A business delegation from the Confederation of Employers and Industries of Spain (CEOE), headed by its vice-president and president of the International Relations Commission, Joaquim Gay de Montellà, visited Malaysia and Indonesia. The main goal of these meetings was to identify business and investment opportunities to strengthen bilateral and third market cooperation.
On Monday, July 9, the business delegation, led by the vice president of CEOE, Mr. Joaquín Gay de Montellá and the Director of the Cabinet of presidency, international and institutional relations of CEOE, D. Narciso Casado met in Kuala Lumpur with the counselor Economic and commercial of Spain in Malaysia, D. Rafael Matos.
During the meeting, Mr. Matos noted that Malaysia has the third-best economic situation in the ASEAN region, only after Singapore and Brunei. While the fall in the price of raw materials and hydrocarbons and the recent change in government has caused some of the major railway and infrastructure projects that the previous government had contemplated, they have been put off for later , without specifically defining the date.
The adviser underlined the low diversification of products exported by Malaysia, although they are a benchmark for the export of electronic components and appliances, raw materials, especially gas as Third World-wide exporters after Qatar and Australia, rubber and palm oil, being second world-wide.
Finally, it highlighted the country’s GDP growth of over 6% during 2017, not forgetting that the country’s public debt had also gone from 55% to 88% and mentioning some of the new opportunities and perspectives that are presented with the new government.
The same afternoon, the delegation moved to MIDA headquarters, the Investment Development Agency in Malaysia, to meet with deputy Director-General II, Mr. Arham ABD. Rahman, deputy director of the Division for the Promotion of foreign investment, Ms. Syakella Zakaria and the director for the Europe and America section of the Malaysian Foreign Trade Development Corporation (MATRADE), Mr. Daniel D Annuar Abdul Halim (Matrade), and learn about the business and investment opportunities Malaysia offers. During their intervention, the representatives of MIDA and Matrade stressed the importance of achieving greater collaboration both at the corporate and institutional level to foster relations between the two countries, showing great optimism with the new government of Malaysia and its policy of openness abroad.
They also announced the work done by MIDA and its presence abroad with more than 20 offices outside the country, made a comparison on the economic and commercial relations between Spain and Malaysia and stressed that only during the year 2017 had Carried out 5,466 projects that had supposed the creation of almost 140,000 new jobs.
Among the major projects in Malaysia, the XI Plan Malaysia (2016-2020) focused on enhancing the chemical and electrical sector and the ASEAN 2030 objective, which aims to surpass the 6th place in the world ranking, being one of its main Measures to achieve this purpose, openness to the outside of the ASEAN region.
Within the XI Plan Malaysia, the following objectives are highlighted: to seek a national policy that seeks to enhance the industry 4.0 and focus on advanced technologies. To promote the activity in the services and manufacturing sector. With regard to business opportunities and investment between Spain and Indonesia, the pharmaceutical, food and medical equipment sector stood out.
As for the Government’s policies to promote foreign investment, they stressed the possibility of establishing a company in the country without the need of a local partner, guaranteeing the repatriation of benefits, the facilities for the hiring of expatriates and the Protection of intellectual property and certain tax incentives for foreign companies established in the country.
Finally, the delegation was informed of the trade promotion work carried out by the Government through Matrade, in which through its 3 offices spread abroad, it developed numerous programmes for the development of the country’s export and offered Advisory services. In this context, special mention was made of palm oil as one of the most exported products to our country. To conclude, the measures that are being carried out to promote the corridors in Malaysia to expedite the traffic, as well as the promotion of the aerospace cluster and the coordination of the chains of values, were mentioned.
The next morning, the delegation moved to the main headquarters of FMM, the Malaysian Federation of Manufacturers, a business organization with the CEOE, has a special relationship with a twenty-year-old collaboration agreement.
During his speech, the vice president of FMM, Mr. YBHG Dato´Dr Ir Andy Seo Kian Haw, highlighted the historical relationship between the two business organizations, as well as the similarity in the structure of CEOE and FMM, as an opportunity to Facilitate dialogue also between sectoral and territorial organizations of both. In turn, it highlighted the existing free trade agreement between Spain and Malaysia.
For its part, the Vice-President of CEOE, Mr. Joaquín Gay de Montellá, praised the initiative to renew the collaboration agreement and highlighted the active participation of CEOE in the main supranational business organizations such as the ILO, BusinessEurope and CEIB, as well as its relevance at the national level as the sole interlocutor of Spanish entrepreneurs for social dialogue.
Below was a brief description of the evolution of FMM since its inception and analyzed some details on the current situation and perspectives with the new government. Subsequently, each of the companies attending the meeting were presented, both in Malaysia and Spain
In the afternoon, the delegation met with the Association of Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), where the vice president of ACCCIM, Mr. YBHG Dato ´ Liew Sew Yee, highlighted the relevance of this association in Malaysia by representing more than 100,000 companies and 74 organizations that combine the vast majority of the country’s major companies.
In turn, the vice-President of ACCCIM, highlighted Malaysia’s importance as a Hub for Southeast Asian trade, among other reasons for its strong banking system, the lack of restrictions on dividends, the good infrastructures of Country, the linguistic richness of the citizenry, where the majority of the population speaks English, Mandarin and a third language and the growth of the country’s exports, where the increase of 1.4% of the trade between Spain and Malaysia stands out.
For his part, the vice-President of CEOE, encouraged to strengthen relations between the two organizations and invited them to organize a business delegation to Spain in which both organizations sign a collaboration agreement during the visit. In this sense, the commercial adviser, Mr. Rafael Matos, highlighted the bilateral cooperation agreement between the two governments.
Finally, the companies of the CEOE delegation met with representatives of Malaysian companies from the energy and hydrocarbons, banking, infrastructure, computer technology and engineering sectors.
On Wednesday, the business delegation was led by the Director General of international Trade and investment of the Secretary of State for Trade, Mr. José Luis Kaiser and also participated the Director General of the Chamber of Commerce and Industry of Spain, Mrs. Inmaculada Riera, in meetings with representatives of the Ministry of International Trade and Industry and the Ministry of Transport of Malaysia.
During the meeting with the secretary General of the Ministry of International Trade and Industry (MITI), Mr. YBHG Datuk Ishham Ishak, D. José Luis Kaiser stressed the importance of the joint Economic and Commercial Commission between Spain and Malaysia to encourage investment. It also took the opportunity to present to the delegation and the existing commitment between CEOE, the Chamber of Spain and the secret of State of commerce, to promote international trade and the internationalization of Spanish companies.
Then the Spanish ambassador to Malaysia, Mr. Carlos Domínguez, intervened to thank the delegation for the good reception and to celebrate the institutional visit of CEOE, Secretary of State and Chamber of Spain to Malaysia, hoping that it will help To enhance economic and business relations between the two countries.
For his part, the vice-President of CEOE, Mr. Joaquín Gay de Montellá, highlighted the participation of CEOE in the main supranational business organizations such as ILO; BUSINESSEUROPE and CEIB, which makes it an unbeatable platform for access to Europe and South America, without forgetting our extraordinary relationship with North Africa. He also highlighted the current situation of a new government in both countries and the important presence in Malaysia of large Spanish companies that will undoubtedly be a motor for the rest of the Spanish SME.
The secretary General of the MITI, emphasized the commitment of the new Government to promote trade and investment, also within the sectors that want to strengthen the government highlight industry 4.0, treatment and waste, revive the Automotive industry as well as artificial intelligence.
Finally, he made a brief description of the two major areas of the Ministry, the investment that falls on MIDA and the trade, which falls on Matrade and gave the floor to representatives of both branches who participated in the meeting. In this context, the commercial situation of palm oil was especially addressed, among other issues.
Following the meeting, the delegation moved to the Ministry of Transport to meet with its Secretary-General, Mr. Datuk Seri Haji Saripuddin Haji Kasim, and those responsible for the areas of logistics, air and maritime traffic.
The Ambassador of Spain in Malaysia and the Director General of trade and investment thanked the received at the headquarters of the Ministry and took the opportunity to request more information on the infrastructure projects that were planned and That had been postponed or cancelled after the change of government.
The secretary General of the Ministry of Transport conducted a brief analysis of the bilateral economic and trade relations between Spain and Malaysia, highlighting that Spanish companies in Malaysia account for more than 2000 employees and have good capacity Financial.
With regard to railway projects, in the case of the high-speed train, a decision will soon be made on this subject, although he mentioned the Double Trig project, about 60 kms and the RTS (Johobahm-Singapore) as two projects that have been fenados but that soon will be retaken.
As for the maritime sector, they highlighted the large number of operating ports in the country. Although it aims to focus on the three main ones to adapt them to the latest technologies and are in the phase of building a fourth port from the base, with the latest technologies.
On Thursday morning, the business delegation met in Jakarta with the Spanish ambassador to Indonesia, Mr. José María Matres and the Economic and commercial advisor, Mr. Javier Peña, prior to the Spain-Indonesia business meeting.
The Vice-President of CEOE, Mr. Joaquín Gay de Montellá, stressed the importance of the delegation, probably the most numerous in recent years, made up of companies in the sectors: aeronautics, legal, banking, engineering, infrastructure, construction, Engineering Consulting, technology, insurance, energy and waste treatment. Thus, manifesting the commitment and support of CEOE for Spanish companies to internationalize and generate wealth and occupation. Proof of this, he forwarded to the delegation the signing in the business meeting of a collaboration agreement between CEOE and KADIN to further enhance the business relations between the two countries.
The Ambassador of Spain in Indonesia welcomed the delegation’s visit and confirmed the Vice-President’s remarks in relapsing the volume and level of the delegation. It also encouraged the delegation to bet on the ASEAN region and especially on Indonesia, representing almost half of ASEAN’s population, with more than 260 million inhabitants.
The commercial adviser, after a brief analysis of the economic and commercial relations between Spain and Indonesia, highlighted the existence of three phases mainly for doing business in the country: 1. Contact phase, open doors. It is a phase with a lot of sacrifice and little transparency, you have to be patient. 2. Phase blood, sweat and tears. Gaining trust from stakeholders (it’s difficult) if they get it, 50% of the project is done. 3. Success phase.
To conclude, he mentioned the importance of “signority” or rank when it comes to doing business and that when it comes to betting on Southeast Asia, it is advisable to keep in mind the profile of the business developer and try to select the countries in which to bet with discretion.
Following the private meeting of the delegation with the Ambassador and the commercial adviser, the Indonesian-Spain business meeting took place, organized by CEOE in collaboration with the employers of Indonesia KADIN, ICEX and the commercial office of Spain in Indonesia.
First of all, the Spanish ambassador to Indonesia, Mr. José María Matres, took the opportunity to thank CEOE’s institutional visit to Indonesia and the great reception that the meeting had. It also highlighted the good bilateral relations between Spain and Indonesia and the optimistic prospects of growth, especially because of the potential offered by the tourism sector between the two countries. Finally, he emphasized the facilities offered by Indonesia for foreign investment.
Then Joaquín Gay de Montellá, highlighted the business relationship between Spain and Indonesia through the B20, also mentioned some of the most relevant projects of Spanish companies in Indonesia and ended its intervention highlighting the Different sectors represented through the companies present in the delegation.
The Vice-President of KADIN, Mr. Kosmian Pudjiadi, stressed the existing commitment between Spain and Indonesia and anticipated the signing of the collaboration agreement between KADIN and CEOE As a further sign of the commitment and the aim of increasing business relations between the two countries. Among the sectors that it considered with greater possibility of broadening the relations, it emphasized infrastructures, tourism and the maritime industry. Without forgetting that it is the fourth most populous country in the world with more than 260 million. Finally, he made a brief description of the structure and composition of KADIN and the work carried out in Indonesia.
To conclude with the opening, the Director-General for America and Europe of the Ministry of Foreign Affairs of the Republic of Indonesia, Mr. Muammad Anshor, made a brief historical summary of the beginning of trade relations between Spain and Indonesia with the House collaboration, current Airbus, with “Oltanio” in 1958. He then highlighted the opportunities offered by the country to technology companies and mentioned the Economic Partnership agreement with Indonesia.
Then intevino the Director of energy, telecommunications and information of BAPPENAS (Ministry of National Development Planning), Mr. Rachmat Mardiana, to analyze the priority projects in the sectors of infrastructure, environment and Energy. In this sense he stressed that 19 sectors are currently covered through public-private partnerships (PPP) in urban and social infrastructures.
He also highlighted the infrastructure projects related to water management and the importance of the government agency responsible for these projects and is also responsible for water pipeline projects.
In this sense, through PPP, 12 projects have been carried out for pipes and sewers, 1 is operational and 11 are under construction. While with the PINA (Non-Government Budget Investment), there are 2 projects under construction and 3 in progress.
He then described the work that PINA develops and as one of the aims it has is to recycle investments in other areas. To this end, I mention the Pina project line and the Pina and PPP collaboration for infrastructure development. As well as emerging opportunities and trends for private participation and collaborative possibilities.
For its part, Ms. Farah Ratnadewi Indriani, vice-President for investment climate Development at BKPM (Indonesia Investment Coordination Board), announced the current situation of foreign investment in Indonesia, detailed the sectors that present More opportunities and argued why invest in the country. Among the
Indonesia’s priority sectors (2015-2019), highlighted the development of tourism in Indonesia and the 4.0 industry. He also highlighted the opportunities offered by e-commerce since in 2017, there were 132 million inhabitants connected to the Internet and currently electronic commerce accounts for 11% in Indonesia.
Currently the main investors in the country are Singapore, Japan and South Korea. Indonesia has also created a breakthrough to improve the business climate and facilitate investment and foreign trade by simplifying licensing procedures, facilitating investment incentives and seeking Tax Bonus
Next, the deputy head of the European section of the Standing Committee of KADIN, Mr. Yono Reksoprodjo, highlighted the resilience of the Indonesian economy during 2017 and 2018 and the relevance of the population volume of the country where 180 million of people are estimated to be They are of productive age and another 90 million is estimated to be joined in 2030, which allows to be optimistic and that will grow the investment. He also highlighted high confidence in government and broad structural economic reform.
On the other hand, it highlighted the development of infrastructure projects, highlighting some of the 245 strategic projects that are being developed at the national level and with special emphasis on the 35 priority projects that the Government has in place. In conclusion, it highlighted the agreement of the Integral Economic Association Indonesia-European Union (EU-ECA) and the meeting of the Spanish and Indonesian presidents in the last G20.
Finally, the Economic and commercial advisor of Spain in Jakarta, Mr. Javier Peña, intervened to make known the main financial instruments offered by Spain, giving special prominence to the FIEM.
Following the Spain-Indonesia business meeting, the business delegation met with representatives of the Asian Development Bank to learn about the projects planned over the next few years, with special attention to those related to energy Sustainable and water treatment.
Meanwhile, the vice-President of CEOE, Mr. Joaquín Gay de Montellá, the Chairman of the Committee for Asia and Oceania, Mr. Tomás González and the Director of the Cabinet of presidency, international and institutional relations of CEOE, D. Narciso Casado, met with the Representatives of KADIN who participated in the business meeting to strengthen relationships and evaluate possible joint actions following the signing of the collaboration agreement between CEOE and KADIN that was signed at the meeting. Within the agreed actions, it is worth highlighting the organization of a Spain-Indonesia business meeting in September in Madrid, as a return of the visit to Jakarta.
In the afternoon the entire delegation moved to the headquarters of BKPM, the main investment agency of the Indonesian Government, to meet with its President, Mr. Thomas Lembong. Mr. Lembong highlighted how the Indonesian government has done more reform in the last decade than in the last 50 years. By way of example, before there were only three airlines operating in the country, currently exceeding 70. He also stressed the importance of the sector of the electronic industry in the country and tourism, which has been greatly benefited by the growth of Chinese tourism. In this sense, the president of BKPM highlighted the infrastructure that the government is developing in seaports in order to accommodate larger ships and cruises. Finally, he stressed that both the President and the Vice-President of government have been businessmen, which makes it possible to be optimistic in the prospects for the future.
The Vice president of CEOE and President of the International Relations Commission, DE. Joaquín Gay de Montellá, took the opportunity to make known the work done by CEOE and proposed to Mr. Lembong, assess the possibility of establishing a direct flight between Spain and Indonesia and then gave the floor to the members of the delegation.
On Friday, the delegation held institutional meetings with representatives of the Ministry of Public Works and Housing and the Ministry of State Enterprises.
During the first meeting, the secretary General of the Ministry, Ms. Anita Firmanti presented the budget envisaged by the Ministry for the years 2015-2019, for which he used a presentation in which he also announced the position of Inonesia within the index of Global competitiveness, the existing regulation for public-private partnerships, the projects that are now underway, the existing business and investment opportunities, how to build in Indonesia and the BUSKA entity, as the principal entity in charge To report on how to operate foreign companies in construction. The Vice-President of CEOE took the opportunity to inform the representatives of the Ministry of the signing of the collaboration agreement between CEOE and KADIN and the preparation of a business meeting in September in Madrid, during the visit of the representatives of KADIN and encouraged the members of the Ministry to lead the delegation and participate in the meeting.
Finally, the delegation met with several representatives of the Ministry of State Enterprises, led by Vice-minister Mr. F. Harry Sampurno, who highlighted the historic industrial cooperation in the aeronautical sector between Spain and Indonesia and encouraged Those who attend this relationship expand to other sectors.
Likewise, representatives of the main state-owned companies, such as PLN Electric, have also participated in business relations with Siemens Gamesa in the field of renewable energies, the state-owned EPC construction company with presence In several ASEAN countries and with special interest in developing projects related to water and renewable energies. The INKA company, which currently cooperates with the Spanish company CAF in the railway sector and the company Bethe industry, related to the transport sector and with special interest in the sectors of renewable energy, computer solutions, security, Transportation and ticketing. Lastly, the representative of Pertamin, a state oil company, maintained a close relationship with REPSOl, especially in upstream services. Finally, the Vice-minister, made special mention on the new law of defense of the services offset.
The Vice-President of CEOE expressed the interest of the Spanish companies to know the means to be informed about the processes that are being carried out on the privatization of public companies and the prospects of future of the Government with respect to the Privatizations. In this regard, Mr. Sampurno stressed that in the 90 there were more than 200 public enterprises, currently around 180 and it is estimated that in the next decade the figure will be reduced to some 140 state enterprises. Although the privatization process will be restricted to second-tier enterprises.
Translated from Spanish