Malaysia External Trade Development Corporation

FRIDAY, FEBRUARY 21, 2014, KUALA LUMPUR: Malaysian companies that participated in theSpecialised Marketing Mission (SMM) on Aerospace & Maintenance, Repair and Overhaul (MRO) Industry to Singapore reported successful outcomes, establishing new business deals in the Asia Pacific market.

According to Malaysia External Trade Development Corporation (MATRADE), 15 Malaysian aerospace and MRO related companies participated in the mission which was held in conjunction with the Singapore Airshow 2014. A total of 215 business meetings were conducted with potential buyers and clients, arranged by MATRADE.

The event which was held from 11 – 16 February 2014 generated sales totalling RM61.6 million for a range of services and products including specialised aerospace engineering services, aircraft interior design conversion, MRO services, fixed-base operation (FBO) services, avionics system integration, safety device products and services, human capital development programs, and manufacturing of precision part and components.

The Singapore Airshow is the biggest international aerospace business platform in the Asia Pacific region. This year’s event hosted 1,000 exhibitors from 47 countries and has drawn over 40,000 trade visitors from 125 countries, including government officials, military and commercial leaders.

MATRADE took the opportunity during the show to promote its upcoming event, â€˜Kuala Lumpur International Aerospace and Defence Business Convention’ scheduled from 23 – 25 June 2014. The first to be hosted in Malaysia, the event is an excellent opportunity for leaders of the aerospace industry to connect with potential industry partners.

WEDNESDAY, JANUARY 15, 2014, KUALA LUMPUR: Latvia, which became the latest member of the Eurozone in 2014, is currently experiencing relatively strong economic growth and this will provide Malaysian companies with export opportunities in the coming years.

According to Malaysia External Trade Development Corporation (MATRADE) the country, which is one of the three Baltic States, has the potential of being the fastest growing economy in EU over the next few years. It is expected to post significant GDP growth of around 4.2 per cent in 2014 compared to the Eurozone’s 1.1 per cent. Unemployment in Latvia is set to be 10.3 per cent of the workforce in 2014, with the Eurozone average predicted to be 12.2 per cent.

The Latvian Financial Ministry has indicated that domestic consumption will determine the bulk of economic growth in 2014.

There will be opportunities for Malaysian companies interested in infrastructure projects in the Baltic state. One such project is the construction of the Rail Baltica project. The Rail Baltica project plans to create a rail line from Tallinn to Berlin in an effort to create faster connection times and boost local economies. Work on the ten-year old project is expected to begin this year. It is estimated that the project could cost up to Euro1 billion for Latvia and over Euro3 billion for the Baltic States in total. The cost of design work and operational study on the railroad section going through Latvia is expected to be about EUR1 million for 2014 and approximately EUR3.9 million in 2015.

There are also opportunities in other projects where there is allotment of European funding such as enhancement of energy efficiency in commercial buildings programmes in Latvia. The construction sector keeps growing largely due to public contracts and the EU funds projects. In 2012, construction volumes increased by 14.6 per cent, while in the third quarter of 2013 by 11.6 per cent. Increase in the sector is mainly determined by the increase in construction of residential buildings and civil engineering structures, as well as in port reconstruction. Even though construction volume is growing rapidly, it still drops behind the pre-crisis level notably.

There is also allocation of EUR118.5 million under the European Regional Development Fund (ERDF) ICT Project to install ‘The Middle Mile’, a broadband internet optical fibre network throughout Latvia which could be of interest to Malaysian companies.

MATRADE, which is Malaysia’s national trade promotion agency, highlighted that key sectors that could be of interest to Malaysian exporters is the educational sector especially those related to e-learning and usage of ICT tools as well as skills training.

Malaysian companies seeking to enter Latvia should form business alliances with European companies as preference is generally given to these firms, especially as EU funding is involved in many instances.

WEDNESDAY, FEBRUARY 12, 2014, KUALA LUMPUR: Malaysian companies participating at the Arab Health 2014 healthcare exhibition reported sales of RM215.3 million. Arab Health 2014, the Middle East’s largest healthcare show, was held at the Dubai International Exhibition Centre in Dubai, United Arab Emirates (UAE) from 27 to 30 January 2014.

A total of 32 Malaysian companies took part in the exhibition, with 15 companies participating under Malaysia External Trade Development Corporation’s (MATRADE) pavilion. Amongst the healthcare products of interests were hospital beds & medical furniture, medical gas pendants, sutures, in vitro medical devices, endotracheal tube, mobile medicine, stem cell treatment, male circumcision clamp, aerosol mask with tubing, hand sanitizer, food and health supplements, and latex examination glove. Interests to source from Malaysia were received from India, Pakistan, Egypt, Oman, Saudi Arabia, Iran, China, UAE, Germany and Turkey.

According to Mr. Mohd Mustafa Abdul Aziz, MATRADE’s Senior Trade Commissioner in Dubai, “The West Asia region is experiencing tremendous growth in the healthcare sector. The growth is attributed to a number of factors including fast growing population, liberal trade policies, adaptation of international standards in healthcare, as well as the fact that the government now recognizes the need to provide high quality healthcare to its population through privatization of health services”.

Mohd Mustafa further added “The market for healthcare products and services in the region is comparable to that of any developed part of the world. According to an industry estimate, the healthcare market in the region is around US$82 billion. The region still seems very buoyant and the healthcare sector has not yet shown any sign of being affected by the global economic slowdown. By 2025 the Middle East is expected to spend over US$123 billion on new healthcare facilities”.

Arab Health 2014 brought together over 3,900 exhibitors from more than 64 countries including 38 national pavilions. More than 85,000 trade visitors attended the exhibition and conference during the four-day show.

MATRADE and the healthcare industry will continue to work together to ensure continued presence at the world’s leading events for medical devices and pharmaceuticals industry. The forthcoming events by MATRADE to promote the healthcare products will see Malaysian companies’ participation in International Medical Fair in Singapore from 9-11 September 2014, CPhI Worldwide 2014, Paris from 7-9 October 2014 and MEDICA Dusseldorf, Germany from 12-15 November 2014. Interested Malaysian companies may contact MATRADE to participate in any of these events. 

MONDAY, JANUARY 6, 2014, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) is encouraging Malaysian exporters to look to the English-speaking Caribbean Island of Dominica for business opportunities. The Government has recently drawn up fiscal measures aimed at revitalizing the economy that would sustain a target of 2.4% of GDP in 2014 onwards.

Although Agriculture remains the economic mainstay Dominica has built up a handful of successful industries specialising in soaps, agro-processing electronic assembly, apparels, furniture, rum, candles, bottling and paints. Efforts are underway to diversify the island's production base by developing the eco-tourism industry and the offshore financial services.

According to MATRADE, Malaysia’s exports to Dominica in 2012 grew 44.4% to RM9.1 million. Machinery, appliances and parts represented the bulk of exports, accounting for 83%. This was followed by Electrical and electronics at 5.8% share, palm oil at 2.7%, transport equipment at 2.2% and wood products at 1.9%. For the period of January to October 2013, exports were valued at RM4.89 million.

Trade Commissioner of MATRADE Miami, Jonathan Rao said “Dominica is partly benefiting from its diaspora living mainly in the US, Canada, Guadeloupe and Martinique whose foreign remittances are beginning to drive in the buying power. The local supercenters and ‘Walmart’ concept retailers that carry wide assortment of items would be the best entry point for Malaysian exporters to introduce their products in Dominica. Another option would be approaching the regional wholesalers in New York, Los Angeles and California or regional transhipments for the Caribbean market”.

“Some Malaysian hot sauces distributed by a wholesaler from New York are found in the shelves of Dominica grocery stores”, he added. Among the Malaysian products that have good potential are electrical appliances, furniture, building materials, baby and adult diapers, household cleaning products, plastic disposables, cosmetics, medical products and snacks. 

Other opportunities include the development of boutique hotels and marine resort, health and wellness centres such as spa services and recuperation facility for patients after surgery and development of country-side lodges and bio-parks that incorporate the diverse natural attractions, wildlife and pristine eco-systems. 

Dominica offers fiscal incentives and other concessions for foreign investments. Some of these Incentives include granting of a tax holiday of up to 20 years for approved hotel and resort developments and exemption from payment of import duties on machinery, equipment, spare parts, packaging materials, building materials, furniture & fittings, and operation vehicles. The priority sectors for investment are tourism, manufacturing, agro-processing, information & communication technology and creative & cultural industries. Malaysian companies can contact MATRADE Miami to obtain further information on doing business in Dominica.