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PM Ismail Sabri Yaakob (left) and Turkiye President Recep Tayyip Erdogan at the Presidential Complex in Ankara. Ismail says Malaysia has huge potential to become Turkiye’s major trading partner and the republic’s gateway and trading hub into Asean. – Facebook pic, July 7, 2022.

MALAYSIA has huge potential to become Turkiye’s major trading partner and the republic’s gateway and trading hub into Asean, Prime Minister Ismail Sabri Yaakob said.

He said the two countries are now in the final round of the Malaysia-Turkiye Free Trade Agreement (MTFTA) scope expansion negotiations, which cover new sectors such as investment, services, and e-commerce.

“In terms of investment, I appreciate the confidence of Turkish investors in Malaysia. I am also confident the MTFTA scope expansion would open up more two-way investment opportunities,” he said in a joint press conference with President Recep Tayyip Erdogan at the Presidential Complex in Ankara today.

Earlier Ismail, who is on a four-day official visit to Turkiye, held a four-eyed meeting with Erdogan, followed by a meeting between both countries’ delegations.

The prime minister said he had told Erdogan that during this visit, he met key industry players of both countries to explore and enhance investment cooperation.

Currently, Malaysia’s major investments in Turkiye cover the healthcare and energy sectors, and as an airport operator, he said.

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According to the prime minister, the management of the Istanbul Sabiha Gokcen International Airport by Malaysıa Aırports Holdıngs Bhd (MAHB) is a testament to the success of a Malaysian company in Turkiye. 

During the meeting, both leaders also discussed the potential for Turkiye to increase its import of Malaysia’s palm oil.

“Turkiye is a hub for the production of palm-based products for the markets in continental Europe and the Middle East,” said Ismail Sabri.

He further said that Turkiye is intensifying the usage of bıodiesel as fuel in the transportation sector while Malaysıa had started the production of palm oil-based biodiesel in line with the objective of producing environmentally friendly energy sources.

On Islamic finance, Ismail said he and Erdogan had agreed for Malaysia and Turkiye to set up Islamic digital banking to explore the huge potential of the sector in the republic. 

Boustead Holdings Bhd and Turkiye’s Great East Capital (GEC) have teamed up to establish the republic’s first Islamic digital banking to tap the huge potential of 85 million population.

On Tuesday, Boustead Holdings and GEC announced that the parties would forge cooperation to establish the republic’s first Islamic digital banking to tap into the huge potential of its 85 million population.