Malaysia External Trade Development Corporation

Highest Trade, Exports and Imports for January

Malaysia’s trade performance maintained its upward momentum in January 2023 with trade, exports and imports registering the highest monthly value for the month of January. Trade expanded by 1.9% year-on-year (y-o-y) to RM207.51 billion. Exports rose by 1.6% to RM112.84 billion and imports was higher by 2.3% to RM94.67 billion. Trade surplus amounted to RM18.16 billion, a decrease of 2.1%. This marked the 33rd consecutive month of trade surplus since May 2020.

The export expansion was bolstered by strong exports of petroleum products, liquefied natural gas (LNG) as well as electrical and electronic (E&E) products. Exports to major trading partners notably ASEAN and Japan recorded double-digit growth.

Compared to December 2022, trade, exports, imports and trade surplus contracted by 11.8%, 14.4%, 8.6% and 35.5%, respectively, due to shorter working days and long festive holidays.

Export Performance of Major Sectors

Exports of E&E Products Remained Robust

In January 2023, exports of manufactured goods which accounted for 84.2% of total exports decreased marginally by 0.1% y-o-y to RM94.97 billion. This was due to lower exports of manufactures of metal, rubber products as well as iron and steel products.

However, expansion in exports was seen for petroleum products, E&E products, optical and scientific equipment as well as beverages and tobacco. Collectively, exports of petroleum products and E&E products accounted for 52.2% of Malaysia’s total exports and rose by RM7.66 billion.

Exports of mining goods (9.1% share) soared by 50.1% y-o-y to RM10.23 billion, the 22nd successive month of double-digit growth which was led by higher exports of LNG.

Exports of agriculture goods (6.2% share) declined by 19.8% to RM7.01 billion compared to January 2022 due to lower exports of palm oil and palm oil-based agriculture products.

Major exports in January 2023:

• E&E products, valued at RM46.96 billion and accounted for 41.6% of total exports, increased by 4.7% from January 2022;

• Petroleum products, RM11.92 billion, 10.6% of total exports, surged by 87.5%;

• LNG, RM6.68 billion, 5.9% of total exports, surged by 62.3%;

• Chemicals and chemical products, RM5.78 billion, 5.1% of total exports, decreased by 6.6%; and

• Palm oil and palm oil-based agriculture products, RM5.29 billion, 4.7% of total exports, decreased by 23.2%.

On a month-on-month (m-o-m) basis, exports of mining goods edged up by 5.8% while exports of manufactured and agriculture goods declined by 14% and 36.4%, respectively.

Trade Performance with Major Markets

ASEAN – Exports Recorded 18th Consecutive Month of Double-Digit Growth

In January 2023, trade with ASEAN contributed 26.6% to Malaysia’s total trade, rising by 5.6% y-o-y to RM55.26 billion. Exports grew by 10.7% to RM34.1 billion, the 18th consecutive month of double-digit growth. This was underpinned by higher exports of petroleum products and E&E products. Imports from ASEAN declined by 1.8% to RM21.16 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM17.92 billion, increased by 19%;

• Thailand RM5.63 billion, ↑8.3%;

• Viet Nam RM3.90 billion, ↓7.9%;

• Indonesia RM3.47 billion, ↓1.8%;

• Philippines RM1.84 billion, ↑1.6%;

• Brunei RM588.6 million, ↑45.6%;

• Myanmar RM505.3 million, ↑50.1%;

• Cambodia RM238.5 million, ↑13.1%; and

• Lao PDR RM7.8 million, ↑112.9%.

Exports to ASEAN major markets that recorded increases were Singapore which grew by RM2.86 billion, on account of robust exports of E&E products and Thailand (↑RM431.4 million, petroleum products).

Compared to December 2022, trade, exports and imports dropped by 11.6%, 10.3% and 13.6%, respectively.

China – Exports of E&E Products Remained Resilient

In January 2023, trade with China which made up 17.8% of Malaysia’s total trade contracted by 7.9% y-o-y to RM37.01 billion. Exports to China was valued at RM14.98 billion, declined by 11.9% on lower exports of iron and steel products as well as petroleum products. However, higher exports was recorded for chemicals and chemical products as well as E&E products. Imports from China slipped by 4.9% to RM22.03 billion.

Compared to December 2022, trade, exports and imports reduced by 11.7%, 16.6% and 8.1%, respectively.

44The US – Trade Maintained Positive Expansion

Trade with the United States (US) in January 2023, which accounted for 9% of Malaysia’s total trade rose by 1.2% y-o-y to RM18.72 billion. Exports amounted to RM12.05 billion, a marginal decrease of 0.6% due to lower exports of iron and steel products as well as wood and rubber products. However, the contraction was cushioned by higher exports of E&E products, petroleum products as well as palm oil and palm oil-based agriculture products. Imports from the US edged up by 4.7% to RM6.67 billion.

On a m-o-m basis, trade, exports and imports shrank by 16.8%, 22% and 5.3%, respectively.

The EU – Trade Remained Buoyant

In January 2023, trade with the European Union (EU) which represented 8.2% of Malaysia’s total trade grew by 3.5% y-o-y to RM17.09 billion. Exports rose by 1.4% to RM9.35 billion, aided by robust exports of petroleum products, manufactures of metal as well as machinery, equipment and parts. Imports from the EU expanded by 6.1% to RM7.74 billion.

Breakdown of exports to the top 10 EU markets which accounted for 92.5% of Malaysia’s total exports to the EU were:

• Netherlands RM2.87 billion, decreased by 3.1%;

• Germany RM2.29 billion, ↓4.1%;

• Belgium RM934.9 million, ↑62%;

• France RM608.7 million, ↑40.8%;

• Spain RM546.4 million, ↑54.6%;

• Italy RM468.6 million, ↓33.2%;

• Czech Republic RM382.8 million, ↑56.1%;

• Poland RM244.6 million, ↓24.2%;

• Hungary RM181.6 million, ↓35.2%; and

• Sweden RM124.7 million, ↓16.2%.

Exports to the EU major markets that recorded growth were Belgium, which increased by RM357.7 million and France (↑RM176.3 million) due to higher exports of petroleum products, while exports to Spain rose by RM192.9 million attributed to strong exports of palm oil-based manufactured products.

Compared to December 2022, trade, exports and imports decreased by 16%, 22.9% and 5.8%, respectively.

Japan – Double-Digit Export Growth Supported by LNG

In January 2023, trade with Japan which comprised 6.8% of Malaysia’s total trade rose by 8.8% y-o-y to RM14.09 billion. Exports increased by 13.2% to RM8.19 billion, the 23rd successive month of double-digit expansion contributed by higher exports of LNG. Imports from Japan expanded by 3.2% to RM5.9 billion.

On a m-o-m basis, exports increased by 3.6% while trade and imports contracted by 3.8% and 12.5%, respectively.

Trade with FTA Partners

In January 2023, trade with Free Trade Agreement (FTA) partners which took up 68.2% of Malaysia’s total trade increased by 0.9% y-o-y to RM141.46 billion. Exports to FTA partners rose by 3.9% to RM80.03 billion and imports slipped by 2.6% to RM61.44 billion.

Increases in exports were recorded to Australia, which grew by 27.8% to RM3.63 billion and New Zealand (↑176% to RM821 million), supported by strong exports of petroleum products. Meanwhile, exports to Hong Kong SAR expanded by 4% to RM7.13 billion due to strong exports of iron and steel products, the Republic of Korea (ROK) (↑4.1% to RM4.01 billion, LNG), Mexico (↑61.5% to RM1.81 billion, E&E products) and Peru (↑103.5% to RM101.9 million, chemicals and chemical products).

Compared to December 2022, trade, exports and imports declined by 10.6%, 11.1% and 10.1%, respectively.

Import Performance

In January 2023, the three main categories of imports by end use, which accounted for 70.3% of total imports were:

• Intermediate goods, valued at RM48.56 billion or 51.3% of total imports, decreased by 3.9%, following lower imports of parts and accessories for non-transport capital goods;

• Capital goods, valued at RM9.7 billion or 10.2% of total imports, declined by 1.7%, due to lower imports of non-transport capital goods; and

• Consumption goods, valued at RM8.25 billion or 8.7% of total imports, slipped by 4.7%, as a result of lower imports of durables.

 

TRADE PERFORMANCE FOR 2022

Exports Surpassed Twelfth Malaysia Plan Target for 2025

Malaysia’s trade in year 2022 recorded a new milestone, surpassing RM2 trillion for the second consecutive year and registered the fastest growth since 1994. Trade grew with double-digit expansion of 27.8% to RM2.848 trillion compared to 2021.

Exports rose by 25% to RM1.552 trillion, exceeding the Twelfth Plan projection for 2025, three years ahead of the target. Imports recorded another milestone by surpassing RM1 trillion mark for the first time, rising by 31.3% to RM1.297 trillion. Trade surplus increased by 0.6% to RM255.1 billion, representing 25th consecutive year of trade surplus since 1998. Trade, exports, imports and trade surplus posted the largest value ever recorded.

The expansion in exports was driven by robust exports of E&E products, petroleum products, LNG, palm oil and palm oil-based agriculture products, crude petroleum as well as machinery, equipment and parts, each posted more than RM10 billion increase with double-digit growth. All these products recorded the highest export value ever except for crude petroleum. Meanwhile, exports to major trading partners notably ASEAN, China, the US, the EU and Japan registered a new record high.

Trade Performance with Major Markets

ASEAN – All Markets Recorded Strong Double-Digit Export Growth

Trade with Malaysia’s important and strategic trading partner, ASEAN, rose by 34% to RM772 billion from the previous year. Trade with ASEAN accounted for 27.1% of Malaysia’s total trade in 2022.

Exports to ASEAN constituted 29.

2% of Malaysia’s total exports, posting the highest value at RM452.9 billion, an increase of 31.8% from a year ago. This was contributed by higher exports of E&E products, petroleum products, crude petroleum as well as machinery, equipment and parts.

Breakdown of exports to ASEAN countries:

• Singapore RM232.57 billion, increased by 33.7%;

• Thailand RM65.84 billion, ↑26.2%;

• Indonesia RM56.05 billion, ↑43.1%;

• Viet Nam RM53.66 billion, ↑17.6%;

• Philippines RM28.21 billion, ↑24.6%;

• Brunei RM7.4 billion, ↑42%;

• Myanmar RM5.91 billion, ↑118.1%;

• Cambodia RM2.31 billion, ↑22%; and

• Lao PDR RM946.5 million, ↑735.6%.

Exports to all ASEAN countries recorded expansion. Singapore, Thailand and Indonesia were the top three export destinations in 2022, accounting for 78.3% of Malaysia’s total exports to ASEAN. Exports to almost all ASEAN countries registered new record high.

Exports to Singapore, the largest market in ASEAN with a share of 51.4% of total exports to the region, grew by RM58.59 billion on strong exports of E&E products. Exports to Thailand (14.5% share) rose by RM13.68 billion following higher exports of crude petroleum while exports to Indonesia (12.4% share) expanded by RM16.87 billion on account of higher exports of petroleum products.

Imports from ASEAN edged up by 37.1% to RM319.1 billion, with main imports comprising E&E products, petroleum products as well as chemicals and chemical products.

China – Exports Surpassed RM200 Billion for the First Time

In 2022, China remained as Malaysia's largest trading partner for 14 consecutive years with 17.1% share of Malaysia’s total trade, expanding by 15.6% to RM487.13 billion compared to 2021.

.Exports surpassed RM200 billion mark for the first time, expanding by 9.4% to RM210.62 billion and was the highest value ever recorded. The expansion was driven by strong exports of E&E products, LNG as well as palm oil and palm oil-based agriculture products.

China was also Malaysia’s largest import source, accounting for 21.3% of total imports, climbed by 20.7% to RM276.5 billion. Main imports were E&E products, machinery, equipment and parts as well as chemicals and chemical products.

The US – Manufactured Goods Bolstered Export Growth

Trade with Malaysia’s third largest trading partner, the US, grew by 23.3% to RM267.59 billion from the preceding year and constituting 9.4% of Malaysia’s total trade in 2022.

Exports to the US posted an all-time record high, rising by 17.5% to RM167.16 billion. The expansion was supported mainly by strong exports of manufactured goods which increased by 18% to RM164.43 billion and accounted for 98.4% of Malaysia’s total exports to the country. The expansion was backed by higher exports of E&E products, petroleum products, iron and steel products as well as optical and scientific equipment.

Imports from the US expanded by 34.4% to RM100.42 billion comprising mainly E&E products, transport equipment as well as machinery, equipment and parts.

The EU – Exports Registered the Highest Value Thus Far

Trade with the EU in 2022 which represented 7.6% of Malaysia’s total trade, grew by 20.1% to RM216.53 billion from the previous year.

Exports to the EU was up by 21.8% to RM126.31 billion, the highest value recorded thus far due to strong exports of manufactured goods which accounted for 88.7% of Malaysia’s total exports to the region. Higher exports was seen for E&E products, petroleum products, manufactures of metal, iron and steel products as well as palm oil-based manufactured products.

Breakdown of exports to the top 10 EU markets which accounted for 91.8% of Malaysia’s total exports to the EU were:

• Netherlands RM42.08 billion, increased by 35%;

• Germany RM29.98 billion, ↑5.2%;

• Belgium RM9.00 billion, ↑40.5%;

• France RM8.84 billion, ↑71.4%;

• Italy RM8.43 billion, ↑17.7%;

• Spain RM5.74 billion, ↑22%;

• Poland RM3.77 billion, ↑22.5%;

• Czech Republic RM3.59 billion, ↑9%;

• Hungary RM2.49 billion, ↑10.5%; and

• Sweden RM2.06 billion, ↑6.5%.

.Exports to all top 10 EU markets recorded increases notably the Netherlands which increased by RM10.91 billion due to higher demand for E&E products, Germany (↑RM1.48 billion, E&E products) and Belgium (↑RM2.59 billion, iron and steel products).

Imports from the EU increased by 17.7% to RM90.22 billion. The main imports were E&E products, chemicals and chemical products as well as machinery, equipment and parts.

Japan – Exports Sustained Double-Digit Growth for 2 Straight Years

In 2022, Japan remained as Malaysia’s fourth largest trading partner for eight successive years since 2015. Trade with Japan which represented 6.4% of Malaysia’s total trade, rose by 21.2% to RM181.51 billion compared to last year.

Exports registered a double-digit growth for the second successive year, expanding by 29.6% to RM98.24 billion and was the highest export value recorded. The growth was underpinned mainly by robust exports of LNG, crude petroleum, palm oil and palm oil-based agriculture products as well as E&E products.

Imports from Japan increased by 12.6% to RM83.27 billion. Major imports were E&E products, machinery, equipment and parts as well as manufactures of metal.

FTA Markets – Exports Registered Highest Value

Trade with FTA partners in 2022 recorded a double-digit growth of 26.4% to RM1.916 trillion from a year ago, accounting for 67.3% of Malaysia’s total trade.

Exports to FTA partners recorded the highest value at RM1.069 trillion, increased by 25.7% and absorbed 68.9% of Malaysia’s total exports. Major export products were E&E products, petroleum products, chemicals and chemical products, LNG as well as palm oil and palm oil-based agriculture products which contributed 65.5% of Malaysia’s total exports to FTA markets. Exports to all FTA partners recorded increases except Canada, Peru and Chile.

Export expansion were recorded to Hong Kong SAR, by 24.6% to RM95.6 billion and Mexico (↑44% to RM16.7 billion), attributed to solid exports of E&E products. Exports to Turkiye rose by 22.9% to RM17.39 billion and Pakistan (↑0.3% to RM6.02 billion), boosted by strong exports of palm oil and palm oil-based agriculture products.

Exports to Australia expanded by 41.5% to RM48.8 billion and New Zealand (↑57.6% to RM6.98 billion), led by robust exports of petroleum products. Meanwhile, exports to the ROK rose by 43.3% to RM54.78 billion, driven by higher exports of LNG and India (↑21% to RM54.69 billion, crude petroleum).

Imports from FTA partners increased by 27.3% to RM847.06 billion comprising mainly E&E products, petroleum products as well as chemicals and chemical products.

Emerging Export Markets

In 2022, significant growth in exports were recorded to the emerging markets notably Egypt, Sri Lanka, Mozambique, Papua New Guinea, Togo, Djibouti and Afghanistan.

Exports to Egypt expanded by 25.8% to RM3.61 billion, Djibouti (↑118.9% to RM1.65 billion) and Afghanistan (↑76.1% to RM1.57 billion), following robust exports of palm oil and palm oil-based agriculture products. Meanwhile, exports to Sri Lanka climbed by 14.1% to RM3.45 billion, Mozambique (↑32.6% to RM2.65 billion), Papua New Guinea (↑59% to RM2.25 billion) and Togo (↑69.6% to RM2.32 billion), boosted by strong exports of petroleum products.

Export Performance of Major Sectors

In 2022, exports of manufactured, agriculture and mining goods recorded the highest value thus far with double-digit growth. Increases in exports were seen for all products except rubber products as well as crude fertilisers and crude minerals.

Exports of Manufactured Goods Dominated by E&E products

In 2022, exports of manufactured goods accelerated by 22.3% compared to 2021 to RM1.307 trillion, making up 84.2% of total Malaysia’s exports. E&E products held the biggest share of total exports at 38.2%, grew by 30.2% to RM593.49 billion. The increase was driven by robust demand for semiconductors due to acceleration of global technology upcycle and business digitalisation.

E&E products that recorded significant export growth in 2022 were:

• Electronic integrated circuits, increased by 32.7% to RM301.65 billion;

• Parts for electronic integrated circuits, increased by 119.9% to RM43.58 billion;

• Apparatus for transmission or reception of voice, images and other data, ↑47% to RM31.19 billion;

• Photosensitive semi-conductor devices, ↑29% to RM26.11 billion; and

• Computers, ↑32.6% to RM20.56 billion.

Expansion in exports of E&E products were seen to the US, Singapore, China and Hong Kong SAR.

Other manufactured products that registered significant export expansion in 2022 were:

• Petroleum products, increased by 69.4% to RM163 billion;

• Machinery, equipment and parts, ↑21.1% to RM60.45 billion;

• Chemicals and chemical products; ↑14% to RM80.61 billion;

• Optical and scientific equipment, ↑20.8% to RM56.69 billion;

• Palm oil-based manufactured products, ↑26.5% to RM41.36 billion; and

• Iron and steel products, ↑13.4% to RM33.35 billion.

Agriculture Goods – All Products Recorded Export Expansion

In 2022, exports of agriculture goods was valued at RM120.94 billion, expanded by 23.3% from the previous year and comprised 7.8% share of total exports. The growth was led by higher exports of palm oil and palm oil-based agriculture products which grew by 27.3% to RM96.53 billion. All agriculture products recorded expansion in exports.

Mining Goods – LNG and Crude Petroleum Drove Export Growth

In 2022, exports of mining goods which made up 7.5% share of total exports surged by 67.7% to RM117.01 billion compared to 2021. This was supported by strong exports of LNG which leaped by 78% to RM67.99 billion and crude petroleum (↑71.7% to RM31.55 billion).

Performance of Imports

Intermediate Goods Accounted for the Largest Share of Imports

In 2022, Malaysia’s total imports rose by 31.3% to RM1.297 trillion compared to 2021. The three main categories of imports by end use which accounted for 71.7% of total imports in 2022 were:

• Intermediate goods, valued at RM705.74 billion or 54.4% share of total imports, increased by 29.3%, due to strong imports of primary fuel and lubricants;

• Capital goods, amounted to RM120.32 billion or 9.3% of total imports, grew by 15.9%, on account of higher imports of non-transport capital goods; and

• Consumption goods, totalled RM104.13 billion or 8% of total imports, expanded by 24.1%, as a result of growing imports of processed food and beverages mainly for household consumption.

China remained as the largest import source since 2011, followed by Singapore, Taiwan, the US and Japan. These markets contributed 54.1% to Malaysia’s total imports. Meanwhile, imports from ASEAN was valued at RM319.1 billion or 24.6% share of Malaysia’s total imports and imports from the EU amounted to RM90.22 billion with a share of 7%.

TRADE PERFORMANCE FOR DECEMBER 2022

Highest Trade, Exports and Imports for December

Malaysia’s trade remained sturdy in December 2022 with trade, export and imports registering new record high for the month of December. Trade rose by 8.6% to RM236.02 billion compared to December 2021. Exports increased by 6% to RM131.89 billion and imports was higher by 12% to RM104.13 billion, resulting in a trade surplus of RM27.76 billion, a decrease of 11.8%.

The export expansion was underpinned by higher exports of petroleum products, E&E products and LNG. Meanwhile, exports to major trading partners notably ASEAN, the EU and Japan recorded double-digit growth.

Compared to November 2022, exports and trade surplus grew by 1.7% and 27.6%, while trade and imports contracted by 0.7% and 3.5% respectively.

Export Performance of Major Sectors

Petroleum Products and E&E Boosted Manufactured Exports

In December 2022, exports of manufactured goods which accounted for 83.7% of total exports grew by 4.6% year-on-year (y-o-y) to RM110.39 billion, underpinned by petroleum products and E&E products which respectively posted more than RM1 billion increase.

Exports of agriculture goods (8.4% share) declined marginally by 0.2% to RM11.04 billion compared to December 2021 on the back of lower exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (7.4% share) increased by 31.6% y-o-y to RM9.74 billion, the 21st successive month of double-digit growth led by higher exports of LNG.

On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods climbed by 0.6% and 24.5% respectively while exports of mining goods contracted by 6.2%.

Performance of Imports

Imports Recorded Double-Digit Expansion Since February 2021

Imports in December 2022 recorded double-digit growth for 23 consecutive months, rising by 12% to RM104.13 billion compared to the same month last year. Imports of intermediate goods grew by 7.1% to RM54.8 billion, capital goods (↓2.2% to RM10 billion) and consumption goods (↑17.1% to RM9.34 billion).

TRADE PERFORMANCE FOR FOURTH QUARTER 2022

Highest Fourth Quarter Ever for Trade, Exports and Imports

Trade for the fourth quarter (Q4) of 2022 increased by 14.8% to RM718.71 billion, compared to Q4 2021. Exports rose by 11.8% to RM393.14 billion and imports expanded by 18.7% to RM325.56 billion. This was the highest value for trade, exports, and imports recorded for Q4 thus far. Meanwhile, trade surplus decreased by 12.6% to RM67.58 billion.

Compared to the third quarter (Q3) of 2022, trade surplus rose by 4.8% while trade, exports and imports slipped by 7.2%, 6.3% and 8.3% respectively.

TRADE OUTLOOK FOR 2023

Malaysia’s trade performance is expected to grow at a softer pace in year 2023. This is in tandem with the outlook by World Trade Organization (WTO) which anticipated global trade to grow by 1%.

In 2023, Malaysia’s trade is expected to grow by 1.3% while exports and imports are estimated to increase by 2.2% and 0.2% respectively as reported by Ministry of Finance (MOF) in its Economic Outlook 2023. This was due to global uncertainties arising from inflationary pressures, prolonged geopolitical tensions, exporters’ capacity in meeting environmental, social and governance (ESG) market demands, disruption in global supply chains and volatility in commodity prices. Nevertheless, continuous demand for manufactured good especially E&E products will support trade growth due to technological advancement.

 

THURSDAY, 26 JANUARY 2023, KUALA LUMPUR: While the far-reaching impact of the Covid-19 pandemic has proven devastating to the world, it was also the vanguard that demonstrated the true value of Malaysian healthcare players. Riding on current market trends, the Malaysia External Trade Development Corporation (MATRADE) is further intensifying efforts to promote the exports of Malaysian medical devices and healthcare services globally.

MATRADE continues to create export opportunities for Malaysian medical devices and healthcare services in the Middle East and North Africa (MENA) region by spearheading the participation of Malaysian companies at Arab Health 2023, which will be held in Dubai, United Arab Emirates (UAE) from 30 January - 2 February. This year marks MATRADE’s 19th year of participation in this iconic event.

MATRADE is organising the participation of ten (10) Malaysian medical devices and pharmaceutical companies at Arab Health 2023, namely, KPJ Healthcare Berhad, UEM Edgenta Berhad, Ain Medicare Sdn Bhd, Xepa-Soul Pattinson (Malaysia) Sdn Bhd, Ming Medical Sdn Bhd, Muzamal Industries Sdn Bhd, Timo International Sdn Bhd, TPE Healthcare Sdn Bhd, TUD Sdn Bhd and Twin Catalyst Sdn Bhd. Various high-value products and services from Malaysia will be promoted to over 50,000 global visitors expected at the event including medical consumables, pharmaceuticals, healthcare and wellness products and services.

According to the Director of Lifestyle and Life Sciences MATRADE, Razida Hanim Abdul Razak, MATRADE’s first participation at Arab Health was in 2005 under the National Pavilion and the exhibition continued to offer Malaysian companies a platform to connect with hundreds of local and international suppliers and buyers in different product categories, build connections and keep up with the new technological trends and innovations in the industry, all in one place. The Arab Health exhibition is in its 48th edition this year and undoubtedly, its stature as the premier healthcare trade platform is very much undisputed for many exhibitors. To date, the Arab Health exhibition has moved beyond the regional perspective and now attracts global trade visitors that have marked the event in their annual calendar, she added.

“Observing current trends, we anticipate that there will be steady global demand for Malaysian quality healthcare products for 2023 while the MENA region offers high potential exports opportunities for Malaysia. Overall, demand for healthcare related products and services in MENA is expected to reach RM33.31 billion (USD7.92 billion) in 2025. Participation in renowned large-scale events such as Arab Health will help to boost our Malaysia’s branding among buyers,” said Razida.

In 2022, the top-five export destinations for Malaysian medical devices in the MENA region were Saudi Arabia, UAE, Egypt, Qatar, and Morocco. Collectively, these markets contributed 77.32 per cent of Malaysia’s exports of medical devices to the region. Exports of medical devices to MENA region during this period registered at RM316.1 million.

Throughout the years, Malaysian medical devices have been well accepted globally, supported by Malaysia’s reputation as the world’s leading exporter of medical gloves and catheters, which are some of the key products categorised under Medical Devices. Malaysian products and services have always been regarded to be of good quality and competitively priced. They are well sought after by visitors looking for the segment of products that we are offering.

While opportunities are abundant, Malaysian participants are encouraged to frequently visit the market to understand the market dynamics and business culture in addition to following up with potential regional business partners. Regular visits are necessary to build long term understanding and trust for successful ventures.

THURSDAY, 12 JANUARY 2023, JEDDAH: Saudi-based Mrasi Almamoura Group has entered into a strategic partnership with two Malaysian companies, Syed Food Industry Sdn. Bhd., an established food service operator and Fario Holdings Sdn. Bhd, a technology-driven coffee retail provider for the development and distribution of products, including Ready-To-Eat (RTE), Ready-To-Cook (RTC) and beverages that caters to the Hajj and Umrah sector, as well as the growing hospitality sector in the region.

The partnership was firmed during a signing ceremony held at the Jeddah Superdome, in conjunction with the second edition of the Hajj and Umrah Services Conference and Exhibition 2023, organised by Saudi’s Ministry of Hajj and Umrah that gathers global entrepreneurs and innovators to showcase advancements in improving the experience of pilgrims visiting the Two Holy Mosques.

In the agreement, Syed Food Industry would provide solutions for Mrasi Almamoura to offer retort packed meals to pilgrims, offering a diverse range of flavours such as South East Asian, Western and Middle Eastern cuisines, while Fario Holdings pioneering digital and automated kiosk under the brand of Coffee Star brings convenience by providing freshly brewed coffee and selected beverages to consumers.

According to Mr. Syed Aziz Khan, Group Chief Executive Officer of Syed Food Industry, in order to cater to the diverse and large number of pilgrims and tourists performing the Hajj and Umrah yearly, it is important to ensure that food safety and quality is maintained at all times, and one way to achieve that is through retort packed food.

He added, “Our forte has been providing large-scale F&B solutions and now we have implemented Industry 4.0 technology in our food production facilities. The hospitality sector will be the initial focus in this collaboration, but in the future, we are considering expanding these cutting-edge services and innovative food services by working with local partners to fulfil the demands of the transportation, education, health care, and defence sectors as well.

For Mr. Raja Ahmad Fauzan, the Coffee Enthusiastic Officer (CEO) of Coffee Star, this partnership represents their maiden step towards bringing an innovative business model to the world. “We look forward to contribute effectively to spurring tremendous convenience for pilgrims through our technology,” he said.

“Truly, it is the beginning of something exciting for both companies as we are poised to offer convenient ways for pilgrims to enjoy their coffee. We also appreciate and recognise the leading efforts by MATRADE and other government agencies involved in providing instrumental support to make this possible.”

Mr. Fouad Morsi, Chief Executive Officer (CEO) of Mrasi Almamoura said, “It is a pleasure to be partnering with both companies as they both share our vision and values in offering innovative and convenient food services for the benefit of pilgrims. This is also aligned with the Saudi government’s vision to deliver safe and quality food for public consumption”.

The Trade Consul of the Commercial Section (MATRADE) of the Consulate General of Malaysia, Jeddah Mr. Faizalkhan Jaafar who was present to witness the ceremony, commended efforts made by the Malaysian and Saudi counterparts to leverage on the strength and expertise each company has.

“In Malaysia, retort food technology started to gain traction in the mid-1980s and throughout the years various researches and development has been made to improve the quality, taste and sustainability of retort packed products. Besides preserving the shelf life of exported food, it also reduces food surplus, especially in the hospitality and food service sector, which is in tandem with Saudi’s Vision 2030 to reduce wastage of agri-food resources”, Mr. Faizalkhan commented.

Under Saudi Vision 2030, the Kingdom aims to increase the number of pilgrims to 30 million by improving the delivery of services in logistics, healthcare, technology and tourism sector amongst others.