Israel–Malaysia relations

Israel–Malaysia relations

Israel	Malaysia

Israel and Malaysia do not maintain formal diplomatic relations, but have thriving trade relations.

History

File:Malaysia Israel.JPG

Malaysian passport

Israeli foreign minister Moshe Sharett visited Kuala Lumpur in 1956, the year prior to the establishment of the Federation of Malaya. He described the reception of his proposal to appoint an Israeli consul as "favorable without hesitation" on the part of his tengku host. When Malaya's bid for membership in the United Nations came up in 1957, Israel voted in support of Malaya's acceptance. By the early 1960s the Malayans had declined numerous Israeli attempts to formalize low-level relations, explaining that domestic radical-Islamic opposition and foreign Arab pressures had put Malaya in a sensitive position vis-a-vis Israel.

As negotiations between Israel and the Palestinians gained momentum in the early 1990s, Malaysian prime minister Mahathir Mohamad considered establishing actual diplomatic relations with Israel. Chua Jui Meng, then Deputy Minister of International Trade and Industry, suggested in 1994 that Israel's market could eventually become a destination for Malaysian investments.

Mahathir era

Mahathir Mohamed, Malaysia's prime minister in 1981-2003, has accused his critics of being agents of Zionism and has accused Zionists of undermining Malaysia's integrity and trying to destroy Islam. Mahathir had sent letters to Israeli prime ministers Yitzhak Rabin, Benjamin Netanyahu and Ehud Barak in the years 1993, 1997 and 1999, respectively. In 2012 the contents of these letters were made public in order to dispel allegations that Mahathir's government had moved in the direction of recognizing the State of Israel.

Commercial relations

In 1971 Malaysian imports from Israel exceeded M$11 million while exports to Israel totaled more than M$2 million. Malaysia imposed a ban on trade with Israel in 1974. According to the Israel–Asia Center, trade between Israel and Malaysia is conducted through intermediate countries such as Singapore and Thailand rather than directly.

Between 2000 and 2001, exports to Malaysia from Israel's Intel computer chip factory in Kiryat Gat were responsible for US$600–700 million.

A 2002 report on Israel's trade relations with Indonesia and Malaysia from Israel's Ministry of Industry, Trade and Labor advised Israelis interested in conducting business with Malaysian companies that "there is no opposition to trade and commercial relations as long as a low profile is kept." The same report stated that Israel's Intel factory accounted for some 98% of Israel's exports to Malaysia between 1999 and 2002. Thus in 1999 Israeli exports to Malaysia were worth $107 million – $5.3 million excluding Intel. That year Israeli imports from Malaysia were worth $23.6 million. In 2000 Israeli exports to Malaysia were worth $732 million – $4.7 million excluding Intel. Israeli imports from Malaysia were worth $25.9 million. In 2001 Israeli exports to Malaysia were worth $615.5 million – $4.7 million excluding Intel. Israeli imports from Malaysia were worth $26.3 million.

Figures released by Israel's Central Bureau of Statistics showed that trade between Israel and Malaysia in 2008–2011 fluctuated considerably. In 2008, Israeli exports to Malaysia came to $30.2 million while Israel imported goods worth $100.6 million. In 2009, Israel exported $116.8 million-worth of goods to Malaysia and imported goods worth $68.5 million. In 2010, Israel's exports to Malaysia grew to $798 million and imports grew to $85 million. 2011 saw Israel export goods to Malaysia worth $716.4 million and import goods worth $93.6 million. A report compiled by the European Commission indicated that in 2010 Malaysia ranked 15th among Israel's major trade partners, accounting for 0.8% (€667.6 million) of Israel's trade in that year.

Sports

In 2010, Israeli boxer Ilya Grad received special permission from the country's Muslim authorities to participate in a national TV reality show on boxing. Grad is a former Israeli Muay Thai champion, the 2010 Asia champion and the second runner-up in the world championship. Grad was allowed to enter the country and received a special visa.

Tourism

In October 2012, the Malaysian government lifted the quota on pilgrimage tourism to Israel and allowed stays to be extended from 10 to 21 days.

See also

• History of the Jews in Malaysia
• Foreign relations of Israel
• Foreign relations of Malaysia

External links

• The Israel–Asia Center
• M’sia has trade relations with Israel