RUSSIA KEEN TO TIE UP WITH MALAYSIA TO DEVELOP HALAL INDUSTRY, ISLAMIC BANKING

Kuala Lumpur, 12 Dzulqa’dah 1436/27 Agustus 2015 (MINA) – Russia is working actively with Malaysia to facilitate and develop its halal industry and Islamic banking, says Regions-Russia Association President Linar Yakupov.

He said Malaysian companies involved in the halal industry could enter into joint ventures to set up production and distribution centres in the Russian market which has a Muslim population of more than 20 million people.

“Russia is really pushing towards its agenda on import substitution. We grow a lot of agricultural raw materials which need to be processed, Bernama quoted by Mi’raj Islamic News Agency (MINA).

“We know our shortcomings. I think we are gaining momentum as there are Malaysian companies which are matured enough to go into the Russian market,” he told reporters after attending the 4th AEM-Russia Consultations, chaired by International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

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The consultations were held on the sidelines of the four-day 47th ASEAN Economic Ministers’ Meeting (AEM) and Related Meetings, which ends today.

The Russian delegation to the AEM is headed by its Economic Development Minister Alexey Ulyukaev.

Touching on Islamic banking, Yakupov said a feasibility study was being undertaken by Malaysian experts to establish either Islamic banking or Islamic banking window in Russia.

“We believe the results will be out end-October which will serve as a good foundation to change the legal framework that will accommodate Islamic financial institutions to be functional within the Russian legal system,” Yakupov said.

He also said investments in technology transfer between Russia and Malaysia would reach between RM500 million and RM1 billion over the next three years.

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The minister pointed out that Russia had reached a level where it could provide good industrial technologies to the ASEAN market.

“What we aim for now is to have exchange of technologies. Russia is prepared and there are a number of technologies we have identified,” he said.

In 2014, Russia was Malaysia’s 22nd largest trading partner, with total trade amounting to US$2.8 billion, up 55.2 per cent, from US$1.81 billion recorded in 2013.

Last year, Malaysia imported US$2.07 billion worth of goods from Russia, up 77 per cent, from US$1.17 billion imported in 2013.

Imports comprised crude petroleum, chemical and chemical products as well as metal products.

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Exports to Russia which mainly comprised electrical and electronics and, processed items grew 15.1 per cent to US$731.6 million in 2014 from US$635.6 million recorded in 2013. (T/P010/R03)

Mi’raj Islamic News Agency (MINA)