KUALA LUMPUR: Middle East companies focusing on Asean are positive about business growth in the region and view Malaysia as their top market for expansion.
According to a survey commissioned by Standard Chartered, a significant 78 per cent view Malaysia as their top Asean market for expansion.
A similar sentiment is shared by Indian companies with an Asean focus, where Malaysia is tied in third place with neighbour Singapore as the top three most preferred destinations among Indian companies looking at expansion in Asean, the survey showed.
Standard Chartered Malaysia Bhd managing director and chief executive officer Abrar A Anwar said Asean is a fast-growing trade bloc with increasing economic and financial influence.
Abrar said the firm continues to see a growing number of opportunities for businesses in the region, and it is well-positioned to support companies from the Middle East and India to venture into Malaysia.
"We also want to help our clients leverage these potential growth opportunities that Asean and Malaysia offer, especially in growth sectors important to their economies.
"We are committed to delivering sustainable trade finance solutions to our clients as we foresee these trade corridors growing rapidly on the back of a strong government impetus and a perceptible shift in consumer demand in favour of clean technology," he said.
Meanwhile, Standard Chartered said the report cites increased collaboration through multiple regional and country-level alliances between the Middle East and Asean, enabling greater participation of Middle East companies in Southeast Asia.
In particular, the report said the Asean-GCC Joint Vision has served as the foundation for pursuing closer economic and cultural cooperation between the regions.
In the report's growth watchlist, key growth sectors for Malaysia that are attractive to Middle East companies are refining and petrochemicals, renewable energy, and retail and consumer goods.
The report cited that Malaysia has established integrated petrochemical zones that offer centralised utilities, storage services and a comprehensive transportation network to help reduce capital and operations costs for companies.
"The country has also emerged as a major hub for solar photovoltaic (PV) production and is a key market for halal goods as it works towards building a stronger halal ecosystem between Asean and the Middle East," it added.