Auto parts & accessories, a major focus area
An exclusive interview with Mr. Shah Nizam Ahmad, Consul (Trade), Consulate General of Malaysia (Trade Section)
The Malaysia External Trade Development Corporation (MATRADE) will be organising its flagship event, INTRADE MALAYSIA 2012, during November 27-29 at Kuala Lumpur. The show is expected to attract more exhibitors and visitors than the previous events.
This most popular Malaysian international event for exports is organised for the sixth year in a row, featuring industries, products and services that are purely export-oriented. Among the major sectors that INTRADE covers are automobiles, components and accessories. Concurrently with this event, a specialised B2B programme where local importers can directly meet the Malaysian manufacturers and exporters will be organised.
This was disclosed in an exclusive interview to R. Natarajan, MOTORINDIA Editor & Publisher, by Mr. Shah Nizam Ahmad, Consul (Trade), Consulate General of Malaysia (Trade Section). It is in order to explore the possibilities of further expanding bilateral trade between the two countries in areas like automotive, construction, business services, education, franchise, healthcare, etc., that MATRADE is also organising an event for the first time in Pune during October 10-12, a virtual platform for the Malaysian companies to showcase their products. The earlier event organised in Mumbai for the first time during October 2011 was a great success and prompted MATRADE to have the second edition in Pune this year. Pune was chosen due to its rapid industrial growth and expansion, more particularly in the automotive field.
Further, the Malaysian Minister for International Trade will be visiting Mumbai, Delhi and Hyderabad in December to have a detailed discussion with the Indian business leaders to explore possibilities of making investment in different fields, including automobiles.
Success story in auto sector
As for the investment in the auto sector, the success story has already begun with the Malaysian major Inteltium setting up operations in Pune two years ago for the manufacture of electronic components for automobiles. The Malaysian car maker, Proton, already visited Chennai earlier to conduct a market study, and a final decision is awaited. Of late, Malaysian companies are evincing keener interest in entering the Indian scene.
Referring to the overall trade relationship between the two countries, Mr. Shah Nizam Ahmad said that although India and Malaysia have been maintaining good trade relationship, there is still scope to widen the collaboration between the two countries in diverse fields. Since India has emerged one of the fastest growing automobile markets in the world, Malaysian companies are showing greater interest now to set up plant in India alone or as a joint venture.
The total trade between Malaysia and India for the first sixth months of the year grew by 6.5 per cent totalling $6.38 billion compared to $5.98 billion in the corresponding period last year. Trade was of course in Malaysia’s favour, with a trade surplus recorded for the period of $2.43 billion. Malaysia’s trade with India has been growing steadily eversince the financial crisis of 2009.
In terms of exports, India was the seventh largest market for Malaysia in 2011, registering a double-digit growth of 34.6 per cent to $9.12 billion, riding on the upward export momentum.
Malaysia’s total exports to India for January-June 2012 expanded to $4.4 billion, an increase of 1.3 per cent, compared with $4.35 billion in January-June 2011. The significant increase in exports was partly attributed to the growing utilisation of the ASEAN India Free Trade Agreement and the Malaysia-India Comprehensive Economic Cooperation Agreement.
Malaysia’s major export products to India were electrical & electronic products, crude petroleum, palm oil, chemicals and chemical products and metal products. Exports of electrical & electronic products to India for the period were worth $910 million, followed by crude petroleum valued at $887 million.
For January-June 2012, Malaysia’s imports from India also recorded a double-digit growth of 20.5 per cent to $1.97 billion from $1.63 billion in the same period last year. India ranked the 14 largest source of imports for Malaysia, with a share of 1.8 per cent of its overall total imports.