KUALA LUMUPUR, Aug 27 — Putrajaya has no control over Malaysian goods that end up in Israel, Minister Datuk Seri Mustapa Mohamed said today amid the furore that Southeast Asia’s third-biggest economy was trading with the Zionist regime.
The international trade and industry minister added that it is common international practice for multinational companies that invest and operate in Malaysia to do the same in many other countries, including Israel, as part of their global supply and value chain.
Malaysian products have been exported to Israel through third-party countries such as Singapore and Hong Kong, making Malaysia the 32nd biggest exporter of goods to Israel and 12th biggest importer of Israeli goods, according to the International Trade Center (ITC).
“The ITC data tracks exports from country of origin... this trade tracking method is used by many other countries,” Mustapa said in a statement.
“These international trade and investment practices are beyond the control of the Malaysian government,” he added.
Earlier this month, PKR’s Lembah Pantai MP Nurul Izzah Anwar demanded that Putrajaya reveal the trade relationship between pro-Palestine Malaysia and Israel, amid the ongoing bloody conflict in Gaza.
The PKR vice-president said that according to Israel’s Central Bureau of Statistics website, Malaysia exported animal or vegetable fats and oils worth US$19.41 million (RM61.98 million at today’s exchange rate), cocoa worth US$8.67 million (RM27.68 million), and rubber worth US$11.54 million (RM36.85 million) among others, with Malaysia’s total exports to Israel worth US$93.5 million (RM298.55 million) in 2011.
Mustapa today explained that the only way Malaysia can send goods to Palestine is via the Ashdod port in Israel, due to the Israeli blockade on the Gaza port and other entry points to Palestine.
The only other accessible entry point is the Rafah border crossing — which is controlled by Egypt — but it is only open for humanitarian, medical and food aid, he added.
Despite the trade relations, Mustapa stressed that Malaysia maintains its foreign policy against establishing diplomatic ties with Israel.
“(The) existence of these (trade) practices do not compromise the Malaysian government’s stance in supporting the call by the international community for a stop to the atrocities committed against the Palestinian people in Gaza,” he said.
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