Posts tagged exports
Malaysian auto parts manufacturers have spent years building a reputation for product build quality and supply reliability, exporting their products to several automakers around the world. Appealing to Japanese automakers, however, is another story entirely. A contract with a major manufacturer there offers lucrative rewards and increased stature, but Japanese thoroughness and taste for flawless quality present extra challenges to suppliers.
Some Malaysian companies were making inroads into the Japanese market even before the 11 March disasters in Tohoku damaged supply chains. The two countries signed a five year Economic Partnership agreement in 2006, with an auto industry component providing a skills training center in Malaysia and a number of trade shows.
Since March, many Japanese companies have expressed a desire to diversify their risks by teaming up with manufacturers in other Asian companies and Malaysia has found itself in a prime position. Trade agencies JETRO and MATRADE are aiding firms to find each other and achieve profitable outcomes on both sides. (more…)
The Philippines Department of Trade and Industry (DTI) is keen to expand business links in New Zealand after holding information sessions in Auckland and Wellington this week. It identified key export industries like ship-building, backroom engineering design, nursing/healthcare and other skilled business outsourcing functions as key targets for NZ investment.
Attendees were also interested in the food trade, with the Philippines offering mangoes, coco sugar and coconut oil and New Zealand looking to export its honey and ice cream. New Zealand’s 40,000 resident Filipinos would provide a ready-made market for exports.
The Philippines and New Zealand are already covered by the Asean Australia-New Zealand Free Trade Agreement (AANZFTA), which began January 2010 and allows Philippine goods to enter New Zealand tax-free until 2020. The information sessions were part of a DTI project designed to highlight opportunities for the Philippines under current agreements, called the ‘Doing Business in Free Trade Areas’ (DBFTA) Program. As well as AANZFTA, the Philippines also has free trade agreements with China, Japan, Korea, and recently signed with India.
Malaysian palm oil exports may set a new record this year, having reached RM30.49 billion (US$10 billion) in the first five months of 2011 on the back of increased demand and higher prices. The all-time record was in 2008, when exports hit RM65 billion ($21.4 billion) and last year’s total was RM62.8 billion ($20.68 billion).
While crude palm oil futures have risen from RM2,700 ($891) per tonne in 2010 to RM3,300 ($1089) today, Malaysia’s output has declined slightly in recent years as Indonesia’s increased. According to this report, shortage of foreign labour availability is one explanation, and Malaysian palm seed producers have complained about excess regulation and quarantine controls on palm planting materials due to the threat of coconut cadang-cadang viroid (CCCVd) disease.
The Department of Agriculture has, however, agreed to lift its restrictions after a series of talks arranged by the Malaysian Palm Oil Board (MPOB). Indonesia has increased export duties in an attempt to attract investment to downstream activities. These factors, plus bumper harvests in areas like Sarawak this year, should see Malaysian exports push past 2008′s record if output continues at its current rate.
source & article: Business Times
Malaysian and other Southeast Asian manufacturers are making themselves known in Japan, and more Japanese companies than ever are looking for overseas collaborations. International trade fairs are a fantastic opportunity to showcase a company’s offerings but adapting to each other’s business culture can make the experience more profitable, says Japan’s largest overseas trade organization.
The Japan External Trade Organization, or JETRO, has been around since 1958. Its original mission was to promote Japanese exports in overseas markets, but given radical economic shifts in Japan and elsewhere since then, its mission has broadened to include general facilitation of business understanding between Japanese companies and their overseas partners. This happens mainly through trade fairs, seminars, data-gathering, trade missions and publications. It has offices in 73 cities in every world region, of which 24 are in Asia and nine are in ASEAN countries.
JETRO offers a surprising amount of support to foreign enterprises looking to build a position in the Japanese market. For trade fairs it offers prime exhibition space and decoration, pre-arranges meetings and study tours before the fair begins, actively promotes exhibitions through the media and direct mail, and provides several interpreters.
I spoke recently to Ms. Mio Kawada, JETRO’s Director of International Trade Fairs in Japan, who in May oversaw the fifth Malaysian Auto Industry Exhibition (MAIE) in Yokohama. The expo featured 11 Malaysian manufacturers seeking export and import opportunities, OEM arrangements, technical alliances and other joint ventures with their Japanese counterparts. A glance at the Malaysian auto industry’s experience in Japan offers useful and universal pointers to other industries as well. (more…)
Services exports, including business process outsourcing (BPO) have dramatically increased their contribution to the Philippines’ economy in the past decade, allowing it to become the world’s third largest provider with 15% of the global market, after India (37%) and Canada (27%).
Worth only 9% of the Philippines’ exports in 1999, the services sector grew an average of 3.6% per year and represented 21% in 2009. At a services conference in Makati City this wee, one World Bank representative called the growth “a tremendous achievement” while another said the Philippines’ quality human capital and reliable telecommunications infrastructure aided the progress.
The Philippines has also been a net exporter of services since 2006, a rarity in the developing world. The World Bank said the country has provided and “enabling environment” for the services sector, which could provide more channels for sustained economic growth and reduce poverty.
source & article: PhilStar.com
A consortium led by Malaysia’s Scomi Engineering Bhd has won a RM2.6 billion contract to build an 18km monorail line in Sao Paulo, Brazil’s largest city. The contract, beginning in July this year, will see Scomi and three local partners cover every aspect of the line’s construction from design, supply, manufacture and implementation.
The 18km ‘Gold Line’ monorail will need to carry 250,000 passengers per day from Jabaquara to Sau Paulo-Morumbi. Scomi itself will manage design and delivery of 24 three-car vehicle sets, and supply a vehicle management system (VMS), design for switches, system integration, system assurance, and testing & commissioning. The contract also includes construction of 18 stations.
Sao Paulo has six million cars, one of the world’s largest fleets, and is famous for its chronic traffic congestion. Currently, the city operates a suburban train system, a fast-lane bus network, and is in the process of constructing an underground metro. Scomi Engineering specializes in monorail and bus systems as well as specialized vehicles like tankers and compactors, and is moving into more international markets after supplying its products to the Asia-Pacific and Middle East regions for years.
source & article: The Edge Malaysia, Scomi Engineering
Peugeot continues its surprising ascendancy in Malaysia, with the Malaysian Automobile Association ranking it the best selling European brand in the first quarter of 2011. Its 1,538 units sold were a huge 167% increase on sales for the same period last year.
Or maybe it’s not so surprising, given that Peugeot has made Malaysia its production hub for the right-hand drive market and manufactures all locally sold models at Naza Automotive in Gurun, Kedah.
Nasim Sdn Bhd, Peugeot’s official Malaysian distributor since 2008, says it’s on target to sell 7,000 new vehicles by the end of the year, launching two new models to achieve that goal. Most popular current models are the mid-size 308 (588 units sold) and the 207 sedan (537 units). The company also announced it would open five new sales and service outlets to bring its total in Malaysia to 23.
Meanwhile, Naza Automotive will produce 60,000 units of an as-yet-unnamed new model between 2012 and 2016, 60% of which will be exported to right hand drive markets in Southeast Asia, Australia, New Zealand and Africa.
source & article: The Edge Malaysia
Competition for the ‘vast but difficult’ global halal food market is heating up, with Southeast Asian producers look to satisfy demand for shariah-compliant food, financial and pharmaceutical products among an increasingly wealthy Muslim population, both at home and in the Middle East.
The Malaysia-based International Halal Integrity Alliance, which includes members from Europe, India and Australia as well as Southeast Asia, is drafting a new set of standards to certify halal products it hopes to complete by the end of 2011. Meanwhile, the Indonesian Ulema Council (MUI) is promoting the country’s image as the world’s largest Muslim nation and tying halal standards to Indonesia’s tourism ambitions, making it a bigger drawcard for Middle Eastern visitors. A halal product exhibition in Jakarta from 24-26 June this year will feature products from Indonesia and abroad.
As mentioned on this site previously, of primary concern when marketing and exporting halal products is trust. The Brunei Halal brand has set probably the most successful standard so far, scrutinizing every aspect of the supply and distribution chain for compliance, and operates to what it says are the strictest guidelines.
Of ASEAN countries, which are most dependent on Japan for exports? Check out this chart from The Economist which shows Brunei’s exports of US$3 billion per year (28% of its GDP) and Malaysia’s $15.5 (18% of GDP) as having the highest exposure to any changes brought by Japan’s recent disasters. That’s not to say they’re in most danger though, as Brunei’s oil and natural gas and Malaysian timber will likely play a large role in Japan’s reconstruction. At greater risk are Singapore ($12.3 billion/7% of GDP) and Thailand ($15.7 billion/6% of GDP), also large exporters, but who also rely on Japanese made components for manufacturing.
source & article: The Economist
Japan’s government has requested an increase in energy exports from Indonesia, namely crude oil and Liquefied Natural Gas (LNG), to help Japan deal with severe energy shortages resulting from recent disasters. Already a major consumer of Indonesia’s energy, Japan is in desperate need of more supply to aid reconstruction operations and make up a drastic shortfall in electricity from the loss of nuclear power plants in Fukushima. Most of Japan, including the capital Tokyo, is enduring shortages and scheduled blackouts. Crews at the Fukushima plant are still struggling to keep radioactive fuel from causing a more serious catastrophe.
Indonesia is the world’s third largest LNG exporter (after Qatar and Malaysia) and the world’s largest exporter of thermal coal for power plants. 95% of Indonesia’s LNG comes from Arun in Aceh province and Bontang in East Kalimantan. A spokesman from BPMigas said the Bontang plant currently has excess capacity, with 20 cargoes still unsold, that could be used to satisfy Japan’s increased demand.
Effects on Indonesian nuclear industry
Meanwhile, Indonesia’s own plans to expand its nuclear power capacity have come under scrutiny, given their geographic susceptibility to the kind of earthquake that led to the Japanese situation. A possible location for a new plant, due to come online in 2022, is Bangka Island to the east of Sumatra. National Atomic Energy Agency (Batan) chief Hudi Hastowo said any Indonesian plant would meet international safety criteria and would ‘certainly’ use more sophisticated technology than Japan’s 40 year old plants at Fukushima.