Press Releases 2022
Making Malaysia Great in Trade
THURSDAY, 29 DECEMBER 2022, KUALA LUMPUR: Time passes by so fast that it almost feels like a year has passed in a blink of an eye and we are just days away from the new year. Looking back, the year 2022 was truly an outstanding milestone for Malaysia's trade. As Malaysia’s trade promotion organisation, Malaysia External Trade Development Corporation (MATRADE) is proud of the country’s achievement in international trade, and with a comprehensive understanding of how Malaysia’s trade has transformed through time, we will continue progressing the nation’s economic resiliency.
Our nation, a trading nation
Malaysia has always been historically associated with international trade. Our potential as a trading nation has been evident since the era of the Malaccan Sultanate. After Malaya gained its independence in 1957, our international trade continued to flourish through exports, thanks to our enormous resources in the commodity sector, particularly tin and rubber. It was in the 1960s that the commodity sector was acknowledged as the foundation of the economy, enabling Malaysia to progress economically and better realise the goals of the National Economic Policy, which had been put in place in the early 1970s.
We cultivated the capabilities of our local Micro, Small and Medium Enterprises (MSMEs) through the transfer of knowledge and technology as we welcomed more foreign direct investments since the early 1970s, particularly in the Electrical & Electronic (E&E) sector, strengthening the already burgeoning entrepreneurial culture among Malaysians. Undoubtedly, this spurred a major impetus for our reputation as an economic tiger of ASEAN at the time being one of the founding members of the regional grouping.
MATRADE was founded to capitalise on the surge in global trade and was established in March 1993 to assume responsibility as the national trade promotion agency in promoting Malaysian products and services into the international market. MATRADE’s origin actually stemmed from the Malaysian Export Trade Centre or MEXPO - an International Trade Division of the Ministry of International Trade and Industry (MITI), with a permanent exhibition centre located at the PKNS building in Jalan Raja Laut, Kuala Lumpur in the mid 80’s. The creation of a trade promotion organisation similar to JETRO in Japan is urgently needed given the high demand in introducing our ‘Made in Malaysia’ brands into the global markets.
Throughout the 1990s, Malaysia’s export grew steadily and became one of the major global exporters of E&E components as well as other manufactured goods such as value-added products of rubber, timber, palm oil and chemicals.
Creating homegrown export champions
In the current context, considering various political and geopolitical situations including market conditions and of course, the pandemic, Malaysia is among the world’s top-25 trading nations and ranked in the top-5 for ASEAN countries. As other developing countries become more competitive and Malaysia is no longer seen as a manufacturing hub with inexpensive labour, Malaysia’s trade ranking has undoubtedly declined compared to 20 years ago. Despite this, we have made great strides in our capabilities, making history in 2021 when Malaysia’s trade reached the RM2 trillion mark for the first time, barely a year after the COVID-19 epidemic.
This year, according to the latest figure published by the Department of Statistics of Malaysia, for the period of January to November 2022, Malaysia’s trade has expanded by close to 30% to RM2.613 trillion. Within this period, exports increased by 27.2% to reach RM1.42 trillion while imports rose by 33.3% to RM1.193 trillion. Trade surplus edged up by 2.6% to RM227.89 billion.
However, this is not a reason to rest on our laurels. We must continue our concerted efforts to ensure Malaysian MSMEs remain a part of the global supply chain and be prepared for any adverse changes in global economic conditions. MATRADE is placing a strong emphasis on high-value industries, developing access into new and emerging markets and creating partnerships that are in line with MATRADE’s key pillars - digitalisation, adopting values of sustainability and to be guided by the National Trade Blueprint (NTBp). We should be proud that we have strengths in high-value industries like E&E, Machinery & Equipment, Aerospace, Halal, Medical Devices, Pharmaceuticals, Healthcare, Construction, Chemicals, and Energy, to name a few, for a country with only 33 million people.
As I mentioned earlier, foreign investments in Malaysia played a significant role in the growth of Malaysia's trade over the last few decades. This is still very much the case, but it is also important to highlight that our own MSMEs contributed 37.4% of Malaysia’s GDP and 11.7% to overall Malaysia’s exports for 2021. Nonetheless, we still need to pursue the goal of a 25% contribution by MSMEs to the nation’s export by 2025 as set under the 12th Malaysia Plan and the National Entrepreneurship Policy (DKN).
Along with the advancement of technology, cross-border e-Commerce opportunities are also growing. Hence, it is vital for Malaysian MSMEs to adopt digitalisation to be more competitive globally. In 2021, Gross Value Added of eCommerce amounted to RM201.1 billion, an increase of RM37.2 billion in 2021 with a growth of 22.7%.
In the same vein, we must also recognise our Mid-Tier Companies (MTCs) significant efforts in contributing 30% of the GDP and 22% of our Malaysian workforce. Despite making up only 1% of businesses in Malaysia, MTCs play an important role in developing a competitive domestic supply chain, where 75% or more than 7,000 SMEs are involved in the MTCs export supply chain.
These achievements are testament to the success of MATRADE’s programmes in both capacity-building and trade promotion. These capacity-building initiatives generate a pool of exporters that are later promoted into the international markets through various export promotion programmes abroad led by MATRADE’s network of 46 trade offices around the world.
In the first 11 months of 2022, MATRADE has facilitated 2,266 companies through its Market Development Grant; 486 companies through the eTRADE 2.0 programme; trained 7,999 individuals through its exporters training programmes; assisted 2,681 companies to access into the global markets through various export promotion activities implemented namely participation in trade fairs, international sourcing programmes, eBizMatch as well as eBizLink programmes. MATRADE also produced countless market intelligence reports gathered from its global networks. These reports can be accessed by myExport registered users.
World-renowned trade promotion organisation
As a testament to the success in pivoting the impact of the pandemic, the 17th edition of MATRADE’s flagship annual event – the Malaysia International Halal Showcase (MIHAS) in 2021 had earned its first World Trade Promotion Organisation (WTPO) Award under the “Best Use of Information Technology” category, for MATRADE’s innovative approach in organising a fully virtual showcase. MIHAS 2021 was also recognised at the Malaysia Public Relations Awards (MPRA) 2021, clinching the Gold Award in the Best “Pandemic Pivot” or “COVID-19 Communications” campaign category adding another feather to the cap.
The 18th edition of MIHAS in 2022 once again delivered a record-breaking showcase, generating a total of RM2.36 billion in sales, surpassing its original target of RM1.9 billion. It was organised in a hybrid approach, following the reopening of borders whilst adhering to the COVID-19 safety measures.
Through MIHAS, MATRADE continues to fortify Malaysia as the heart of the global Halal hub. In this regard, businesses must realise the vast opportunities available in the international halal market and strive to capitalise on them. MATRADE is ready to assist Malaysian exporters to tap into the opportunities of the global Islamic economy, which is estimated to reach USD2.8 trillion by 2025.
The upcoming edition - MIHAS 2023 - will be held from 12 to 15 September 2023 at the Malaysia International Trade and Exhibition Centre (MITEC), Kuala Lumpur. Close to 400 booths have already been reserved by this year’s exhibitors, which reflects MIHAS’ positive rapport as a trade event.
Future-proofing Malaysia’s trade
The requirement to compete in international markets has changed significantly over the past few years. Buyers no longer base their decisions on price solely. Policymakers, numerous stakeholders, and consumers now have different expectations and are more concerned about the significance of adopting sustainability measures. Our exporters must invest in developing sustainable export strategies that promote and adopt ESG principles in their production process and global supply chains to meet changing market requirements.
Therefore, it is imperative that MSMEs development programmes are catered to help MSMEs become globally competitive. Business governance and operations including community care must be centred on socioeconomic trends. Our MSMEs need the relevant certifications, standards, labelling and global endorsement in order to compete on a global scale and in high-value markets. To do this, we must keep up our effective facilitation while pragmatically modifying some programmes to fully realised our global potential in the current economic climate.
Our MSMEs must be prepared for the digital age, which goes beyond simply having websites and includes exposing them to cutting-edge technology like the metaverse. Another key area is eCommerce marketing, which is fast becoming a necessity for companies to remain relevant. At MATRADE, we have long introduced a programme called the eTrade Programme (now eTrade 2.0) to expedite the learning and adoption of eCommerce marketing as a tool to export among our MSMEs.
We must develop new capabilities in order to further diversify our strengths. With regard to international trade, MATRADE urges all relevant parties to work with us to develop new areas of strength such as the services sector and environmentally friendly and highly innovative sectors. Currently, MATRADE has forged high-value partnerships with industry players across various segments namely, Google, DHL Express, CIMB, MGTC, SIRIM and Bank Islam, among many others.
As a way to acknowledge the contributions of Trade Associations and their crucial responsibilities as a conduit for information between the public and private sectors, MATRADE launched the Empower Trade Association Programme (ETA) this year. Trade associations actually have played a major role in encouraging exports among their members. In addition to exploring new markets, we offered support and incentives through the ETA for the promotion of high-tech, high-value and sustainable industries to help more Malaysian businesses access the global value chain. We believe the ETA will also expand bilateral or regional ties between Malaysia and our partner nations and will build extensive networks between Trade Associations in Malaysia and its counterparts overseas.
As Malaysia endeavours to strengthen existing partnerships and forge new ones with nations in the region, our nation’s commitment to free trade and open economies will bolster Malaysia's capabilities to compete in the international market and ensure economic prosperity for years to come.
Pragmatic moves ahead
Malaysian businesses have proven their agility and tenacity by adapting their production and export strategies in response to shifting market conditions. Malaysia has a number of advantages that have helped it rise to the top, most notably a robust manufacturing sector and a prime location between East and South-East Asia. The presence of Malaysian businesses in the global supply chain contributes to its stability and Malaysia can undoubtedly continue to solidify its position as a strong and reliable trading nation. Malaysia can benefit from opportunities brought about by greater globalisation and regional economic integration through Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by utilising its strategic location.
Additionally, globalisation has immense potential for Malaysia, offering wider access to markets, investment and resources to facilitate Malaysia’s economic growth. MATRADE will continue to take the lead in helping Malaysian companies to access international markets and capitalise on the benefits of globalisation.
As Malaysia continues to pursue greater international trade, there are many opportunities that can be leveraged over the next three to five years. Malaysia will see a surge in demand for its products and services, provided we address the readiness of our companies and be pragmatic in our market access approach. Malaysia’s move to position itself at the forefront of the digital economy, by leveraging its expertise in technology, communications infrastructure and local knowledge will be a key catalyst to the country’s export growth.
Most initiatives in Malaysia are focused on providing better access to resources such as finance, technology, skills and talent, and these efforts help to improve Malaysia's infrastructure and connectivity to the global economy. We must continue to strengthen our presence in international trade through the World Trade Organisation (WTO) and other regional organisations as well as encourage the use of Free Trade Agreements (FTAs) as an instrument to boost market access.
Malaysia must also be ready for changes in the nature of international trade, such as growing tariffs, protectionism and production costs. We must work concertedly to make sure that its trade laws are adaptable to these developments and that Malaysia is in a good position to take advantage of emerging opportunities in global trade, such as the digitalisation of processes, blockchain technology and eCommerce platforms.
Finally, our companies must continue to invest in their human capital and foster innovation through education and training. Investments in upskilling its workforce will help Malaysian companies remain competitive by developing innovative skills and technologies to strengthen its position in both the domestic and international markets. Malaysia must also keep its commitment to sustainable development, which is essential for the country's long-term development and success in the rapidly evolving global trade environment.
I wish to reassure our Malaysian companies that MATRADE will continue to help them access the world markets while also facilitating them in adapting to and benefitting from new market opportunities and conditions. We are confident that our exporters will be the best bridge to articulate Malaysia’s value propositions that resonate with world demands. I am also sure, with all the strategies and tactical approaches in place, we can make Malaysia great in trade.
Trade Performance for November 2022 and The Period of January - November 2022
Highest Trade, Exports, Imports and Trade Surplus for November
Malaysia’s trade continued its stellar performance and maintained an upward trajectory in November 2022 with trade, exports, imports and trade surplus registering the highest monthly value for the month of November. Trade expanded by 15.6% to RM238.17 billion compared to November 2021, the 22nd consecutive month of year-on-year (y-o-y) double-digit expansion. Exports rose by 15.6% to RM130.24 billion, the 16th successive month of double-digit growth. Imports was higher by 15.6% to RM107.93 billion and trade surplus increased by 15.6% to RM22.3 billion.
The export expansion was underpinned by strong exports of electrical and electronic (E&E) products, liquefied natural gas (LNG), petroleum products as well as crude petroleum. Meanwhile, exports to major trading partners notably ASEAN, the United States (US), the European Union (EU) and Japan recorded double-digit growth.
Compared to October 2022, trade surplus rose by 23.5% while trade, exports and imports contracted by 2.8%, 1% and 4.9%, respectively.
For the period of January to November 2022, trade expanded by 29.9% to RM2.613 trillion compared to the same period last year. Exports increased by 27.2% to RM1.42 trillion. Imports rose by 33.3% to RM1.193 trillion and trade surplus edged up by 2.6% to RM227.89 billion. Trade, exports, imports and trade surplus registered the highest value for the period.
Export Performance of Major Sectors
Manufactured and Mining Goods Registered Double-Digit Export Growth
In November 2022, exports of manufactured goods which accounted for 84.6% of total exports grew by 15% y-o-y to RM110.23 billion and was the 16th straight month of double-digit expansion. The growth was underpinned by E&E products and petroleum products, which respectively posted more than RM1 billion increase in exports.
Exports of mining goods (8% share) soared by 62.6% y-o-y to RM10.43 billion, the 20th successive month of double-digit growth led by higher exports of LNG and crude petroleum.
Exports of agriculture goods (6.8% share) declined by 11.1% to RM8.87 billion compared to November 2021 due to lower exports of palm oil and palm oil-based agriculture products.
Major exports in November 2022:
E&E products, valued at RM53.16 billion and accounted for 40.8% of total exports, increased by 32.1% from November 2021;
• Petroleum products, RM12.33 billion, 9.5% of total exports, increased by 26.4%;
• Chemicals and chemical products, RM7.16 billion, 5.5% of total exports, increased by 9.9%;
• Palm oil and palm oil-based agriculture products, RM6.81 billion, 5.2% of total exports, decreased by 14%; and
• LNG, RM6.62 billion, 5.1% of total exports, surged by 69.5%.
On a month-on-month (m-o-m) basis, exports of agriculture goods climbed by 3% while exports of manufactured and mining goods contracted by 0.8% and 7%, respectively.
.For the period of January to November 2022, almost all products recorded export growth. Exports of manufactured goods grew by 24.3% to RM1.197 trillion compared to the same period last year. This was attributed to higher exports of E&E products, petroleum products, machinery, equipment and parts, chemicals and chemical products as well as palm oil-based manufactured products.
Exports of agriculture goods rose by 26.3% to RM109.9 billion owing to higher exports of palm oil and palm oil-based agriculture products.
Exports of mining goods leaped by 72.1% to RM107.33 billion driven by strong exports of LNG and crude petroleum.
Trade Performance with Major Markets
ASEAN – Exports Recorded 16th Consecutive Month of Double-Digit Growth
In November 2022, trade with ASEAN contributed 26.6% to Malaysia’s total trade, rising by 11.6% y-o-y to RM63.46 billion. Exports edged up by 16.9% to RM38.69 billion, the 16th consecutive month of double-digit growth. This was on account of higher exports of E&E products and petroleum products. Imports from ASEAN increased by 4.1% to RM24.77 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM22.00 billion, increased by 36.3%;
• Thailand RM5.58 billion, ↑23.4%;
• Indonesia RM4.31 billion, ↑9.9%;
• Viet Nam RM3.83 billion, ↓25.2%;
• Philippines RM2.19 billion, ↓2.1%;
• Brunei RM346.0 million, ↓41%;
• Myanmar RM247.7 million, ↓29%;
• Cambodia RM111.8 million, ↓30.9%; and
• Lao PDR RM75.9 million, ↑46.7%.
Exports to ASEAN major markets that recorded increases were Singapore which grew by RM5.86 billion, bolstered by robust exports of E&E products and Thailand (↑RM1.06 billion, petroleum products).
Compared to October 2022, trade and imports rose by 0.2% and 0.9%, respectively while exports slipped by 0.2%.
In the first 11 months of 2022, trade with ASEAN expanded by 36.7% to RM709.31 billion compared to the same period of 2021. Exports to this region climbed by 33.9% to RM414.81 billion led by strong exports of E&E products, petroleum products, crude petroleum as well as machinery, equipment and parts. Imports from ASEAN increased by 40.7% to RM294.5 billion.
China – Exports of E&E Products Remained Strong
In November 2022, trade with China which made up 18.1% of Malaysia’s total trade rose by 13.5% y-o-y to RM43.18 billion, the 24th consecutive month of double-digit growth. Exports to China recorded a growth of 9.2% to RM18.85 billion as a result of robust exports of E&E products. Imports from China grew by 17.1% to RM24.33 billion.
Compared to October 2022, trade, exports and imports were up by 4%, 2.4% and 5.2%, respectively.
Trade with China during the first 11 months of 2022 increased by 17.5% to RM445.26 billion compared to the same period of 2021. Exports edged up by 12% to RM192.71 billion on account of higher exports of E&E products, LNG as well as palm oil and palm oil-based agriculture products. Imports from China climbed by 22% to RM252.55 billion.
The US – Trade, Exports and Imports Rose with Double Digit Growth
Trade with the US in November 2022, which represented 9.6% of Malaysia’s total trade rose by 15.6% y-o-y to RM22.82 billion, the 15th straight month of double-digit expansion. Exports expanded by 11.8% to RM14.59 billion attributed to strong exports of E&E products. Imports from the US edged up by 23% to RM8.23 billion.
On a m-o-m basis, exports grew by 6.2% while trade and imports shrank by 4.8% and 19.7%, respectively.
For the period of January to November 2022, trade with the US grew by 25.4% to RM245.52 billion compared to the same period of 2021. Exports rose by 18.9% to RM152.14 billion backed by robust exports of E&E products, iron and steel products, petroleum products as well as optical and scientific equipment. Imports from the US increased by 37.5% to RM93.38 billion.
The EU – Trade Remained Buoyant
Trade with the EU which accounted for 7.8% of Malaysia’s total trade in November 2022 grew by 12% y-o-y to RM18.66 billion. Exports rose by 16.3% to RM10.5 billion aided by strong exports of petroleum products, transport equipment and E&E products. Imports from the EU expanded by 6.9% to RM8.17 billion.
Breakdown of exports to the top 10 EU markets which accounted for 93.9% of Malaysia’s total exports to the EU were:
Netherlands RM3.33 billion, increased by 12%;
• Germany RM2.35 billion, ↑14.8%;
• France RM1.33 billion, ↑245%;
• Belgium RM961.2 million, ↑67.6%;
• Italy RM477.9 million, ↓33.1%;
• Czech Republic RM464.4 million, ↑3.9%;
• Spain RM392.4 million, ↓11.9%;
• Poland RM241.9 million, ↑29%;
• Hungary RM194.7 million, ↓8.4%; and
• Sweden RM122.8 million, ↓12.9%.
Exports to the EU major markets that grew were the Netherlands, which increased by RM356.6 million, due to higher exports of petroleum products, Germany (↑RM303.7 million, E&E products) and France (↑RM942.9 million, transport equipment).
Compared to October 2022, trade, exports and imports increased by 7.3%, 8.3% and 6%, respectively.
During the first 11 months of 2022, trade with the EU increased by 19.8% to RM196.14 billion compared to the same period of 2021. Exports rose by 22% to RM114.17 billion, supported by higher exports of E&E products, petroleum products and manufactures of metal. Imports from the EU was up by 16.8% to RM81.97 billion.
Japan – LNG Boosted Export Growth
In November 2022, trade with Japan which comprised 6.7% of Malaysia’s total trade rose by 20.9% y-o-y to RM15.93 billion. Exports climbed by 31.6% to RM8.89 billion, the 21st successive month of double-digit expansion contributed by higher exports of LNG. Imports from Japan expanded by 9.7% to RM7.04 billion.
On a m-o-m basis, trade and exports increased by 0.1% and 3.8%, respectively while imports contracted by 4.2%.
For the period of January to November 2022, trade with Japan rose by 23% to RM166.86 billion compared to the same period of 2021. Exports edged up by 31.2% to RM90.33 billion boosted by higher exports of LNG, crude petroleum as well as palm oil and palm oil-based agriculture products. Imports from Japan increased by 14.5% to RM76.53 billion.
Trade with FTA Partners
In November 2022, trade with Free Trade Agreement (FTA) partners which took up 67.3% of Malaysia’s total trade increased by 14.7% y-o-y to RM160.26 billion. Exports to FTA partners rose by 17.6% to RM90.88 billion and imports grew by 11.2% to RM69.38 billion.
Increases in exports were recorded to Australia, which grew by 59.2% to RM4.24 billion and New Zealand (↑29.9% to RM644.5 million), buoyed by strong exports of petroleum products. Exports to the Republic of Korea rose by 25.6% to RM4.64 billion and exports to Hong Kong SAR grew by 26% to RM8.55 billion, supported by robust exports of E&E products. Meanwhile, exports to Pakistan expanded by 13.9% to RM516.4 million following higher exports of palm oil and palm oil-based agriculture products.
Compared to October 2022, trade, exports and imports grew by 1.4%, 1.9% and 0.7%, respectively.
Trade with FTA partners during the first 11 months of 2022, which made up 66.2% of Malaysia’s total trade rose by 28.8% to RM1.729 trillion compared to the same period of 2021. Exports increased by 28.2% to RM958.75 billion and imports edged up by 29.5% to RM769.87 billion.
Import Performance
Total imports in November 2022 grew by 15.6% y-o-y to RM107.93 billion. The three main categories of imports by end use, which accounted for 72.8% of total imports were:
• Intermediate goods, valued at RM59.27 billion or 54.9% of total imports, increased by 8.2%, following higher imports of primary fuel and lubricants;
• Capital goods, valued at RM9.79 billion or 9.1% of total imports, grew by 3.2%, due to strong imports of capital goods except transport equipment; and
• Consumption goods, valued at RM9.5 billion or 8.8% of total imports, rose by 23.6%, as a result of higher imports of processed food and beverages mainly for household consumption.
During the period of January to November 2022, imports expanded by 33.3% to RM1.193 trillion compared to the same period of 2021. Imports of intermediate goods grew by 31.6% to RM650.9 billion, capital goods (↑17.9% to RM110.35 billion) and consumption goods (↑24.8% to RM94.77 billion).
Mid-Tier Companies Showed Resilience Amidst Global Challenges
TUESDAY, DECEMBER 13, 2022 KUALA LUMPUR: Malaysian Mid-Tier Companies (MTCs) have shown resiliency in braving through the pandemic with creativity in managing the businesses. Pivoting the business focus to new areas of growth and addressing the ad-hoc demand very well in serving the markets have successfully resulted in emerging business opportunities during the global lockdown and converting into export transactions.
Chief Executive Officer of MATRADE, YBhg. Datuk Mohd Mustafa Abdul Aziz shared, “Our Malaysian MTCs have weathered the storm in 2021, despite multiple of lockdowns, disruption of supply chain, shortage of raw materials and manpower. They have successfully registered RM17.8 billion of export revenue, growing nearly 15% compared to previous year. The increase in exports in 2021 was valued at RM2.4 billion. Cumulatively, alumni of MTCDP recorded RM8.33 billion in increase of export revenue since 2015. This demonstrated the resiliency of the MTCs amidst the global challenges”. He added that MTCs have shown encouraging performance by creating more than 4,000 new jobs include skilled jobs like engineers and technical positions, showing another clear piece of evidence of their resiliency during the height of pandemic and job cuts were rife.
MATRADE continues to enrich the Mid-Tier Companies (MTCs) through their signature platform, MTCs CEO Summit 2022, with the theme “Strengthening Resilience, Powering Export Growth”. Hosted in partnership with Deloitte Consulting Sdn Bhd, MTCs CEO Summit 2022 brought together more than 150 CEOs of MTCs under the Mid-Tier Companies Development Programme (MTCDP). This programme aims to empower the MTCs to leverage on new trends of digitalisation and sustainability to unlock more prospects in expanding their footprints globally.
The highlight of the Summit was Fireside Chat with CEOs, sharing session featuring MTCs and Experts on “Sailing Through Uncharted Waters”. The panellists comprised of representatives from CMC Engineering Sdn Bhd (MTCDP Alumni), Deloitte Consulting and a Digital Branding expert. They shared their thoughts, ideas and experience on sustainability, digitalisation and branding in strengthening the resilience and business growth. On top of the Fireside Chat, two (2) prominent experts have also shared notable pointers on how to turn sustainability into winning strategy as well as leveraging storytelling in marketing to enhance the global branding.
“MATRADE believes that three (3) key factors that will strengthen the resiliency of our MTCs, in preparing to the oncoming challenges in 2023. First, the MTCs should be able to explore new niche areas and diversify the market outreach. This to ensure the agility of the MTCs by pivoting into different types of market and industry. Secondly, the MTCs should immerse into digitalisation. Digitalisation has been the enabler and being pervasively used in improving productivity, communicate effectively and enhance the delivery of services. Finally, the MTCs should now be able to adopt sustainability practices to position their businesses at higher level of competitiveness. With these key factors, our Malaysian MTCs will be more competitive, dynamic and agile,” Datuk Mohd Mustafa added.
Mid-Tier Companies Development Programme (MTCDP) started in 2014 as one of the Government’s high impact initiatives in the Malaysia’s Development Plan, aimed to accelerate the export growth of Mid-Tier Companies to be the regional and global champions. To boost the momentum of MTCs after completing MTCDP, Mid-Tier Ramp Up Programme was created in 2016 as the catalyst to accelerate exports’ penetration and enhance competitiveness of the MTCs to strengthen their footprints in the regional and global markets.
In line with the 12th Malaysia Plan, MATRADE will strive to create more export champions, supporting the ongoing efforts by the Government in regenerating Malaysian economy, driving the growth of new sectors while striking the balance to ensure the socio-economic inclusiveness and sustainability.
The MTCDP targets export-oriented MTCs with annual revenues between RM50 million to RM500 million for manufacturing companies and RM20 million to RM500 million for services companies. Interested companies are encouraged to contact Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya. for more details.
Malaysia's Participation in Aeromart Toulouse 2022
WEDNESDAY, 14 DECEMBER 2022, KUALA LUMPUR: The Malaysia Aerospace Industry Association (MAIA) through the ETA grant under the supervision of the Malaysia External Trade Development Corporation (MATRADE) had coordinated the participation of five (5) Malaysian aerospace companies to the Aeromart Toulouse 2022, held on 29 November to 1 December 2022 at the MEETT Exhibition and Convention Centre, Toulouse, France.
The aviation industry has seen a rapid recovery as air travel has increased since most countries reopened their borders following the covid19 pandemic. According to the International Air Transport Association (IATA), passenger numbers will continue to rise by 83% by end of 2022 as compared to pre-pandemic level and will surpass 2019's record by 2024. According to MAIA, monthly production of A320-family aircrafts by Airbus is now at 50 units and set to increase to 61 units by year end. Airbus also had revised the company’s plan to up the monthly production of A320-family to 65 units by summer 2023, with output of 70 units by Q1 2024 and to 75 units by 2025.
Therefore, in line with the increasing demand of commercial flights and aircraft productions by Tier 1 companies and Malaysia’s relentless efforts in promoting the Nation’s aerospace exports, the Malaysian participation in Aeromart Toulouse 2022 is a right step in promoting Malaysia's capabilities in the aerospace manufacturing and services sector. The five (5) exhibitors in the programme are well-known in aerospace industry and internationally recognised for their expertise and capabilities in aerostructures composites manufacturing, satcom, interior and seats, calibration and testing services, design and fabrication of aerospace parts and components, fabricated machine parts for airframes, engine system components, enhanced assembly capabilities for completed components, large structures assembly, control surface assembly, fixed wing structures and titanium parts assembly, as well as, gemcor drivematic riveting and dimpling machine services.
Malaysia’s past participation in the Aeromart Toulouse was in 2018 with the main focus was to explore opportunities for collaboration between Malaysian companies and OEMs, Tier 1 & Tier 2 suppliers in aerospace manufacturing, engineering services and precision parts & components. As for this year edition, Malaysia’s participation in this event aimed to continue our efforts in promoting and showcases the strength and reliability of our aerospace industry to the global players presence at the programme. This was also the first public-private collaboration initiative between MATRADE and MAIA in coordinating Malaysian companies' participation in a trade promotional activity under the Malaysia Pavilion.
Aeromart Toulouse is a well-known international business convention and exhibition programme held biennially for aerospace industries to gather worldwide aerospace ecosystem. There were around 3,000 business visitors from over 45 countries attended the hybrid event where a series of conferences, networking activities, business matchings and exhibitions were held concurrently throughout the event.
A total of 74 business meetings conducted at the Malaysia Pavillion between Malaysian exhibitors and the global buyers from countries such as France, the USA, UK, Canada, Spain, Belgium, Italy, India, Indonesia, Romania, Korea and Japan. These meetings had recorded potential sales worth RM276 million for Malaysia’s aerospace capabilities and specialties in aircrafts support products ranging from nacelles and composite wings components, metallic aerostructures, tooling for computerised numerical computer (CNC) machines, fasteners, as well as, machining and assembly of aircraft doors, wings structures and aerostructures and human resources outsourcing services.
Malaysian exhibitors had attended the conferences organised during the event, where some interesting topics were delivered by large corporations such as Airbus, Boeing, Safran, and ATR. The presentations focused on topics such as sustainability, digitalization, and human resource development. According to Madam Yuslinawati Mohd Yusof, Director of Transport & Logistics Section, MATRADE, "the ETA Program, which MATRADE introduced this year, aims to empower trade associations in respective industries in promoting Malaysia's exports hand in hand." "Given the current global trend in the aerospace sector, it is timely for Malaysian companies to be more aggressive in their business, including sustainability and digitalisation offerings that are in line with emerging needs." “Malaysian companies are already involved in a variety of products and services, including components for long-distance satellite-controlled drones and pilot-less aeroplanes, as well as a sustainability initiative involving the development of zero-emission aircrafts and research on hybrid liquid hydrogen-support gas turbine engines. As a result, Malaysian firms should invest more in these areas," she added.
The Managing Director of MAIA, Mr. David Jones, commented that “The participation of Malaysian companies in Aeromart Toulouse 2022 under the utilisation of MATRADE’s ETA grant had been beneficial in facilitating our participation, without which, we might had missed the exhibitions. The participation in the programme also had given opportunities to Malaysian aerospace companies to showcase our strength and grew our presence internationally, as well as, to learn about the new innovations and exchange of ideas by various notable prospects from all over the world. Although we are given a very stiff target to be achieved, I am very confident that it is attainable through a series of well-arranged business meetings supported with our companies’ very own unique capabilities and new inventions in aerospace industry”.
For more information on exports promotion activities organised in France, as well as, exporters development programmes and other MATRADE’s assistance, Malaysian exporters of both products and services are highly encouraged to contact MATRADE via MATRADE Headquarter in Kuala Lumpur, MATRADE Paris, Regional Offices in Malaysia and Trade Offices overseas through our social media channels or visit www.matrade.gov.my.
The Big 5 Dubai 2022: Gearing for Malaysia’s Construction & Building Materials Export Growth in The MENA Region
FRIDAY, DECEMBER 2 2022, KUALA LUMPUR: The Malaysia External Trade Development Corporation (MATRADE) is coordinating the participation of 12 selected Malaysian companies that are eager to expand their business horizon in the Middle East and North Africa (MENA) Region.
The Big 5 Dubai which will be held from 5 – 8 December 2022 is the largest trade exhibition for construction and building materials in West Asia. It offers outstanding opportunities that showcased specialised event of building materials and services that are The Big 5 Heavy on construction machineries, the Middle East Concrete comprising everything about concrete, the HVAC R Expo focusing on indoor ventilation, the Middle East Stone, the Urban Design & Landscape Expo and the FM Expo that dealing with various aspects of Facilities Management Solution. In 2021, 1,200 exhibitors from 50 counties were gathered at the exhibition and more than 36,000 physical visitors attended the event. Malaysia’s participants last year had achieved the targeted export sales apart from opened up business opportunities for higher exports into the MENA region.
This year, Malaysian companies will showcase products and services in various segments in building materials such as sanitary & bathroom accessories, materials for road construction, electrical wiring and accessories, waterproofing solution and testing equipment for construction materials. In line with the increasing demand for eco-friendly products, solar hot water system and recycled rubber products will also be offered to the potential buyers during the exhibition.
According to the Director of Construction & Business Services Section of MATRADE, Madam Jamaliah Jamaludin, “the West Asia countries continue to be the focus markets for the Malaysian companies due to projects announced by the local governments and companies such as Mirror Line Skyscraper Project in Saudi Arabia (part of NEOM) – futuristic city envisioned by Saudi Arabia’s Crown Prince, Gated Community in UAE by Bloom Holding and Residential towers in UAE by Danube properties.”
“The total global export of building materials to UAE stood at USD7.82 billion in the year 2021 as against total Malaysian exports of building materials to UAE valued at USD76 million illustrating various export opportunities for Malaysian building materials companies to the country including construction services industry. The initiative to further enhance Malaysia’s trade with the UAE as an emerging market is in line with the National Trade Blueprint (NTBp) aspiration, which is to elevate Malaysia’s trade competitiveness and strengthen its position globally”, she added.
Worldbex 2023 in Manila that will be held from 16 – 19 March 2023 is another initiative by MATRADE to coordinate Malaysia’s participation in the greenfield market. Malaysian companies can contact MATRADE to know more about the programme and exhibition.
Malaysian exporters who are interested in penetrating the West Asia markets can contact MATRADE offices in Dubai, (UAE), Jeddah (Saudi Arabia), Cairo (Egypt), and Doha (Qatar) to get information on market updates, business contacts, and information on business opportunities. Information on MATRADE overseas offices can be obtained from MATRADE's official website at www.matrade.gov.my.
