US food based firms to use M’sia as Asian hub
Bernama | Friday May 12, 2006
US food based firms to use M’sia as Asian hub
KUALA LUMPUR : Several US-based food producing/processing companies have identified Malaysia a key market in Asia and are considering setting up a physical presence here, said agriculture counsellor of the United States Embassy, Malaysia and Singapore, Jonathan Gressel.
“Malaysia is an important market for them and a number of major and smaller US companies are currently looking at setting up their operations or plants here,” he said without giving further details.
“I think if US and Malaysia can reach a free trade agreement, it will give some assistance to them as well as help boost the existing US companies in Malaysia,” Gressel said. “We hope to conclude it (the FTA) either by end of this year or early next year,” he told Bernama on the sidelines of the “Business Opportunities in US” seminar held at Malaysia Halal Showcase (MIHAS) 2006 yesterday.
Negotiations on the FTA, aimed at enhancing trade and investment between the two countries, are expected to begin next month.
Gressel said the food producing/processing companies were looking to Malaysia as a potential investment location to outsource their halal food products due to the availability of good infrastructure and technologies.
He said another factor attracting the companies to expand here was the commitment by the Malaysian government to promote greater awareness of the global halal industry.
“They are also looking at potential Malaysian partners for joint ventures here but I cannot give the details at the moment,” he added.
According to Gressel, Malaysia’s potential as a halal hub is recognised due to the country’s efforts in promoting the halal sector by incorporating domestic and international halal standards as well as producing halal products by using various technologies.
“The US can currently be considered as the second largest western halal market after France, based on our Muslim population, income level and other factors,” Gressel said.
