Malaysia leads way in Sudan
New Straits Times (Malaysia); January 21
THE Jan 6 issue of the World Report, a supplement produced for the London daily The Independent ran an article headlined "Lessons to learn from the Malaysian model". It highlighted Malaysia's efforts to help Sudan smooth over its transition from dependence on aid to economic self-reliance.
The article said that Sudan was a major recipient of foreign aid from international financial institutions and the United States until 1990.
Then the flow of funds virtually dried up, except for emergency relief, when the country faced economic isolation.
The enforced self-reliance proved an unexpected catalyst for profound change.
The article quoted the Minister of Industry and Investment, Dr Abdul Halim Ismail al-Mutaafi, as saying that the drop in overseas aid forced the Sudanese government to adopt a free market policy. The economy moved away from subsidies and support for agriculture and services.
"People were encouraged to work hard and there was a concerted effort to maximise exports in order to raise the hard currency needed to pay for imports. The recent price rise of oil provided a useful boost to a previously struggling industry.
"Oil has proven to be a magnet for foreign investment, particularly from the Far East. China has long held an interest in Sudan, but an intercontinental partnership has also emerged with Malaysia," he said.
The report goes on to quote several other Sudanese officials and economists on how Malaysia and Sudan have forged a strong partnership which has opened the gate for each other's products in the markets of Southeast Asia and North Africa.
Malaysian companies like Petronas, the Muhibbah Group, Advance Synergy Bhd and Malaysian Mining Corp have lead the international effort to change the adverse global impression about Sudan.
Sudanese ambassador to Malaysia, Mohamed Adam Ismail said in a recent interview that the arrival of Malaysian investors spurred other multinational corporations to follow suit, especially from Japan, China and Europe.
"Of course, there were foreign companies here then which were participating in our local industries, but their share of the business was not as big as now."
"When Petronas negotiated a petroleum contract in the early 1990s (and was awarded the concession in 1996), it sparked off international interest in the Sudanese economy. That's when they (foreign investors) started to come," he said.
Reports indicate that since its December elections, interest in Sudan has renewed.
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The call by several Opposition factions to boycott the elections largely failed, and the overwhelming support for Omer Hassan, the free market- oriented policies and the booming economy which has been boosted by oil exports has many international consortiums knocking on Sudan's door.
With Petronas expertise, Sudan emerged as an oil power in July 1999 with the capacity to produce 210,000 barrels per day. (Petronas invested about US$800 million (RM3.04 billion) in its Sudan project, its single largest overseas investment to date. With Sudan's huge oil reserves, investors in this sector are assured of splendid profit margins.
Even today, the country's oil and gas sector is only 15 per cent exploited. The discovery of new oil fields has raised expectation that the industry will turn around the Sudanese economy.
On a recent visit to Malaysia Dr Abdul Halim told the New Straits Times that Malaysia's participation in Sudan is expected to grow.
A US$700 million hydro-electricity project with the capacity to generate 2,000 megawatts of power is being planned on the Nile, and both governments are negotiating the details.
Dr Abdul Halim also said a major Malaysian mining company is expected to invest in Sudan's mining sector. (The country has rich gold, diamond and copper reserves.) He said a geological study has been completed and the parties involved are negotiating terms and other matters.
The Minister of Industry and Investment also called for Malaysian investment in various sectors including pharmaceuticals, telecommuications, aerospace, auto manufacturing, mining, ports and the agro-industry.
Malaysia's assistance to Sudan and others shunned by Western nations for allegedly "advocating terrorism" has recast their image for the better. encouraging south-south co-operation, Malaysia is being seen more and more in the international arena as a model other nations' should emulate.
K.P. Waran |
