MATRADE Triumphs in Export Acceleration Mission at China Food & Drinks Fair (CFDF 2024) in Chengdu
B2B INITIATIVES TO GENERATE OUTCOME VALUED AT RM64.13 MILLION
MONDAY, 1 APRIL 2024, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) achieved a significant milestone by organising its inaugural Export Acceleration Mission (EAM) in conjunction with the China Food and Drinks Fair (CFDF) 2024 in Chengdu, Sichuan Province from 19 to 22 March 2024. The mission, which involved 15 Malaysian companies from the Food & Beverages (F&B) sector, aimed to enhance Malaysia's visibility and presence in China, particularly in regions that offer untapped potential for Malaysian businesses.
The coordination of an Export Acceleration Mission (EAM) to Chengdu is a strategic move to reinforce China’s importance as Malaysia’s largest trading partner for the last 15 years. The western region of China, notably Sichuan Province, presents a promising avenue for Malaysian businesses. With a population exceeding 83.74 million and an urbanisation rate of 58.4%, Sichuan boasts a vast consumer base. In 2022 alone, the province recorded RMB24.10 trillion (RM16.15 trillion) in total retail sales of consumer goods, with e-commerce transactions reaching RMB4.15 trillion (RM2.78 trillion). This surge in domestic consumption, bolstered by e-commerce, signifies substantial opportunities for Malaysian businesses to enter this thriving market. Chengdu, the capital of Sichuan Province, stands out as one of China’s rapidly growing new first-tier cities, boasting substantial market potential. Its burgeoning economy and expanding consumer base make it an appealing destination for Malaysian exporters seeking to broaden their footprint in China.
The EAM was part of the 50th anniversary celebration of Malaysia-China diplomatic relations. It facilitated 244 successful business matchings, providing Malaysian companies with direct access to Chinese buyers. The EAM also included market research through visits to local retail chains as well as experiencing product showcase at the International Food & beverages zone of the CFDF. This experience provided invaluable exposure and insights into connections, regulatory requirements, market peculiarities, and business culture, crucial for refining strategies and boosting food exports to China. MATRADE's efforts have given participants a comprehensive understanding of China's dynamic food and beverage market, along with significant business opportunities for expansion, particularly in Western China. The programme has successfully recorded RM64.13 million of export sales and 1,329 trade enquiries.
Mr. Mohamad Adris Abu Bakar, the Trade Commissioner of MATRADE Chengdu, highlighted the significance of Malaysian companies' presence in Chengdu particularly during the CFDF, as an opportune moment to leverage its extensive networking opportunities. This platform allows Malaysian exporters to promote their food products by connecting directly with industry leaders and potential collaborators, thereby enhancing brand recognition and awareness in the Chinese market.
MyBizcuit Marketing, promoting digestive biscuits and spreads to the market, found the business matchings session highly valuable. Ms. Cherlyn Ng Chew Ling, Head of Export, stated, "Our company already has a presence in China, and our participation in this programme aims to expand our business to the western region. The business matchings session was beneficial as it connected us with potential buyers genuinely interested in our products, with the potential to become our partners."
MATRADE is also committed to supporting new exporters entering the Chinese market, as demonstrated by the participation of Al Hadid Golden Oasis Sdn Bhd in the EAM. The company sought MATRADE's guidance last year to expand exports in East Asia, especially to South Korea, Japan, and China. After receiving market insights, guidance on export procedures, and an introduction to a potential buyer in Chengdu from MATRADE, Al Hadid Golden Oasis Sdn Bhd decided to participate in the EAM. Recognising the importance of product fit, the company showcased high-demand products such as sardines in tomato sauce, spicy fried anchovies, tuna in olive oil, and Eel (Unagi) in barbeque sauce during the event.
Chinese buyers invited for the business matching expressed satisfaction with the Malaysian products showcased during the EAM. A local supermarket supplier praised the variety and price-performance ratio of the products, noting their suitability for the Chinese market. Another buyer, a Halal product supplier through an e-Commerce platform, found the products appealing to Chinese consumers' taste and health awareness. Importantly, the products were also Halal-certified, meeting the needs of the supplier's clients.
In 2023, Malaysia's processed food exports to China surged by 10.9%, reaching a value of RM3.95 billion. This notable growth underscores the market's potential for Malaysian food and beverage (F&B) industry players. The EAM has established a strong foundation for Malaysian businesses to expand into China, enabling them to tap into its thriving market and potentially further grow Malaysia’s food exports to China in the future.
For further information about the programmes, please contact:
Mr. Mohamad Adris Abu Bakar
Tel: +86 28 6687 7517
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Ms. Siti Nursyameen Shamsul Kamal
Tel: +603-6207 7925
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