Bahrain-Malaysia Trade Flourishes with 5% Growth

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Recent data reveals a flourishing trade relationship between Bahrain and Malaysia, with the trade volume reaching approximately $263.3 million in 2023, marking a 5% increase from the previous year. The exchange of goods centered around a diverse range of products, including wood, furniture, auto parts, electronics, foodstuffs, edible oils, aluminium, and lubricants.

Investment prospects between the two nations appear most promising in fields such as medical technology, transportation technology, construction, chemicals, electrical and electronic appliances, machinery, metals, and Islamic banking. Notably, Bahrain and Malaysia are among the top five countries globally in the Islamic banking sector, indicating a long-standing and productive relationship spanning over two decades. According to the 2023 Islamic Finance Development Report by the Islamic Corporation for the Development of the Private Sector (ICD) and the London Stock Exchange Group, Malaysia, Saudi Arabia, Indonesia, and Bahrain are the leading countries on the Islamic Finance Development Indicator. Bahrain, in particular, ranked first globally in Islamic finance systems, showcasing its leadership in regulating Islamic finance.

The Islamic Finance Development Report tracks the progress of the global Islamic finance industry, relying on the Islamic Finance Development Indicator, which evaluates data across various sectors, asset classes, and the industry’s support system. The 2023 Index covers the performance and rankings of 136 countries based on five key factors: financial performance, governance, sustainability, knowledge, and awareness.

The economic potential of Bahrain and Malaysia is significant, as both seek to deepen economic and trade connections. Bahrain's strategic location as a gateway to the Gulf and a hub for Islamic banking, coupled with Malaysia's central position in the ASEAN Economic Community (AEC), established in 2015, opens avenues for enhanced trade and investment in line with Bahrain’s Vision 2030.

Both nations have signed several trade and economic agreements, including an air services agreement, memorandums of understanding (MoUs) for defence cooperation, exchanges, and industrial cooperation, as well as an MoU for LNG cooperation between The Oil and Gas Holding Company (nogaholding) and Malaysia's Petronas, and another MoU between the Bahrain Chamber of Commerce and Industry and the National Chamber of Commerce and Industry of Malaysia. The strengthening of economic relations is supported by the political leadership in both countries, reflecting a mutual desire to enhance bilateral cooperation.

Bahrain boasts the most diversified economy in the Gulf Cooperation Council (GCC) region, excelling in financial services, manufacturing, and logistics. It is one of the most open economies in the Middle East and North Africa, offering traders and investors access to regional and international markets, bolstered by free trade agreements, excellent infrastructure, and strong financial institutions.

Bahrain's Economic Vision 2030 aims to improve living standards, enhance economic competitiveness, and create job opportunities for its citizens. As part of this vision, Bahrain regards foreign investment as vital to its long-term goals, aiming to establish itself as the most attractive business hub in the Middle East by capitalising on its existing advantages.