Perbadanan Pembangunan Perdagangan Luar Malaysia

THURSDAY, 2 JUNE 2022, GEORGETOWN: More companies are urged to register with the Malaysia External Trade Development Corporation (MATRADE) in order to benefit from the services offered and obtain assistance to enhance their export readiness with a view of penetrating as well as expanding into the international markets.

MATRADE’s Deputy Chief Executive Officer (Exporters Development), Abu Bakar Yusof, hoped that more exporting companies, especially from Penang, register as MATRADE members as the current numbers were still relatively small as compared to other States in Malaysia.

As of 30 April 2022, a total of 11,123 Malaysian companies have registered with MATRADE, of which, 1,740 companies are from the Northern Region. From the 1,740, a total of 898 are active companies from Penang.

“We look forward for more companies from Penang to register as a MATRADE member. Penang is one of the largest contributors of Malaysia’s exports. Among the major products exported are transport equipment, manufactured goods, chemicals and chemical products, non-food raw materials as well as food products,” he said.

He added, “We believe that there are companies that have not registered with MATRADE yet, especially small and medium sized enterprises (SMEs). Registration with MATRADE is free and companies stand to benefit from our assistance programmes, including capacity building and training, market intelligence reports, access to trade leads of international buyers and importers, as well as a series of export promotional activities, including cross border e-commerce.”

Abu Bakar was speaking at the opening of the Export Day event, which was organised by MATRADE in collaboration with Penang Development Corporation (PDC) and Exim Bank. The one-day event held in Penang was attended by more than 250 entrepreneurs and exporters from various industry sectors.

He added that the event was part of the government’s efforts to reach out to companies in Malaysia and hoped that more businesses would be aware of MATRADE’s role in nurturing home-grown global champions.

“MATRADE is committed to assist companies of all sizes, especially SMEs, and provides the solutions as well as relevant support to enable them to gain wider market access and to connect with the global supply chain. For our efforts to be more effective, we need all the support we can get including from SMEs, to realise this goal.” Abu Bakar said.

World Trade Promotion Organizations (WTPO) Award

MATRADE recently won the WTPO Award for ‘Best Use of Information Technology’. MATRADE was announced as the winner in this category at the World Trade Promotion Awards and Conference 2022 held in Accra, Ghana, on 17 May.

The award was organised by the International Trade Centre (ITC), a joint agency of the World Trade Organisation (WTO) and the United Nations. MATRADE was chosen as the winner by the panel of judges for its initiative in organising the virtual edition of the 17th Malaysia International Halal Showcase (MIHAS) 2021.

The digitalisation of MIHAS 2021 has proven to be effective in assisting small and medium enterprise (SME) in the halal industry to continue growing their exports despite disruptions from COVID-19. In addition, the virtual showcase has proven that it was able to open up new markets and made business connections more convenient and cost-effective.

TUESDAY, 31 MAY 2022, KUALA LUMPUR: The Malaysia External Trade Development Corporation (MATRADE) will be capitalising on 19th China-ASEAN Expo (CAEXPO) 2022 that will be held from 16 – 19th September in Guangxi, China to promote further awareness of Malaysia’s export capabilities to emerging cities in China. Besides being honoured again as this year’s Country of Honour (previously was in 2011), Malaysia companies’ visibility during this year event is timely with recent ratification of RCEP, a significant collaboration between Malaysia and China as well as other signatory countries.

“CAEXPO is a well-established trade fair among Malaysian exporters over the years. MATRADE has been coordinating Malaysia’s participation in CAEXPO since its inception in 2004. CAEXPO witnessed excellent expansion of businesses by Malaysian companies into China. It is also earmarked as an important platform for Malaysian SMEs to promote and brand their products particularly into China. This was proven when CAEXPO has received overwhelming responses from Malaysian exporters every year.” Mr Amran Yem, Senior Director of MATRADE said in a webinar which was held earlier.

The Webinar namely “Discover Expand Your Business into China Market With CAEXPO” highlighted on the role of 19th CAEXPO 2022 as the reliable and effective platform for SMEs to bolster Malaysian products and services visibility in China. This webinar also featured MATRADE’s Trade Commissioner in Guangzhou (Mr Mohamad Haris Abdul Latiff) who shared the latest updates on China’s economy and business activities as well highlighting the necessary importance of social media know-how to be successful in the market. Other speakers also provided updates on the regulation for exporting goods to China.

This year marked Malaysia's 19th consecutive year of participation in CAEXPO and MATRADE is planning to have significant number of exhibitors to participate in upcoming CAEXPO to ensure they are not missing this year rare privileges as the country of honour participants. As the country of honour this year, MATRADE is planning a series of activities including seminars, business matching session, live streaming session with Key Opinion leaders (KOLs), art and cultural performances and others during the event. MATRADE will continue to collaborate with China Construction Bank (CCB) and other prominent associations and business council besides CAEXPO Secretariat to organise the 4th China – Malaysia B2B Business Meeting Session in conjunction with the CAEXPO. Positive outcomes were gained in our previous event and more than 100 business meetings were arranged for China buyers to meet with Malaysian exhibitors last year.

MATRADE would like to urge all Malaysia companies that keen to be part of the Malaysia Pavilion at CEXPO 2022 to communicate immediately with MATRADE.

Please register in the event before 17th of June 2022 (Friday) on http://www.matrade.gov.my/en/international-trade-event-list or by contacting Ms. Hon Jia Xin at 03-62077234 (Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya.).

Malaysia – China Bilateral Trade.

China has been Malaysia’s largest trading partner for 13 consecutive years, starting in 2009. The total bilateral trade in 2021 was recorded at RM421.07billion and accounted for 18.9% of total trade of Malaysia to the world. In 2021, China was also Malaysia’s largest exports destination and source of imports, which amounted RM192.05billion and RM229.02billion respectively.

Trade with China during the first four months of 2022 grew by 17.5% to RM150.56billion compared to the same period of 2021. Exports edged up by 17.4% to RM67.42 billion on account of higher exports of E&E products, LNG as well as palm 3 oil and palm oil-based agriculture products. Imports from China rose by 17.6% to RM83.14 billion

WEDNESDAY, 18 MAY 2022, KUALA LUMPUR: The Malaysia External Trade Development Corporation (MATRADE) won its first World Trade Promotion Organizations (WTPO) Award under the “Best Use of Information Technology” category for its initiative in organising the virtual edition of the 17th Malaysia International Halal Showcase (MIHAS) in 2021.

MATRADE was among the four finalists nominated in this category together with TPOs from Austria, Canada and the United Republic of Tanzania. The winner for this and other categories, namely, ‘Best Use of a Partnership’ and ‘Best Initiative for Inclusive and Sustainable Trade’ were announced at the 13th World Trade Promotion Organizations Conference and Awards held in Accra, Ghana, on 17 May 2022.

According to a statement by the Geneva-based International Trade Centre (ITC), the digitalisation of MIHAS 2021 allowed SME exports in the halal industry to continue growing despite disruptions caused by the pandemic. The virtual showcase opened up new markets and made business connections more convenient and cost-effective, it added.

MATRADE Chief Executive Officer, Mohd Mustafa Abdul Aziz said, “The recognition by ITC is a resounding testament of MATRADE’s capabilities as a world-class national trade promotion agency. The award is a realisation of our aspiration to showcase Malaysia and bring Malaysian exports to greater heights”.

Since helming the organisation as CEO in December 2020, Mustafa has been instrumental in championing the three significant export agendas for Malaysia – digitalisation, sustainable development, as well as the devised programmes and activities that are aligned with the National Trade Blueprint (NTBp).

“This award symbolises that MATRADE is on the right track in bolstering Malaysian exports. It reflects the international recognition of MATRADE’s efforts in digitalisation initiatives to develop innovative and effective programmes to assist Malaysian exporters, especially small and medium enterprises (SMEs)”, Mustafa added.

Leveraging on the digital transformation, MATRADE has undertaken numerous initiatives to ensure business continuity for Malaysian exporters by conducting virtual and hybrid trade promotion programmes such as trade fairs, export acceleration missions, virtual business meetings (eBizMatch) and webinars.

“In accordance to the digital initiatives by the Malaysian Government through MATRADE in enhancing Malaysia’s trade competitiveness and exports value, the Integrated Trade Events Platform (ITEP) and Single Information Portal for Exports (SIPE) are being developed after the proposal was approved by the Economic Action Council (EAC) chaired by the YAB Prime Minister last year. Both initiatives will lead to an accelerated adoption of digitalisation, through the establishment of digital business platforms, in tandem with RMKe-12 strategic directions”, Mustafa elaborated.

The World Trade Promotion Organisation (WTPO) Awards and Conference was organised by ITC, a joint agency of the World Trade Organization (WTO) and the United Nations. Held every two years, the ITC collaborates with a national Trade Promotion Organisation (TPO) to host this event.

“The main theme at the 13th WTPO is about sustainability and how innovation as well as digitalisation can lead to sustainable export development and promotion”, stated MATRADE Deputy Chief Executive Officer (Exporters Development) Abu Bakar Yusof who represented MATRADE at the award ceremony.

“The award reflects a comprehensive digitalisation initiative that MATRADE undertakes and MIHAS is the evident. MATRADE swiftly pivoted to digital platforms to ensure business continuity amid pandemic”, Abu Bakar explained.

3 The theme for the WTPO Awards 2022 is ‘Bold Solutions for Resilience and Recovery’. The event is held biennially and according to the organiser, this year’s event is guided by the United Nations Sustainable Development Goals. It outlines the efforts of trade and investment organisations in addressing business survival and competitiveness, and support trade-led growth while serving their communities and protecting the planet.

Highest Trade, Exports, Imports and Trade Surplus for the Month of April

Malaysia’s trade performance maintained its upward momentum in April 2022 with trade, exports, imports and trade surplus registered the highest monthly value for the month of April. Trade rose by 21.3% to RM231.44 billion compared to April 2021, the 15th consecutive month of double-digit growth. Exports increased by 20.7% to RM127.49 billion, the ninth successive month of double-digit year-on-year (y-o-y) expansion. Imports grew by 22% to RM103.95 billion and trade surplus expanded by 15.7% to RM23.55 billion.

The export growth was boosted by higher shipments of electrical and electronic (E&E) products mainly semiconductors driven by global digitalisation trends. Exports to major markets notably ASEAN, China, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Meanwhile, exports to the US recorded the highest monthly value ever.

On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus declined by 2.1%, 3.1%, 0.9% and 11.6%, respectively.

For the period of January to April 2022, the highest value was recorded for trade, exports, imports and trade surplus. Trade climbed by 22.9% to RM856.21 billion compared to the same period last year. Exports jumped by 21.8% to RM472.39 billion and imports was up by 24.3% to RM383.82 billion. Trade surplus grew by 12.1% to RM88.57 billion.

Export Performance of Major Sectors

Double-Digit Export Growth Recorded for All Major Sectors

Exports of manufactured goods in April 2022 which absorbed 84.2% of total exports rose by 17.2% y-o-y to RM107.39 billion underpinned by higher exports of E&E products, manufactures of metal, chemicals and chemical products as well as palm oil-based manufactured products, each recorded more than RM1 billion increase in exports.

Exports of agriculture goods (8% share) increased by 29.9% to RM10.2 billion compared to April 2021, the 14th consecutive month of double-digit growth. The expansion was driven by higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (7.3% share) expanded by 64.6% y-o-y to RM9.33 billion, the 13th successive month of double-digit growth. The increase was bolstered by growing exports of liquefied natural gas (LNG) and crude petroleum.

Major exports in April 2022:

• E&E products, valued at RM47.06 billion and accounted for 36.9% of total exports,
increased by 27% from April 2021;

• Petroleum products, RM9.53 billion, 7.5% of total exports, decreased by 4%;

• Palm oil and palm oil-based agriculture products, RM8.02 billion, 6.3% of total
exports, increased by 35%;

• Chemicals and chemical products, RM7.22 billion, 5.7% of total exports, increased by 33.1%; and

• Manufactures of metal, RM7.13 billion, 5.6% of total exports, surged by 52.6%.

Compared to March 2022, exports of manufactured, agriculture and mining goods contracted by 1.9%, 3.5% and 13.4%, respectively.

For the period of January to April 2022, exports of manufactured goods grew by 17.6% to RM399.04 billion compared to the same period of 2021, boosted by strong exports of E&E products, petroleum products, manufactures of metal, chemicals and chemical products as well as palm oil-based manufactured products. Exports of agriculture goods climbed by 43.6% to RM37.37 billion buoyed by higher exports of palm oil and palm oil-based agriculture products. Exports of mining goods surged by 60.4% to RM33.74 billion contributed by higher shipments of LNG, crude petroleum as well as metalliferous ores and metal scrap.

Trade Performance with Major Markets

ASEAN – Robust Growth for Trade, Exports and Imports

In April 2022, trade with ASEAN accounted for 26.1% of Malaysia’s total trade, growing by 21.4% y-o-y to RM60.48 billion.

Exports was up by 14.2% to RM34.84 billion driven mainly by higher exports of E&E products. Imports from ASEAN jumped by 32.7% to RM25.64 billion. Breakdown of exports to ASEAN countries:

• Singapore RM16.96 billion, increased by 9.1%;

• Thailand RM5.60 billion, ↑23.7%;

• Viet Nam RM5.03 billion, ↑26.5%;

• Indonesia RM3.76 billion, ↑24.0%;

• Philippines RM2.35 billion, ↑10.8%;

• Brunei RM599.4 million, ↓34.2%;

• Cambodia RM279.2 million, ↑128.4%;

• Myanmar RM253.0 million, ↓2.8%; and 

• Lao PDR RM5.7 million, ↑16.4%.

Exports to major markets in ASEAN that recorded increases were Singapore which grew by RM1.42 billion, due to higher exports of E&E products, Thailand (↑RM1.07 billion, crude petroleum), Viet Nam (↑RM1.05 billion, E&E products), Indonesia (↑RM728.5 million, petroleum products) and the Philippines (↑RM229.2 million, iron and steel products).

Compared to March 2022, trade, exports and imports fell by 8%, 11.4% and 3%, respectively.

In the first four months of 2022, trade with ASEAN edged up by 26.4% to RM229.62 billion compared to the same period of 2021. Exports to this region rose by 23.0% to RM134.3 billion following strong exports of E&E products, petroleum products as well as chemicals and chemical products. Imports from ASEAN increased by 31.7% to RM95.32 billion.

China – E&E Products Boosted Export Growth

In April 2022, trade with China which comprised 16.9% of Malaysia’s total trade expanded by 10.1% y-o-y to RM39.22 billion. Exports to China registered a growth of 12.4% to RM17.36 billion bolstered mainly by higher exports of E&E products. Imports from China climbed up by 8.3% to RM21.85 billion.

Compared to March 2022, trade and imports were up by 0.5% and 3%, respectively while exports declined by 2.4%.

Trade with China during the first four months of 2022 grew by 17.5% to RM150.56 billion compared to the same period of 2021. Exports edged up by 17.4% to RM67.42 billion on account of higher exports of E&E products, LNG as well as palm oil and palm oilbased agriculture products. Imports from China rose by 17.6% to RM83.14 billion.

The US – Exports Recorded Highest Value

Trade with the US in April 2022 which represented 9.6% of Malaysia’s total trade increased by 21.1% y-o-y to RM22.13 billion.

Exports registered highest value at RM14.35 billion, expanding by 18.1% on the back of higher exports of E&E products. Imports from the US expanded by 27.2% to RM7.78 billion. On a m-o-m basis, trade, exports and imports grew by 5.6%, 5.7% and 5.3% respectively.

For the period of January to April 2022, trade with the US climbed by 16.7% to RM78.79 billion compared to the same period of 2021. Exports increased by 12.7% to RM50.43 billion owing mainly to higher exports of E&E products. Imports from the US rose by 24.7% to RM28.35 billion.

The EU – Exports Registered Seven Consecutive Months of Double-Digit Growth

Trade with the EU which contributed 8% to Malaysia’s total trade in April 2022 leaped by 24.2% y-o-y to RM18.5 billion. Exports edged up by 30.5% to RM11.54 billion, the seventh consecutive month of double-digit growth supported by higher exports of manufactures of metal as well as E&E products. Imports from the EU rose by 15.1% to RM6.96 billion.

Breakdown of exports to the top 10 EU markets which accounted for 91.6% of Malaysia’s total exports to the EU were:

• Netherlands RM4.26 billion, increased by 71.6%;

• Germany RM2.50 billion, ↓5.4%;

• Belgium RM721.6 million, ↑33.7%;

• Italy RM714.5 million, ↑14.6%;

• Spain RM703.8 million, ↑80.4%;

• France RM488.2 million, ↑13.9%;

• Poland RM372.7 million, ↑36.2%;

• Czech Republic RM302.4 million, ↑49.0%;

• Slovenia RM264.0 million, ↑16.5%; and

• Hungary RM241.2 million, ↑50.3%.

Exports to the EU major markets that grew were the Netherlands which increased by RM1.78 billion due to higher demand for manufactures of metal. Exports to Belgium expanded by RM182 million and Italy (↑RM90.9 million) on account of strong exports of iron and steel products.

On a month-on-month basis, trade and imports grew by 1.1% and 4%, respectively while exports declined by 0.5%.

During the first four months of 2022, trade with the EU climbed by 19.7% to RM68.33 billion compared to the same period of 2021. Exports jumped by 20.5% to RM41.52 billion, underpinned by strong exports of E&E products, manufactures of metal as well as palm oil and palm oil-based products. Imports from the EU was up by 18.5% to RM26.81 billion.

Japan – Exports Bolstered by LNG

In April 2022, trade with Japan which made up 6.4% of Malaysia’s total trade increased by 12.8% y-o-y to RM14.92 billion. Exports edged up by 22.1% to RM7.58 billion, the 14th straight month of double-digit expansion buoyed mainly by higher exports of LNG. Imports from Japan rose by 4.5% to RM7.34 billion.

Compared to March 2022, imports increased by 0.7% while trade and exports were down by 7.3% and 13.9%, respectively.

For the period of January to April 2022, trade with Japan expanded by 13.1% to RM56.66 billion compared to the same period of 2021. Exports grew by 20.3% to RM30.26 billion due to strong exports of LNG. Imports from Japan climbed by 5.9% to RM26.40 billion.

Trade with FTA Partners

In April 2022, trade with Free Trade Agreement (FTA) partners which comprised 65.7% of Malaysia’s total trade jumped by 19.5% y-o-y to RM152 billion. Exports to FTA partners rose by 20.3% to RM84.23 billion and imports edged up by 18.4% to RM67.77 billion.

Increases in exports were recorded to the Republic of Korea (ROK), by 54.6% to RM4.38 billion on account of robust exports of iron and steel products, Hong Kong SAR, (↑20.4% to RM7.15 billion, E&E products) and Australia (↑57.7% to RM5.11 billion, crude petroleum). Meanwhile, exports to India expanded by 37.9% to RM5.06 billion due to higher exports of palm oil and palm oil-based agriculture products, Turkey (↑42.7% to RM1.85 billion, manufactures of metal) and New Zealand (↑44.8% to RM416.3 million, petroleum products).

Compared to March 2022, imports rose by 1.1% while trade and exports contracted by 2.5% and 5.3%, respectively.

Trade with FTA partners during the first four months of 2022 which took up 66.6% of Malaysia’s total trade, increased by 22.4% to RM570.45 billion compared to the same period of 2021. Exports expanded by 22.9% to RM317.91 billion and imports rose by 21.6% to RM252.54 billion.

Import Performance

Total imports in April 2022 grew by 22% y-o-y to RM103.95 billion. The three main categories of imports by end use which accounted for 74.0% of total imports were:

• Intermediate goods, valued at RM59.59 billion or 57.3% of total imports, increased by 28.1%, following higher imports of parts and accessories of capital goods (except transport equipment) particularly electrical machinery, equipment and parts;

• Capital goods, valued at RM9.10 billion or 8.8% of total imports, contracted by 2.4%, due to lower imports of capital goods (except transport equipment), primarily parts and accessories for optical apparatus; and • Consumption goods, valued at RM8.28 billion or 8.0% of total imports, rose by 9.7%, as a result of higher imports of non-durables especially apparel and clothing.

During the period of January to April 2022, imports climbed by 24.3% to RM383.82 billion from the same period of 2021. Imports of intermediate goods grew by 28.9% to RM216.48 billion, capital goods (↑11.9% to RM36.32 billion) and consumption goods (↑20.4% to RM32.63 billion).