By Chris van Gass

Malaysia could be a springboard for South African companies to penetrate the lucrative Asean market, Malaysian International Trade and Industry Deputy Minister Ahmad Husni Hanadzlah said on Monday.

Asean is a grouping of 10 Asian countries with a population of more than 560-million people, and a combined gross domestic product of more than $1-trillion.

He said SA, like Malaysia in the Asian market, was a strategic gateway into the African market, and it could strengthen this position in which it was the conduit for 80% of global trade with southern Africa.

Ahmad Husni said at the Malaysia-SA Business Opportunities seminar that SA was Malaysia's largest trading partner in Africa.

The seminar was organised to update the business community in Cape Town on the economic situation as well as trade and investment opportunities in Malaysia.

The large contingent of Malaysian businessmen accompanying Ahmad Husni also wanted to strengthen business networking and explore collaboration and joint ventures between the Malaysian and South African private sectors.

Ahmad Husni said Malaysia's foreign investments last year totalled $5,5 billionn in 571 projects, representing 44% of a total investment of $12,5 billion.

To date, six projects with South African participation valued at $97,1 million had been approved in the manufacturing sector, two of which involved the manufacturing of low-density polyethylene and parachutes.

Ahmad Husni said he would like to see more investment from SA in Malaysia in the manufacturing sector, in areas including electrical and electronic products, transport equipment, machinery and equipment and agriculture and food processing.

He said Malaysia had an investment in SA of $71,4 million.

So far, 38 Malaysian companies had invested in oil and gas, construction and property development, hotels and restaurants, chemical-related manufacturing, wood-related industries and palm oil distribution.

Ahmad Husni said the Malaysian government was actively encouraging companies to invest abroad, including SA.

Western Cape environment, planning and economic development MEC Tasneem Essop said the province had this year seen a surge of exports of yachts and other pleasure vessels to Malaysia.

She said Western Cape believed there were significant new business opportunities in the construction industry as well as road and associated infrastructure development and housing and commercial property development.

Essop said she hoped to see an increase in the number of tourists from Malaysia visiting Western Cape as there were strong cultural ties between Cape Town, the province and Malaysia.

Ahmad Husni agreed and said there were "immense opportunities" for joint ventures and alliances to be formed between Malaysian and South African companies to enhance tourism cross-flows.