Perbadanan Pembangunan Perdagangan Luar Malaysia

THURSDAY, DECEMBER 2, 2021, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) recently organised a virtual Export Acceleration Mission (EAM) in conjunction with Cosmoprof Asia Digital Week 2021 in Hong Kong from 8 to 16 November 2021.

Cosmoprof Asia is Asia’s leading beauty trade fair, held annually by Informa Markets since the past 25 years in Hong Kong. Due to the prevalent Covid-19 pandemic, Cosmoprof Asia Digital Week was organised to offer a digital match-making platform for buyers and sellers to interact with companies, view new product launches, place orders, meet clients and potential customers, and stay up to date on beauty trends and technology in 2021/2022.

In line with MATRADE’s mission to promote Malaysian exporters to foreign markets, the agency organised the first ever Malaysia ePavilion at Cosmoprof Digital Week 2021 platform with the participation of twelve Malaysian cosmetics and toiletries companies. In collaboration with Federation Malaysian Manufacturers-Malaysian Cosmetics and Toiletries Industry Group (FMM-MCTIG), MATRADE also coordinated a series of webinars for the foreign buyers and Malaysian companies towards highlighting Malaysia’s unique ecosystem and niche advantages for the beauty industry.

A total of 264 business meetings were successfully arranged during the EAM which generated actual sales of RM1.03 million and potential sales of RM87.67 million. Main items sourced by the buyers were OEM services for personal care products, skincare products as well as natural products. Other potential products for Malaysian companies are haircare products and face masks which are highly demanded in Hong Kong.

Two Malaysian participants, Ilyska Bioinnovation Sdn Bhd and Sky Resources Sdn Bhd have also been selected as the shortlisted companies for Cosmo Trends, a report which will feature their hero products along with twenty other products sellers from around the world as selected by the global trends’ agency, Beautystreams. The CosmoTrends report has become the beauty community referent point for buyers, bloggers, influencers, journalists, and experts to be updated with the market trends in different beauty categories. In addition, their products were featured on the Cosmoprof Asia Digital Week website, during BEAUTYSTREAMS’s webinar on 8 November 2021 and promoted in the CosmoTrends report to Cosmoprof's global database by newsletter, press release, and social media posts. Their selection proves Malaysian exporters capabilities to produce good quality, innovative products that are in demand in foreign markets.

According to Zalela Jaafar, Director of Lifestyle and Life Sciences Section of MATRADE, “The virtual EAM was a good platform for Malaysian companies to meet directly with potential buyers particularly in the Hong Kong, Macau and China. Hong Kong especially is well known for its demand of Fast-Moving Consumer Good (FMCG) products such as cosmetics and toiletries, as the city caters to the local and tourists coming to Hong Kong as well as selling their own products to other markets. Apart from that, potential to penetrate other international markets is also high as Hong Kong is one of the leading sourcing and digital supply-chain services hubs in the world, with many companies supplying to international clients around the world.”

Noor Ezzwanee Ahmad, the Trade Commissioner of MATRADE Hong Kong also shared that, “Many foreign buyers in the cosmetics and toiletries industry don’t realise that most Malaysian companies are export-ready and capable to meet the requirements of the market and the industry. Many Hong Kong buyers are looking for alternative suppliers as their existing suppliers from China, Japan and South Korea are getting more expensive and unable to meet their requirements or needs. As observed during the business meetings organised by MATRADE, most buyers are very interested with the Malaysian companies’ offers in terms of the prices and also the flexibility of producing products according to the buyers’ formula or requirements.”

She added, “We noticed that many buyers are now requesting social audits reports which shows the industry’s requirement for well-managed and sustainable business. However, some Malaysian companies are unaware of these new requests needed by the industry, especially those supplying to the American and European markets.”

Malaysian companies interested to export their products to Hong Kong can contact MATRADE Hong Kong at Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya..

TUESDAY, NOVEMBER 30, 2021, KUALA LUMPUR: MATRADE led a group of 17 Malaysian companies to explore strategic business collaborations between Malaysia and local enterprises in the exciting and rapidly growing Vietnamese market, through the Virtual Export Acceleration Mission (EAM) to Vietnam from 23 until 25 November 2021.

“This is part of MATRADE’s initiatives to support the commitment made by both governments in working together to achieve USD 18 billion bilateral trade by 2025”, said YM Raja Badrulnizam Raja Kamalzaman, Director of ASEAN & Oceania MATRADE.

Vietnam has more than 96 million population with 65% are aged 35 years old and below. The country is currently experiencing a growing middle-income group with business-friendly policies in attracting investments in the industrial sector, making it a popular destination for trade and business in ASEAN.

Raja Badrulnizam also added that, despite struggling with the impacts from the pandemic and trade dispute between world’s economic powerhouses, Vietnam has still managed to record a Gross Domestic Products (GDP) growth of 2.9% last year. It was one of the few countries that recorded positive growth amid the COVID-19 situation in 2020.

Vietnam is also actively participating in various free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP), EU – Vietnam Free Trade Agreement (EVFTA) and UK - Vietnam Free Trade Agreement (UKVFTA).

The mission featured 17 Malaysian companies in the machinery, parts & components, cosmetics & personal care products as well as food & beverages, aimed to tap into growing demand in Ho Chi Minh City, Hanoi and surrounding provinces.

These companies offer a wide range of industrial solutions such as data-driven smart solution platform and automation machineries, total beauty care products covering from tip-to-toe, and varieties of prepared meals, ready-to-drink beverages, among others. Apart from providing a platform for Malaysian companies to expand their brands’ footprint in Vietnam, this EAM is also hoped to open opportunities for Vietnamese companies to explore partnership amid uncertainty in the business environment due to the COVID-19 pandemic.

Through MATRADE’s Offices in Ho Chi Minh City and Hanoi, participating Malaysian in Virtual EAM to Vietnam were matched with potential importers, distributors, partners and clients in the online one-to-one business meeting session or better known as eBizMatch throughout the 3-day programme. A total of 142 eBizMatch were arranged with 46 Vietnamese companies, which generated RM 62.67 million of total sales. Major interests recorded for plants’ extracts derived from green biotechnology processes, feminine care and skincare products as well as hair treatment solutions.

Apart from the series of meetings, an online briefing session through a webinar was organised on 23 November in-collaboration with the Investment & Trade Promotion Center of Ho Chi Minh City (ITPC) and the Malaysian Business Chamber of Vietnam (MBC) to share on market updates and business aspects in Vietnam.

MATRADE will continue to leverage on both online and offline platforms to promote Malaysian companies’ capabilities in various industries, particularly in neighbouring ASEAN countries like Vietnam. Malaysian companies that are interested to explore business opportunities in Vietnam, Cambodia and Laos can contact MATRADE Ho Chi Minh City at Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya..

WEDNESDAY, DECEMBER 1, 2021, KUALA LUMPUR: MATRADE continues to propel the adoption of sustainability among Malaysian Micro, Small and Medium Enterprises (MSMEs), towards reinforcing their global competitiveness as export champions. The benchmarking element on sustainability has enriched the existing customised exporters development programme, via exclusive coaching session spearheaded by the graduates of Mid-Tier Companies Development Programme (MTCDP).

Deputy Chief Executive Officer (Exporters Development) of MATRADE, Abu Bakar Yusof said, “We received overwhelmed responses on the previous session conducted and continue in organising this interactive platform on sharing knowledge between Mid-Tier Company (MTC) with MSMEs. This programme encourages for closer relations between MSMEs and MTCs, besides being able to build working linkages and subsequently joining MTCs’ global supply chain in efforts to strengthen MSMEs’ global footprints.”

The benchmarking programme aims to guide the MSMEs on understanding major global trends and identifying critical elements of sustainability to be adopted and implemented. This value-added feature on exporters development is a journey to groom more export champions in the near future, increase the global competitiveness among the Malaysian exporters and strengthen their global footprints to tap into the global supply chain.

The rising demand on sustainability urges the Malaysian exporters to take control and be responsive on this matter as it will increase the impact on corporate reputation. Adoption of sustainable good practises and standard will become necessity in the near future. This has been addressed through National Trade Blueprint (NTBp) on pursuing sustainability and innovation. Several strategic recommendations that include establishment of sustainable manufacturing centre to nurture sustainable practises among Malaysian exporters and stakeholders, addressing forced labour issues while encouraging sustainability certification to promote long-term social sustainability and instillation of the concept of sustainability across the Government agencies to support the exporters in embracing the adoption of sustainability elements into their businesses.

“Sustainability has been one of MATRADE’s strategic focus in the development programme. As part of our efforts to future-proof Malaysian exporters, MATRADE has introduced Sustainability Action Values for Exporters (SAVE) initiative in 2019, where we encourage the exporters to embrace sustainability policies and practises in their businesses ad operations, particularly to equip the companies or markets that have embedded the Environmental, Social and Governance (ESG) into their principles,” he added. To date, MATRADE has established strategic partnerships with reputable organisations such as UN Global Compact, CIMB and Malaysia Green Technology Corporation (MGTC).

In line with the 12^th Malaysia Plan, MATRADE will strive to create more export champions, supporting the ongoing efforts by the Government in regenerating Malaysian economy, driving the growth of new sectors while striking the balance to ensure the socio-economic inclusiveness and sustainability.

MATRADE has successfully groomed 275 MTCs through MTCDP since the programme started in 2014. It is one of the Government’s high impact initiatives in the Malaysia’s Development Plan. In 2020, companies under MTCDP reported exports’ revenue of RM15.38 billion, an increase of 3.6% compared with the year before.

The MTCDP targets export-oriented MTCs with annual revenues between RM50 million to RM500 million for manufacturing companies and RM20 million to RM500 million for services companies. Interested companies are encouraged to contact Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya. for more details.

Trade, Exports, Imports and Trade Surplus Soared to Another All-Time HighTrade, Exports, Imports and Trade Surplus Soared to Another All-Time High

Malaysia’s trade continued its remarkable achievement in October 2021, registering another round of record high monthly value for trade, exports, imports and trade surplus. Trade expanded by 26.5% to RM202.61 billion compared to October 2020, breaching RM200 billion mark for the first time and was the ninth consecutive month of double-digit growth since February 2021. Exports rose by 25.5% to RM114.43 billion, the 14th consecutive month of year-on-year (y-o-y) expansion since September 2020. Imports was higher by 27.9% to RM88.18 billion and trade surplus increased by 17.9% to RM26.25 billion.

The export growth was boosted mainly by higher shipments of petroleum products, manufactures of metal, electrical and electronic (E&E) products, chemicals and chemical products as well as palm oil and palm oil-based agriculture products. Exports of manufactures of metal and E&E products registered the highest monthly value thus far. Meanwhile, exports to major markets notably ASEAN, China, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Exports to ASEAN registered the highest monthly value.

On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus grew by 3.6%, 3.2%, 4.1% and 0.5%, respectively.

For the first 10 months of 2021, trade expanded by 23.5% to RM1.805 trillion from the same period last year. Exports surpassed RM1 trillion in just 10 months, increasing by 25% to RM1.004 trillion and exceeded overall exports in 2020. Additionally, exports surpassed the highest annual value ever recorded in 2018. Imports rose by 21.8% to RM801.17 billion and trade surplus surged by 39.2% to RM202.58 billion. Trade, exports, imports and trade surplus registered the highest value for the period.

Export Performance of Major Sectors

Highest Export Value for Manufactured Goods

Exports of manufactured goods in October 2021 which accounted for 86.2% of total exports, reached a new high at RM98.61 billion and rose by 23.3% y-o-y. Petroleum products, manufactures of metal, E&E products, chemicals and chemical products, palm oil-based manufactured products as well as machinery, equipment and parts respectively posted more than RM1 billion increase in exports. Exports of manufactures of metal, E&E products as well as machinery, equipment and parts registered the highest monthly value ever.

Exports of manufactured goods in October 2021 which accounted for 86.2% of total exports, reached a new high at RM98.61 billion and rose by 23.3% y-o-y. Petroleum products, manufactures of metal, E&E products, chemicals and chemical products, palm oil-based manufactured products as well as machinery, equipment and parts respectively posted more than RM1 billion increase in exports. Exports of manufactures of metal, E&E products as well as machinery, equipment and parts registered the highest monthly value ever.Exports of agriculture goods (8.1% share) expanded by 28.9% to RM9.24 billion compared to October 2020, contributed mainly by higher exports of palm oil and palm oil-based agriculture products. This was the eighth consecutive month of double-digit growth since March 2021.

Exports of mining goods (5.4% share) surged by 66.7% y-o-y to RM6.14 billion, the seventh straight month of double-digit growth since April 2021. The expansion was underpinned by higher exports of liquefied natural gas (LNG) and crude petroleum.

Major exports in October 2021:

• E&E products, valued at RM42.01 billion and accounted for 36.7% of total exports, increased by 8.8% from October 2020;

• E&E products, valued at RM42.01 billion and accounted for 36.7% of total exports, increased by 8.8% from October 2020;

• Petroleum products, RM9.88 billion, 8.6% of total exports, surged by 126%;

• Manufactures of metal, RM7.78 billion, 6.8% of total exports, surged by 146.9%;

• Palm oil and palm oil-based agriculture products, RM7.36 billion, 6.4% of total exports, increased by 34.6%; and

• Chemicals and chemical products, RM6.61 billion, 5.8% of total exports, increased by 58.9%.

Compared to September 2021, exports of manufactured and mining goods rose by 4% and 3.4%, respectively while exports of agriculture goods contracted by 4.4%.

Compared to September 2021, exports of manufactured and mining goods rose by 4% and 3.4%, respectively while exports of agriculture goods contracted by 4.4%.For the period of January to October 2021, almost all products recorded export expansion. Exports of manufactured goods edged up by 25% to RM866.48 billion compared to the same period of 2020, contributed by higher exports of E&E products, petroleum products, rubber products, manufactures of metal as well as chemicals and chemical products. Exports of agriculture goods increased by 33.5% to RM77.04 billion attributed to growing exports of palm oil and palm oil-based agriculture products and natural rubber. Exports of mining goods grew by 15.3% to RM56.43 billion owing to higher exports of LNG, metalliferous ores and metal scrap as well as crude petroleum.

Trade Performance with Major Markets

ASEAN – Exports Posted an All-Time High

In October 2021, trade with ASEAN contributed 26% to Malaysia’s total trade, expanding by 27.8% y-o-y to RM52.64 billion. Exports increased by 19.5% to RM30.81 billion, the highest monthly value. This was boosted by higher exports of petroleum products, chemicals and chemical products, machinery, equipment and parts as well as E&E products. Imports from ASEAN rose by 41.6% to RM21.83 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM15.23 billion, increased by 7.1%;

• Singapore RM15.23 billion, increased by 7.1%;

• Thailand RM4.85 billion, ↑8.6%;

• Viet Nam RM4.25 billion, ↑44.5%;

• Indonesia RM3.88 billion, ↑93.4%;

• Philippines RM1.87 billion, ↑14.4%;

• Brunei RM283.2 million, ↑32.8%;

• Myanmar RM237.2 million, ↑29.3%;

• Cambodia RM206.1 million, ↑120.3%; and

• Lao PDR RM3.0 million, ↓56.9%.

Exports to major markets in ASEAN that recorded increases were Singapore which grew by RM1.01 billion, due to higher exports of E&E products, Thailand (↑RM382.3 million, chemicals and chemical products), Viet Nam (↑RM1.31 billion, E&E products), Indonesia (↑RM1.87 billion, petroleum products) and the Philippines (↑RM235.8 million, petroleum condensates and other petroleum oil).Exports to major markets in ASEAN that recorded increases were Singapore which grew by RM1.01 billion, due to higher exports of E&E products, Thailand (↑RM382.3 million, chemicals and chemical products), Viet Nam (↑RM1.31 billion, E&E products), Indonesia (↑RM1.87 billion, petroleum products) and the Philippines (↑RM235.8 million, petroleum condensates and other petroleum oil).

Compared to September 2021, trade, exports and imports rose by 3.7%, 1.8% and 6.5%, respectively.

In the first 10 months of 2021, trade with ASEAN climbed by 26.4% to RM462.84 billion compared to the same period of 2020. Exports to this region increased by 23.8% to RM277.07 billion driven by strong exports of E&E products, petroleum products, chemicals and chemical products, manufactures of metal as well as machinery, equipment and parts. Imports from ASEAN expanded by 30.4% to RM185.77 billion.

China - Robust Growth for Trade, Exports and Imports

In October 2021, trade with China which represented 18.2% of Malaysia’s total trade grew by 27.4% y-o-y to RM36.94 billion, the 11th consecutive month of double-digit expansion. Exports to China recorded a double-digit growth of 24.8% to RM17.85 billion led by higher exports of manufactures of metal, iron and steel products, chemicals and chemical products as well as LNG. Imports from China rose by 29.9% to RM19.09 billion.

Compared to September 2021, trade, exports and imports declined by 3.9%, 3.6% and 4.2%, respectively.

Trade with China during the first 10 months of 2021 increased by 27.4% to RM341.04 billion compared to the same period of 2020. Exports edged up by 19.6% to RM154.85 billion on higher exports of manufactures of metal, E&E products, LNG as well as chemicals and chemical products. Imports from China rose by 34.6% to RM186.19 billion.

The US – Trade Hit New Monthly High

Trade with the US in October 2021 which made up 9.8% of Malaysia’s total trade rose by 16.3% y-o-y to RM19.92 billion, the highest value ever recorded. Exports grew by 12.4% to RM12.62 billion on account of strong exports of E&E products. Imports from the US expanded by 23.7% to RM7.3 billion.

.On a m-o-m basis, trade, exports and imports increased by 6.2%, 2.6% and 13.1%, respectively.

For the period of January to October 2021, trade with the US climbed by 19.9% to RM176.25 billion compared to the same period of 2020. Exports was up by 29.7% to RM114.87 billion buoyed by higher exports of rubber products, E&E products, manufactures of metal as well as machinery, equipment and parts. Imports from the US grew by 5.1% to RM61.38 billion.

The EU – Trade Registered Nine Straight Months of Double-Digit Growth

Trade with the EU which comprised 7.9% of Malaysia’s total trade in October 2021 grew by 23.1% y-o-y to RM16 billion. This was the ninth straight month of double-digit growth. Exports rose by 16.7% to RM9.07 billion following strong exports of E&E products, palm oil-based manufactured products as well as petroleum products. Imports from the EU expanded by 32.7% to RM6.94 billion.

Breakdown of exports to the top 10 EU markets which accounted for 91.8% of Malaysia’s total exports to the EU were:

• Germany RM2.70 billion, increased by 15.6%;

• Germany RM2.70 billion, increased by 15.6%;

• Netherlands RM2.55 billion, ↑34.7%;

• Belgium RM659.6 million, ↑32.5%;

• Italy RM479.7 million, ↑11.5%;

• France RM407.1 million, ↓22.4%;

• Czech Republic RM392.2 million, ↑121.3%;

• Slovenia RM352.0 million, ↑10.5%;

• Spain RM327.2 million, ↓7.4%;

• Poland RM252.8 million, ↑8.4%; and

• Hungary RM200.9 million, ↓15.6%.

Exports to the EU major markets that grew were Germany which increased by RM364.9 million due to higher demand for E&E products, the Netherlands (↑RM655.8 million, petroleum products) and Belgium (↑RM161.8 million, palm oil-based manufactured products).

On a month-on-month basis, trade, exports and imports climbed by 2.6%, 2% and 3.3%, respectively.

During the first 10 months of 2021, trade with the EU was up by 24% to RM146.98 billion compared to the same period of 2020. Exports rose by 21.3% to RM84.47 billion, supported by higher exports of rubber products, palm oil and palm oil-based products as well as E&E products. Imports from the EU increased by 27.8% to RM62.51 billion.

Japan – Double-Digit Export Expansion for Eight Successive Months

In October 2021, trade with Japan which accounted for 6.4% of Malaysia’s total trade rose by 19.5% y-o-y to RM12.99 billion. Exports grew by 29.3% to RM6.75 billion, the eighth successive month of double-digit expansion since March 2021. The growth was underpinned by higher exports of LNG, crude petroleum and wood products. Imports from Japan increased by 10.5% to RM6.25 billion.

77Compared to September 2021, trade, exports and imports were up by 14.1%, 18.8% and 9.3%, respectively.

For the period of January to October 2021, trade with Japan increased by 20.7% to RM121.85 billion compared to the same period of 2020. Exports edged up by 20.6% to RM61.61 billion buoyed by higher exports of E&E products, manufactures of metal, rubber products and LNG. Imports from Japan rose by 20.7% to RM60.24 billion.

Trade with FTA Partners

In October 2021, trade with Free Trade Agreement (FTA) partners which constituted 66.1% of Malaysia’s total trade increased by 27.3% y-o-y to RM133.95 billion. Exports to FTA partners rose by 24.5% to RM75.68 billion and imports grew by 31.1% to RM58.27 billion.

Increases in exports were recorded to India, by 32.7% to RM4.17 billion due to higher exports of chemicals and chemical products, Australia, (↑77.3% to RM3.7 billion, petroleum products), the Republic of Korea, (↑14.4% to RM2.92 billion, LNG), Turkey (↑216.6% to RM1.99 billion, manufactures of metal), Pakistan (↑60.6% to RM694 million, petroleum products) and New Zealand (↑64.6% to RM533.9 million, crude petroleum).

Compared to September 2021, trade, exports and imports were higher by 2%, 0.6% and 3.8%, respectively.

Trade with FTA partners during the first 10 months of 2021 which made up 66.7% of Malaysia’s total trade, grew by 24% to RM1.203 trillion compared to the same period of 2020. Exports increased by 22.9% to RM670.74 billion and imports expanded by 25.3% to RM532.3 billion.

Import Performance

Total imports in October 2021 grew by 27.9% y-o-y to RM88.18 billion. The three main categories of imports by end use which accounted for 72.1% of total imports were:

• Intermediate goods, valued at RM48.23 billion or 54.7% of total imports, increased by 35.1%, following higher imports of parts and accessories of capital goods (except transport equipment) particularly electrical machinery, equipment and parts;

• Capital goods, valued at RM8.3 billion or 9.4% of total imports, grew by 15.1%, due to strong imports of capital goods (except transport equipment), primarily parts for machinery and mechanical appliances; and

• Consumption goods, valued at RM7.01 billion or 7.9% of total imports, rose by 10.8%, as a result of higher imports of processed food and beverages mainly for household consumption especially edible preparations.

During the period of January to October 2021, imports expanded by 21.8% to RM801.17 billion from the same period of 2020. Imports of intermediate goods grew by 24.8% to RM439.08 billion, capital goods (↑12.1% to RM84.19 billion) and consumption goods (↑12.2% to RM68.22 billion).