PHNOM PENH, Sept 3 — The signing of the Double Taxation Avoidance (DTA) agreement between Malaysia and Cambodia will open the new dimension in trade between the two nations, said Prime Minister Tun Dr Mahathir Mohamad.
He said the DTA would ease trade and investment activities, thus reduce the trade imbalance between Malaysia and Cambodia.
“Many Malaysians are doing businesses and investing in Cambodia, and they have to pay high taxes, which is detrimental. Thus, with the signing of the DTA, it can reduce the costs borne by Malaysian businessmen and investors.
“With the signing of the DTA, we should have more Malaysians investing in Cambodia. It will also reduce the imbalance in the trade where Cambodia suffers a deficit in terms of trade with Malaysia,” he told the Malaysian media covering his three-day official visit to the country, here today.
Cambodia is the last Asean member state that inked the DTA with Malaysia.
Dr Mahathir also urged Malaysian entrepreneurs and investors to seize opportunities in new business and investment areas in Cambodia, including the provision of treated water.
“Cambodia lack of clean water. It has many big rivers but no project that provides treated water in the country.
“Besides that, Cambodia has to import oil and gas as it is a non-producing country. Thus, they have asked Petronas to develop the oil and gas industry in the country.
“This presents a good opportunity for Malaysian firms to expand their operations into Cambodia,” he said.
Currently, more than 400 Malaysian companies are operating in Cambodia in various industries, including banking, telecommunications, hotels and food.
The premier also called on Malaysian entrepreneurs to be more daring in exploring business and investment opportunities at the global stage to help strengthen Malaysia’s economy.
Foreign Minister Datuk Saifuddin Abdullah and International Trade and Industry Minister Datuk Darell Leiking are part of the entourage. Dr Mahathir will conclude his visit to Cambodia tomorrow and depart for Vladivostok, Russia to attend the Eastern Economic Forum 2019. — Bernama