POSITIVE OUTCOME FOR MATRADE’S FIRST POST-SANCTION MISSION TO IRAN

FRIDAY, JUNE 10, 2016, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) concluded two of its Export Acceleration Missions (EAM) to Tehran, Iran recently with combined potential sales of RM361.2 million generated.

The initiative, the first to take place after the lifting of economic sanctions on Iran in January, involved the participation of 37 Malaysian companies.

Led by MATRADE’s CEO, Dato’ Dzulkifli Mahmud, the first mission was on the Oil & Gas sector which was held in conjunction of the 21st International Oil, Gas, Refining and Petrochemical Exhibition (IOGRPE 2016) from 5 – 9 May 2016. The second mission was on general sectors such as construction, building materials, automotive, medical devices, food & beverages, machinery and construction related services, which took place from 9 – 11 May 2016.

The potential sales recorded for the Oil & Gas mission (participated by 11 Malaysian companies) were RM184.5 million. The services sought-after by the buyers at the event ranged from Data Analysis System, Non-Destructive Testing (NDT) Services, Pressure Volume Temperature (PVT) Services, Pipeline Inspection Solution, Mechanical Pipeline & Piping Services and Instrument System Design to Real Time Data System, Fabrication and Catalyst & Waste Management.

As for the second mission, the 26 Malaysian companies involved in the mission have successfully secured potential sales of RM176.7 million. Among the top products and services enquired at the mission were total solutions services for power management and power generation, transportation, oil & gas, petrochemical and refinery industries, LED lighting, electrical accessories, electrical products, furniture and building materials as well as seasoning and spices for food industry.

MATRADE as Malaysia’s trade promotion agency has identified Iran as an important export market in West Asia. Apart from its strategic location, the lifting of the sanctions means that there will be stronger demands for urban development and a rise in consumer power in Iran – all of which pose plenty of business opportunities for Malaysian companies.

In 2015, Iran was Malaysia’s 7th trading partner among the Middle East countries. The total trade to Iran in 2015 was RM2.09 billion with export recorded at RM1.95 billion. Top products and services exported to Iran were palm oil & palm-based products (48.6% of total exports to Iran), chemical & chemical products (11.6%) and natural rubber (11.4%). Despite the challenges faced by many players in the oil and gas sector, Iran and Malaysia’s bilateral trade remains strong and both nations are now initiating more collaboration to diversify their trade with each other.