National Trade Blueprint

8 Strategic Thrusts Objective / Pain points Diversify the country’s export revenue base with a more distributed economy. Capitalise on existing SDSI initiative and intensify efforts through collaboration. Key Stakeholders: State governments (Lead), MEDAC, MIDA, MATRADE, industry players, regional economic corridors, industry associations Implementation timeline : Medium-term (continuous effort) Action plans 1. Identify the focus products based on the overall potential of each product manufactured in the different districts a) Identify focus products based on parameters such as competitive strength, potential export markets, value adds, etc. b) Implementing agency to collaborate with state governments. and develop action plans to identify resources required to grow industry exports. 2. Promote the use of trading houses or cooperatives to help pull the resources for SMEs without scale a) Support trading houses in setting up facilities such as domestic export warehouses or quarantine complex. 3. Provide targeted assistance to the high potential SMEs (either direct or indirect) to support them to keep up with the demand and address quality issues a) Incentivise large enterprises to source materials from SMEs. b) Provide funding assistance and related policies to facilitate manufacturing and reduce cost of starting up businesses. c) Provide targeted assistance and capacity building programmes in areas of R&D, packaging, etc. 4. Organise structured and collaborative programmes to enhance the export of the key products to the overseas market a) Implementing agency to collaborate with overseas chambers to promote products under Malaysia Pavilion, through factory visits, business matchmaking, etc. b) Support this initiative through a series of “Buy Made-in- Malaysia Products” promotions. Objective / Pain points Limited local sourcing is one of the key challenges to develop or sustain local players in building a track record to enter international market. Key Stakeholders: MITI/MIDA (Lead), MITI, MATRADE Implementation timeline: Long-term Action plans 1. Identify several priority products for import substitution a) Undertake an in-depth study to understand potential import substitution opportunities. 2. Enact and ensure enforcement of import substitution policies for the targeted products a) Support trading houses in setting up facilities such as domestic export warehouses or quarantine complex. 3. Capitalise on agreements such as the Off-Take Agreement to grow partnerships between foreign and local companies in areas where Malaysia depends heavily on imported products a) Identify opportunities within sectors to implement Off-Take Agreement. b) Conduct assessments on how a potential collaboration can be done between existing foreign exporters and relevant Malaysian players. 4. Develop a database on Malaysian suppliers and producers, including a sourcing programme and information sharing systems with the multinational companies. a) The directory should be made available online and include the types of products and suppliers’ capabilities. b) Identify large leading companies and conduct a detailed study on their current sourcing operations for the targeted companies and respective input costs. Capitalise on existing “Satu Daerah Satu Industri (SDSI)” focus products and intensify promotion efforts 3.3 Promote local sourcing for strategic goods in order to support local suppliers to establish track record 3.4 Elevating Malaysia’s Strengths in Export Thrust 3: 35 National Trade Blueprint