during the meeting held in Durban with the Malaysian delegation by Zweli
Mkhize, KwaZulu-Natal MEC for Finance and Economic Development
10 August 2007
Protocol
We would like to welcome you to the province of KwaZulu-Natal secure in the
knowledge that we are receiving old friends of South Africa. We hope that with
this meeting we will take yet another step in strengthening existing trade
relations between Malaysia and the business sector of KwaZulu-Natal for the
benefit of our two countries and our province.
South Africa is Malaysia's largest trading partner within the African
region. In 2006 Malaysia's total trade with South Africa increased by 27,8
percent to USD1,2 billion. Exports from Malaysia increased by 13,1 percent to
USD0,7 billion, while imports increased 57,1 percent to USD0,5 billion.
Malaysia's major export products to South Africa last year comprised
electrical and electronic products (E&E) (USD152,1 million), palm oil
(USD131,7 million), chemicals and chemical products (USD56,6 million),
transport equipment (USD41,7 million), and machinery, appliances and parts
(USD39,2 million). Malaysian products sectors with export potential in this
region include wood products, rubber based products, pharmaceuticals and
medical equipment, food and beverages, furniture, telecommunication equipments
and building materials.
On the other hand major imports from South Africa in 2006 were iron and
steel products (USD227,1 million), manufactures of metal (USD134,5 million),
metalliferous ores and metal (USD20,8 million), chemicals and chemical products
(USD 18,5 million) and machinery, appliances and parts (USD7,6 million).
As of 31 December 2006, Malaysian investments in South Africa were valued at
R337,1 million and are mainly in the oil and gas, manufacturing and property
development sectors. Our information is that the Malaysian companies in the
delegation are from sectors such as construction, rubber products, oral care
products, chemicals, sealants, aviation obstacle lights and general trading. We
have identified other potential areas for Malaysian investment in South Africa
as being in the automotive, furniture, agro-processing, biotechnology, and
electrical and electronics manufacturing sectors.
We believe Malaysia is also keen to export its services in areas such as
education, healthcare, information and communication technology (ICT),
construction and professional services. Given the increase in construction
spend over the next five to ten years, we are certain that we will find areas
in which to cooperate perhaps in the area of cement supply and other items in
the built environment value chain. Our agrarian revolution seeks to create an
economically viable agricultural sector which will be equipped to export
internationally through our new Dube Trade Port and our existing terminals here
in our harbours in Richards Bay and Durban.
We are also seeking to increase our share of the international tourism
market going forward. KwaZulu-Natal presents a varied package to the domestic
and international tourist in the form of the big five, the whales, our scenic
natural terrain, our beaches and our heritage and culture in a way that no
other destination can offer.
We believe that towards the Fifa World Cup in 2010 and beyond more and more
sporting fans will see KwaZulu-Natal as a destination of choice. In addition to
the A1 Grand Prix - which Malaysia is a part of - we will continue to offer a
number of international sporting events in the water (the Dusi Canoe Marathon),
on the road (the Comrades), on horseback (the Durban July) and many others.
You must know that the Gross Domestic Product per region (GDP-R) of the
province of KwaZulu-Natal is now the second largest in the country after
Gauteng. The GDP-R growth rate rose over fivefold from 1,0% in 1999 to 5,3% in
2005. This trend suggests that the provincial economy has the potential to
reach a 10% growth rate by the year 2014, which is far above the Accelerated
and Shared Growth Initiative for South Africa (AsgiSA) target of 6,0%.
More than R6 billion will be spent on the construction of the new
international airport and the Dube Trade Port at La Mercy. The R350 million
P700 Corridor from Richards Bay to Ulundi is now under construction, as is the
R300 million on the P577 from Mtubatuba to Hlabisa and Nongoma. These projects
alone, total in excess of R7 billion. On completion, the Dube Trade Port alone
will contribute R12,4 billion to the economy and will create thousands of new
jobs.
These investments indicate the confidence and commitment that this
government has in developing KwaZulu-Natal. The work on improving Durban's port
and logistical infrastructure is well underway. The city has spent R200 million
and Transnet, our transport parastatals will spend close to R1 billion over the
next year in widening the harbour entrance.
Over the next six years the city and Transnet will spend over R10 billion
and over the next 15 years the figure is likely to be over R20 billion. This is
being done to make sure that the port remains Africa's and South Africa's most
valuable asset for import and export We therefore hope this seminar will give
the KwaZulu-Natal business community the opportunity to obtain useful
information on current economic development in Malaysia.
We are also certain that participants today will also be able to interact
with the Deputy Minister on matters related to trade and investment in
Malaysia. Our business people will also be able to meet the Malaysian private
sector counterparts with a view to exploring business opportunities.
As our theme for this year enjoins us, Let us build partnerships for
economic development.
Thank You
Issued by: Department of Finance and Economic Development, KwaZulu-Natal
Provincial Government
10 August 2007
