AFTER experiencing a massive dive in bilateral trade activities between Malaysia and Iran due to border closures caused by the pandemic, the latter is set to strengthen ties with Malaysia as both countries go through economic recovery.
From 2016 to 2018, Iran-Malaysia trade witnessed significant growth following Iran’s Nuclear Deal in 2015. The bilateral trade value of the two countries also rose to RM4.52 bil in 2017 from RM2.82 bil in 2016.
This year, despite the lingering uncertainties due to the pandemic, Iran continues to boost palm oil imports with a significant growth from January to May (compared to the same period in 2020).
According to the latest data, Iran tops the list for palm oil import volume this year among nine other Middle Eastern countries in the region.
The statistics show Iran imported a total of 309,704 metric tons of palm oil from January to May this year, seeing a whopping five-fold growth in comparison to last year’s 63,039 metric tons for the same period.
With that, Iran aims to continue increasing palm oil imports from Malaysia to reach one million metric tons and above annually in a bid to address the growing demand over the next few years.
However, this would require better coordination and cooperation from the relevant ministries, government-linked companies and agencies to further strengthen the bilateral ties towards a mutual goal.
To further fuel the industry and re-escalate bilateral trade activities, Iran plans to continue increasing palm oil imports as the country paves the way into economic recovery.
Additionally, Iran is also ready to become Malaysia’s hub for distribution of palm oil and palm oil-related products into the lucrative markets in West Asia and Central Asian countries bordering its country.
Doing so will allow for more strategic bilateral trade ties between the two nations to make each other a gateway to other countries. – July 17, 2021
