Matrade identifies products to fill in gaps due to trade conflict

Matrade identifies products to fill in gaps due to trade conflict

KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) has identified various Malaysian products that could potentially fill in the gaps arising from the United States-China trade conflict.

Deputy chief executive officer Mohd Mustafa Abdul Aziz said the product categories include electrical and electronics (E&E), machinery and equipment, optical and scientific products, petroleum as well as chemicals and chemical products.

Mohd Mustafa said the trade war created opportunities for ASEAN countries like Malaysia.

“Malaysia companies should be more proactive in navigating trade tension challenges to expand their business wisely,” he said in a speech at the 2nd China- Malaysia ‘Belt & Road’ Shaanxi Trade expo here, today.

He said the Belt & Road Initiative (BRI) presented opportunities for the Malaysian business community to tap into smart partnerships, collaborations and joint ventures, among others.

“The initiative is extremely beneficial, not only for Malaysia and China, but also other countries along the BRI, especially in outbound capital projects and infrastructure.

“Companies from Shaanxi could forge a win-win partnership in many areas such as supply equipment, technology, engineering, procurement and construction,” he said.

Mohd Mustafa said Malaysian companies are open to forming strategic partnerships with Chinese companies to jointly undertake projects in Malaysia, China and countries along the BRI.

He said Malaysian companies should also use Shaanxi as a gateway to northwestern China, adding that it is the most populated and developed province in the region.

“There are areas with opportunities that we can collaborate on, such as aerospace parts and components, E&E, commodities like palm oil, rubber and timber, consumer products as well as services including healthcare, education, retailing and franchising,” he said.

He added that Shaanxi can also serve as a springboard for Malaysian halal exporters to tap into the 400,000 Muslim population in western China.

From January to September 2019, trade with China stood at US$55.36 billion (US$1=RM4.18), with exports at US$24.13 billion and import at US$31.23 billion.

“China was the biggest contributor of approved foreign investments into the manufacturing sector last year at US$4.8 billion,” he said, adding that in 2018, the total trade value between Malaysia and China reached a historic high at US$108.6 billion.

“Moreover, 2019 is a special year as it marks the 45th anniversary of diplomatic relations between Malaysia and China,” he noted.

Meanwhile, China Council for the Promotion of International Trade Shaanxi Sub-Council vice-chairman Wu Fu Jie said hoped Malaysia businesses will be able to take this opportunities to enter Shaanxi, in order to enhance Malaysia-China friendship with the expo.

— BERNAMA


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