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PRESENTATION OUTLINE

“ Trade Opportunities for SMEs among SAARC & ASEAN Countries” 12 December 2009 Le Royal Meridien Hotel Chennai. PRESENTATION OUTLINE. MALAYSIA - Snapshot - Malaysia’s Trade & Trade Performance Business Opportunities in Malaysia Why Do Business With Malaysia ?.

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PRESENTATION OUTLINE

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

  2. PRESENTATION OUTLINE • MALAYSIA - Snapshot - Malaysia’s Trade & Trade Performance • Business Opportunities in Malaysia • Why Do Business With Malaysia ?

  3. Malaysia’s Map

  4. 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

  5. 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)

  6. MALAYSIA Global Trade Total 2008 (US$ bil) - 355.6 bil - Exports - 199.1 bil - Imports - 156.5 bil - Surplus - 42.6 bil

  7. 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%)

  8. 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

  9. Malaysia Major Export Destinations (Value in USD million) Malaysia External Trade Development Corporation

  10. Malaysia Major Import Sources (Value in USD million) Malaysia External Trade Development Corporation

  11. Malaysia – India Bilateral Trade 2008 • Bilateral trade (US$ bil) Total - 9.73 bil. Exports - 6.87 bil Imports - 2.86 bil Surplus - 4.0 bil

  12. Malaysia Major Imports from India - 2008 Malaysia External Trade Development Corporation

  13. Malaysia Major Imports from India - 2007 Malaysia External Trade Development Corporation

  14. Malaysia - Major Imports from India January – August 2009 Malaysia External Trade Development Corporation

  15. Malaysia - Major Imports from India January – August 2008 Malaysia External Trade Development Corporation

  16. 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.

  17. 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.

  18. Business Opportunities for Indian SMEs Malaysia - Exclusion List • Under AIFTA, Malaysia excluded898 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.

  19. 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.

  20. Why Malaysia ? • Accessibility toASEAN’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;

  21. 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

  22. 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

  23. 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.

  24. THANK YOU FOR LISTENING

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