Malaysia looks to strengthen trade ties with UAE
Malaysia and the United Arab Emirates are set to strengthen their economic ties by opening up discussions on a new trade agreement, known as the Comprehensive Economic Partnership Agreement (CEPA).
In a Joint Ministerial Statement to launch the negotiations the two countries said CEPA will enhance their existing partnership” through more strategic collaborations to boost and drive new bilateral economic and trade opportunities”.
Malaysia’s Minister of Investment, Trade And Industry (MITI) Tengku Zafrul Aziz said: “With the commencement of negotiations for the Malaysia-UAE CEPA, Malaysia is committed to enhancing the longstanding economic partnership with the UAE. It will set the stage for a comprehensive and mutually beneficial economic framework that will forge stronger strategic collaborations, foster innovation, spur economic growth, and create job opportunities for both nations.
“The UAE consistently holds its position as a crucial and strategic trading partner for Malaysia in the Middle East, while Malaysia serves as an ideal gateway for UAE to venture into the Asia Pacific market. Building upon our shared aspirations, I am confident that the Malaysia-UAE CEPA will bring immense benefits to businesses, entrepreneurs and citizens of both countries, propelling our special and close partnership to new heights.”
He added that the UAE could become the “ideal gateway for Malaysia to penetrate the Middle Eastern markets and will provide opportunities for further business-to-business linkages within the region”.
In 2022, the UAE was also Malaysia’s 17th largest trading partner, with total trade valued at RM38.73 billion (£7.1 billion).
The joint statement said: “Moving forward, both Ministers and their respective ministries will take the necessary steps to initiate negotiations on the Malaysia-UAE CEPA and for it to be concluded in an agreed timeline, paving the way for enhancing bilateral trade and investment ties between the two countries.”
New insurance products aimed at SME market
Tune Protect Group has launched a new range of products designed especially for Malaysia’s SMEs and micro businesses, including employee health and life insurance.
The company said its research found that despite the fact these companies constitute 99% of total businesses in Malaysia’s economy, the uptake of insurance among SMEs and MSMEs for employee benefits and natural disasters is poor, describing it as “an alarming issue”.
It added that the medical inflation rate in Malaysia was 12% in 2022, six times higher than the annual general inflation rate, and it is expected to increase to 15% this year.
Unveiling its new products, Tune Protect said they were “tailored to the needs of this underserved segment. It added: “By providing a simplified and seamless insurance journey, the digital-led initiatives aim to overcome common barriers such as affordability, complexity, and limited access, making it easier for MSMEs to explore insurance products to safeguard the wellbeing of their businesses and employees.”
Rohit Nambiar, Group Chief Executive Officer of Tune Protect, said: “It is unfortunate to see that despite being a vital part of the economy, contributing 37.4% to the GDP in 2021 6, SMEs remain largely uninsured or underinsured. This protection gap exposes them to significant risks and vulnerabilities.
“Hence why, we as a digital insurer, are taking proactive steps to address the insurance needs of MSMEs, leveraging our digital-first approach. Everyone deserves to be protected.”
Business owners can buy life or medical/health insurance – or both – for their employees directly via the company’s business-to-consumer channel.
Tune Protect said this allows them to plan their budget ahead, with a three-year fixed premium guarantee, which means business owners pay the same amount every year for three years.
Incorporated with the insurance is a health/wellness-based rewards programme called Activ8, which aims to improve employees’ health, well-being and productivity through annual health screening and digital coaching sessions. Business owners are able to purchase the SME EZY product and plan of their choice directly, up to 10% rebate.
Chiew Ling, Principal Officer of Tune Protect Life, said: “With the introduction of SME EZY on the B2C channel, business owners can manage and plan their budget ahead, easily access the insurance, prioritise the health of their employees within an affordable budget, and create a supportive environment for employee well-being in the long run.”
