Malaysians look to Chinese market

Malaysia's top trade official urged the country's exporters to recognize the rising importance of China in its global trade expansion.

International Trade and Industry Minister Rafidah Aziz said Malaysians should also look to India for opportunities to further the expansion of their export markets.

Speaking in the Malaysian capital over the weekend, Aziz said trade with China has been expanding significantly over the last 10 years.

"Exports to China surged almost five-fold from US$1.33 billion in 1994 to US$6.81 billion in 2003. In the first six months of this year, exports to China increased by 32.4 per cent to US$4.01 billion over the same period last year," she told some 600 delegates at an annual meeting of Malaysian exporters and representatives from the nation's major trading partners.

The event was hosted by Malaysia External Trade Development Corp (MATRADE), a semi-governmental organization which promotes exports of Malaysia's manufactured and semi-manufactured products as well as services.

The minister told Malaysia's exporters to "persevere in efforts to seek new markets and not to depend on traditional markets such as the United States, Japan and the European Union."

In the face of global competition, the ability to compete lies in the optimal application and assimilation of knowledge, she said.

"Exporters should strive to enhance innovation by increasing spending on research and development and new technologies so as to remain competitive," the minister added.

At the same time, "global sourcing is a strategy that companies can adopt to sustain cost-competitiveness, capitalizing on inputs from low-cost producing countries such as China."

Since 2002, Malaysia has been China's largest trading partner among the 10 countries of the Association of Southeast Asian Nations (ASEAN), which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. Also, Malaysia's trade with China accounts for 25.7 per cent of China's trade with ASEAN, according to MATRADE.

"From Malaysia's perspective, China is the fourth largest export destination, accounting for 6.5 per cent of Malaysia's total exports in 2003," said MATRADE Chairman Halim Mohammad.

"Trade is expected to continue on an uptrend with China in light of increasing foreign and domestic investments and rapid industrialization in China resulting in bilateral trade, especially for intermediate goods," Mohammad noted.

"MATRADE does not view China as a threat to Malaysia. Instead, it views China as an important growing market for Malaysian goods and services, and sees greater opportunities for increasing collaboration between companies in both countries or in third party countries and regions," he said.

"Certain services offered by Malaysian companies such as education, healthcare, franchising, consultancies, waste and water treatment, and greening projects have competitive advantages in China," he said.

In planning strategies, MATRADE regards China as one of the focused markets to intensify its promotional efforts, he added.

This year alone, programmes organized by MATRADE in China include five international trade fairs, six promotional booths, two solo Malaysian product exhibitions, two incoming buying missions, and one showcase on Malaysian products.

Source: China Daily