Tan Sri Azman Hashim
President
MASSA 

2023 saw the global economy traversing a challenging environment of slow post-pandemic global recovery despite hopes of a return to pre-pandemic levels. Heightening geopolitical tensions, ongoing wars & humanitarian crises in the Russia-Ukraine War, the Israel-Palestine conflict, supply chain vulnerabilities, food shortages due to climate change, the tightening of financial markets in addressing elevated inflation and weakened trade dynamism forms the backdrop of a year in review of soft global growth projected to expand at 3%.

Malaysia’s performance saw its GDP grow to 3.3% in the third quarter (3Q2022: 14.2%) supported by expansion in domestic demand, continued improvement in labour market conditions and recovery across industries including tourism and construction. Nevertheless, headwinds remain present as Malaysia weathers weakened external demand for goods exports, contractions in natural gas production and vulnerabilities in the manufacturing sector amid tech downcycle. Headline inflation is expected to average between 2.5% – 3.0% for 2023. Overall, underpinned by domestic demand the Government anticipates GDP growth for 2023 to register an estimated 4%.

Moving forward into 2024, global growth is expected to continue to moderate, alongside global inflation and trade. Headwinds from trade restrictions, climate change, escalation of geopolitical tensions, tightening in monetary policy and ongoing shifts in consumption from goods to services are expected to impact the economic outlook for 2024.

The Malaysian economy in 2024 is expected to see broad-based growth of 4% – 5% led by resilient domestic consumption, improved export activities and the Government’s initiatives and efforts to encourage private sector dynamism. Budget 2024 (Belanjawan MADANI Kedua), the largest budget tabled in Malaysia’s history, aims to boost economic activity, position Malaysia as an economic champion in the region and synergise with the Government’s initiatives and policies.

The Government is taking concerted efforts to promote and accelerate ESG compliance as Malaysia works towards achieving its goal of net-zero emissions by 2050. This commitment is evident in the introduction of the National Energy Transition Roadmap (NETR), the New Industrial Master Plan (NIMP) 2030, the 12^th Malaysia Plan Mid-Term Review and the i-ESG Framework for the Manufacturing Sector introduced by the Ministry of Investment, Trade and Industry (MITI). MASSA will support and complement these initiatives.

MASSA will also step-up its collaboration with associates in the business community and in the South-South regions to highlight innovative solutions and business linkage opportunities for members, especially in the areas of sustainability, ESG, green & circular economy and digitalisation which can help businesses leapfrog innovation and remain resilient amidst the present economic backdrop and outlook. MASSA will also be bringing to members’ attention information on new and emerging non-traditional markets in the South-South developing countries by working together with our partners locally and abroad.

I appreciate the continuing support and cooperation of all members, especially my fellow Executive Committee members, and ex-officio partners with your attendance, support and contributions at our regular meetings & events and not forgetting the sponsors of our website.

I also wish to thank all who have contributed valuable and insightful articles to our Newsletter for 2023.

My best wishes to everyone Merry Christmas and a happy, healthy and successful 2024!

Tan Sri Azman Hashim
President
18 December 2023

COUNTRY FEATURE
DEMOCRATIC REPUBLIC OF TIMOR-LESTE
(TIMOR-LESTE)

Image 1: Dolok Oan Beach, Dili

FACTS ABOUT TIMOR-LESTE

Capital – Dili
Location – between the Southeast Asia and South Pacific
Territory – 15,007 square kilometres
Population – 1,340,434 million people (Population & Housing Census 2022)

Language –Tetun & Portuguese (Official Languages), English & Bahasa Indonesia (Working Languages)
Currency – USD and Centavos

Religion: The main religion is Roman Catholic. There are also small communities of Protestants, Muslims, Kong Hu Cuism and Hindus
Most populated municipalities: Dili, Baucau, Ermera, Bobonaro

National holiday: 20 May – Restoration of Independence Day, and 28 November – Proclamation of Independence

Natural resources: Oil and gas, minerals and agriculture produce such as coffee

State borders – Timor-Leste has only two immediate neighbours: Indonesia (land border) and Australia (maritime border)

Timor-Leste also has an enclave called Oe-Cusse-Ambeno. It is officially called the Special Administrative Region of Oecusse-Ambeno (RAEOA), located on the north coast of West Timor, Indonesia. To the north of the capital Dili lies Atauro Island. The smallest Timorese Island is Jaco Island. It is an uninhabited island occupying the eastern end of Timor-Leste’s main island.

Image 2: Map of Timor-Leste

Image 3: Jaco Island

POLITICAL SYSTEM

Timor-Leste is a semi-presidential republic. The President is Head of State, who is elected by popular vote for a five-year term. The President guarantees respect for the Constitution and for State institutions and when necessary, can act to mediate conflicts. He can also veto legislation passed by the National Parliament.

Following legislative elections, the President appoints the leader of the party with plurality of seats, as Prime Minister. As Head of State, the President also presides over the Council of State, the Superior Council of Defence and Security, and is also the Supreme Commander of Armed Forces.

The unicameral Timorese Parliament comprises of members elected by popular vote to a five-year term. The number of seats can vary from a minimum of 52 to a maximum of 65. All registered political parties can run for legislative elections, and name their representatives to the National Parliament. The Prime-Minister is Head of Government.

CLIMATE

Timor-Leste has a hot tropical climate with a dry season from May-November, and a wet season from December-April. The temperature on the coast is usually between 25-35C, and in the mountains at higher elevations the weather is much cooler – sometimes wet and misty, and at other times clear and invigorating. There are many different micro-climates from dry barren hill sides to thickly forested peaks interspersed with cultivated areas. In general, especially during rainy season, the south countryside becomes much lusher and greener.

GEOGRAPHY

Timor-Leste is mountainous, with ridges of inactive volcanic mountains extending along the island. The south is slightly less mountainous, and has some plains near the coastline. Most rivers dry up at least partially during the dry season. Outside of some coastal areas and river valleys, the soil is shallow and prone to erosion. The easternmost area of Timor-Leste consists of the Paitchau Range and the Lake Ira Lalaro area, which contains the country’s first conservation area, the Nino Konis Santana National Park. It houses the last remaining tropical dry forested area within the country. It hosts a number of unique plant and animal species, and is sparsely populated. The northern coast is characterised by a number of coral reef systems that have been determined to be at risk.

There are around 41,000 terrestrial plant species in the country. Forests covered 35% of East Timor’s land in 2010. The forests of the northern coast, central uplands, and southern coast are distinct. Timor-Leste is home to the Timor and Wetar deciduous forests ecoregion.

Mountains in Timor-Leste

(elevation above sea level, in meters)

• Mount Ramelau – 2967
• Matebian – 2376
• Maubohilau – 2312
• Kablaki – 2062
• Datoi–Tapo – 1941

Image 6: Mount Ramelau

Rivers in Timor-Leste

Timor-Leste’s longest river is the North Laclo, at about 80 km (50 mi) long; its largest catchment is that of the Loes, which has a total area of 2,184 km² (843 sq mi) (almost 15% of the whole country), about 9% of which lies in Indonesia.

Largest lakes (surface area, km2)

Lake Ira Lalaro is a freshwater lake in Mehara, of Lautém Municipality. It is the largest in the country. The lake is part of the Mount Paitchau Important Bird Area. The lake waters and that of Irasiquero River are a closed aquatic system. It covers between 10–55 square kilometres while the authigenic catchment basin covers 406 square kilometres.

Tasitolu (Portuguese: Tasitolu, Tetum: Tasitolu or Tasitolu, lit. transl. ’three waters’) is salty water and a protected area on the coast of around 8 kilometres west of the capital Dili. The Tasitolu wetlands include three saline lakes, an esplanade, and a beach; it has been designated a Wetland of National Significance. Tasitolu Peace Park was designated in 2002 because of its cultural and historical importance. The Tasitolu Important Bird Area accommodates several near-threatened species. It lies at an altitude of 0–403 metres above sea level, the 700 hectares (1,700 acres) protected area (whole area: 1,540 hectares (3,800 acres) consists of three permanent, shallow, saline lakes, and wetland surrounds. In some years, the water of the lakes turns red, probably due to red algae. There are several other small lakes in the country.

Compiled by:
Embassy of Malaysia
Dili, Timor-Leste
 

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

H.E. Jagdishwar Goburdhun, High Commissioner of Mauritius to Malaysia delivered the Welcome Address.

Mr Hemraj Ramnial, Chairman, Economic Development Board Mauritius delivered the Keynote Address.

Mr Sachin Mohabeer, Deputy Chief Executive Officer, Economic Development Board Mauritius delivered the Mauritius Country Presentation – Investment Opportunities Across Sectors.

Mr Abrar Anwar, Managing Director & Chief Executive Officer, Standard Chartered Bank (Mauritius) delivered a testimonial on Standard Chartered Bank’s experience in Mauritius.

The Country Presentation highlighted how Mauritius can serve as the gateway for businesses to distribute their products and goods to the African continent and to other markets beyond Africa by leveraging Mauritius’ strong economic fundamentals, freeport services and broad FTAs especially with African nations, North America, Europe.

(from left-to-right)
Ms Sarah Bakri, MyAIRA, Ms Ng Su Fun, Executive Secretary, MASSA, Ms Naznin Nahar Begum, eCAB, Ms Farha Mahmud Trina, eCAB and Ms Hanniz Lam, MyAIRA.

YBhg Tan Sri Azman Hashim, President, MASSA delivered the Opening Remarks.

Mr Ben Ong, Chairman, MAPAN delivered a presentation titled “Current Development in the ESG Spectrum and Malaysia’s National ESG Framework”.

Mr Shane Guha Thakurta, General Manager, Investor Relations and Sustainability, IJM Corporation Berhad delivered a presentation titled “ESG Adoption Journey, Best Practices and Pitfalls to Avoid”.

Mr Chan Huan Ong, Assistant General Manager, IJM IBS Sdn Bhd delivered a presentation titled “Cascading ESG Adoption to Vendors – Challenges and Lessons Learnt”.

Mdm Reshma Yousuf, Council Member, CILT Malaysia moderated the session and delivered the Closing Remarks.

A group photo of the webinar role players.

The webinar recording can be viewed here: https://www.youtube.com/watch?v=pqVMJX0IV_k.

Dr Ashraf Iqbal, Chairman, Waafi Bank delivered a presentation titled “Discover & Explore Business Opportunities in Djibouti” wherein he highlighted that many Djiboutians were graduates of Malaysian universities and that Djibouti is positioning itself to become the Singapore of Africa in line with its Djibouti Vision 2035 (https://economie.gouv.dj/vision-2035-english/).

Photos of the participants at the Briefing.

Greetings from MASSA !

In this August newsletter, we feature the Republic of Zambia. We thank the good office of the High Commission of the Republic of Zambia for their insights to bring to readers information on the Republic of Zambia, focusing on its economy and business opportunities. The Country Feature had highlighted the investment climate of Zambia, and the potential for investment into its key sectors in mining, agriculture, manufacturing, tourism and energy.

The August edition also reports on MASSA’s engagements and collaborations with the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) where MASSA had participated in a seminar organised by BMCCI on the Seminar on Trade and Investment Opportunities in Bangladesh at Royale Chulan Kuala Lumpur on 1 June 2023 and a series of online discussions with BMCCI on 14 June and 17 July 2023. These series of engagements were organised with the aim to inform the Malaysian business community about the latest trends, developments and business opportunities with and in Bangladesh, and to promote the 6^th Showcase Malaysia 2023 in Dhaka, Bangladesh. The 6^th Showcase Malaysia is a celebration of Malaysian products and services, and an opportunity for Malaysian businesses to explore the Bangladesh economy.

MASSA also had a series of meetings recently, which included a meeting with the High Commission of the Republic of Zambia on 3 May 2023, with the BMCCI leadership on 2 June 2023 and with the Undersecretary of the International Cooperation and Development Division (ICADD), Ministry of Foreign Affairs, Malaysia 15 June 2023. The discussions at these meetings, centred on areas where MASSA can collaborate, support and or complement the respective initiatives of the aforenamed offices. Our engagement with ICADD also resulted in a discussion between ICADD, MASSA and the Embassy of Malaysia in Timor Leste on 3 August 2023 to explore business opportunities in the nation as it prepares to integrate into the ASEAN membership.

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, especially in light of the post-pandemic era that would require renewed efforts of cooperation from all levels to prepare businesses for the opportunities and challenges forthcoming.

In view of this, several events to keep an eye out for are in the works. One event we wish to highlight, and encourage readers to register and participate in is a Webinar Series on ESG for Malaysian businesses. This is a joint collaboration between MASSA, the Chartered Institute of Logistics and Transport (CILT) Malaysia and the Malaysian Association of Public Advocacy for Nature (MAPAN) on 22 September and 10 November 2023. 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.

Thank you.

Ng Su Fun

Editorial MASSA

Tan Sri Azman Hashim
President
MASSA 

The global economy in 1H2023 appeared poised for a soft landing and gradual recovery from the blows of the pandemic and of Russia-Ukraine War. Supply-chain disruptions are unwinding, and the disruptions to energy and food markets are ebbing. Concurrently, the tightening of monetary policy by most central banks should start to bear fruit, with inflation tempering toward its targets.

Below the surface, however, indicators suggest that expectations should be tempered, as banking volatility and financial turbulence remain in the foreground. According to the OECD’s and IMF they anticipate global GDP growth to range between 2.7-2.8% in 2023.

The pace of expansion of the Malaysian economy is expected to moderate due to headwinds that include the uncertain global outlook, inflationary pressures, financial tightening, slower external demand and extreme climate occurrences. Nevertheless, some of the tailwinds for the Malaysian economy include the gradual recovery of international tourism arrivals with the reopening of international borders. Tourism Malaysia is targeting 16.1 million international visitor arrivals for 2023, a 60% increase compared with the estimated 10.1 million international visitor arrivals in 2022. Additionally, the decision of a number of electronics multinationals to invest in large-scale new projects in the nation also favourably attest to Malaysia’s competitiveness and position as a global hub for electronics, manufacturing, and services amongst others.

Given the global considerations, Malaysia’s strong economic fundamentals remain intact. The growth of the Malaysian economy in the first quarter of 2023 registered 5.6%, which is in line with our Government’s projection for Malaysia to achieve real GDP growth for the year 2023 to be between 4.0 – 5.0%.

The imperative for businesses to adopt ESG-compliant approaches and solutions continues to be underscored by the Government. The Ministry of Investment, Trade and Industry (MITI) reported that between 2021 – September 2022, a total of RM4.9 billion in green technology projects had been approved. The business opportunities and economic spillover benefits of ESG adoption indicate a new front for businesses to leverage alongside digitalisation and digital transformation. We look forward to the Government’s policy approach for industries particularly under the National Carbon Policy, the New Industrial Master Plan (NIMP) 2023 and the i-ESG Framework when they are announced.

MASSA held its 32nd Annual General Meeting on a hybrid basis on 28 June 2023. I would like to take this opportunity to thank the outgoing Office Bearers and Executive Committee Members for their service from the term 2021-2023, in particular, I would like to place on record MASSA’s appreciation to Datuk Lim Fung Chee and Tan Sri Ghazzali Sheikh Abdul Khalid for their services as Vice-President and Member of the Executive Committee respectively.

I also take this occasion to congratulate and welcome the Office Bearers and Executive Committee Members who have been elected to serve the Association till 2025. In particular, I would like to thank Datuk T Y Lee, Dato’ Lawrence Lim Swee Lin and Datuk Merlyn Kasimir for agreeing to serve as Vice-President, Hon. Secretary and Hon. Assistant Secretary respectively, and to the new Members of the Executive Committee, Mr Arshad Ismail, Mr Lee Chun Fai and Mr Chang Yii Tan.

During the 32^nd AGM, MASSA reaffirmed its mission to bridge the South-South, and to complement the Government’s initiatives to enhance ties and business linkages with developing countries by continuing to engage and collaborate with the Ministry of Investment, Trade and Industry (MITI) and its agencies, and the Ministry of Foreign Affairs (Wisma Putra).

I appreciate the continuing support of all Members with your involvement at our regular meetings and events. 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.

Tan Sri Azman Hashim
President
1 August 2023

REPUBLIC OF ZAMBIA

Located in the heart of Southern Africa, Zambia is one of the fastest growing economies with a population of 19.6 million people. The country, which sits on 752,618 square kilometres (over double the size of Malaysia), is blessed with abundant natural resources and vegetation, a diversity of wildlife, magnificent landscapes, and is home to the mighty Victoria Falls, one of the seven natural wonders of the world.

Image 1: Zambia’s location in the heart of Southern Africa

The country has very stable Macroeconomic Fundamentals with a growing GDP of about US$21 billion, inflation of 9.9% per annum and the local currency is performing very well against the United States Dollar and other major world-convertible currencies, appreciating by over 18.5% from January 1 to September 2022.

Zambia has proven to be a strategic hub for trade and investment due to its central location with eight neighbouring countries. Zambia is a member of the regional and continental economic communities that the Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) and African Continental Free Trade Area (AfCFTA).

Further, Zambia is well known as a haven of investments due to its unmatched investment climate, attractive investment incentives, ease of doing business, and investor-friendly policies supported by consistent policies and stable political will, rule of law, and peace that the country has enjoyed since her independence in 1964.

Economic Fundamentals

Official Language:    English

Main Languages:     Bemba, Tonga, Chichewa, Lozi, Kaonde, Luvale, Lunda

Population (2022):   19.6 million

GDP Per Capita:     USD 1,137.6 (World Bank 2021)

GDP 2021:              USD 22.15B (World Bank 2021)

Government:           Presidential Republic; Multi-Party Democracy

Unemployment:       13% (World Bank 2022)

Literacy:                  86.8% (2018)

Inflation:                  9.9%

 
Image 2: Map of Zambia

Zambia’s Business Environment

Zambia ranked 1st in Africa & 4th globally for Ease of Getting Credit in the 2020 project which provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The country boasts highly attractive Government securities and has a high rate of return on investment in Government bonds & bills. This is mainly due to conducive Governance, a skilled labour force and a good logistical network which helps facilitate international trade through implementation of web-based customs data management platform, ASYCUDA World, for easier exporting and importing. The wide network coverage includes 91% Public Switched Telephone Network (PSTN).

Fig. 1: Recorded Investment 2018 to 2022 (US Dollar Billions)

Fig. 2: Recorded Investment by Sector 2018 to 2022 (US Dollar Millions)

Economic growth has been stable in Zambia which has elevated it to the 6th largest economy in SADC and to becoming an attractive investment destination. The figures below indicate Zambia’s investment and trade performance between 2018 and 2022.

Fig. 3: Zambia’s Trade 2018 to 2022

The main trade contributors in Zambia are highlighted in the table below.

Table 1: Major Exports and Imports with their Markets

Investment Sectors

Currently, the priority sectors for investment are manufacturing, mining and mineral beneficiation, agriculture, energy, information communication technology, infrastructure and tourism.

Foreign and local investors in priority sectors are eligible to qualify for certain predetermined incentives and this is administered through the Zambia Development Agency (ZDA). In addition, investors that setup in a Multi Facility Economic Zone (MFEZ) or industrial park are eligible for additional tax incentives. Incentives come in the form of fiscal and non-fiscal incentives.

The Zambia Development Agency (ZDA) is Zambia’s premier economic development Agency with a multifaceted mandate of promoting and facilitating trade, investment and enterprise development in the country. The Agency is also responsible for building and enhancing the country’s investment profile for increased capital inflows, capital formation, employment creation and growth of the Micro Small and Medium Enterprise (MSME) Sector.

Among the key services provided include:

• • Issuance of investment and MFEZ/IP Permits
• • Participation and facilitation in regional and international trade and investment fairs, exhibitions and missions;
• • Participation and facilitation of business summits, conferences, workshops and business to business meetings;
• • Facilitation of joint-venture partnerships and business match-making events between buyers and sellers
• • Provision of export market information
• • Developing Export Readiness of the Zambian enterprises, especially MSMEs to meet international customers’ requirements and needs, and compliance standards as well as norms
• • Building the general business capacities of the entrepreneurs (the exporter and potential exporters)
• • Product development to enable Zambian products meet international buyers’ requirements in terms of quality,
• • Product Development
• • Market and financial Linkages/Access
• • Provision of Business Information and Market Intelligence e.g. identification of market opportunities and market access requirements;
• • Provision of after care Services, Business Clinics and advisory services

The following Multi Facility Economic Zone (MFEZ) and Industrial Parks are currently operational in Zambia:

• • Lusaka South Multi-Facility Economic Zone;
• • ZCCZ Chambishi Multi Facility Economic Zone;
• • ZCCZ Lusaka East Multi-Facility Economic;
• • Jiangxi Multi Facility Economic Zone;
• • Kalumbila Multi Facility Economic Zone;
• • Roma Industrial Park; and
• • Sub-Sahara Gemstone Exchange Industrial Park

These zones are provided with modern infrastructure in order to attract and facilitate the establishment of world-class enterprises in the country. The MFEZs blend the best features of the free trade zones, export processing zones, and the industrial parks/zones concept. They apply the administrative infrastructure, rules and regulations that are used as a benchmark among dynamic economies. The blending of physical infrastructure with an efficient and effective administrative infrastructure has created the ideal investment environment for attracting major world-class investors.

MINING

Zambia is the world’s eighth largest producer of copper. It produced over 880,000 metric tonnes in 2020 and holds 6% of the world’s known copper reserves. Kansanshi open pit mine is the largest copper mine in Africa, by capacity, Copper and cobalt, the country’s traditional exports, account for well over 70% of export earnings. Zambia’s copper mines are concentrated on the Copperbelt Province. More mines have been established in other parts of the country such as Solwezi and Kalumbila in the North-Western Province, which has seen accelerated growth in recent years and the Government of Zambia has taken note of the tremendous growth potential of this sector and set a target of increasing copper production from the current 800,000 metric tonnes per year, to 3 million metric tonnes per year over the next ten years. Policy revision that has removed double taxation and revised the tax framework, leveraging digital technology in the sector, and addition along the value chain will see more investment in the sector and make the target more achievable. The signing of an MOU between Zambia and the Democratic Republic of Congo leveraging regional resources towards a value chain for electronic vehicle battery manufacturing, as well as the $350 million investment by KoBold Metals to introduce Artificial Intelligence into

Other mineral endowments include gold, zinc, lead, iron ore, manganese, nickel, feldspar, sands, talc, barite, apatite, limestone, dolomite, uranium, coal, and gemstones (e.g. diamonds, emeralds, aquamarine, topaz, opal, agate and amethysts). Notably, Zambia produces over 20% of the world’s emeralds and has the capacity to increase its production. This extensive range of mineral resources, including a variety of industrial minerals and energy resources such as uranium, coal and hydrocarbons, presents investors with excellent opportunities, especially in the area of extraction and processing.

Zambia’s endowment of mineral resources is substantial, although the full potential of known deposits is yet to be realized. A 2013 World Bank geological analysis suggested that Zambia’s copper deposits were larger than previously estimated, signalling massive exploration potential. This potential is starting to be realized through recent exploration for oil and gas. Thirty Eight (38) exploration blocks have been demarcated in Zambia with twelve (12) of these blocks having been issued with licenses.

Since the privatization of the mines ended in 2000, approximately $17.50 billion has been invested in the sector by about 278 enterprises with large-scale copper mining accounting for more than 90% of these investments. In 2019, mining accounted for 9.9% of GDP, 26.7% of Government revenue, 2.4% of direct employment and 77% of exports.

Even with so much investment in the sector, existing mines have only scratched the surface of the mineral wealth yet to be mined with an estimated 61% of the country having been mapped and exploration in nickel, uranium, coal, geothermal, oil and gas still ongoing. Government policy is tailored to the promotion of value addition to minerals such as copper through the introduction of incentives such as a preferential corporate tax rate of 15% for companies that add value to copper cathodes, compared to the standard 35% for other non-incentivized firms.

AGRICULTURE

Image 3: Palm Oil Plantation in Zambia’s Muchinga Province

Agriculture plays an important role in Zambia’s economy, contributing about 13% to the country’s GDP. Zambia is endowed with a vast arable land resource base of 42 million hectares of arable land, of which only 1.5 million hectares is cultivated every year. It has abundant water resources for irrigation, which account for 40% of the water resources in the SADC region. Given this vast resource endowment, Zambia has huge potential to expand its agricultural production. Its climate is that of a tropical savannah, experiencing rainy seasons between the months of November and April. The dry season is characterized by low humidity between the months of May and November. The average temperature in the summer is 36°C and gets as low as 5°C in the winter, which suitable for both traditional and winter crops.

Despite the availability of vast arable land, transport infrastructure, large water resources and affordable labour – the agricultural sector employs more than half of the total labour force – only 10% of arable land is under cultivation. In that regard, the Government has established farming blocks to facilitate investment in agriculture. 100,000 hectares of land has been set aside in each province to make a total of 1 million hectares countrywide for the establishment of the farming blocks.

Zambia’s traditional crops include maize, cassava, wheat, sorghum, rice, sunflowers, groundnuts, soya beans, mixed beans, Irish potatoes, sweet potatoes, and tobacco. A lucrative cashew nut sub sector in has also been built in the western part of the country.

The Government is currently driving the enhancement of value addition by promoting agro-processing through programmes such as the Zambia Agri-business and Trade Project (ZATP). Agro-processing opportunities in Zambia are in peanut butter production, cashew nut processing, animal or stock feed production, cassava processing, grain milling, edible oil production, fruit canning, juice extraction, meat, dairy and leather production, fish canning, textiles, bio-diesel production, and honey processing.

MANUFACTURING

Zambia has a well-developed market economy. Its strong economic performance over the years is testimony to the nation’s open, outward-oriented development strategy. Like most global economies, Zambia’s was not spared from the negative effects of the COVID -19 global pandemic and other external shocks such as volatile commodity prices emanating from disruptions in global supply chains. However, GDP rebounded to positive figures yielding 4.7% growth in 2022.

Currently, the main manufacturing activities in Zambia are in the following industries:

1) Food and beverages;

2) Textile and leather industries;

3) Wood and wood products;

4) Paper and paper products

5) Chemicals, rubber and plastic products

6) Non-metallic mineral products;

7) Basic metal products; and

8) Fabricated metal products.

The top destinations for Zambian exports are China ($2.14bn), India ($719m), South Africa ($486m), United Arab Emirates ($392m), and Belgium-Luxemburg ($297m). Other significant markets outside Africa include Netherlands and Switzerland as well as Europe and North America through the EBA Initiative and AGOA respectively.

Zambia has traditionally been an importer of finished manufactured commodities and an exporter of primary commodities. This points to a deficit of manufactured products within the Country, thereby highlighting opportunities for investment in sub-sectors such as:

• • Agro-processing;
• • Pharmaceutical products;
• • Assembly of machinery and equipment;
• • Cement;
• • Packaging materials;
• • Fertilizers;
• • Textiles; and
• • Tobacco products, to mention a few.

TOURISM

The tourism industry has grown steadily over the years, with the establishment of hotels in the major tourist centres such as Livingstone and Lusaka. There is vast unexploited potential in the sector in Zambia due to its natural beauty, including its wealth of wildlife and the Victoria Falls, which is one of the most renowned Seven Natural Wonders of the World. The country boasts over twenty awe inspiring waterfalls that make Zambia a hub of waterfalls and a must for adventure enthusiasts; waterfalls which include Kalambo, Ngonye, Chishimba, Chipempe, Ntumbachushi, Kabwelume, Mumbuluma, Lumangwe, Chipoma, Kundalila, and Ngonye, amongst others.

Zambia has 20 national parks and 34 game management areas, with a total of 23 million hectares of land set aside for wildlife conservation. Also, the country has numerous museums that house priceless historical artifacts such as the Lusaka National Museum, Moto-Moto Museum, and Livingstone Museum. Another attraction is the traditional ceremonies that take place at different times of the year where the country’s rich cultural heritage is displayed. Lastly, the beautiful scenery and abundant wildlife have led to the growth of a tourism sub-sector in the film industry. Concessions are provided to movie production companies for shooting films or documentaries.

Image 4: Thrilling activities in Livingstone

In order to support the tourism sector, Government has continued to build supporting infrastructure such as roads, railways, and bridges, and to facilitate the expansion of the service industry. Since this is a priority sector, investment attracts both fiscal and non-fiscal incentives. Therefore, the bulk of investment opportunities in the sector are in services offered to tourists such as accommodation, restaurants, entertainment facilities, sports facilities, and safaris/game watching, to mention a few.

Zambia is also positioned as a hub for Meetings, Incentives, Conferences and Exhibitions (MICE) and has in the recent past been an attractive destination hosting global dignitaries and celebrities as well as regional and global events and festivals.

ENERGY

Of the installed 2,898MW electricity generation capacity of Zambia, hydro power is the most important energy source with 2,398MW (83%), followed by diesel and coal. Zambia has about 6,000MW of unexploited hydro power potential due to its abundant water resources, providing an opportunity for investment in hydro power generation. The demand for electricity has been growing at an average rate of 4% per annum, mainly due to economic activity overall but particularly in the agriculture, manufacturing, and mining sectors. The country’s growing population has also led to an increase in the demand for other sources of energy such as petroleum and solar energy for transportation and domestic use, especially in rural areas. The state-owned Zambia Electricity Supply Cooperation (ZESCO) Ltd is the only entity that generates and transmits power, while companies such as the Copperbelt Energy Corporation (CEC) procuring power from ZESCO to sell to the mines.

In addition to water resources, Zambia has abundant renewable and non-renewable resources including:

1) Industrial minerals such as coal;

2) Agricultural land to support bio-fuels;

3) Ample forests for bio-mass;

 4) Abundant wind;

5) Sunlight for solar power;

6) Abundant hot springs for geothermal energy; and

7) Uranium for nuclear power

There are currently massive exploration missions being undertaken in Northern and Luapula Provinces to ascertain Zambia’s potential for oil and gas drilling. Investment in this sector attracts fiscal and non-fiscal incentives espoused in the ZDA Act.

Image 5: The 54MWB Bangweulu solar power plant located in Lusaka South Multi-Facility Economic Zone

Some of Zambia’s profiled investment projects can be found here:

https://investment.unido.org/ACP/projects?Country=82

Prepared by:
High Commission of the Republic of Zambia in Kuala Lumpur
info@zhckl.com.my

‣ President’s Statement

‣ Editorial

‣ Country Feature: Republic of Zambia

‣ Diary of Events

‣ 3 May 2023
Meeting with the High Commission of the Republic of Zambia

‣ 1 June 2023
Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) Seminar on Trade and Investment Opportunities in Bangladesh

‣ 2 June 2023
Meeting between Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) and MASSA

‣ 14 June 2023
Online Discussion on “Enhancing Bangladesh-Malaysia Business Relations” on 14 June and 17 July 2023 jointly hosted by Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), Malay Chamber of Commerce Malaysia (DPMM) and MASSA

‣ 15 June 2023
Meeting with International Cooperation and Development Division (ICADD) at Ministry of Foreign Affairs (Wisma Putra)

‣ 28 June 2023
32nd Annual General Meeting of MASSA
[Read here: MASSA Annual Report 2022-2023]

‣ 3 August 2023
Discussion on the Business Opportunities in Timor Leste

‣ Forthcoming Events

(from left-to-right)
Mr Syed Almas Kabir, President, BMCCI, H.E. Imran Ahmad, M.P., Minister of the Ministry of Expatriates’ Welfare and Overseas Employment, Government of the People’s Republic of Bangladesh and Mr Pranab Kumar Ghosh, First Secretary (Commercial), High Commission of Bangladesh to Malaysia.

(from left-to-right)
H.E. Imran Ahmad, M.P., Minister of the Ministry of Expatriates’ Welfare and Overseas Employment, Government of the People’s Republic of Bangladesh, Mr Pranab Kumar Ghosh, First Secretary (Commercial), High Commission of Bangladesh to Malaysia, Mr Syed Almas Kabir (back-turned), President, BMCCI, Ms Ng Su Fun, Executive Secretary, Malaysia South-South Association (MASSA) and Mr Md Akther Parvez Chowdhury, Honorary Consul of Malaysia High Commission to Bangladesh (Chittagong) & Managing Director of PHP Automobile Limited.

A group photo of the role-players.
(from left-to-right) Ms Ng Su Fun, Executive Secretary, MASSA, Mr Idzham Abdul Hamid, Director, Central, West, South Asia & Africa Section, MATRADE, Mr Md Akther Parvez Chowdhury, Honorary Consul of Malaysia High Commission to Bangladesh (Chittagong) & Managing Director of PHP Automobile Limited, Mr Mohammad Khorshed A Khastagir, Acting High Commissioner, Bangladesh High Commission Kuala Lumpur, H.E. Imran Ahmad, M.P., Minister of the Ministry of Expatriates’ Welfare and Overseas Employment, Government of the People’s Republic of Bangladesh, Mr Syed Almas Kabir, President, BMCCI, Mr Norsyahrin Hamidon, President, DPMM, Mr Syed Moinuddin Ahmed, Treasurer, BMCCI and Mr Syed A Habib, Chairman, Organising Committee for 6th Showcase Malaysia 2023 & Director, BMCCI.

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Mr Syed Almas Kabir, President, BMCCI delivered the Welcome Remarks.

 

Mr Norsyahrin Hamidon, President, DPMM delivered the Welcome Address.

 

Mr Syed Almas Kabir, President, BMCCI presented a Keynote Paper titled “Trade and Investment Opportunities in Bangladesh”.

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 The session then proceeded to a panel discussion on the Keynote Paper.

 

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Guest of Honour, Mr Mohammad Khorshed A Khastagir, Acting High Commissioner, Bangladesh High Commission Kuala Lumpur delivered his address.

(from left-to-right)
Mr Samuel Loh, Programme Executive, MASSA, Mr Hasanur Rahman Chowdhury, Executive Secretary, BMCCI, Ms Ng Su Fun, Executive Secretary, MASSA, Mr Syed Almas Kabir, President, BMCCI, Mr Mahbub Alam Shah, Director and Mr Moon Mondal Rajib, Member, BMCCI

From left-to-right:
Mr Samuel Loh, Programme Executive, MASSA, Ms Ng Su Fun, Executive Secretary, MASSA, Mr Devrin Jeck, Undersecretary, ICADD, Department of Multilateral Affairs, Wisma Putra, Mr Mogen Selvaraja, Assistant Secretary, Department of Multilateral Affairs, Wisma Putra and Ms Nur Syuhaida, Secretariat, MASSA.

 

The MASSA 2022 – 2023 Annual Report can be read here: