Finance Minister Shankar Prasad Koirala said that the government
is going to sign a Double Taxation Avoidance Agreement (DTAA) with Malaysia
soon.
Addressing the first anniversary of Air Asia X flight to Kathmandu,
he also requested the Malaysian investors to invest in Nepal as the government
is soon sending a team to Kuala Lumpur to finalise the DTAA with Malaysia that
will help boost Malaysian investors confidence.
The country has already signed DTAA with countries – including major
trading partners like India and China – to make foreign investors coming to Nepal
more comfortable.
Former finance minister Barsha Man Pun had also planned to enter into DTAA with all the SAARC countries – within the last fiscal year 2012-13 – to encourage intra-regional investment, though he failed to finalise a single one.
Former finance minister Barsha Man Pun had also planned to enter into DTAA with all the SAARC countries – within the last fiscal year 2012-13 – to encourage intra-regional investment, though he failed to finalise a single one.
Increased connectivity between Kuala Lumpur and Kathmandu also due
to Air Asia X will not only boost Malaysian tourists but also help boost
investment inflow to Nepal, Koirala said, adding that the government has created
investment-friendly environment in the country to attract more foreign
investment.
Currently, Air Asia X – a Malaysian budget airliner that started two
flights a week on Kuala Lumpur-Kathmandu route from July 3, 2012 – flies five
times a week and is popular among the Nepali migrant workers.
Malaysia as the top Nepali migrant worker destination is not only
the major source of remittance that has become the lifeline of economy but also
could be a major foreign investment source country, he added.
The increased air connectivity has also helped increase trade
between the two countries lately as Malaysia is also the seventh largest exporter
for Nepal. In the first 11 months of the last fiscal year 2012-13, Nepal imported
Rs 5.40 billion worth merchandise from Malaysian, whereas in the same period of
a fiscal year ago, in 2011-12, Nepal had imported Rs 5.47 billion worth merchandise,
according to the figures of Trade and Export Promotion Centre (TEPC).
Nepal suffers trade deficit with Malaysia and increased Malaysian
investment could help bridge the gap. In the year 2012, Nepal had imported Rs 5.96
billion worth merchandise from Malaysia, whereas exported Rs 113.03 million worth
merchandise only, the data revealed.
Malaysia is also the key employer for Nepali migrant workers. According
to Department of Foreign Employment’s data, Malaysia has displaced Qatar as the
Nepali migrant workers’ destination in the last fiscal year 2012-13.
“Nepali migrant workers’ departures to Malaysia have increased by 60
per cent in the last fiscal year to 156,770 compared to 98,367 a fiscal year ago
2011-12. “Malaysia contributes to 34.56 per cent of the total number of Nepali
migrant workers going abroad for employment,” the department’s data revealed.
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