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“ 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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“ 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 ?
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)
MALAYSIA Global Trade Total 2008 (US$ bil) - 355.6 bil - Exports - 199.1 bil - Imports - 156.5 bil - Surplus - 42.6 bil
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
Malaysia Major Import Sources (Value in USD million) Malaysia External Trade Development Corporation
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
Malaysia Major Imports from India - 2008 Malaysia External Trade Development Corporation
Malaysia Major Imports from India - 2007 Malaysia External Trade Development Corporation
Malaysia - Major Imports from India January – August 2009 Malaysia External Trade Development Corporation
Malaysia - Major Imports from India January – 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 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.
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 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;
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.