Bright Prospect for Exports of Lamps, Lighting Fitting and Parts
WEDNESDAY, MAY 14, 2014, KUALA LUMPUR: Latest statistics* indicates that Malaysia is fast consolidating its position as one of the leading exporters of lamps and lighting fittings and parts products into Germany.
In 2013, the value of German’s total imports of lighting products grew by 5.17%, largely due to higher market demand. The main feature of the import figures in 2013 was the fact that Malaysia was the largest growing individual import source for Germany during this period, displacing the top three exporting countries namely China, Austria and Italy in terms of its export growth percentage.
Malaysian exports of lamps and lighting fittings and parts grew by 35.40% in 2013 and grew by 33.93% between Jan-Feb 2014 compared to the same period of the preceding year. Exports have grown from Euro2.934 million in 2008 to Euro101.381 million in 2013. The biggest segments of the exports are electrical lamps and lighting fittings and chandelier ceiling/wall lighting fitting (except public lights).
German trade in lighting products* is roughly in balance. Last year it was a net importer of all types of lighting to the tune of € 64 million. Lighting imports were valued at Euro 2.347 billion and exports atEuro 2.411 billion.
According to S.Jai Shankar, MATRADE Frankfurt’s Trade Commissioner, much of the lighting products are those related to energy savings solutions and generally of high value.
‘Germany is currently Europe’s leading energy-efficient lighting market ahead of the UK, Italy and France,’ he said, adding that the lighting emitting diode (LED) lighting market is expected to grow significantly in the near future. Some of the contributing factors include the relatively high energy prices which are forcing German architects, public investors and consumers to consider energy saving solutions.
It is estimated that the German LED lamps market turnover will grow by 27 percent p.a. until 2018. The German market for lighting is fully liberalized. Import tariffs are moderate. There are no import quotas.
According to Jai, apart from focussing directly on the German market, Malaysian exporters should also focus on exporting to countries such as Austria, Poland and the Czech Republic as these EU countries have close trading links with Germany.
Some of the areas which growth potential includes:
o Street lighting;
o Automotive;
o Outdoor lighting including garden lighting; and
o Indoor lighting including for residential and industrial units.
Malaysian exporters will also find strong potential in exports of OLED (Organic LED) based products. German decision makers are confident that OLEDs will be used for large-scale lighting systems in homes, offices and in the automotive sector in the near future. Such products may even replace conventional windows in the future as the material can remain transparent during the day and gradually illuminating as the sun sets.
Although Malaysian exporters are making significant inroads, other countries are also making similar progress. China’s exports of lamps, lighting fittings and parts to Germany have also registered strong growth over the last few years.
Some countries such as Spain, France Sweden and Slovakia have experienced moderate declines mainly as a result of Asian competition.
Increasing Asian imports including that from Malaysia is a strong indication of how lighting manufactures from Europe have been moving their productive capacity further eastwards in order to reduce costs. It also indicates their flexibility to move production facilities abroad and investment in Malaysia should also continue to be encouraged.
* World Trade Atlas
