Malaysia External Trade Development Corporation

TUESDAY, AUGUST 26, 2014, KUALA LUMPUR: ‘It is now the right time for Malaysian companies to join in the bandwagon to tap into Mongolia's emerging market’ said Mr. Ong Yew Chee, Director of the Business Services and Building Materials Section. “Mongolia is definitely one of the new markets that should not be deserted by Malaysian companies in their global growth and expansion plans. Due to the stronger purchasing power, Mongolian middle and high end customers are receptive and have preference for high quality products and services and the presence of many branded retail outlets in Ulaanbaatar reflects the new trend of consumption. Malaysian company should further tap the potential opportunities from this growing market”, he added.

The Malaysia External Trade Development Corporation (MATRADE) will be coordinating the participation of 9 Malaysian companies comprising from food and beverages sector, creative industry, logistics and professional services at the Ulaanbaatar Partnership International Trade Fair (UBPITF) 2014, Ulaanbaatar, Mongolia, from September 11 – 15, 2014.

Malaysia’s trade pavilion is occupying a space of 108 sqm at the Misheel Expo Center, where the venue of the UBPITF will be held. Other participating countries are Belarus, South Korea, Japan, Poland and Russia.

Concurrent event during UBPITF 2014 is the 27thAsean Trade Promotion Forum (APTF) CEO Meeting from 11 – 12 September, 2014, hosted by the Mongolian National Chamber of Commerce and Industry (MNCCI), whereby MATRADE’s CEO, Datuk Dr. Wong Lai Sum is one of the invited guest speaker. The theme for this year is ‘TPOs for Sustainable Development – The Role and Engagement of TPOs in promoting Green Business, Foreign Direct Investment and Trade Facilitation.’

Mongolia despite of a small market of 3 million people is an important growing emerging market. Mongolia has undergone fundamental changes moving towards a more open economy. The country has also improved its position in the ease of doing business. Trade could be transacted in US Dollar and its matured banking system has facilitated international trade. Potential sector for Mongolian market includes infrastructure development, tourism, hotels and hospitality, healthcare, prepared food, energy sector as well as mining.

As of 2013, Malaysia’s trade with Mongolia was valued at RM130.22 million, a substantial increase of 42.3%. Malaysia’s exports to Mongolia had recorded significant growth rising 46.2% to RM128.27 million in 2013. Major exports to Mongolia consist of petroleum products, E&E products, palm oil, processed food and wood products. In addition, Malaysia’s import from Mongolia in 2013 was valued at RM1.95 million, contributed mainly from metalliferous ores and metal scrap, E&E products as well as machinery, appliances & parts.

Since 2009, Malaysia’s export to Mongolia has been growing at an average annual rate of about 30%. The potential of our exports further growing in the market was reflected in the strong demand for our products. For the first six months of 2014, Malaysia’s trade with Mongolia increased by 62% to RM65.4 million with exports increasing by 60.8% to RM64 million compared with the same period of last year. We merely import RM1.4 million from Mongolia.

Participation of ‘Julies’, one of Malaysian proud brand of biscuits and confectioneries would be among the pull factors for visitors to visit Malaysia pavilion in UBPITF 2014. ‘Julies’ are targeting for a broader and extensive presence in the Mongolian market, which aimed to be the first recognised Malaysian brand for biscuits in Mongolia. Besides food, Jeff Leong, Poon &Wong (“JLPW”) are proud to present Malaysia under the professional service industry. JLPW is an internationally affiliated law firm which advises on all aspects of legal & professional services. JLPW Mongolia Services Group, a division under JLPW, support professional, legal, technical and consultancy services providers in Mongolia, which  able to help international investors investing and doing business in Mongolia and Malaysia.