M'sian Companies Urged To Tap Into Santiago's Lucrative Market

KUALA LUMPUR, May 18 (Bernama) -- MAKRO, the Dutch warehouse club with 76 stores throughout Brazil and more outlets in South America, is actively sourcing for alternative suppliers. In a statement on Firday, Malaysia External Trade Development Corporation (Matrade) said the global chain was looking specifically for reliable distributors that are able to assist and introduce new imported products into the market. These include plastic items such as food containers, storage boxes, wood products such as hangers, glassware, porcelain items and metal and plastic utility items including janitor or utility carts, wringers, plastic caution board, rubber floor mats and more. India and China are their largest suppliers of merchandise currently. Matrade said Malaysian companies should look into the opportunities to tap into the market which has a population of more than 200 million. The Brazilian government recently announced a US$33 billion (RM103.5 billion) economic stimulus package to support its industrial sector via combination of tax breaks and lower interest rates. "This is expected to help commercial banks expand their financial support at lower interest rates, in turn benefiting small and medium entrepreneurs (SMEs) through heightened competitiveness," Matrade said. The broad range of perks included the elimination of 20 per cent payroll tax, lower taxes for the textile industry, auto parts, capital goods, plastics, electrical materials, commercial vehicles, the shipping and airplane industries, hotels and the computer chip sectors. "A gross revenue tax of one per cent for industry and two per cent for the services sector has replaced the previous tax regime. "Malaysian exporters and investors are encouraged to understand how these new tax structures would impact their business activities," the Matrade statement added. --BERNAMA