FNCCI to take leaf from FMM book

The Federation of Nepalese Chambers of Commerce and Industries (FNCCI) is planning to submit a white paper based on the experience of Malaysia in guiding the industrial policy of the nation. FNCCI took this decision after a visit to Malaysia under FNCCI Mission Malaysia from November 16-20.

Speaking in a press meet, FNCCI president Kush Kumar Joshi said here today, "Our suggestions will be growth of potential industries in Nepal," he said. Without strategic plan and strong political commitment industrial growth is not possible, he added.

Malaysia has adopted a sector-based strategic growth plan and acquired a good record in the last two decades.

It has become a major tourist destination in South East Asia with 25 million tourists a year.

Malaysia also has focus on establishment of export and investment protection agreement (IPA) with 70 countries along with avoidanec of double taxation agreement (ADTA) with 50 countries.

Joshi said that they found during their visit that the Malaysia private sector focuses on IPA and ADTA for investment.

"Without taking these measures, industrial growth is not possible," he said. Political instability, labour disputes and energy crisis are hindering factors in the growth of Nepal.

Nepal and Malaysia trade is around $61.5 million and over $60 million goes into import from Malaysia.

FNCCI and its Malaysian counterpart Federation of Malaysian Manufactures' (FMM) had signed an agreement to boost free trade between both countries. "We agreed to lobby for free trade on both sides on the eve of the golden jubilee of diplomatic relations between Malaysia and Nepal," said Joshi. Diplomatic relations between Nepal and Malaysia were established 49 years ago. Moreover, the Malaysian government is going to adopt a cross-border investment policy soon which can help Malaysian investors establish their manufacturing units in Nepal.

"We have talked about establishing Nepali migrant labour-based industries in Nepal and FMM has in principle agreed," Joshi said. Around 2,50,000 Nepalis are working in Malaysia but most of them are unskilled labourers.