Malaysia External Trade Development Corporation

Thursday, April 21st, 2016, Kuala Lumpur: Malaysia External Trade Development Corporation (MATRADE) is gearing ups its efforts to improve the awareness of Malaysian services providers in export, by organising the first ever Services Export Forum 2016 at Menara MATRADE today.

Officiated by the Minister of International Trade and Industry YB Dato’ Sri Mustapa Mohamed, the Services Export Forum aims to push the export performance of Malaysian services to greater heights. The event is expected to host over 500 participants comprising Malaysian companies from the construction, ICT, architecture, oil & gas, Machinery, Repair and Overhaul (MRO), logistics, training and Islamic Finance industry.

According to MATRADE’s chief executive officer, Dato’ Dzulkifli Mahmud, the initiative to organise the forum is timely as the services sector has not reached its full potential to expand globally. “Malaysian services providers have a lot to offer to the world but we need more local players to venture into export. Additionally, those who are already in export, need to continue pushing their limits further,” Dato’ Dzulkifli said.

Services Export Forum 2016 will feature a number of speakers from AirAsia Berhad; Malaysian Association of ASEAN Young Entrepreneurs ; MDEC and Health Tourism Council. The speakers will be speaking on a topic titled ‘Taking the Big Step into the International Market’.

Another key component of the event is an experience-sharing session involving Malaysian companies namely Muhibbah Engineering (M) Berhad, AJM Planning and Urban Design Group Sdn Bhd

The Services Export Forum also sees the launch of Malaysian Incorporated Services Berhad (Malaysian Inc) -- a brainchild of the National Professional Services Export Council (NAPSEC). Malaysian Inc has been tasked to act as a facilitator and value-creating consortium to bid, secure and participate in international projects and support the export of Malaysian services.

“Malaysian Inc embodies a great and strategic partnership between the private and public sector. Such collaboration should be emulated by more parties in harnessing the power of Malaysian expertise from various industries. This can greatly benefit the local players and help increase their chances to be export champions,” Dato’ Dzulkifli opined.

Complementing the launch are two exchanges of documents between Malaysian Inc with CIDB Holdings Sdn Bhd and Regions-Russia Association. The collaborations are: to establish a business platform to promote and enhance business co-operation between Malaysian Inc’s members and CIDB as well as Regions-Russia Association’s members; to organise joint events in the International markets and Malaysia; to promote and identify business opportunities in the sectors of common interests’ to encourage exchange of technology, professional services and expertise; and to establish business joint ventures and smart partnerships.

In Malaysia, the services sector accounts for about 53.9 percent of our Gross Domestic Product (GDP) and remains a key driver of growth for the Malaysian economy. The contribution of services to GDP is on an increasing trend and by 2020, the contribution of services is targeted to reach 58 percent. However, the export contribution of services is declining. Last year, the export performance for Malaysian services was on a deficit, down by 2.6 percent or RM110.26 million.

The Government, through its many initiatives such as the Services Export Fund and the introduction of Services Export Blueprint last year, among many others, will drive the growth of Malaysian services in export.

With the realisation of the ASEAN Economic Community or the AEC, the region will move towards better integration and a more facilitated mobility of skilled workers and professionals across the region that could benefit the progression of Malaysia’s export in services. Complementing these are the regional agreements such as the ASEAN Framework Agreement on Services (AFAS) that calls for services liberalisation.