Malaysia External Trade Development Corporation

WEDNESDAY, DECEMBER 3, 2014, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) in collaboration with Malaysia Petroleum Resources Corporation (MPRC) is organising the participation of 14 Malaysian companies in a specialised mission for oil & gas sector to Nay Pyi Taw and Yangon, Myanmar. The mission starts today till 5 December 2014. The main focus of the mission is to facilitate Malaysian companies’ registration process with the Ministry of Energy (MOE), Myanmar Oil and Gas Enterprise (MOGE) and Energy Planning Department (EPD).

MATRADE Chief Executive Officer, Datuk Dr Wong Lai Sum said, this year’s mission is a continuation of oil & gas missions organised by MATRADE in 2011 and 2013, in which some companies including SMEs, have successfully acquired projects in the country.

Datuk Dr Wong Lai Sum added, “The mission programme includes meetings with Myanmar oil & gas authorities and key companies in Myanmar. It will also include sessions for each Malaysian participant to present their companies’ capabilities directly to the Myanmar oil & gas authorities in Nay Pyi Taw. The mission will end in Yangon where participants will be meeting PETRONAS Myanmar and contract owners such as Parami Energy Group of Companies, Daewoo E&P, Shwe Taung Group of Companies and Total E&P. MATRADE anticipates that the Malaysian companies will be able to build a strong foothold in Myanmar oil & gas market.”

Myanmar is an important natural gas producer in Southeast Asia, though its upstream hydrocarbons sector is underdeveloped. The country has increased exploration activities, allowed for greater foreign companies’ investment and cooperation in the oil & gas sectors, and introduced market reform to support the energy industry. These measures have contributed in increasing oil & gas production in the recent years. In view of the country's rapid economic growth and industrialization, export market expansions have spurred domestic energy consumption.

Myanmar has a promising 555 billion cubic metres (bcm) of proven natural gas resources and 50 million barrels of proven oil reserves. Myanmar’s oil & gas reserves have not been sufficiently explored using modern seismic technology, making it an exciting prospective exploration target. This provides enormous potential for Malaysian oil & gas companies in the upstream (exploration and production), midstream (transportation, pipeline) and in the future downstream (refinery) services providers in the oil and gas industry.

According to one participant, Dr Ragunath Bharath from Innovative Fluid Process Sdn Bhd, “We are really excited to participate in this mission as it is different compared to the previous missions I have participated under MATRADE. This year, MATRADE has arranged for us to meet up with the senior officials from MOE, MOGE and EPD as well as PETRONAS Myanmar and project owners in Myanmar.”

Dato’ Rosdin Mohd Yusup from Duta Klasik Sdn Bhd said, "Duta Klasik's participation in this mission is to follow through from our participation in MATRADE's oil & gas mission to Myanmar last year. We see that this year's mission could push through our efforts to penetrate Myanmar market and to expedite the registration process with the Myanmar oil & gas authorities".

Malaysia oil & gas delegates for this mission comprise of suppliers of spare parts and equipment, metal component such as valve and pipe fitting, mud-cooling system, SSV actuators, well-heads system, precision tools & component, and chemicals for oil & gas industry.

The participating companies for services sector in this mission offer Positive Pressure Welding Enclosure (PPWE) @ habitat services, hyrdrogen sulphide (H2S) services, basic and detail engineering services, process engineering and process safety services, construction and engineering services, non-destructive test for inspection of pipe lines installation, geophysical surveying, positioning & navigation, geotechnical engineering services, mud logging services, solution provider in reliability engineering & virtual prototyping (VP) of plants, waste handling & management. Complementing these are other services which include offshore facilities, fabrication steel, marine, regal terminal construction & petrochemical, training & consultancy, consultancy for HSE related matters, marine service operator, drilling services, operating and catering services of Offshore Support Vessels.

In 2013, Myanmar was Malaysia’s 40th largest global trading partner and the 6th largest trading partner among ASEAN member economies accounting for 0.2% of Malaysia’s total trade. In the same year, Malaysia’s total trade with Myanmar increased by 5.2% to RM2.9 billion, with exports amounting to RM2.2 billion.

MONDAY, DECEMBER 1, Kuala Lumpur: Malaysia External Trade Development Corporation (MATRADE) is spearheading the participation of nine Malaysian exhibitors in the South East Asia’s largest manufacturing exhibition, Manufacturing Indonesia 2014. This marks MATRADE’s debut in the event which will be held at The Jakarta International Expo, Kemayoran from 3 to 6 December 2014.

Malaysian companies participating in this trade event include manufacturers of tooling fabrication, precision tools, die-casting, fencing system, rubber parts and combustion heating products. The growth sector of the power generation, automotive, food processing industry, mining, aerospace and defence industry results in a convincing progression of Indonesia’s machine and cutting tools market.

The participating companies are Jati Combustion System Sdn Bhd, MTD Industries Sdn Bhd, Ply Tec Fencing System Sdn Bhd, Precisetech Sdn Bhd, Seginiaga Rubber Industries Sdn Bhd, Solid Point Precision Manufacturing Sdn Bhd, STX Precision Corporation Sdn Bhd, TCS Quality & Productivity Sdn Bhd and Wanjun Engineering Sdn Bhd.

Malaysian companies’ participation in Manufacturing Indonesia 2014 is timely given that Indonesia has been ranked as the second largest export destination for Malaysia’s machinery, appliances and parts after Singapore (between the period of January-September 2014).

It is learnt that the growth sector of the power generation, automotive, food processing industry, mining, aerospace and defence industry has resulted in a convincing growth for Indonesia’s machine and cutting tools market. In mining and power generation industry, usage of diamond tipped tools grow faster vis-a-vis cemented carbide tools. Steel & steel alloys are mostly used in fabrication of various components.

As for the aerospace & defence industry, the application of intricate components is expected to promote the use of high precision tools. Experts predict that the machine and cutting tools market in Asia Pacific is likely to grow at a CAGR (compound annual growth rate) of 9.1% (2012-2017), to reach revenues worth US$6.36 billion in 2017.

Other major exports to Indonesia are; food processing machines and parts, heating & cooling equipments and parts, machine tools and other machinery specialised for particular industries & parts, steam generating boilers, steam turbines and parts and not forgetting the agricultural machinery and parts. These top export items to Indonesia have shown positive growth for the first three quarters of 2014, indicating good potential for Malaysian companies to tap into this emerging market.

WEDNESDAY, December 3, Kuala Lumpur: Malaysia External Trade Development Corporation (MATRADE) is currently organising a Follow-Up Mission On Building Materials to Christchurch, New Zealand. The mission started on December 1 and will end on December 5 2014. It is part of MATRADE’s effort to boost the exports of building materials. The mission also offers opportunities for Malaysian companies to showcase their capabilities as a premier supplier of high value building materials products and services to the Oceania market.

A total of 11 Malaysian companies offering a wide range of building materials products will be participating in this mission. Among the products to be featured include civil engineering works, steel fabrications, aluminum doors & windows, wooden flooring, wire mesh fencing products, LED Lighting, autoclaved aerated concrete, bed frames & sofas, wooden furniture, cabinets and racks, office furniture, and solutions to indoor air as well as cleaning services for residential or commercial projects.

This mission will allow participating companies reconnect with their existing customers as well as building a strategic network for them to attract new customers in the Oceania market.

Christchurch promises a lot of potentials for the Malaysian companies. The city is currently undergoing major repairs and refurbishment works following the unfortunate earthquake that shook the city in 2011. According to a leading industry and economic analyst, BIS Shrapnel, this rebuilding effort is expected to take full force by 2015. This will increase the city’s building value (for residential and non-residential) over the next five years. The refurbishment project is also poised to drive New Zealand’s property industry to a record high value of NZ$10 billion (RM7.9) per annum.

The Malaysian delegates will be visiting CERA (Canterbury Earthquake Recovery Authority) and a construction company called Arrow International Ltd. MATRADE will be assisting Malaysian companies to coordinate business meetings with potential importers from Christchurch, Wellington and Auckland during this mission. To date, a total of 66 customised business meetings have been arranged between the Malaysian companies and 22 New Zealand-based developers and construction companies.

WEDNESDAY, November 26, Kuala Lumpur: United Arab Emirates (UAE) is increasingly turning to her Asian partners in quest to boost her oil and gas production. The nation continues to allow more foreign partners into its marginal fields especially when Asian energy companies were regularly mentioned as their priorities. The recent Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2014 is a strong embodiment of this notion.

ADIPEC took place on November 10 till 13, 2014 at Abu Dhabi National Exhibition Centre (ADNEC) and received participation of 15 Malaysian oil and gas companies. These companies were Akhtiar Jaya Sdn Bhd, Budiman Inspection Sdn Bhd, Diamond Consolidators (M) Sdn Bhd, Eralab Sdn Bhd, Innopeak (M) Sdn Bhd, Malko Flanges & Fittings Sdn Bhd, Muhibbah Engineering (M) Bhd, Mudrock Sdn Bhd, Oilfield Technical Inspection Sdn Bhd, Petrohorizon Sdn Bhd, Proeight Engineering Sdn Bhd, Romstar Sdn Bhd, Solar Alert Sdn Bhd, Solidblend Fittings and Flanges Sdn Bhd and Vista Valley Sdn Bhd.

The event was organised at a strategic location given that Abu Dhabi accounts for 94 per cent of UAE’s oil production. As the largest oil and gas event in the Middle East, ADIPEC is perceived as a good platform for Malaysian players to promote their products and services as well as expertise to the Middle East, Africa and Asia’s sub-continent.

The outcomes from this four-day exhibition were positive as the companies had managed to generate sales worth RM1.49 billion. Among the products and services negotiated with International clients at the event included supply and rental of vessel, supply of professional for oil and gas training and manpower, manufacture and supply of Christmas tree (means assembly of valves) and wellhead, supply of supervisory control and data acquisition (SCADA) system, supply of drill pipe, flanges and fittings, security and safety services, non-destructive testing and maintenance, lab study especially for high volume temperature (HVT), waste heat recovery unit (WHRU) and intelligent pigging and its maintenance.

A representative from Solar Alert Sdn Bhd stated, “ADIPEC 2014 was an ideal platform for Malaysian oil and gas companies to expose themselves to the UAE market and to find suitable agent for their products. Even though the exhibition was big in scale, the coordination by MATRADE helped Malaysian companies to be located at a strategic location.”

Another participant, Petrohorizon Sdn Bhd through its Managing Director, shared that they have received a lot of enquiries and interests from the Middle East buyers on their vessels and decommissioning works and they have also identified a few companies to be their potential agents.

ADIPEC 2014 attracted more than 1,800 exhibitors from UAE and 20 international country pavilions, with a total exhibition area spanning over 100,000 square metres. Among the major oil and gas companies at the event include Abu Dhabi National Oil Company (ADNOC), Abu Dhabi Marine Operating Company (ADMA-OPCO), Dubai Petroleum Company (DPC) and Dubai Natural Gas Company (DUGAS).

MATRADE as the national trade promotion agency will continue to promote Malaysia’s oil and gas sector to the world market and provide a platform for export-ready SME companies to tap on the sector’s prospects. Moving forward, MATRADE strongly supports ADIPEC and believes it is a good platform for Malaysian companies to venture into the Middle East market.

Oil reserves in UAE are estimated to be 97.8 billion barrels in 2014 - nearly 10 per cent of the world’s total reserves. This highlights the true potential of UAE’s oil and gas sector, waiting to be tapped by Malaysian businesses.