Annual Report 2019

Sustaining Export Development MATRADE Organisation // 15 MESSAGE OF CHIEF EXECUTIVE OFFICER WHAT HAVE WE DONE? MATRADE, with its 46 offices across the world, continued to drive its mandate of making Malaysia a globally competitive trading nation despite the slowdown in the trade and economic environment. Export strategies continue to be strengthened with emphasis on two key aspects, namely capacity development of exporters and the implementation of export promotional programmes. These programmes target specific groups such as small and medium enterprises, mid- tier and bumiputera-owned companies as well as women and youth enterprises. MATRADE’s objective is to ensure Malaysian companies are capable of meeting ongoing market dynamics and remain competitive in the global supply chain. MATRADE focuses on high value and technology-based sectors such as E&E, ICT, aerospace, transport equipment and medical devices besides maintaining trade presence where Malaysia has advantages such as in halal products, furniture, oil palm products as well as rubber and wood based products. These sectors are identified based on development strategy outlined by the Companies Development Programme (MTCDP), Bumiputera, Women and Youth Exporters’ Development Programme (BWYEDP) and Bumiputera Initiatives for Globalisation (BIG). MATRADE’s eTRADE programme was effectively implemented to leverage on the growing global online trade. With the rapidly changing global environment, MATRADE provides online market intelligence to ensure exporters are updated on the latest information. Information is also disseminated through various export training programmes and advisory services provided throughout the year. MATRADE works closely with various government agencies, chambers of commerce, industry associations and NGOs in planning and implementing export strategies to ensure the continuity of its efforts towards making Malaysia a competitive trading nation. Cooperation between various government agencies led to the establishment of the Export Promotion Programmes Coordination Committee or also referred to as JK-X, chaired by the Chief Secretary to the Government with MATRADE as the secretariat. The first JK-X meeting was held in 2019. Eleventh Malaysia Plan (RMK-11) and Industry 4.0 (Industry 4WRD). MATRADE adopts the strategy of diversifying markets to reduce the dependency on selected markets based on current economic developments. Besides countries where Malaysia has free trade agreements such as ASEAN, Korea, India and Turkey, the focus is also on emerging markets such as Central Asia, West Asia, Eastern Europe and countries in Africa and Latin America. MATRADE has been successful in developing exports for target groups in selected markets through international trade fairs and export acceleration missions. MATRADE also coordinates visits for importing companies to Malaysia in conjunction with international trade fairs like MIHAS. During these visits business meetings are organised where its success is measured based on potential export sales generated by Malaysian companies. In 2019, MATRADE continued its exporters development programme to assist companies to penetrate and strengthen their position in the international markets. These initiatives include the Go-Ex Programme, Mid-Tier The trade conflict impacted global economy and trade in 2019, registering marginal growth of 0.8% and 2.4%, respectively. Given that Malaysia is the 25th largest trading country in the world having trade relations with over 200 countries, this slowdown impacted the country’s exports. The largest contraction in exports was recorded in the last quarter of 2019, by 3.2% compared to a decline of 0.9% in the third quarter.