Iran paves way for more trade links

HIS country is hogging the international headlines for all the wrong reasons, but that is no dampener to Iran's chief diplomat in Kuala Lumpur, Ahmad Masoumifar.  

He has a load of good news to share with visitors, who often leave the embassy at Lorong U-Thant with positive vibes. 

Just last week, things were moving at a feverish pace at the mission, which was preparing to receive Iran’s Deputy Foreign Minister Mehdi Mostafavi. 

At the time of Mostafavi’s arrival, news about Iran’s disputed nuclear programme was gaining in intensity, with some reports predicting that the Islamic republic would be slapped with United Nations sanctions.  

MAKING PROGRESS: Prime Minister Datuk Seri Abdullah Ahmad Badawi and Esfahan Governor Mahmoud Husseini(on Abdullah’s right) witnessing the exchanging of documents between MSC Management Services’ Tan Sri Halim Ali(left) and Persian Bank chairman Abdullah Talebi at the Malaysia-Iran Business Forum event in Esfahan last year.

But Masoumifar kept a cool head as the storm built up. Instead, he tended to his VIP visitor’s programme right up to seeing him off at the KL International Airport.  

And then he gladly obliged a request for an interview, during which he spread the “good news”.  

Masoumifar began by confirming that Iranian President Mahmoud Ahmadinejad, the man embroiled in the Iran nuclear controversy, would be travelling to Kuala Lumpur to meet with Prime Minister Abdullah Ahmad Badawi.  

“We are looking at a suitable date for the president’s visit. Our president is very interested to come and touch base,” he said.  

It will be the first meeting between Ahmadinejad, the former mayor of Teheran who was elected president in June last year, and Abdullah. 

The prime minister met with then President Mohammad Khatami during his three-day visit to Iran in May last year. 

Masoumifar, Iran’s former Consul-General in bustling Shanghai, is understandably excited at Ahmadinejad’s impending visit, which is expected by March. 

“This visit will not be just to talk about the hard issues. Iran and Malaysia are forging ahead in our co-operation, with a strong foundation to support the expansion of trade and investment relations,” he said.  

Time is of the essence for Masoumifar, who is stepping up the pace here with his behind-the-scenes work. 

He was pleased to report the considerable progress since Abdullah’s “sales pitch” at the Malaysia-Iran Business Forum in Esfahan (Iran’s central province, which enjoys twin-city status with Kuala Lumpur) last year, where he called for trade between both countries to expand beyond primary commodities and petroleum. 

As it is, palm oil and natural rubber constitute about half of Malaysia’s exports to Iran while almost 80% of imports comprise petroleum and petroleum products. 

“We are indeed diversifying our trade and economic activities by making inroads into the tourism, industrial and construction sectors. 

“Iran is seeking joint-venture projects with Malaysian firms, which are in a good position to secure several large infrastructure deals in Iran,” added Masoumifar.  

Iran is Malaysia’s fifth largest trading partner within the Organisation of Islamic Conference, with the volume of economic and trade exchanges reaching US$730mil (RM2.7bil) in 2005, an 18% increase from the previous year’s US$604mil (RM2.23bil). 

Iran has an abundance of energy resources, with reserves of natural gas second only to Russia, besides substantial oil reserves.  

Masoumifar said Abdullah’s visit to Iran had paved the way for increased trade delegations between both countries, adding that over 50 Malaysian business delegations went over last year. 

On the “diversified” deals, he said a five-star hotel would be built in Mazandaran province, which borders the Caspian Sea in north Iran, under a joint-venture between an Iranian and Malaysian firm. 

Other joint-venture deals include the construction of a large departmental store in Teheran, which had already got off the ground after the contract was signed last month, he said.  

“Tenders have also been called for two major inter-province rail track projects. The feasibility studies were undertaken last year by Malaysian firms,” he added. Masoumifar said one of the projects involved building 400km of rail track to connect Qazvin, Rasht and Anzali, with the other project proposed in Kermanshah in Western Iran along the Iraqi border. Both projects are estimated at US$1.2bil (RM4.44bil).  

“We have decided to adopt the counter-trade mode of payment where Iran will pay for both projects with chemicals and petrochemicals, carpets and other items needed by the Malaysian market, with the exception of oil,” said Masoumifar. 

“Firms in China are also bidding very hard, but I would say that Malaysia has a better chance due to our closer relations. “We trust in the ability of Malaysia’s private sector and are preparing the final agreement for the rail projects.” 

On Petronas’ involvement in Iran, he said the firm was making much headway in Iran’s oil and gas sector since it started in 1995. 

He said Malaysia’s national oil corporation was investing US$1.3bil (RM4.81bil) in three projects in the south of Iran. 

“We have more projects to offer to Malaysian firms on a joint-venture basis. For example, in Bushehr province, there is a need to build an oil refinery,” he said. 

Masoumifar said the Iranian Offshore Engineering and Construction Company (IOEC) had set up a branch office in Kuala Lumpur to source for projects in Malaysia and the region.  

Established in 1993, IOEC is Iran’s first general contractor in the oil and gas industry, specialising in offshore engineering, procurement, construction, pipe-coating, pipe-laying, and installation of jackets and topsides. 

He said several joint-venture deals were expected to be signed during Ahmadinejad’s visit here.  

Masoumifar had one more piece of good news to share: the first meeting of the Joint Trade Committee, headed by the respective Trade Ministers, is scheduled in Kuala Lumpur before April.