Prime Minister of Malaysia, Dr Mahathir Mohamed, is currently on his official three-day visit to Cambodia. His main agenda will be to witness the signing of the Double Taxation Avoidance Agreement (DTA) that will further strengthen bilateral trade ties between the two Southeast Asian nations.
Malaysian Ambassador to Cambodia, Eldeen Husaini Mohd Hashim, said the agreement was also hoped to boost investment and trade between the two countries.
Cambodia is the last country in the region to sign the agreement with Malaysia, which would bring long-term benefits for the business community in both countries.
“We have waited so long for the agreement … Cambodia is the last of ASEAN member countries to sign the DTA with Malaysia. The imposition of double taxation has somehow deterred Malaysian investors from coming to Cambodia. With the DTA, more Malaysian companies can explore business and investment opportunities here,” the ambassador told Malaysian media at the Malaysian Embassy.
Eldeen Husaini also noted that in the first quarter of the year, the embassy had received 20 applications from Malaysian companies who are keen on exploring business and investment opportunities in Cambodia. Some of these interests included a mega project to build a 2000-room hotel worth US$4 billion (RM16.82 billion).
Dr Mahathir will also be witnessing the signing of the Malaysia-Cambodia tourism cooperation agreement. This cooperative agreement is expected to help boost tourist arrivals in both nations.
Cambodia is currently the 8th largest trading partner of Malaysia among the other Southeast Asian nations.
The value of Malaysia-Cambodia trade last year was US$558 million (RM2.35 billion), while in the first six months of this year, the value had reached US$422.6 million (RM1.8 billion), an increase of 39.2 per cent compared to the corresponding period last year.