Bilateral relations between Malaysia and Venezuela continued to be warm and friendly since the establishment of bilateral relations in December, 18, 1986.   Both countries are members of the United Nations, the Non-Aligned Movement, G-77, and G-15 under the framework of South-south cooperation and FEALAC (Forum of East Asia and Latin American Cooperation). There have been a number of high level exchanges of visits between the two countries.

Bilateral trade between both countries is at moderate level.  The volume of two-way trade reached at US$22.2 million in 2005, less than US$8.7 million compared to 2004 (US$30.9 million). In 2003, bilateral trade stood at US$9.4 million and in 2002 it was at US$7.8 million. Trade balance has been largely in Malaysia’s favour. Malaysia’s exports to Venezuela include natural rubber, rubber based products (for making tyres, gloves, footwear), automotive gears (engine components, brake parts, aluminium wheels and accessories), electrical and electronic as well as man-made staples. Imports from Venezuela mainly are iron and steel, machinery and scaffolding equipments.

General predicaments that disconcert the bilateral trade are forgery of certificates of origin for footwear imports and shipment delays. This distorts trade figures and undermined Malaysia’s attractiveness as a reliable supplier of goods to Venezuela.

To date, the only recorded Malaysian investment in Venezuela consisted of US$8,650 for setting up a wholesaler of medical products (Medilink Trading, C.A.) in Zulia state. As for the Venezuelan investment in Malaysia, there are salsa discotheque in Federal Hotel (Kuala Lumpur) and Reveex (veterinary specialties) in Bandar Sunway, Selangor. Investment opportunity could be explored in liquefied natural gas area by Malaysia based on its expertise and experience. Establishment of Malaysia – Venezuela Joint Business Council is a desirable endeavour in increasing economic / trade activities for private sector. It is hoped that both Malaysian and Venezuelan companies could venture in oil / gas industry, tourism infrastructure and information technology fields with equal enthusiasm.

The future bilateral trade prospect will be further enhanced as both countries seek their own niches in each other’s markets. Further, early conclusion of Bilateral Payment Agreement would increase Malaysian exports under the present foreign exchange control measure currently in force in Venezuela. Promotion and Protection of Investment Agreement would also help the business community in accelerating business venture.

Malaysia continues to extend technical cooperation to Venezuela under the Malaysian Technical Cooperation Programme which has been proven useful and relevant. Malaysia is also looking forward to host the Third Joint Commission Meeting in reviewing pending / signing new agreements / MOUs in order to tap economic / trade potentials.

Bilateral relations between Kuala Lumpur and Caracas in 2006 / 2007 are full of considerable potential. Having a strong political will (create a sense of closeness), realistic objectives / projects that allow us to focus and sustain our attention and efforts, long term perspective would permit Malaysia – Venezuela bilateral relations to go extra miles.

Both countries have signed the following agreements / Memorandum of Understandings (MOU):

• Economic and Technical Cooperation Agreement (ETCA), signed on 3 August 1990;

• Trade Agreement, signed on 26 November 1991;

• MOU on Cooperation in Prevention and Control of illicit Use of Suppression of Production and Traffic of Drugs and Psychotropic Substance including precursor Chemicals, signed on 3 August 1990; 

• Memorandum of Intention in Education between National University of Malaysia and the Central University of Venezuela, signed on 20 October 1999; and

• Avoidance of Double Taxation and Prevention of Fiscal Evasion Agreement, signed on 28 August 2006.

Pending agreements / MOUs are as follows:

• Bilateral Payment Agreement (BPA);

• Promotion and Protection of Investments Agreement;

• Air Services Agreement;

• Maritime Transport Agreement;

• Information Cooperation Agreement;

• Visa Abolition Agreement;

• Cultural Agreement;

• MOU for the study of Orimulsion as a fuel for power generation in Malaysia; and

• MOU in Science, Technology and Innovation.

Venezuelan Diplomatic Representation in Malaysia:
Head of Mission: Ambassador Manuel Antonio Guzmán Hernández
Address:
Suite 20-05, 20th Floor, Menara Tan & Tan, 207 Jalan Tun Razak,
50400 Kuala Lumpur - Malaysia
Telephones: (+6 03) 2163 3444 / 5
Fax: (+6 03) 2163 6819

Malaysian Diplomatic Representation in Venezuela:
Head of Mission: Ambassador Ramli Naam
Address:
Centro Profesional Eurobuilding, Piso 6, Ofic. D-E-F-G. Calle La Guairita, Chuao, Caracas - Venezuela
Telephones: (+58 212) 992.10.11 / 992.11.44
Fax: (+58 212) 992.12.77