PM Najib urges Malaysian companies to enhance cooperation with Laos

Najib said to date, Malaysian investments amounted to US$569.6 million, making Malaysia the sixth largest investor in Laos.

"On trade, however, both countries need to do more," he said, when meeting with Malaysian companies and business representatives in Laos, here today.

He said the Laotian government was also undertaking efforts aimed at making the business environment more conducive and this should serve as a 'pull factor' for more Malaysian companies to invest in the country.

"The formation of the Malaysian Business Chamber in Laos is another positive step towards strengthening economic ties. I am sure that Malaysian companies will continue to work even more closely together with those in Laos to build strategic partnerships," he added.

Najib said investments by Malaysian companies at present covered the banking and finance, insurance, tourism, education, construction and agricultural sectors.

It also encompasses two free trade zones, namely the Nelamit/Dongphosy Specific Economic Zone (SEZ) in Vientiane and Savan-Seno SEZ in Savannakhet in southern Laos.

"One is the contract to build a 220km railway linking the country in the east in Savannakhet at the Thailand border, to Lao Bao in the west at the border with Vietnam.

"This is a multi-billion dollar project and there is the fact that Malaysian companies are also developing the SEZ in Laos," Najib said.

The Prime minister said both countries shared the agenda of liberalising the economy.

"We will help you. We have a good name and a good product. So, keep it up, and I hope you will not jeopardise this. If you disappoint the local companies here, it will affect other Malaysia companies in terms of the existing goodwill and trust," he told those present.

In 2015, bilateral trade between Malaysia and Laos stood at RM106 million.

Malaysian exports to Laos at RM100 million covered clothing, textiles, vehicle spare parts, mining material, electrical and electronic goods, chemical products, natural rubber, palm oil and manufactured goods.