Currency swap facility to boost M'sia-South Korea bilateral trade

PETALING JAYA: The Gyeonggi Business Centre, Kuala Lumpur (GBCKL), expects bilateral trade between Malaysia and South Korea to improve further with implementation of the Malaysia-Korea Currency Swap-Financed Trade Settlement Facility, early next year. Its Regional Director for the Korean Trade Centre (Asia), Patrick On said the settlement facility, expected to be commercially viable next year, would facilitate trade settlements and translate into higher trades.

"The strong support of the central banks of both countries for this trade settlement facility will accelerate use of the respective currencies for cross-border trade.

"Up to RM15.0 billion or KRW5.0 trillion will be made available by the two central banks to facilitate trade settlements between firms of both countries, using the respective currencies," he said.

On said the settlement facility would benefit importers and exporters of both countries by reducing the risk of currency mismatches and potentially lower transaction costs in international trade.

SPONSORED CONTENT

Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

In 2013, Malaysia's trade with Korea increased 13.7 per cent to US$18.04 billion (RM56.91 billion) from US$16.20 billion in 2012.

From January-July 2014, total trade between Malaysia and Korea rose by 11.4 per cent to RM35 billion (US$10.76 billion) against RM31.41 billion in the corresponding period of 2013.

Korea is Malaysia's seventh largest trading partner, ninth largest export destination, and seventh largest source of imports.

According to On, the free trade agreement (FTA) partnership between Malaysia and Korea is under intense consideration.

"Regular trade missions and specified trade meets, as well as offerings from Malaysia's Economic Transformation Programme (ETP), are also factors that can further spur bilateral relations going forward," he said.

GBCKL, a business hub representing the Korean government to assist small medium enterprises (SMEs) to penetrate South East Asian markets, will organise the largest Korean products sourcing fair, "G-Fair KL", from Dec 2-3 at the Shangri-La Hotel here.

On said the trade fair would feature 64 selected Korean companies from various sectors as water and sewerage industries, beauty and cosmetic products, consumer products, industrial and building materials, and IT, electronics and electrical products.

Stay up-to-date by following Daily Express’s Telegram channel.

Daily Express Malaysia

"Starting this year, the trade fair would be an annual event by GBCKL, as we want to take advantage of the establishment of the Asean Economic Community (AEC), under Malaysia's chairmanship of Asean next year.

"Malaysia can be called a focal point in Southeast Asia and the GBCKL is a Korean hub for this region," he added. – Bernama

Try 1 month for RM 18.00

Try 1 month for RM 18.00

Try 1 month for RM 18.00