Nepal established diplomatic relations with Malaysia in 1960. Malaysia, which has been Nepal’s one of the major trading partners, recognized Nepal as a source country for foreign workers in 2001. Khabarhub recently caught up Mr. Ahmad Phadil Ismail, Charge d’ affairs a.i., at the Malaysian Embassy in Nepal and talked on a range of issues, including Malaysian investment in Nepal. Excerpts:

It’s been almost 60 years of Nepal-Malaysia bilateral relations. How do you access the current state of affairs?
Relations between Nepal and Malaysia has always remained smooth. It seems that we are focusing on only one sector that is labor. It is high time that we expanded other areas as well. In fact, we have been trying to engage in other terms such as trade, investment, and tourism.
Unfortunately, at the moment the situation has been stagnant for the last three years. It’s been a challenge for us either to encourage the labor issue or run away from it. Apart from labor, we have one big investment in Nepal through the acquisition of NCell through Axiata Company, which is a telecommunications enterprise, which, however, got into complication in recent times.

How optimistic are you about resolving the confusion concerning Axiata?
Let’s hope that this issue will not jeopardize the investment. The recent involvement of investment with regards to Axiata and Ncell to pay some money is their responsibility. But having been a company from Malaysia, where we have Asian values, we normally follow the rules. But I will leave it Axiata to comment on its part.
I very much believe Axiata is still discussing and looking at the legal aspects. Let’s hope that the company and the government could work together to resolve the issue.

What other areas would Malaysia consider it worth to make investments in Nepal?
We pursued a few projects in the past such as the second international airport and fast track. We have a consortium of companies willing to develop the projects. Unfortunately, the discussions did not progress as expected. We have the expertise in terms of infrastructure development. We thought that it would have been a good opportunity for us to work and develop infrastructure here in Nepal.

Unfortunately, it did not go well since the government here did not exhibit the interest. Frankly speaking, we are also interested in hydropower, which, too, did not go well due to certain reasons. But we still look at Nepal as a potential market that will benefit both the sides.

Despite your interest in investment here, what is hindering the process?
Earlier, it was political instability. We had several rounds of discussions with the concerned ministers but the frequent change in the governments hindered the process. In fact, it was difficult for us to explain the same issue to different ministers. Another important issue is that Malaysia considered Nepal as a resource country for labor. This, as I said earlier, has been caught in a quagmire.

Talking about investment, what is your impression on the recently-concluded Nepal Investment Summit?
The Summit was impressive in terms of the setup. For us, however, it is a wait and see situation since it is difficult for us to lay out all projects available in Malaysia. Whether or not those projects are feasible here, the problem here is with the implementation part. Signing documents is one part, and its implementation is a different part.
I, however, hope that some projects can be implemented if Nepal moved forward with open-mindedness. We believe that when other countries have taken a leap forward in a short span of time, Nepal should not lag behind.

What hurdles do Malaysian investors face in Nepal?
So far as the information that we have received, getting approval for investment is very difficult. A few Malaysian companies, which came here for investment in hydropower, said they had to go several layers of formalities for getting approval for a project. Moreover, the policy is not very clear in terms of setting a business here.
Another hurdle is the port, which is too far.

There are other issues such as lack of proper infrastructure, lengthy procedures, among others. Based on my discussion regarding the fast track, I would say that the process was too lengthy. In mid-2017, we thought to construct the fast track through a Malaysian company having the expertise in developing highways and digging tunnels in Malaysia. We had business engagements with the local partners also. However, the authorities here took so much of time to decide on the tender. However, we are not complaining about the Nepali authorities.

What about tourism prospects?
Malaysia is trying to attract more tourists from Nepal. We are also working towards developing Malaysia as an education hub to attract students from Nepal, India and other countries. Our primary focus would, however, be India because of its huge population. Moreover, we receive a significant number of Indian tourists every year.

Last year only, Malaysia received one million plus Indian tourists. It is a matter of delight that we received around 50 thousand Nepali tourists last year. We definitely like to increase the number of Nepali tourists. However, both countries need to work hard to promote tourism in both the countries.

A substantial number of Nepali workers are currently in Malaysia. How do your government work to ensure their safety and security?
Yes, a lot of Nepali workers are working in Malaysia. We have also workers from Indonesia, Bangladesh, Vietnam, Cambodia, and Myanmar. However, there are certain policies implemented by the government of Malaysia about rules and regulations that they (workers) need to follow. The government is serious towards the security and welfare of the workers. I do not rule out the fact that some workers are victimized by employers. We are serious that the employers do not exploit the workers, and are benefitted. Things will certainly improve.

There are other concerns such as the implementation of the one-stop service center. Could you clarify on this?
The one-stop visa application had come into effect from September 2016. This means that all necessary process, including the application, visa procedure, and other formalities should go through the center. The Malaysian Embassy, however, has the final authority for visa approval. That is the standard procedure for all the countries, including Nepal. It is not a strange procedure.

Is it that Malaysia will resume the hiring process of Nepali workers soon?
This is all about the labor issue again. After the singing of the MoU last year, we are ready to hire Nepali workers. There is no pending issue on our side. The Government of Nepal has to accelerate the process. We are ready to discuss the mechanism under the joint working group and resume the process.

Does it mean that hat the ball in Nepal’s court?
I wouldn’t say that. However, Nepal should first clear the confusion. The process should go through two approvals. Currently, around 7 thousand plus workers have completed the process. They are waiting for the second approval from the Ministry of Labor. We have been informed last week that they have been approved and can apply for a visa. Will issue the visa once we received the application from them.

Could you elucidate about the free visa and free ticket status?
Let me clarify you that since Nepal introduced the free visa and ticket policy, it is up to it how it would implement the policy. The government should monitor that the stakeholders followed the policy. We agreed on the policy thinking that the stakeholders, including the workers coming to Malaysia, would abide by the policy.

We have the mechanism to ensure its strict implementation such as the security screening is the first stage in the procedure. Failing in the first stage will be barred from the second screening. The same implies medical examination. We check all the system, which is interlinked with our immigration department.

The immigration department issues the approval letter once the name and the medical report are right. Similarly, another layer of screening will be carried out in the embassy.

HETAUDA: Government of State 3 is set to organize an investment conference to attract domestic investors in Chitwan from April 19.

The State government said it would request entrepreneurs of private sector to make investment in various sectors. The two-day state-level conference is expected to see a participation of around 200 people, including investors and experts, according to Chief Minister Dormani Poudel’s Press Coordinator, Prakash Dahal.

According to Member of Policy and Planning Commission of the State, Shyam Kumar Basnet, a broad discussion would also be held with the private sector with the objective of opening ways of investment keeping a five-pillar policy in priority.

KATHMANDU: Prime Minister KP Oli has said that the government was always ready to support the private sector for import substitution and promoting export.

Stating that a policy has been adopted for forging partnership with the private sector for industrial progress, PM Oli said the government will facilitate in formulating the necessary acts, laws and rules, and in constructing physical infrastructure for the country’s economic development.

Inaugurating the 16th annual general meeting of the Confederation of Nepalese Industries (CNI) in the capital today, Prime Minister Oli said that the investors have been encouraged to invest in industrial sector in a transparent way.

He also said it is high time that fake transaction, sale of fake VAT bill and non-transparent activities are discouraged. Prime Minister Oli maintained that the government was equally determined to encourage and protect domestic industries while urging the business communities not to carry out illegal activities.

The Prime Minister also expressed commitment to support the private sector in all sectors, including the technology, and raw materials.

KATHMANDU: The US-China trade dispute is pushing American multinational companies to relocate their factories and adjust business strategies for their supply chains in the next 12 months, according to a survey by Bain and Company.

“The shift is happening,” said Gerry Mattios, vice president at consulting firm, Bain. “Back at (the) end of 2018, when we ran a similar report, we found out a lot of companies — over 50 percent — were actually sitting on the fence … there were no major actions taken,” Mattios told.

But now, 60 percent of the respondents said they are ready to take action, as they see headwinds on their balance sheets, he added. “They see customers having to pay part of it, and they are trying to see how to reassess their supply chains.”

A supply chain is a network between a company and its suppliers to produce and distribute the firm’s products. Even though China has had a significant cost advantage that propelled the country to its leading position as the world’s manufacturing hub, that advantage is eroding as costs rise, Mattios said.

The survey polled more than 200 high-level executives and senior supply chain officers at U.S. multinationals with operations in China, and sought to gauge their perspectives on the ongoing trade dispute. However, some manufacturing will still remain in China as the country moves toward being a consumption-driven economy, he said. Items that would’ve been exported will see some assembly lines move to Southeast Asia said.

Still, he added, “we don’t think Southeast Asia will become the factory of the world in the way China did two decades ago.”

KATHMANDU: The Institute for Strategic and Socio-Economic Research (ISSR), Pavilion Group, and Khabarhub jointly organized an interaction program on ‘Post-Investment Summit Nepal-2019’ at the Durbar Marga-based Pavilion Hall on Friday.

Speaking at the interaction, former Minister for Finance, Dr. Ram Saran Mahat said the government organized the Summit in haste.

‘It would have been better had the government carried out ample homework for the Summit,” he said. Former Minister Dr. Mahat said the government should have first focused on creating a conducive environment for the summit rather than hurriedly organizing it,’ he lamented.

He stressed that the government should have prioritized the manufacturing sector rather than infrastructure.

Mahat remarked that instances of violence and blasts will not impart a positive message to potential investors.

Likewise, former Governor Tilak Rawal questioned how Nepal could bring foreign direct investment ‘as external environment and internal commitment was not favorable for investment’.

He was of the opinion that it was very difficult to attract foreign investment in Nepal as Nepalis have weak spending capacity, and finding markets in neighboring India has been a tedious task. “Exporting goods manufactured in Nepal is very hard to export to India and China,” Rawal said.

Also speaking former CEO of Nepal Investment Board, Radhesh Pant said it is high time that the government and private sector worked together to attract more foreign investment in Nepal.

Pant said it was positive that investment laws were formulated ahead of the much-talked summit while casting doubt over the effectiveness of service delivery.

Likewise, former Vice-Chairman of National Planning Commission Prithvi Raj Legal said that the Nepal Investment Summit was successful, and praised the government for ‘seriousness’ in bringing FDI.

Former Nepali Congress lawmaker Ram Hari Khatiwada raised skepticism over the possibility of investment here saying that the government should ensure that negative messages should not go to the international community.

Saying that political stability alone would not play a positive role for development, he stressed on a political commitment for attracting foreign investment.

Also speaking on the occasion, former Governor Deependra Chhetri expressed the optimism of bringing in foreign investment saying that there has been a conducive environment for the same.

WASHINGTON: U.S. President Donald Trump has said the United States and China were very close to a trade deal, media reports said.

He said it could be announced within four weeks, however, warning Beijing that it would not be easy to allow trade to continue without a deal.

The U.S. and China are currently engaged in intense negotiations to end a months-long trade war.

Hopes of a resolution got high after both countries expressed optimism after talks in Beijing last week.

“We’re very close to making a deal. This, however, doesn’t mean a deal is made,” Trump told reporters in the Oval Office. (Agencies)

KATHMANDU: The estimated cost of the under-construction fast-track that connects the Kathmandu Valley and Tarai-Madhes has climbed to Rs 2 trillion. It will take around two years to complete the project, a report in Kantipur daily said.

According to the Detailed Project Report (DPR) recently submitted by Korean construction company Susurung, the total cost for fast-tract construction would reach Rs 2 trillion and take two more years to complete the project, a high level Nepali Army source said.

Earlier, Indian company IL and FS had projected Rs 112 billion as the estimated cost for the remaining construction of the fast-tract, which is less by 88 billion than the estimated cost projected by the Korean company.

Yam Prasad Dhakal, spokesperson of Nepal Army, said that the DPR has been sent to the Council of  Ministers through the Ministry of Defense for approval.

Nepal Army has been constructing the fast-track which is 72.8 kilometers.

GENEVA: The World Trade Organization (WTO) has forecasted that the global trade growth in 2019 will be lower compared it with the last year.

The organization forecasted the decline citing widespread tension and economic uncertainty.

The WTO had initially estimated a 3.7 percent expansion of trade for this year, but has revised that down to 2.6 percent, marking a decline on the three-percent growth recorded in 2018.

Japan has unveiled a new name “Reiwa” for the imperial era that begins on May 1.

Japan’s Crown Prince Naruhito will ascend the Chrysanthemum Throne on that day.

“Reiwa” will be the name for the new era when Crown Prince Naruhito succeeds his father, Emperor Akihito.

Emperor Akihito’s abdication will end the 31-year Heisei era on April 30.

The imperial era name — “gengo” — is used on documents, calendars, newspapers, and coins. This is the way Japanese count years.

Gengo

Japan imported the imperial calendar system some 1,300 years ago from China.

Likewise, starting with the Meiji era — 1868-1912 — it adopted the practice of “one emperor, one era name.”

In Japan, there have been four era names: Meiji, Taisho (1912-1926), Showa (1926-1989) and the Heisei.

Selection

The era name, under the modern guidelines, should be appropriate to the ideals of the nation. They consist of two Chinese characters, and should be easy to read and write. It should not have been used in a previous combination.

Japan’s emperor does not choose the “gengo”. The cabinet will decide from a list of names suggested by bureaucrats and scholars.

Earlier, the characters were selected from ancient Chinese texts. However, this time, they were extracted from a collection of Japanese poetry called Manyoshu.

The first character is understood to mean “order” or “command”. However, it can also mean “good” and “beautiful”. The second character is understood as “peace” or “harmony”.

Fading

The use of the imperial era name is gradually declining as Japan adopts global economy.

A recent poll carried out by Mainichi newspaper showed 34 percent of people used mainly gengo in daily life. Likewise, 34 percent used both gengo and the Western calendar, while a quarter used mostly the Western system.

Meanwhile, 82 percent used mainly gengo in 1975, while 13 percent used both and only 4 percent mainly the Western system.

Similarly, government agencies and offices mostly use the imperial era in their paperwork or computer systems. However, several companies generally use the Western calendar. (Agencies)

KATHMANDU: Federation of Contractors’ Association of Nepal (FCAN) and Myanmar Licensed Contractors Association (MLCA) today signed a memorandum of understanding (MoU) to move ahead in collaboration for infrastructure development.

The FCAN and MLCA signed the MoU during the concluding ceremony of Nepal Investment Summit 2019.