by: Imran Azmi
Chronologically, Across India, there have been massive protests over the implementation of the Citizenship Amendment Act (CAA) after a bill was passed in the Indian Parliament earlier this year. Many see this as a crackdown on a nationwide scale on the Muslim minority that preponderance resides in the region of Uttar Pradesh and special region of Jammu and Kashmir. Imagine a country where you are nurtured and raised, disown you, genuinely appalling.
Internationally, many foreseen Dr Mahathir as a gallant leader that is profoundly critical on international issues. Known with his modest and calm demeanour, He is widely respected and revered as a conceivable leader with a thorny mind and not hesitant to deliver criticism. His deliverances was sought by many, including now. He was termed 'the champion of third world countries' at his highest season.
In April 1995, Malaysia, which was also headed by Tun Dr Mahathir, urged the small group of OIC (Organization of Islamic Cooperation) countries to convene a summit in Kuala Lumpur to address the situation of a massacre of Muslims in Bosnia. At the previous summit, the OIC unanimously acknowledged sending donations that amounts to hundred of million to Bosnia. Malaysia at the time also lobbied the OIC to endorse a plan led by Dr Mahathir to allow Malaysian troops stationed in Bosnia to carry out peacekeeping missions, if necessary. At that time, the first and sound plan was for the UN to pressure the Serbs regime to take concrete steps to end the war.
Now,let's get back to the Diplomatic Spat that endanger our economy
Exports of Malaysian palm oil to India grew by 75.6% to 4.41 million tonnes in 2019. In the context of International Relations, This export value will act as a benchmark for friendship between the two countries, between buyers and sellers. In a higher note, Malaysia-India relations are essential to Malaysia because we are the second-largest palm oil exporter in the world, after Indonesia. According to statistics, India is the largest importer (buyer) of palm oil in the world.
And particularly in 2019, India is buying more palm oil than ever before. Our relationship with them is significant to ensure that they continue to buy our country's critical commodities. Because in this free market world, they can choose to purchase with other producers such as Indonesia. The only reason that holds India from choosing Indonesia Palm Oil was because of the much more premium price Indonesian Palm Oil Companies offered to the buyer. If the Philippines Government Duterte (President of the Philippines) goes abroad to promote his country's bananas, the prime concern of a Malaysian PM is fore sure to continue promoting our primary. commodity.
Indian palm oil importers have effectively stopped all purchases from Malaysia after the government privately warned them to shun the product from the country following a diplomatic spat also in the end. The signal given last week reaches almost in tandem with New Delhi's resolution to restrain the imports of refined palm oil after the Mahathir criticized India 's erroneous conduct in Kashmir and its latest legislation on citizenship.
At the time of the fall, Malaysia and Pakistan have also enjoyed practical economic cooperation since the signing of the Malaysia-Pakistan Economic Partnership Agreement (MPCEPA) in November 2007. It includes trade liberalization in goods and services trade, investment, and technical cooperation and bilateral capacity development.
So how and why does Pakistan played its part in this equation? Well, the border between India and Pakistan are among if not one of the most highly active border in the world.
"The enemy of my enemy is my friend."
Historically, Imran Khan vowed for his admiration over Mahathir in the past, and understandably, Khan bolstered his support towards Malaysia in this. Khan indicated that Pakistan should be prepared to import more palm oil from Malaysia, "Pakistan must do its utmost to make up for that deficit.".A statement made by the premier of Pakistan itself during a visit to Malaysia around the end of January.
Data from the Malaysian Palm Oil Board are aligned with Imran Khan statement. Factually, Malaysia sold around 170,802 tonnes of palm oil to Pakistan in February compared with 80,660 tonnes in December 2019 previously the numbers add up, and that's how you make a friend in the global arena. We also sold 12,527 tonnes to Bangladesh, up from 575 tonnes a year earlier.
The end of crises
To inform, every country on this face of the earth can be compared as a business organization. So how do we make win India's heart again? What about we buy their primary commodity in return they resume buying OUR primary commodity?. That is what actually had happened. We signed a commitment to import a record 100,000 tonnes of rice from India mid-May 2020; This is a huge amount of rice I might say. For comparison, in the last FIVE year, Malaysia had only imported around 53,000 tonnes of rice cumulatively in the last five year. But the move doesn't end there, Malaysia had also exempted any form of export tax to the buyer to further attract traders in India. Not just that, Malaysia has also agreed to put a discount on our unsold crude Palm Oil that was built up due to MCO.
With this, it will be a no-brainer for the Indian palm oil buyers to still choose Indonesian Palm Oil. With this kind of deal, The Indians trader has returned to buy the crude oil from Malaysia after four exhilarating four months. However retrospectively, relations between the two countries have improved since the new government began last March.
So at the end, who had actually won this war? Is it Mahathir or Modi? the very question opens up a new form of discussion that could be further elaborated and critically argued
Reference:
http://ww1.oic-oci.org/english/conf/fm/21/21cfm_fc_en.htm
http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2018%20(2)%20Sep.%202010/13%20Pg%20311-320.pdf
https://www.nst.com.my/world/world/2020/01/556171/india-warns-palm-oil-buyers-against-malaysian-imports
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