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Malaysia offers to increase imports from India after Kashmir row


SecondSlip

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KUALA LUMPUR (Reuters) - Malaysia is considering raising imports of raw sugar and buffalo meat from India, potentially easing trade tensions after reports New Delhi could restrict Malaysian palm oil imports following the country's criticism of India's actions in Kashmir.

 

Malaysia is the world's second largest producer and exporter of palm oil after Indonesia. Its benchmark palm oil futures FCPOc3 recouped losses to end higher on Tuesday after the announcement by the country's government.

 

The country's Ministry of Primary Industries, which handles palm oil matters, said in a statement that it made the decision in light of India's importance as Malaysia's third-largest export destination in 2018 for palm oil and palm-based products worth 6.84 billion ringgit ($1.63 billion).

 

"The minister views with concern recent news reports regarding unfavorable bilateral relations between Malaysia and India as both countries have enjoyed strong and comprehensive relations for more than six decades," the statement said, referring to Teresa Kok, the Malaysian minister in charge of the palm oil portfolio.

 

"Malaysia is open to further trade negotiations to address India’s concerns on the trade imbalance between both countries."

 

The edible oil contributed 2.8% of Malaysia's gross domestic product last year and 4.5% to total exports. The palm oil industry is one of the biggest employers in the Southeast Asian country of 32 million people.

 

The statement added that Malaysia was also considering importing raw sugar from India from next year. India is the world's biggest exporter of buffalo meat and the biggest producer of sugar, which it is struggling to export due to weak global prices.

Reuters reported last week that India was considering curbing imports of some products from Malaysia, including palm oil, after Prime Minister Mahathir Mohamad said at the U.N. general assembly last month that India had "invaded and occupied" Kashmir, a disputed Muslim-majority region also claimed by Pakistan.

 

India stripped its portion of the Kashmir valley of statehood and autonomy on Aug. 5.

 

Malaysia's exports to India were worth $10.8 billion in the fiscal year that ended on March 31, while imports totaled $6.4 billion.

 

Some Indian traders said refiners had already stopped buying Malaysian palm oil for shipment in November and December, fearing higher import taxes or other measures.

 

Twitter users in India and Malaysia have sparred with each other over Kashmir. A #BoycottMalaysia call recently trended on social media in India.

 

India's foreign ministry has rebuked Malaysia for its stance on Kashmir, asking it to "bear in mind the friendly relations between the two countries and desist from making such comments".

 

"It's a pity that we have this low point in India-Malaysia relations," said Hasmy Agam, a former Malaysian diplomat.

 

"I hope the foreign ministries of both countries will try to do something to make sure not to create more divisions between countries that have had close ties."

 

https://www.reuters.com/article/us-india-malaysia-trade/malaysia-offers-to-increase-imports-from-india-after-kashmir-row-idUSKBN1WU186

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@Gollum @Muloghonto 

 

India just needs to play the waiting game with Malaysia. Their Prime Minister Mahathir Bin Mohamad is already 94 years old, which means the guy can pass away any day now. 
 

Once he is gone, India should look to increase and build excellent relationships with the new government that will come to  power and transform them into a Pro-India mindset. 
 

We just need to show some patience here and we will snatch away Malaysia from Pakistan as a result. China & Turkey will always be Pro-Pakistan no matter what so I won’t even discuss about those 2! 

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15 minutes ago, SecondSlip said:

@Gollum @Muloghonto 

 

India just needs to play the waiting game with Malaysia. Their Prime Minister Mahathir Bin Mohamad is already 94 years old, which means the guy can pass away any day now. 
 

Once he is gone, India should look to increase and build excellent relationships with the new government that will come to  power and transform them into a Pro-India mindset. 
 

We just need to show some patience here and we will snatch away Malaysia from Pakistan as a result. China & Turkey will always be Pro-Pakistan no matter what so I won’t even discuss about those 2! 

Yeah mainly Mahathir is the problem, let us wait for him to die. Unlike Turkey we can't let go of Malaysia easily, need them because of their huge Indian origin population, IT, close business relations, cultural connection. Under Modi's Act East Policy relations with ASEAN countries is a top priority. Turkey was always going to be pro-Pak, has been that way ever since that country was created. China a bit more complicated. 

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4 hours ago, SecondSlip said:

China & Turkey will always be Pro-Pakistan no matter what

Not accurate as far as the Turks are concerned - the Turks have a secessionist problem with the Kurds, and 20 odd years ago, were quite sympathetic of the Indian position on J&K.  Erdogan has made a decision to pursue closer ties with Pakistan, but nothing is permanent in international relations.  Things can evolve down the road, and not too far down either.  

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On 10/20/2019 at 12:37 AM, jf1gp_1 said:

Another garbage story which is written to make us look stronger than reality.  Per Wiki malaysia 50% export is to us, china, Singapore and japan. Dont know what kind of impact will this have on them. 

I think its being handled adequately by the current govt. They can't explicitly ban malaysian imports due to WTO regulations.  But Malaysian govt needs to be sent a message.  Its one thing if they chose to simply support the Pakistani position.  But to refer to India as an invader is ridiculous.  And unacceptable.  

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6 hours ago, sandeep said:

I think its being handled adequately by the current govt. They can't explicitly ban malaysian imports due to WTO regulations.  But Malaysian govt needs to be sent a message.  Its one thing if they chose to simply support the Pakistani position.  But to refer to India as an invader is ridiculous.  And unacceptable.  

So my comment you quoted is from the day story broke with very little details available. Ofcourse now we have more info and I agree with what you said. 

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Apparently he said: "People are dying because of this law.Why’s there a necessity to do this..India which claims to be a secular state is taking action to deprive some Muslims of citizenship..if we do this here,there’ll be chaos& instability"

 

A threat to the Tamils there? 

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