Malaysia Matters Podcast

This week, amidst growing concern over the increasing cost of commodities, Malaysia hosts the Developing 8 Countries (D-8) summit. The jury is still out, but talks may prove to have resulted in the subsequent ratification of a Preferential Trade Agreement on tariffs for selected commerce amongst the eight member nations.   

Calls on Sunday by Malaysian Foreign Minister Rais Yatim for the D8 to address soaring food prices and US$145 (RM475) a barrel oil led to sparing with fellow D8 member Iran, who scoffed at discussion of the price of crude during the D8 summit, an Iranian representative “saying it was not the appropriate platform.” 

Iranian official Suleiman Pour said that, unlike the Organisation of the Petroleum Exporting Countries, ‘the D8 is an economic organisation to enhance economic cooperation among member states,’ Bernama quoted him as saying.

But Rais said the rising cost of oil was pushing up food prices worldwide and that it would be ‘unrealistic’ to exclude it from the meeting.

‘In respect of the matter relating to increasing cost of oil and food, this will be included in the deliberation this afternoon,’ he said as foreign ministers convened ahead of Tuesday’s summit.

‘And if the leaders of governments will approve, it will become part of the Kuala Lumpur declaration,’ he told reporters.

‘Members have been discussing this matter… the relationship between food and the spiralling cost of energy is a real thing. Therefore, if there be any view to exclude this from such an august meeting, it would really be unrealistic.’

After bilateral talks with Iranian Foreign Minister Manouchehr Mottaki, Rais’ comments on Monday in Bernama, the national news agency, took a slightly different tone, kicking the ball back to OPEC:

According to Rais, Iran alone cannot come forward with the solution though it is one of the biggest oil producing countries in the world.

“A solution on the issue has to be collectively made. One of the biggest problems is that the oil producing countries are not clearly spelling out what they ought to do with this,” he said.

Rais also briefly addressed Iran’s nuclear program:

He said it should be acceptable if Tehran’s nuclear programme was for the purpose of creating energy and garnering of energy resources.

“It should be acceptable but the explanation must be clearly done and this is not the forum,” he added.

The D8 is an an economic development alliance constituted by member nations Iran, Malaysia, Nigeria, Pakistan, Bangladesh, Egypt, Indonesia, and Turkey