KUALA LUMPUR: Trading relations between Spain and Malaysia have been on solid ground and is expected to continue on the upward trend post-COVID-19, said Economic and Commercial Counsellor at the Embassy of Spain in Malaysia, Ines Perez-Durantez.
She said in 2020, the bilateral trade had recorded a strong growth although some exchanges were affected by the global COVID-19 pandemic.
"Certainly, in 2020, exchanges went down along with the border closure and disruptions in the supply chains. But even that year, some chapters registered growing figures, such as the exports of Spanish pharmaceutical products to Malaysia, which accounted for 8.1 per cent of total exports and increased by 4.5 per cent in 2020. Likewise, Malaysia's exports of rubber and rubber products increased by 175 per cent (24 per cent of total Malaysian exports to Spain in that period).
"We expect the upward trend in the trade relations to resume in 2021," she said in an email interview with Bernama.
Perez-Durantez said it was also important to note that even in such a difficult year as 2020, Spain imported EUR118 million (RM568 million) worth of palm oil and EUR147 million (RM707 million) worth of biodiesel from Malaysia, where both the total accounts for 22 per cent of Spanish imports from Malaysia.
According to the Spanish Foreign Trade Statistics (ESTACOM), Spanish exports to Malaysia in 2020 was valued at EUR318.1 million (RM1.53 billion), while Malaysia's exports to Spain stood at EUR1.2 billion (RM5.77 billion).
Perez-Durantez added that Malaysia's export to Spain has been increasing steadily by double digits before 2020.
In 2018, Malaysia's export to Spain was EUR906.5 million (RM4.36 billion) - an increase of 21 percent from the previous year [EUR752.1 million (RM3.6 billion) in 2017]. In 2019, it was EUR1.18 billion (RM5.7 million).
Exports from Spain to Malaysia, meanwhile, totaled EUR545.5 million (RM2.62 billion) in 2018, which increased by 11 per cent to EUR606 million (RM2.9 billion) in 2019.
"Malaysia and Spain maintain excellent long-standing relations, which we want to deepen in the years to come. We have been building up a solid economic relationship in the last decades with an increasing number of Spanish companies in this country.
"The complementarities and common interests between our two countries are a well-grounded base for a profound relationship, and in this regard, Malaysia outstand as the recipient of Spanish investment in the ASEAN region," Perez-Durantez said.
She said in 2019, Spain recorded a flow of EUR298 million (RM1.43 billion) of foreign direct investment (FDI) into Malaysia, with the manufacturing of iron and steel products, trade, and chemical industry as the main sectors.
In term of stocks, the average FDI in the period from 2015 to 2018 was EUR850 million (RM4.08 billion), in diversified areas, with iron and steel products followed by electrical material and equipment as the leading sectors. (EUR1 = RM4.81)
"Hopefully we will continue to see this number growing. I strongly believe that both Malaysia and Spain would greatly benefit from a more intense relationship," she said.
Perez-Durantez said the number of Spanish companies engaged in Malaysia has been growing in the last few years
Currently, there are around 50 Spanish companies based in Malaysia while more than 2,700 companies have traded with Malaysia in 2020.
Among the prominent Spanish companies and brands operating in Malaysia are Bahru Stainless factory, Johnson Suisse, Dunlopillo Holdings, INDRA, Tecnicas Reunidas, Melia, Repsol, and Llao Llao.
She added that Spanish investment in Malaysia covers many more sectors, including SOLARPACK in renewable energy, Ormazabal in electrical networks, and GRIFOLS, which is world largest producer of blood plasma-based product, established in Malaysia since 1998.
She also noted that the Bahru Stainless factory in Johor is the leading Spanish investment in Malaysia and it is still, since 2008, the major single investment of any multinational company in the state of Johor.
-- BERNAMA
Bernama
Tue Mar 09 2021
Perez-Durantez said it was also important to note that even in such a difficult year as 2020, Spain imported EUR118 million (RM568 million) worth of palm oil and EUR147 million (RM707 million) worth of biodiesel from Malaysia. BERNAMApic
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.