprehensive Roadmap before gaining full membership, is a push factor for the Timorese Government to improve business conditions.

The 9^th Constitutional Government which assumed power in July 2023 held Timor-Leste’s First International Business Forum from 23-25 November in Dili. Themed: “Discovering Blue and Green Opportunities for Sustainable Investment”, the event was hailed as a great success with participation of some 350 foreign delegates representing 20 countries. The event culminated in the signing of 10 Memorandums of Understanding, including one with a Malaysian entity. Recognising that direct air connectivity is essential for all facets of our relations with Timor-Leste, the Embassy is working tirelessly for both countries to ink an Air Services Agreement very soon – the precursor for scheduled direct connectivity between in KL and Dili.

I urge the Malaysian private sector to intensify business engagement with Timor-Leste, and to take advantage of the continuous facilitation by both governments. The Embassy stands ready to assist where possible, and we look forward to seeing you in Timor-Leste.

His Excellency Amarjit Singh Sarjit Singh
Ambassador Extraordinary and Plenipotentiary of Malaysia to the
Democratic Republic of Timor-Leste