KUALA LUMPUR: The step that a electorate of United Kingdom took is “historic and unprecedented”, pronounced Malaysia’s Prime Minister Najib Razak on Friday (Jun 24), following a final outcome in a EU membership referendum.
Britain voted to leave a European Union, with final formula display that 51.9 per cent opted for “Leave” while 48.1 per cent chose “Remain”.
“UK electorate have spoken,” Mr Najib pronounced in a news release. “As democrats, we contingency honour a result. We wish a British friends good in a new destiny they have chosen.”
According to a Prime Minister, a duration of sensitivity in financial markets is “to be expected” as a ramifications of a outcome are accepted and as a UK’s exit from a EU is negotiated. “We will guard developments closely and sojourn observant to any rising mercantile risks,” he added.
Mr Najib, however, combined that there should not be a vital impact on a Malaysian economy. “With a sound fundamentals, diversified mercantile structure and plenty liquidity in a financial markets, Malaysia is good positioned to face any volatility,” he said.
Added a Prime Minister: “I am assured that we will be means to continue this duration of uncertainty. The Government will also continue to strengthen a economy and serve a mercantile reforms.
“We courtesy a UK as an critical partner in all areas, including trade, investment, defence, preparation and tourism. For example, trade between us has been growing, with British companies such as Rolls Royce, Dyson and BaE Systems augmenting their footprint in Malaysia, and Malaysian companies pushing a redevelopment of one of London’s biggest landmarks, Battersea Power Station.”
Mr Najib combined that Malaysia’s mercantile bearing to a UK should be increased, as it is now “limited”, and not among Malaysia’s tip 10 trade partners. It also customarily accounts for about 1 per cent of Malaysia’s sum trade.
He said: “We should boost this, and there might be an event to do so now if a UK reaches out to strategically critical nations over a EU. Whatever comes to pass, we am assured that a Malaysia-UK attribute will be confirmed and strengthened. We are both outward-facing nations, with a farrago of faiths and cultures and clever traditions of mediation and cooperation.
“Bound by low ties of common history, loyalty and trade, a peoples fought alongside any other in a Second World War and during a rebellion in what was afterwards Malaya. We are organisation allies in a quarrel opposite aroused extremism, a flay that affects us all. We contingency sojourn joined in that prolonged tenure effort.”
After central formula of Brexit opinion came in, British Prime Minister David Cameron announced shortly that he would renounce and a new personality should be commissioned by early October.
On his British counterpart, Mr Najib said: “I have had an glorious operative attribute with David Cameron. we am unhappy to see him skip as Prime Minister, nonetheless we honour his scrupulous reasons for resigning. we demeanour brazen to operative with his successor.”
While there will be “testing times ahead” for a UK, Mr Najib combined that “the British people should know that one aged crony will always be with them, as they open a new section in their prolonged history”.
‘MINIMAL’ LONG TERM IMPACT OF BREXIT: MITI
Malaysia’s Ministry of International Trade and Industry (MITI) combined that there would be “minimal” impact of Brexit in a middle to prolonged term. “With a clever fundamentals and mercantile diversification, we are in improved position to face any uncertainty,” pronounced Minister Mustapa Mohamed in a statement.
However, MITI cautioned that there would still be “some” impact in a really nearby term. “The UK economy has been flourishing faster than many European Union economies,” pronounced Mr Mustapa. “In 2015, UK GDP grew by 2.3 per cent as compared to 1.9 per cent for a EU. We trust with a suitable policies in place, a UK economy will adjust to a new reality.”
“As distant as trade is concerned, Brexit is doubtful to have poignant intrusion outcome on Malaysia’s outmost sector,” he added. In 2015, Malaysia’s trade with a UK stood during RM16.5 billion or 1.1 per cent of a country’s sum trade.
Said Mr Mustapa: “Our sum trade with a UK purebred a 9.4 per cent expansion in Ringgit terms to RM16.45 in 2015 billion from RM15.02 billion in 2014. Total exports amounted to RM9.32 billion, an boost of 17.6 per cent, compared to RM7.92 billion in 2014. Total imports increasing somewhat by 0.3 per cent to RM7.13 billion in 2015 compared to RM7.10 billion in 2014.”
In 2015, a UK was Malaysia’s third largest trade partner in a EU and a country’s fourth largest source of investment. As of 2015, Malaysia has implemented 433 production projects with a UK appearance valued during RM6.8 billion in tenure of investment.
“Brexit will have minimal impact on unfamiliar approach investment (FDI), as they are routinely long-term in inlet and sell rate sensitivity is customarily labelled into a FDI-related contracts,” Mr Mustapa said. “We trust that a UK will continue to be pivotal actor by a investments in Malaysia’s services zone generally in banking and education, among others.”
He added: “The UK might no longer be partial of a now negotiated Malaysia-EU FTA though we will try a probability of carrying a apart shared FTA with a country. This is partial of a efforts to open adult serve business opportunities with a UK.
“The decades of tighten team-work between Malaysia and a UK comparison over mercantile partnership. They form a clever substructure for a destiny expansion and Brexit will not impact a tighten ties. We will continue to build on this movement and forge ahead.”