MATRADE’S Promotion of Malaysia's Capabilities in Machinery and Equipment to Germany Created Export Opportunities

FRIDAY, 5 NOVEMBER 2021, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE), helped create export opportunities for Malaysian Machinery & Equipment (M&E) companies by organising a virtual Export Acceleration Mission (EAM) on M&E sector to Germany.  The mission took place from 18 to 22 October 2021, participated by 18 Malaysian M&E companies and generated potential export sales of around RM55 million.

MATRADE organised the mission in collaboration with the German Association for Supply Chain Management, Procurement and Logistics (BME).  This is part of MATRADE’s continuous collaboration with BME to position Malaysian M&E companies in the German supply chain.

Among the M&E products promoted to the German buyers at the mission included automation engineering parts, die-casting components, metal stamping machine parts, milling & turning parts, assembly for ventilation system, wire harness and strapping machine, jigs and fixtures, injection moulding precision tools and components used for various sectors such as automotive, medical devices, consumables, industrial applications, consumer electronics, office automation, home appliances as well as aerospace.

The objectives of the mission were to promote Malaysian M&E related products and services as well as to position Malaysia as major hub for M&E sector in the South East Asia region. The mission’s programmes comprised a webinar entitled “Unlocking Opportunities for Export Growth - Procurement Requirements of German Companies” and a series of pre-arranged virtual business meetings (eBizMatch) between the Malaysian companies and German buyers.

“Malaysia has been a choice destination by multinational companies to outsource their manufacturing processes and automation solutions in the South East Asia or ASEAN region, due mainly to availability of high skill manpower in supporting industries, R&D and engineering design activities.  Following the supply chain diversification, German companies are looking for machinery parts, components and automation solutions to support their industrial engineering, product design and technology development as well as business operations across the globe”, said Madam Sharimahton Mat Saleh, MATRADE’s Deputy Chief Executive (Export Acceleration) at the opening of the virtual mission.

Mr. Olaf Holzgrefe, Head of International Business Development & Affairs, BME said that in these challenging times with COVID-19 and the current supply-chain challenges, supplier sourcing programmes alike to what we are organising today in collaboration with MATRADE, will assist both German and Malaysian companies to establish new business partnerships. After the successful pilot programme in 2020, we are looking forward in creating new business linkages between Germany and Malaysia again.

According to Mr. Naim Abdul Rahman, Director of E&E, ICT, Machinery & Equipment Section, MATRADE, M&E is an important sector to Malaysia due to its extensive linkages to other economic sectors.  Malaysia’s capabilities in the M&E sector are noticeable in several areas such as in the Specialised M&E for specific industries like E&E, O&G and other industries; General Industry M&E like heating & cooling equipment, material handling equipment, pumps, compressors and storage tanks; Power Generating M&E like industrial boilers and power generating sets, as well as Machine Tools and Metalworking Machinery.

Malaysia has developed capable home-grown companies not only in the manufacturing and processing of precision machining parts, but also in the system assembly and integration in all the segments within M&E, added Mr. Naim.

Malaysian M&E players that participated in the mission include Tonasco, Swift Bridge Technologies, Professional Tools & Dies, SP Teams, Newbillion Precision Metal and H.H Precision Mould. 

Germany is an important market for Malaysia’s M&E exports.  Germany was the largest export market in Europe, with value of US$248.81 million, and share of 2.6 of the total M&E exports in 2020. Germany remained as Malaysia’s largest trading partner within the EU region, while Malaysia maintained its position as the largest trading partner among ASEAN countries for Germany.

Updated by Corporate Communication Unit

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