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KUALA LUMPUR, Oct 3 (Bernama) -- Since Malaysia no longer has an edge in low-end manufacturing, local companies need to focus on value-added attributes and constantly upgrade the quality of their products to stay globally competitive.
This is the call from Malaysia External Trade Development Corporation (Matrade) for Malaysian companies to assert themselves in the global market that is increasingly characterised by a fiercely competitive environment.
"We realise that Malaysia is not the cheapest place to manufacture or do business but we have been able to sustain our position in international trade," Matrade chief executive officer Datuk Noharuddin Nordin told Bernama in an interview.
"Malaysia's biggest strength is, and should be, its quality. Malaysian companies have been involved in manufacturing for such a long time," he said.
KUALA LUMPUR, Oct 3 (Bernama) -- Since Malaysia no longer has an edge in low-end manufacturing, local companies need to focus on value-added attributes and constantly upgrade the quality of their products to stay globally competitive.
This is the call from Malaysia External Trade Development Corporation (Matrade) for Malaysian companies to assert themselves in the global market that is increasingly characterised by a fiercely competitive environment.
"We realise that Malaysia is not the cheapest place to manufacture or do business but we have been able to sustain our position in international trade," Matrade chief executive officer Datuk Noharuddin Nordin told Bernama in an interview.
"Malaysia's biggest strength is, and should be, its quality. Malaysian companies have been involved in manufacturing for such a long time," he said.
"We have developed a critical mass in the electronics industry. Electronics now accounts for some 50 percent of our exports. Malaysia started out as a cheap assembly line producing country in the 1980s but this has changed over the years," he added.
Noharuddin said that Malaysia was also emphasising research and development (R&D) services in which the country has made good strides.
But in order to stay competitive, especially against rising giants China and India, Malaysia recognised the need to search for new fields of business, he said.
"Our masterplan clearly states that we will need to search for areas such as new technologies. Biotechnology, for example, is one area to tap. Construction and engineering also needed to be pursued because this is where Malaysia's unique strength lies," Noharuddin said.
"We are also trying to expand into the oil and gas sector in which we have developed internationally recognised expertise. Another area which holds out good promise is ICT (information and communications technology). Again, the catchword is quality. We are positioning ourselves for the high-end segment of the industry," he said.
According to Malaysia's 2006 global trade profile, the country posted a trade surplus of RM108.19 billion (2005: RM99.78 billion), with exports touching RM588.97 billion (2005: RM533.79 billion) and imports accounting for RM480.77 billion (2005: RM434.01 billion).
The United States was the country's largest market last year, absorbing nearly RM110.6 billion worth of Malaysian exports.
It was followed by Singapore at RM90.74 billion, Japan at RM52.21 billion, China at RM42.66 billion, Thailand at RM31.18 billion, Hong Kong at RM29.14 billion, the Netherlands at RM21.43 billion, South Korea at RM21.29 billion, India at RM18.78 billion and Australia at RM16.71 billion.
Malaysia's imports in 2006 also surged. Its top 10 suppliers last year were Japan (RM63.56 billion), the US (RM60.21 billion), China (RM58.20 billion), Singapore (RM56.13 billion), Thailand (RM26.26 billion), Taiwan (RM26.22 billion), South Korea (RM25.91 billion), Germany (RM21.06 billion), Indonesia (RM18.16 billion) and the Philippines (RM12.65 billion).
Malaysia's major export items were electronics and electrical parts and components, telecommunication equipment parts, petroleum oils, natural gas, vegetable fats, oils and crude, petroleum products, veneers, plywood and other wood products.
The imports items were mainly transistors and valves, office machine parts and accessories, petroleum products, petroleum oils, electrical switches, telecommunication parts, electrical machinery and apparatus, automatic data processing equipment, and copper.
But with competition in international trade intensifying, Malaysia not only has to continue asserting itself in the traditional markets but also to aggressively penetrate new emerging markets like Kazakhstan, India, the Commonwealth of Independent States (CIS) countries and Africa.
Among them is Russia which has emerged as a good market for Malaysia's furniture products.
Noharuddin said that roadshows were a common feature of Matrade's overseas promotion activities.
"We are planning roadshows in France, Germany and Switzerland this month. Later, we will have similar roadshows in Delhi, Chennai and Mumbai in India. And before the Christmas season, we will be in the US where we will visit Baltimore, Dallas and Portland," he said.
Recognising the importance of foreign trade, countries around world are today vying for a place in the global supply chain.
"Malaysia has been moving up the supply chain all the time," Noharuddin said.
"Our government is investing a lot in terms of human resources, and we have become more sophisticated and environmentally sensitive. Our furniture, for example, is made from replenishable wood," he said.
According to Matrade, Malaysia's multi-ethnicity is an asset because the country's linguistic and cultural strengths can help improve trade and business.
Noharuddin cited the case of a large business delegation from China's Guangdong province which recently visited Malaysia.
"We had no problems communicating with them, thanks to the availability of Mandarin-speaking experts here. Of course, we are conscious of the fact that we will face challenges all the time but our best bet is to be prepared and keep evolving for something better," he said.
By Manik Mehta
Source -- BERNAMA |
