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MALAYSIA YOUR BUSINESS PARTNER. DOING BUSINESS WITH MALAYSIA Rome May 30, 2013. Roma 29 May 2013. Where is Malaysia?. Snapshot of World Growth in 2012. KEY HIGHLIGHTS. Strong growth of 5.6% amid challenging external environment
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MALAYSIA YOUR BUSINESS PARTNER DOING BUSINESS WITH MALAYSIA Rome May 30, 2013 Roma 29 May 2013
KEY HIGHLIGHTS • Strong growth of 5.6% amid challenging external environment • Robust domestic demand underpinned by strong investment and consumption activity • Low headline inflation of 1.6% • Resilient external position • Capital flows remain well intermediated
Malaysia’s Trade Performance 2011 and 2012 Value : US Billion 2% -0.3% 4.9% -24.2% Compiled by : MATRADE Source : DOSM
ASIA’S SHARE OF MALAYSIA’S TRADE STRENGHTHENS EASTERN EUROPE 0.9% share EU 9.8% share NORTH AMERICA 8.8% share AFRICA 2.1% share LATIN AMERICA 2.4% share ASIA 71.7% share OCEANIA & AUSTRALASIA 4% share
COMPOSITION OF EXPORTS IN 2012 Agricultural Goods 14.9% to US 26.06 bil. (11.4% share) Others US 2.04 bil. (0.9% share) Mining Goods 13.6% US 47.16 bil. (20.7% share) Manufactured Goods US 152.72 bil. (67% share)
IMPORTS BY MAJOR PRODUCTS IN 2012 E&E Products US 56.82 bil. (28.8% share) Others US 71.22 bil. (39% share) Machinery, Appliances & Parts US 17.16 bil. (8.7% share) Transport Equipment US 12.73 bil. (6.5% share) Chemical & Chemical Products US 16.89 bil. (8.6% share) Petroleum Products US 16.17 bil. (8.2% share)
Trade in Services (Jan – Sept 2012) US27.83 billion US59.14 billion EXPORTS UP 5.7% US31.31 billion TRADE UP 9.5% IMPORTS UP 13% 12
THE ASEAN FACTOR Highest Export Growth Compared with Other Regional Markets
ASEAN ECONOMY INDICATORS Source : ASEAN Secretariat, DOSM and IHS Global Insight
GDPGROWTH rates (%)… Source: ASEC database *2012 forecasts are official figures (low end of forecasts) 2013 projections from IMF, WEO2012
ASEAN ECONOMIC INTEGRATION
ASEAN ECONOMIC COMMUNITY • The AEC will make ASEAN more attractive to foreign direct investments, with a market larger than many other regional groupings and countries in the world • The AEC is a significant stimulus to regional production, linkages and competitiveness • Provides a platform for SMEs to venture into export market • Stimulates expansion of intra-regional trade and intra-regional investment
GLOBAL GROWTH CENTERS Source: ASEAN Secretariat (2011 figures)
TARIFF/IMPORT DUTIES ASEAN Trade in Good Agreement (ATIGA) • ASEAN-6 : Import duties eliminated by 1 January 2013 • Exclusion : Very limited • CLMV : Import duties are between 0-5%. Total elimination by 1 January 2015, with some exceptions • Special arrangements for rice and sugar for Indonesia and The Philippines. 21
FREE FLOW OF SERVICES • to enhance and strengthen • cooperation among service • suppliers in ASEAN; and Signed in 1995 • progressively liberalise trade in • services among ASEAN countries • through reduction / elimination of • restrictions.
LEVERAGING ON FTAs Trade 5.8% to US270.30 billion from US257.08 billion China US 58.64 bil. India US 13.36 bil. Chile US US 0.35 bil. Japan US US 47.18 bil. Malaysia Pakistan US 2.12 bil. New Zealand US 1.96 bil. Korea US 16.22 bil. ASEAN US 116.28 bil. Australia US 14.19 bil.
Enhance competitiveness and efficiency by expanding domestic production facilities for the larger markets: IMPLICATION TO LOCAL BUSINESS