Business

Malaysia-Italy trade stable despite Covid-19 setbacks

Trade volume only decreased 7.6% compared with a 13.1% average fall with other Asean countries

Updated 5 years ago · Published on 03 Dec 2020 4:15PM

Malaysia-Italy trade stable despite Covid-19 setbacks
Italy’s import of Malaysian palm oil has been unaffected by the pandemic, and, on the contrary, import of Malaysian palm oil has increased. – Pixabay pic, December 3, 2020

KUALA LUMPUR – Italy’s ambassador to Malaysia Cristiano Maggipinto said trade between Italy and Malaysia is more stable than Italy’s trade with other Asean countries this year, despite the setbacks caused by the Covid-19 pandemic.

“Trade between Italy and Malaysia decreased in 2020 but the decrease is much lesser compared with (Italy'’s) trade with other Asean countries,” he said.

He said Italian data showed that from January to August this year, Italy-Malaysia trade volume only decreased 7.6% compared with an average decrease of 13.1% in trade volume with other Asean countries.

He said that, although transactions across most sectors showed a decline, Italy’s import of Malaysian palm oil was unaffected by the pandemic.

On the contrary, he said, the import of Malaysian palm oil had increased.

For the first eight months of this year, he said Italy had imported palm oil worth €335.7 million (RM1.6 billion) from Malaysia.

Last year, Italy-Malaysia bilateral trade volume reached €2.4 billion.

He said Italy and Malaysia's two-way trade has been growing significantly, especially in the past few years, where, in the period 2015-2019, the two-way trade volume increased by 33%. 

He added that more Italian companies had also increasingly chosen Malaysia as a hub for their operation in this region. This was reflected in the number of Italian companies registered in Malaysia, which had doubled from about only 50 companies in the past five years to 110 companies currently. 

Most of these companies are involved in the oil and gas, petrochemical, aerospace, food processing and services sectors.

Maggipinto was also optimistic on the economic and trading outlook for both countries in 2021, adding that, as the world recovers from the pandemic, Italy and Malaysia should work to further tap the economic potential between them.

“In our opinion, this showed that the two countries are cooperating very well. These two economies are really complementary, based on small and medium enterprises (SMEs) and also manufacturing.

“And, looking forward to 2021, we have reason to be moderately optimistic, that the two economies will rebound, and even more possibilities to (strengthen) trade,” he said.

Malaysia's exports to Italy include palm oil, rubber, electric and electronics equipment, tin, iron, and steel.

Among Italy’s main exports to Malaysia are machinery, aircraft and spacecraft, leather goods, and automotive. – Bernama, December 3, 2020

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