UK Financial Institutions Keen To Invest In Malaysia

From Hafizah Kamaruddin

LONDON, June 10 (Bernama) -- Malaysia's Islamic banking system has attracted the interest of financial institutions in Britain which are keen to start operations in the country and expand their activities.

In stating this, Deputy Prime Minister Datuk Seri Najib Tun Razak said a United Kingdom-based financial institution involved in insurance and takaful has opened a branch in Labuan.

In addition, he said, a bank in the UK had applied to expand its activities in Malaysia.

"The bank's application to expand its activities will depend on approval from Bank Negara Malaysia," he told reporters after meeting Lord Mayor of the City of London, David Lewis, at his office in Mansion House Monday.

Najib is on a three-day working visit to Britain from Monday to attend the Commonwealth Mini Summit being held here to discuss reforms in international institutions.

Accompanying him during the visit to Mansion House were Malaysian High Commissioner to the UK, Datuk Abdul Aziz Mohammed; Secretary-General of the Natural Resources and Environment Ministry, Datuk Suboh Mohd Yassin; Senior Undersecretary of the Foreign Affairs Ministry, Datuk Misran Karmain; and director-general of the Institute of Strategic and International Research, Professor Dr. Mahani Zainal Abidin.

Concerning the visit, Najib said Lewis expressed an interest in enhancing relations between London and Kuala Lumpur, especially from the aspect of financial and trade services.

He said Lewis also expressed the hope for the Islamic financial system to expand and Malaysia becoming the leading nation in this field.

Najib said in the meeting, he explained the current development in Malaysia and also voiced the hope that Malaysia will continue to be the first choice of investors from the UK.

He also hoped that the two-way trade between Malaysia and the UK will continue to expand as well as relations in other fields, including education and tourism.

Malaysia-UK trade totalled 2.7 billion (1.00=RM6.50) last year, mainly from manufactured products, rubber and timber. Exports from Malaysia to the UK were worth 1.7 billion while UK exports to Malaysia were valued at 1.0 billion.

On his meeting with Sri Lanka's President Mahinda Rajapaksa earlier, Najib said Rajapaksa expressed the hope of seeing more Malaysian companies investing in his country and was pleased with the current level of Malaysian investments, especially in telecommunications and highway construction.

He said Rajapaksa also informed that Malaysia has been chosen by many Sri Lankan students to continue their education due to the close proximity, competitive costs, high quality of education and presence of foreign university branches like Monash University.

Rajapaksa, he added, also related Sri Lanka's experience in facing the energy crisis, especially the soaring oil prices.

In the afternoon, Najib attended a meeting between Commonwealth leaders and British Prime Minister Gordon Brown at his office at 10 Downing Street, followed by a dinner hosted by Commonweath Secretary-General Kamalesh Sharma at the Commonwealth headquarters at Marlborough House.

-- BERNAMA