“ Trade Opportunities for SMEs among SAARC & ASEAN Countries” 12 December 2009 Le Royal Meridien Hotel Chennai.

“ Trade Opportunities for

SMEs among SAARC & ASEAN Countries”

12 December 2009Le Royal Meridien Hotel

Chennai

PRESENTATION OUTLINE

• MALAYSIA

- Snapshot- Malaysia’s Trade & Trade

Performance

• Business Opportunities in Malaysia

• Why Do Business With Malaysia ?

Malaysia’s Map

• Parliamentary democracy & constitutional monarchy

• 13 states & 3 FTs• Population (27.7 million)

(2008)

• Capital Kuala Lumpur• Administration Centre Putrajaya• Time difference 2 ½ hrs• Flight time Chennai - KLIA (3 ½ hrs)• Currency Ringgit Malaysia (RM)

- US$1 = RM3.57 - RM1 = Rs13.72

• Employment 11.8 mil (2007)

• Unemployment 4.0 %• Base lending rate 6.72%• Inflation 2.5% (Jan-June 2009)

• Foreign Reserves US$ 91.6 bil (Sept’09)

• Climate 21º C – 32 º C• Malaysia Airlines, Jet Airways, Air India and Indian Express• Internet Domain (my)• International dialing code (+60)

Total 2008 (US$ bil)

- 355.6 bil

- Exports - 199.1 bil

- Imports - 156.5 bil

- Surplus - 42.6 bil

MALAYSIA Global Trade

• Direction of Exports US, Singapore, North East Asia (excl. Japan & PRC), ASEAN 10, Japan & China.

• Sources of Imports North East Asia (excl. Japan & PRC), Japan, ASEAN 10, US, China & Singapore.

• Sector breakdown - Manufacturing (50.3%), - Services (44.0%) - Agriculture (7.7%)

Exports oriented industries • Electrical & Electronic products;• Chemicals & chemical products, • Petroleum products, • Textile & wearing apparel & footwear, • Wood products and rubber products.

Domestic oriented industries • Construction related products, • Food products, • Transport equipment, • Fabricated metal products, • Paper products & • Beverages

Malaysia Major Export Destinations(Value in USD million)

Malaysia External Trade Development Corporation

Rank Country 2006 2007 2008

Total 173,225 177,986 184,304

1. Singapore 26,691 26,032 27,162

2. USA 32,525 27,800 22,980

3. Japan 15,357 16,247 19,944

4. China 12,547 15,599 17,558

5. Thailand 9,170 8,819 8,815

6. Hong Kong 8,572 8,226 7,866

7. Korea 6,262 6,774 7,191

8. India 5,524 5,942 6,870

9. Australia 4,915 6,000 6,779

10. Netherlands 6,303 6,941 6,512

Malaysia Major Import Sources(Value in USD million)

Malaysia External Trade Development Corporation

Rank Country 2006 2007 2008Total 141,404 148,475 144,892

1. China 17,125 19,089 18,5782. Japan 18,697 19,276 18,0913. Singapore 16,526 17,046 15,9244. USA 17,709 16,085 15,6825. Thailand 7,728 7,943 8,1326. Taiwan 7,712 8,445 6,9707. Korea 7,621 7,333 6,7308. Indonesia 5,343 6,288 6,7189. Germany 6,195 6,889 6,242

10. Hongkong 3,721 4,317 3,79417th. India 1,437 2,079 2,862

• Bilateral trade

(US$ bil)

Total - 9.73 bil. Exports - 6.87 bil

Imports - 2.86 bil Surplus - 4.0 bil

Malaysia – India Bilateral Trade 2008

YearValue

US$ mil

Change from 2007

(%)

Share of Import (%)

Manufactures of metals 618.5 49.2 20.0

Cereal (maize & corn) 335.4 381.1 10.8

Chemicals & Chemical Products 327.3 17.4 10.6

Refined petroleum products 228.0 36.9 7.4

Live animals & meat (frozen meat & bovine animals) 188.6 9.2 6.1

Malaysia Major Imports from India - 2008

Malaysia External Trade Development Corporation

YearValue

US$ milShare of

Import (%)

Manufactures of metals 401.3 19.5

Chemicals & Chemical Products 269.8 13.1

Live animals & meat (frozen meat & bovine animals)

167.2 8.1

Refined petroleum products 161.2 7.8

Machinery, Appliances & Parts 149.5 7.3

Malaysia Major Imports from India - 2007

Malaysia External Trade Development Corporation

YearValue

US$ mil

Change from Jan-Aug. 2008

(%)

Share of Imports (%)

Chemicals & Chemical Products 284.0 50.3 19.2

Iron & Steel 146.5 66.8 9.9

Live animals & meat 137.3 18.6 9.3

Manufactures of metal 119.1 -71.1 8.1

Refined petroleum products 108.8 -20.1 7.4

Malaysia - Major Imports from IndiaJanuary – August 2009

Malaysia External Trade Development Corporation

YearValue

US$ mil Share of Imports

(%)

Chemicals & Chemical Products 208.3 9.4

Iron & Steel 96.8 4.3

Live animals & meat 404.0 5.8

Manufactures of metal 127.6 20.8

Refined petroleum products 150.1 6.8

Malaysia - Major Imports from IndiaJanuary – August 2008

Malaysia External Trade Development Corporation

Opportunities for Indian SMEs

• ASEAN market: 550 million people;

• Malaysia’s strategic location – base, connectivity & logistics, sales and service centre;

• Malaysia - cost of doing - competitive;

• Smart collaboration with Malaysian – familiarity of ASEAN market;

• Capitalise on increasing Intra ASEAN trade;

• In 2007, India was ASEAN’s 7th largest trading partner with total trade value at US$37.1 billion from US$28.7 billion in 2006.

• In 2007, India was ASEAN’s 7th largest trading

partner with total trade value at US$37.1 billion

from US$28.7 billion in 2006.

• Leverage on ASEAN-India FTA; Malaysia’s import duties elimination on:

- 6,792 tariff lines or products in the Normal Track (1) by 31 December 2013; and - 1,266 tariff lines in the Normal Track (2) by 31 December 2016.

Business Opportunities for Indian SMEs

Malaysia - Exclusion List

• Under AIFTA, Malaysia excluded 898 tariff lines from tariff concessions. The products excluded are:

- Poultry products; - Tropical fruits and rice; - Iron and steel; - Automotive products; - Chemicals; - Alcoholic beverages; - Tobacco and tobacco products; and - Used tyres.

WHY DO BUSINESS WITH MALAYSIA?

• Pro-business government;

• Consistence business policies;

• Liberal & transparent policies;

• Modern & highly developed infrastructure;

• Harmonious industrial relations;

• Cost efficient & productive operations;

• English speaking.

Why Malaysia ?

• Accessibility to ASEAN’s market – thru’ ASEAN FTA’s single market; • Strategic location – Asia Pacific and Northeast Asia;

• Multi lingual advantage;

• Favorable time zone 2 ½ hours difference

• Just 3 hours away by flight;

New Growth Areas

• NORTH – Northern Economic Corridor Region (Penang, Perak, Kedah & Perlis);

• SOUTH – ISKANDAR MALAYSIA ;

• EAST – East Coast Economic Region (Pahang, Terengganu & Kelantan);

• EAST MALAYSIA - Sabah Sarawak Economic Region

• Cyberjaya – Multimedia Super Corridor

Why Malaysia ?

Government sponsored Exhibitions

Malaysia International Halal Showcase (MIHAS) - May

International Trade Malaysia Exhibition (INTRADE) - November

Components: International Exhibition Seller-Buyer Meetings International Biz Forums

SPECIAL TASK FORCE

• Undertake to facilitate doing business

• Improve ranking - World Bank ‘Doing Business

Index 2008 – 24/178

Achievements

• New business registration - 3 days to 1 hour;

- Company name approval – 5 days to 1 day;

- Incorporation of company – 5 days to 1 day;

- Renewal business license - 1 day to 15 minutes.

THANK YOU FOR LISTENING