Malaysian PM predicts 'phenomenal' investment from UAE after trade deal

Malaysian Prime Minister Anwar Ibrahim has hailed an economic agreement with the UAE which aims to boost bilateral trade by 60 per cent over the next five years as testament to the long-standing ties between the nations.

In an interview with The National, Mr Anwar said he expects future investment from the Emirates to be “phenomenal” as the countries strive to expand economic co-operation and partnerships in artificial technology and renewable energy.

The Malaysian leader is on a working visit to the UAE, during which he is taking part in Abu Dhabi Sustainability Week and was present alongside President Sheikh Mohamed as a Comprehensive Economic Partnership Agreement was signed between the countries.

The deal will put foundations in place to cement the UAE’s position as a hub for Malaysian exports to the Middle East and North Africa region, while opening up the Asean (Association of Southeast Asian Nations) market to Emirati investors and entrepreneurs.

Mr Anwar said that this is significant because it is the first Cepa signed with a GCC country.

“This is a comprehensive plan, but this can only happen if the relationship between two countries are close,” he said.

Malaysia is the UAE’s 12th-largest Asian trading partner and fifth among Asean members.

The UAE is Malaysia’s second-largest trade partner in the Arab world, accounting for 32 per cent of Malaysia's trade with the region.

“We are looking at working on innovative projects like blockchain with the UAE,” Mr Anwar said.

On Monday, the UAE and Malaysia signed an agreement to foster joint investments in artificial intelligence. The collaboration aims to leverage AI and advanced data analytics to boost community safety, strengthen national security and improve operational efficiency.

The co-operation between the two countries will delve into innovative programs and projects like blockchain.

Mr Anwar said that this is “because of the advanced position” that the UAE has in this area. Going forward, he said that on this front, he expects the investment from the UAE to be “quite phenomenal”.

Over the past two years, Malaysia has established itself as a regional data hub – attracting more than $20 billion of investment in the sector during that period. Significant investment and development in renewables will be needed to keep up with energy demand of these facilities.

During the interview, which took place on the side lines of Abu Dhabi Sustainability Week, Mr Anwar said that renewable energy is also an area of focus. He noted that Masdar and Mubadala already have investments in Malaysia, and he believes that the two are looking at increasing and enhancing activities in the South-East Asian country.

Mr Anwar said that he was impressed by the UAE's clear focus on new technology, and the propensity to change for the better.

In a talk held at the sustainability week, Mr Anwar reflected on how Malaysia had tapped into the technological expertise of the UAE to drive its own cutting-edge initiatives.

"We learn from the UAE. In all humility we accept we don't have all the answers," he said.

He said Malaysia had utilised its "trusted friendship" so that it didn't have to start from "ground zero" with its own projects.

He said a visit to the Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi provided the impetus for him to roll out plans for a similar facility in his own country, with support from experts in the UAE.