Malaysia External Trade Development Corporation

Thursday, February 25th, 2016, Putrajaya: The National Export Council (NEC) has convened again for the fourth time to deliberate on strategies and measures to boost exports. Last year, exports increased by 1.9% to RM779.9 billion compared to 2014. Trade balance in 2015 improved by 14.3% to RM94.3 billion, which marked the 18th consecutive years of trade surplus since 2008. This achievement was quite encouraging considering the challenging global economy such as the low commodity prices, currency fluctuation and economic slowdown in China.

Malaysia’s current account also remained positive at RM34.03 billion, albeit at a lower level than 2014. The combination of positive trade balance and positive current account balance reflects Malaysian economy’s strong fundamentals.

Export assumes an important role in the country’s economy as it represents 67.4% of Malaysia’s Gross Domestic Product (GDP). As Malaysia makes a stride in moving towards a developed nation status, export contribution becomes even more important.

At its first meeting for the year today, the Council endorsed the following strategies to drive exports:

1. Deepening market access through the adoption of e-commerce via the MATRADE’s eTRADE Programme especially for SMEs. The programme is an initiative under the Digital Malaysia coordinated by MDeC. It offers a cost-effective export vehicle for SMEs by utilising e-marketplaces such as Alibaba.com, eBay, amazon.com, Trade India, TMall.com and JD.com. The Government aims to increase SMEs’ export contribution to 23% by 2020 from the current 19%.

2. Pushing for more Malaysian companies to be export champions in the regional and global markets, through the Mid-Tier Companies Development Programme. The aim is to create more Multi-National Companies (MNCs) from Malaysia.

3. Intensifying the promotion to brand Malaysia through a Private-Public Partnership initiative - the 1Malaysia Promotion Programme. This programme aims to optimise the benefits of strategic collaboration between the government ministries, agencies, government-linked companies and the private sector.

4. Malaysia External Trade Development Corporation (MATRADE) as the national export promotion agency will continue to diversify export markets to the 2nd and 3rd tier cities in China, Greenfield markets in ASEAN, the Trans Pacific Partnership countries as well as emerging markets such as Africa and Central Asia. This strategy will broaden export opportunities for Malaysian companies, particularly SMEs.

5. A strategic plan to boost the production of agricultural products and enhance its exports through revitalisation of Permanent Food Production Area and Integrated Zone for Aquaculture. The plan is targeted at improving the balance of trade for agro-food products.

6. Domestic tourism promotion will also be intensified through introduction of integrated domestic holiday packages. The initiatives are intended to encourage more Malaysians to travel within the country to reduce the outflow of tourism spending and stimulate domestic economic activities.

Recently, the Prime Minister highlighted measures to increase export during the 2016 budget recalibration announcement. Among others, it includes the implementation of eVisa for travellers from selected countries. For example, tourists from China no longer require a visa or Visa-Free to enter Malaysia from 1 March until 25 December 2016.

The NEC was set up in December 2014 to steer export growth. Chaired by the Prime Minister, it comprises a total of 18 members, 11 from the public sector and 7 from the private sector.