Perbadanan Pembangunan Perdagangan Luar Malaysia

TUESDAY, MAY 27, 2014, KUALA LUMPUR: The food allergy and food intolerance food and beverage (F&B) products market holds strong growth potential to Malaysian exporters due to the increasing demand from consumers for such products in European countries such as Germany.

While the market size for such products are difficult to gauge, it is estimated that Germany has Western Europe's largest market for gluten free foods (which is a subset of the food allergy/food intolerance market), with sales worth in the region of Euro250 million in 2012. Currently, it is estimated about 90 per cent of the exports are from European sources while exports from Asian countries including Malaysia are negligible.

According to S.Jai Shankar, the MATRADE Frankfurt’s Trade Commissioner, several Malaysian exporters of food and beverage have already started exploring this lucrative market. A case in point is Yuen Chun Industries Sdn Bhd, which focussed on offering gluten free products when it participated in the MATRADE-organised ANUGA 2013 trade fair.

‘Consequently, MATRADE hopes that Malaysian companies which will be participating in forthcoming food and beverage trade fairs in Europe such as SIAL Paris 2014 will be giving more focus on healthy products such as allergy-free, gluten-free or organic produce,’ Jai added. MATRADE will be organising a national pavilion during the forthcoming SIAL Paris trade fair from 19 to 23 October 2014.

He pointed out that it makes a lot of strategic sense for more Malaysian exporters to explore this growing market as Asian suppliers are clearly under-represented and there is much scope for strong future growth. ‘The market continues to register healthy growth despite the economic crisis as consumers tried to cut on their medical bills by opting for healthier food options,’ he added.

Over the years, the food allergy and food intolerance products market has gradually evolved from a nascent sector to mainstream food business in German-speaking countries, driven by a host of factors, both on the consumer and the manufacturers’ front. Other demand factors include the improvement in diagnostic technologies.

In addition, the products should also not contain glucose from wheat, fructose from corn, artificial meat and GMO food products.

This being the case, Malaysian exporters of food products, especially those with R&D capabilities should consider offering allergy-free range of their respective products to serve this niche, yet growing segment of the market.

WEDNESDAY, MAY 14, 2014, KUALA LUMPUR: Latest statistics* indicates that Malaysia is fast consolidating its position as one of the leading exporters of lamps and lighting fittings and parts products into Germany.

In 2013, the value of German’s total imports of lighting products grew by 5.17%, largely due to higher market demand. The main feature of the import figures in 2013 was the fact that Malaysia was the largest growing individual import source for Germany during this period, displacing the top three exporting countries namely China, Austria and Italy in terms of its export growth percentage.

Malaysian exports of lamps and lighting fittings and parts grew by 35.40% in 2013 and grew by 33.93% between Jan-Feb 2014 compared to the same period of the preceding year. Exports have grown from Euro2.934 million in 2008 to Euro101.381 million in 2013. The biggest segments of the exports are electrical lamps and lighting fittings and chandelier ceiling/wall lighting fitting (except public lights).

German trade in lighting products* is roughly in balance. Last year it was a net importer of all types of lighting to the tune of € 64 million. Lighting imports were valued at Euro 2.347 billion and exports atEuro 2.411 billion.

According to S.Jai Shankar, MATRADE Frankfurt’s Trade Commissioner, much of the lighting products are those related to energy savings solutions and generally of high value.

‘Germany is currently Europe’s leading energy-efficient lighting market ahead of the UK, Italy and France,’ he said, adding that the lighting emitting diode (LED) lighting market is expected to grow significantly in the near future. Some of the contributing factors include the relatively high energy prices which are forcing German architects, public investors and consumers to consider energy saving solutions.

It is estimated that the German LED lamps market turnover will grow by 27 percent p.a. until 2018. The German market for lighting is fully liberalized. Import tariffs are moderate. There are no import quotas.

According to Jai, apart from focussing directly on the German market, Malaysian exporters should also focus on exporting to countries such as Austria, Poland and the Czech Republic as these EU countries have close trading links with Germany.

Some of the areas which growth potential includes:

o          Street lighting;

o          Automotive;

o          Outdoor lighting including garden lighting; and

o          Indoor lighting including for residential and industrial units.

Malaysian exporters will also find strong potential in exports of OLED (Organic LED) based products. German decision makers are confident that OLEDs will be used for large-scale lighting systems in homes, offices and in the automotive sector in the near future. Such products may even replace conventional windows in the future as the material can remain transparent during the day and gradually illuminating as the sun sets.

Although Malaysian exporters are making significant inroads, other countries are also making similar progress. China’s exports of lamps, lighting fittings and parts to Germany have also registered strong growth over the last few years.

Some countries such as Spain, France Sweden and Slovakia have experienced moderate declines mainly as a result of Asian competition.

Increasing Asian imports including that from Malaysia is a strong indication of how lighting manufactures from Europe have been moving their productive capacity further eastwards in order to reduce costs. It also indicates their flexibility to move production facilities abroad and investment in Malaysia should also continue to be encouraged.

* World Trade Atlas

FRIDAY, MAY 16, 2014, KUALA LUMPUR: The Malaysian oil & gas SMEs that were led by Malaysia External Trade Development Corporation (MATRADE), together with Malaysia Petroleum Resources Corporation (MPRC) and Malaysian major oil & gas companies participated in the world’s foremost event for the development of offshore resources in the fields of drilling, exploration, production, and environmental protection; Offshore Technology Conference (OTC) Houston 2014 from 5-8 May 2014. OTC is a platform for offshore products and services companies to conduct businesses and also to explore new technologies in the oil & gas industry.

The Malaysia Pavilion at OTC Houston 2014 consisted of 25 companies and government agencies. Dato’ Dzulkifli Mahmud, the Deputy Chief Executive Officer of MATRADE, who led the delegates said, “During the four-day exhibition, the Malaysian SMEs had generated an impressive amount of RM735 millions of sales." Dato’ Dzulkifli added, “Sales generated for the SMEs and major Malaysian oil & gas companies were RM1.27 billion from the 208 one-to-one business meetings arranged by MATRADE”.

Dato’ Dzulkifli further explained that these sales were generated mostly in the services' sector such as the cathodic protection system; offshore logistics; inspection services on pipelines and plants; intelligent pigging services; offshore support vessels; offshore drilling; and provision of hook-up, commissioning and topside maintenance services. In the oil & gas products' sector, the sales were generated from carbon steel fittings & flanges; mechanical seals; fabrication of cabin modular / temporary living quarters; seamless steel pipes, casing & tubing; and production chemicals for the oil & gas industry.

Dato’ Dzulkifli added, “Despite the size of the Malaysian SMEs oil & gas companies; they are capable in finding their niche in OTC. These smaller companies should come together to form partnership among themselves in order to realise the economy of scale for them to be in the supplies chain of the bigger player. “

MATRADE will continue to promote oil & gas sector to the world market and provide a platform for export ready SME companies to tap opportunities in the oil & gas sector. After third consecutive year of participation, MATRADE believes that OTC Houston 2014 has created wider opportunities for Malaysia’s oil & gas products and services in the global market.

MONDAY, MAY 12, 2014, KUALA LUMPUR: The Malaysia External Trade Development Corporation (MATRADE) will be leading the participation of Malaysian companies in Showcase Malaysia, Bengaluru, India from 29 - 31 May2014. The Event will be held in the Bangalore International Exhibition Centre (BIEC). This is the 4^th edition of Showcase Malaysia in India, after Mumbai, Pune and Chennai.

Bengaluru previously known as Bangalore – the third most populous city in India with a population of more than 9.5 million, is also known as the Silicon Valley of India. Showcase Malaysia Bengaluru is an ideal platform designed to showcase high quality Malaysia made products and services from various sector to the affluent middle class population. The exhibition also targeted business community from surrounding cities in state of Karnataka and other states such as Tamil Nadu, Andhra Pradesh and Maharashtra.

According to MATRADE, “There is no better time to grab the opportunities in this phenomenal market where quarter of the total population of the city is the middle income group. This segment of population will account for 59% of India’s total consumption by 2025. The growth of middle class households will translate into huge demand for consumer and lifestyle products rangers from fast moving consumer good (FMCG) and furniture, personal care, cosmetic and various wellness products”.

Malaysian companies who are interested to join the showcase are encouraged to contact MATRADE’s officers, Madam Rosmizah Mat Jusoh at 03-62077688 (Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya.) or Mr. Irvin Francis at 03-62077685 (Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya.) or log on to the website www.matrade.gov.my for details on registration.