Expand markets to Central Asia to counter tariff threat, says Saifuddin

Daily Express

02-05-2025

Published on: Friday, May 02, 2025
Published on: Fri, May 02, 2025
By: Danish Raja Reza, FMT Text Size: Former foreign minister Saifuddin Abdullah says intra-Asean trade must be strengthened to reduce dependency on the United States. PETALING JAYA: Former foreign minister Saifuddin Abdullah has urged Malaysia to look to Central Asia as a potential market, amid the looming imposition of a 24% tariff on Malaysian imports by the US. In an exclusive interview with FMT, Saifuddin said the region – which includes Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan – holds vast untapped potential, especially in the oil and gas sector. 'The Central Asian countries are prospering well. They have the Organisation of Turkic States (OTS), which has five members. 'Petronas used to be in one or two of these countries, but is not as active there now. These countries are not as exploited when it comes to oil and gas,' he said. OTS is an intergovernmental body established in 2009 to promote cooperation among Turkic-speaking nations based on shared cultural, historical and linguistic ties. Its full members include Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan, with Hungary, Turkmenistan and the Turkish Republic of Northern Cyprus holding observer status. As of 2024, only about 20–25% of Central Asia's proven hydrocarbon resources have been exploited, according to the US Energy Information Administration and the BP Statistical Review of World Energy. Turkmenistan, for instance, produces just three trillion cubic feet of natural gas annually from 400 trillion cubic feet in reserves, while Kazakhstan extracts under two million barrels of oil per day from a 30-billion-barrel reserve base. Extraction across the region remains low due to limited export infrastructure, underinvestment, ageing facilities and geopolitical constraints, including dependence on Russian transit routes and a lack of diversified foreign partnerships. Saifuddin, the Indera Mahkota MP, also called for a strengthening of intra-Asean trade to reduce dependency on the United States, noting that it currently makes up less than 25% of the regional bloc's total exports. He highlighted the growing relevance of the BRICS grouping, saying Malaysia should keep its options open and explore alternatives to the current international financial, trade and economic order. Malaysia is among nine nations officially accepted as BRICS partners from Jan 1 this year. Saifuddin also called on the Malaysian business community to be more courageous in exploring new markets, rather than continuing to operate only within familiar regions. The Bersatu man said Malaysia could act as a key conduit for trade between East and West Asia, particularly by leveraging its global reputation in the halal sector. 'One of our strong points is our halal certification. We are probably the best in the world, and we're still leading in that area. 'Taiwan, among others, is also interested in halal certification because they see Malaysia as a gateway to the Arab world. Similarly, the Arab world sees Malaysia as a window to Southeast Asia,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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