Unveiling the Mystery of Mongolia
KUALA LUMPUR, FRIDAY, 4rd JULY 2014 – A talk on “Business Opportunities in Mongolia†organized by the Malaysia External Trade Development Corporation (MATRADE) on 3rd July 2014 at Menara MATRADE, had unveiled the mystery of the most rapidly expanding economies in the world, that is Mongolia.
A total of 50 participants attended the session presented by Dr. Saha Dhevan Meyanathan, former Country Manager of World Bank in Mongolia. A Malaysian that is still working with the Mongolian government and private sector as an independent consultant, Dr. Saha had shared his experience and knowledge about Mongolia’s current economic situation, business potentials, trade and investment opportunities as well as challenges in the market.
Mongolia is the 19th largest and most sparsely populated independent country in the world, with a population of around 3 million people. Itis a country rich in natural resources such as coal, copper, gold, iron ore and molybdenum. Mongolia’s economy has transformed from merely agri-based to manufacturing and services sector. In 2013, its GDP growth was recorded at 11.7% with services sector representing 51% of GDP, followed by manufacturing, 34% and agriculture, 15%.
According to Dr. Saha, it is now the right time for Malaysian companies to join in the bandwagon to tap into Mongolia's emerging highly affluence middle class that benefitted from Mongolia’s raid development. The consumers in Mongolia are ready to adopt foreign products and Malaysian companies have the competitive edge especially in supplying quality products and services.
Mongolia 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.
“Mongolia is definitely one of the new markets that should not be neglected by Malaysian companies in their global growth and expansion plans. Due to the stronger purchasing power, Mongolian middle and high end customers are embracing high quality products and services and the presence of many branded retail outlets in Ulaanbaatar reflects the new trend of consumption. It offers huge business and investment opportunities for Malaysian companiesâ€, said Dato’ Dzulkifli Mahmud, Deputy Chief Executive Officer of MATRADE, during his welcoming remarks.
As of 2013, Malaysia’s trade with Mongolia was valued at RM130.22 million, an increase of 42.3%. 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.
The potential of our exports further growing in the market was reflected in the strong demand for our products. For the first five months of 2014, Malaysia’s trade with Mongolia increased by 68.8% to RM59.8 million with exports increasing by 70.9% to RM59.6 million compared with the same period of last year.
