Iran Set to Connect With Top Malaysian Banks

After the lifting of some of Iran's sanctions following the nuclear accord, the country's banking system connected with small Malaysian banks though there are still no ties with major lenders, the head of Iran's Chamber of Commerce, Industries, Mines and Agriculture said in a meeting with Malaysia's ambassador to Iran on Wednesday.

"Banking issues pose major obstacles to bilateral trade since we are facing problems of transferring money or opening letters of credit," Gholamhossein Shafei was also quoted as saying by ICCIMA's website.

He noted that both countries' officials and central bankers had constructive negotiations during President Hassan Rouhani's trip to Malaysia and it is hoped that major Malaysian banks resolve their issues as soon as possible to boost bilateral trade.

Prior to this, CBI's official website had reported that Malaysian central bank deputy governor, Encik Abdul Rasheed, welcomed the prospects of improving bilateral banking cooperation, saying Iranian banks will certainly have more room to operate in Malaysia following the signing of the agreement between their central banks.

The two countries drafted the first agreement on banking collaboration in April, which will be signed by the governors of their respective central banks.

This is while an Iranian banking delegation visited Kuala Lumpur, the capital of Malaysia, in February and met with senior managers of Malaysian commercial banks and officials of central bank (Bank Negara Malaysia).

Malaysian Ambassador to Iran Rustam Bin Yahaya announced that Malaysian Prime Minister Najib Razak will visit Iran in a month to assess banking issues, expand cooperation in information technology and communications sector and sign a preferential trade agreement between the two countries.

"Despite the fact that sanctions on Iran affected the level of our relations, they did not completely stop it and Malaysia is eager to engage in joint investment projects and mutual trade with Iran," he added.

Bin Yahaya said Iran's capacities in various sectors are unknown to Malaysian society.

"I suggest promotional programs be launched to introduce your country in Malaysia properly since people are the final consumers and they need to have a proper vision about Iran, as it is so important to increase mutual trade," he said.