M'Sia-S'pore Trade To Perform Positively Despite Sluggish Global Economy

By Tengku Noor Shamsiah Tengku Abdullah SINGAPORE, Dec 30 (Bernama) -- Malaysia-Singapore bilateral trade this year is expected to be positive with a double-digit growth again despite the sluggish global economic environment due to weak US recovery and the eurozone debt crisis. According to Malaysia External Trade Development Corp (Matrade) trade commissioner for Singapore, Naim Abdul Rahman, from January to October this year, Malaysia’s total trade with Singapore had already increased by 11.8 per cent against the same period in 2010. "This was contributed by the increase in exports and imports, which rose by 4.6 per cent and 21.7 per cent respectively. "Exports to Singapore were valued at RM73.31 billion, while imports RM61.41 billion," he told Bernama in an interview. Electrical & electronic (E&E) products continued to be Malaysia's leading exports to Singapore, valued at RM26.89 billion, or 36.7 per cent of total exports. They were followed by refined petroleum (RM16.08 billion, 21.9 per cent); machinery, appliances & parts (RM3.80 billion, 5.2 per cent), metal manufactures (RM3.41 billion, 4.7 per cent) and chemicals & chemical products (RM3.07 billion, 4.2 per cent). Naim said said although E&E exports to Singapore fell due to the slowdown in world demand, they were offset by the growth in all other manufactured goods. He said significant export growth rates were registered by transport equipment, which grew by 40.7 per cent; refined petroleum (37.4 per cent); palm oil (31.1 per cent); iron & steel products (19.1 per cent); and optical & scientific equipment (12.2 per cent). Naim said Singapore continued to be Malaysia’s second largest trading partner after China. "From January to October of this year, trade with the city-state reached RM134.72 billion, or 12.8 per cent, of Malaysia’s total trade with the world which stood at RM1.05 trillion," he said. He said the republic was once Malaysia’s largest trading partner (in 2008), the year the US economy started to decline. However, China overtook it from 2009 until now, he said. Naim said Singapore has been Malaysia’s largest export destination for almost a decade, but this would be overtaken by China should its momentum to boost imports from Malaysia accelerated for the remaining period of the year. He said Malaysia’s exports to China for the period stood at RM76.49 billion, surpassing Singapore by only RM3.18 billion. Notwithstanding the above, Naim said, Singapore continued to be a preferred destination for Malaysian firms to export their products and services, given the factors such as proximity, inter-connectivity, complementarity and ease in doing business in each other’s country. "The same goes for Singapore firms whereby Malaysia has always been top in the list of destinations for them to conduct business with," he said. Naim said Matrade would continue to encourage Malaysian firms to consider Singapore as their primary export market. "Singapore, well-known as a trading hub in the region, serves as the best springboard for Malaysian exporters to venture abroad. "Malaysian companies can always use Singapore as a testbed for their products and services to ensure market acceptability, competitiveness and sustainability prior to venturing into other foreign markets," he said. He said Malaysian companies should be aware of the fact that Singapore was a very competitive nation and Singaporeans were one of the highest purchasing power consumers in the world. "Singapore consumers are more exposed to international trade and may have more sophisticated buying behaviour. "Therefore, eyeing Singapore as a market requires Malaysian exporters not just comply with certain rules and regulations, but more importantly to be able to address the market needs and consumer demand," he said. He said opportunities were noticeable in sectors such as healthcare and wellness, green and eco-friendly, urban solutions, lifestyle and convenience, professional and business support services, outsourcing as well as MRO (maintenance, repair & overhaul) services. Going forward, Naim said, Matrade would continue to organise Incoming Buying Missions (IBMs) for Singapore buying houses, importers and distributors to visit Malaysia in conjunction with major trade events such as MIHAS and INTRADE. So far, he said, these programmes had resulted in millions of dollars in import orders and purchases for Malaysian products and services from Singapore. "This year alone, Matrade has brought 22 Singapore buyers to MIHAS and 17 to INTRADE, generating sales of more than RM17 million," he said. Considering the fact that there are many international procurement centres in Singapore, Naim said, Matrade has also initiated Global Supply Chain Initiative to create opportunities for Malaysian companies to supply their products and services to global multinational corporations (MNCs). "This year, Matrade has worked with an MNC here to assist in its procurement for quality products and services from Malaysia. "Over 50 Malaysian companies have been introduced to the MNC under this initiative. The initiative will be continued in 2012 to cover more MNCs and procurement centres based in Singapore," he said. -- BERNAMA