malaysia your business partner

MALAYSIA YOUR

BUSINESS PARTNER

Roma29 May 2013

DOING BUSINESS WITH MALAYSIA

RomeMay 30, 2013

2 www.matrade.gov.my Malaysia External Trade Development Corporation | 2

3 www.matrade.gov.my Malaysia External Trade Development Corporation | 3

Snapshot of World Growth in 2012COUNTRIES GDP GROWTH 2012 (%)

WORLD 3.2

Advanced Economies 1.3

USA 2.3

Euro Area -0.4

Japan 2.0

Emerging Market and Developing Economies

5.1

Developing Asia 6.6

China 7.8

India 4.5

Singapore 2.1

Thailand 5.6

Indonesia 6.0

Malaysia 5.6

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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

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0

50

100

150

200

250

300

350

400

450

2011 228,29 187,64 415,93 40,65

2012 227,62 196,81 424,43 30,80

Exports Imports Total Trade Trade Balance

Compiled by : MATRADE Source : DOSM

-0.3%4.9%

2%

-24.2%

Malaysia’s Trade Performance 2011 and 2012 Value : US Billion

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ASIA 71.7% share

AFRICA2.1% share

LATIN AMERICA

2.4% share

EU9.8% share

EASTERN EUROPE

0.9% share

OCEANIA & AUSTRALASIA

4% share

NORTH AMERICA

8.8% share

ASIA’S SHARE OF MALAYSIA’S TRADE STRENGHTHENS

6

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COMPOSITION OF EXPORTS IN 2012

OthersUS 2.04 bil.(0.9% share)

Manufactured GoodsUS 152.72 bil.(67% share)

Mining Goods 13.6%US 47.16 bil.(20.7% share)

Agricultural Goods 14.9%to US 26.06 bil.(11.4% share)

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IMPORTS BY MAJOR PRODUCTS IN 2012

OthersUS 71.22 bil.(39% share)

E&E ProductsUS 56.82 bil.(28.8% share)

Machinery, Appliances & PartsUS 17.16 bil.(8.7% share)

Chemical & Chemical ProductsUS 16.89 bil.(8.6% share)

Petroleum Products

US 16.17 bil.(8.2% share)

Transport Equipment

US 12.73 bil.(6.5% share)

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Malaysia’s Exports to Italy2012 Value Euro million

Tin & Articles ThereofUS 33,39 million

3% share

Mineral Fuel, Oil EtcUS 30,35 million

3% share

Optic-Med InstrUS 30,10 million

3% share

OthersUS 227,33 million

23% share

Electrical MachineryUS 104,02 million

11% share

MachineryUS 112,63 million

12% share

Fats And OilsUS 288,82 million

30% share

Rubber US143,09 million

15% share

10 www.matrade.gov.my Malaysia External Trade Development Corporation | 10

Malaysia’s Imports from Italy2012 Value Euro million

Aircraft,SpacecraftUS 87,625% share

Vehicles, Not RailwayUS 51,68 million

3% share

Optic-Med InstrUS 65,45 million

4% share

Pharmaceutical ProductsUS 50,58 million

3% share

OthersUS 466,93 million

27% share

Iron/Steel ProductsUS 91,60 million

5% share

Electrical MachineryUS 384,02 million

22% share

MachineryUS 513,77million

31% share

11 www.matrade.gov.my Malaysia External Trade Development Corporation | 11

Malaysia-Italy Bilateral Trade2003-2012 Value: US million

-

1.000,00

2.000,00

3.000,00

4.000,00

5.000,00

6.000,00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Trade in Services(Jan – Sept 2012)

EXPORTS

UP

5.7%IMPORTS

UP13%

TRADE UP

9.5%

12

US27.83 billion

US31.31 billion

US59.14 billion

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WHY MALAYSIA?

13

14 www.matrade.gov.my Malaysia External Trade Development Corporation | 14

THE ASEAN FACTOR Highest Export Growth Compared with Other Regional Markets

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ASEAN ECONOMYINDICATORS

Source : ASEAN Secretariat, DOSM and IHS Global Insight

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Country 2010 2011 2012 2013F

Brunei 2.6 2.2 1.6 1.6

Cambodia

6.0 7.5 6.5 6.4

Indonesia

6.3 6.5 6.3 6.6

Lao PDR

8.1 8.0 8.3 7.1

Malaysia

7.2 5.1 5.6 5.0/6.0

Myanmar

10.6 10.4 5.0 5.9

Philippines

7.6 3.7 6.6 4.7

Singapore

14.9 4.9 1.3 4.2

Thailand

7.8 0.1 5.9 7.5

Vietnam

6.8 6.0 5.0 6.3

ASEAN 7.8 4.7 5.2 6.0

GDP GROWTH rates (%)…

Source: ASEC database*2012 forecasts are official

figures (low end of forecasts)

2013 projections from IMF, WEO2012

17

ASEAN ECONOMICASEAN ECONOMIC

INTEGRATIONINTEGRATION

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• 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

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ASEAN ECONOMIC ASEAN ECONOMIC COMMUNITYCOMMUNITY

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GLOBAL GROWTH CENTERSGLOBAL GROWTH CENTERS

Source: ASEAN Secretariat (2011 figures)

SINGLE MARKET AND PRODUCTION BASE

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TARIFF/IMPORT DUTIESASEAN 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

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- 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.

FREE FLOW OF SERVICES FREE FLOW OF SERVICES

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AustraliaUS 14.19

bil.

New Zealand

US 1.96 bil.

JapanUS US

47.18 bil.

PakistanUS 2.12

bil.

ChinaUS 58.64

bil.

IndiaUS 13.36

bil.

ASEANUS 116.28

bil.

ChileUS US

0.35 bil.

Malaysia

KoreaUS 16.22

bil.

LEVERAGING ON FTAs

Trade 5.8% to US270.30 billion from US257.08 billion

Enhance competitiveness and efficiency by expanding domestic production facilities for the larger markets:

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IMPLICATION TO LOCAL IMPLICATION TO LOCAL BUSINESSBUSINESS