Kuala Lumpur: The lifting of economic sanctions on Iran could boost bilateral trade between Malaysia and the country as well as open doors for local entrepreneurs to expand in sectors other than palm oil products, Malaysia External Trade Development Corporation (Matrade) said.
Chief Executive Officer Dzulkifli Mahmud told Malaysia's news agency (Bernama) recently that bilateral trade between the two countries dipped slightly last year due to lower imports of petroleum products by Iran and issues surrounding payments for Malaysia's exports.
Malaysia's imports from Iran comprise mostly crude oil and bitumen.
According to the Department of Statistics, Malaysia's total exports to Iran dropped 10.6 per cent to RM1.95 billion in 2015 versus RM2.18 billion in 2014.
Total imports last year reduced by 25.6 per cent to RM139.5 million from RM187.4 million in the previous year.
Malaysia's palm oil exports to Iran dropped 42.1 per cent to 447,058 tones in 2014 from 635,258 tones in 2013.
Malaysia's exports of palm products, meanwhile, fell 36 per cent to 515,231 tones in 2014, due to the sanctions on Iran and its discriminatory policy on palm oil imports.
Iran's Ambassador to Malaysia, Marzieh Afkham, said that both countries are expected to go for another round of talks on the palm oil issue.
Afkham noted that economic ties between Malaysia and Iran are expected to be stronger this year with the recent lifting of economic sanctions on the latter, adding that the bilateral trade volume could increase.
QNA
