By M.Saraswathi
KUALA LUMPUR, Nov 18 (Bernama) -- The African continent’s rapid economic growth presents export opportunities for Malaysia to reduce reliance on traditional partners and possibly hedge itself against geopolitical uncertainties, University of Nottingham Malaysia assistant professor of business economics Dr Tan Chee Meng said.
“Strengthening ties with African economies offers Malaysia benefits from diversification and new risks.
“Although African markets currently account for only a small fraction of Malaysia’s trade, their rapid growth presents opportunities,” he said.
Malaysia’s total exports to Sub-Saharan Africa in 2024 totalled RM16.1 billion -- or about one per cent of its global exports and two per cent when North Africa is included -- which is still a modest share.
“However, targeting Africa enables Malaysia to broaden its export destinations beyond China, the United States, Europe and ASEAN, and allows Putrajaya to strategically respond to shifting global landscapes,” he told Bernama when asked about Prime Minister Datuk Seri Anwar Ibrahim’s visit to the African continent.
Ethiopia will be Anwar’s first stop in Africa starting today and from its capital Addis Ababa, he will travel to Johannesburg, South Africa, for a working visit from Nov 20-23 to attend the Group of 20 (G20) Leaders’ Summit, before proceeding to Nairobi, Kenya, from Nov 23-24, for a bilateral visit before returning home.
Anwar, who is also Finance Minister, is accompanied by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Zaliha Mustafa, other Malaysian government officials, as well as a business delegation.
Advantages and risks
Tan said that expanding Malaysia’s appeal as an education hub among African students is among the potential advantages.
Others include boosting exports of halal products and Islamic finance services, as well as enhancing food security through trade and technology (tech) partnerships.
“It can also elevate Malaysia’s reputation as an influential middle power, especially in global south cooperation and green technology,” he said.
Citing risks, he said political and security instability in some African countries, as well as regulatory unpredictability, could complicate doing business.
Malaysia should initially focus on stable, well-governed African states with supportive frameworks and exercise caution with riskier markets, he said.
Fintech, Islamic products and halal products hold high potential
For Malaysian firms, the greatest prospects in Africa, particularly in Ethiopia, South Africa and Kenya, lie in digitalisation, fintech (financial technology), green tech, Islamic finance and halal products.
Islamic finance and halal industries are standout areas as all three African countries aim to develop robust Islamic finance and halal infrastructure to attract investments from the Middle East and cater to rising Muslim consumer demand.
“Malaysia’s expertise enables it to help these nations set up centralised halal authorities like JAKIM and train necessary personnel, aligning local governance with global best practices,” he said.
He said the benefits of this alignment include easier trade, investment and collaboration between Malaysia and African partners.
“Strengthening food security in Malaysia is another benefit, as halal products from Africa could serve Malaysian consumers and reinforce Malaysia’s reputation as a global leader in halal governance,” he said.
Moreover, involvement in tech-driven sectors, such as digital transformation and sustainable energy, can diversify Malaysia’s portfolio and reduce risk exposure, he said.
G20 will grow Malaysia’s influence
He said Anwar’s participation in the G20, which brings together countries with the largest economies, signals Malaysia’s growing influence as a diplomatic and economic partner in a multipolar world.
This is pertinent amid ASEAN’s rising international profile and heightened major competition between the US and China.
Anwar, who is also the ASEAN Chair for 2025, is attending the G20 Leaders’ Summit as the guest of South Africa, which is the current G20 President.
The Prime Minister’s participation will reinforce Malaysia’s position as a trustworthy middle power ready for dialogue and “win-win” engagements, which is a highly valued trait in South-South cooperation.
“It puts Malaysia on the radar of Global South nations seeking green tech and digital solutions without becoming entangled in great power rivalry,” he said.
It also provides opportunities for Malaysia to offer its expertise in high-yield agriculture and food security solutions, addressing core needs in many developing economies.
“Greater cooperation with Global South partners not only opens new export markets but also strengthens Malaysia’s domestic food security and job creation capacities, highlighting the mutual benefits of this engagement,” he said.
Policy reforms
To maximise Afro-Malaysian trade and investment, Tan said both sides need to streamline investment incentives, harmonise standards in key and lucrative sectors, such as halal and Islamic finance, and reduce red tape by having simplified customs and business procedures using digital platforms.
Creating joint business councils and clear legal protections for investors will make cross-border ventures safer and more attractive.
These reforms and frameworks will boost mutual trust, reduce risks and help both Malaysia and African nations achieve sustainable, balanced growth, he said.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
