Trade sector not affected

KUALA LUMPUR (March 18, 2009): Malaysia's trade sector has not been affected by the global financial turmoil because although total exports dipped by 7.4%, imports fell by 12.3% in the fourth quarter of 2008s, compared with the corresponding period in 2007, Deputy International Trade and Industry Minister Datuk Liew Vui Keong (BN-Sandakan) told the Dewan Rakyat today.

He was replying to Ahmad Maslan (BN-Pontian) who had asked the impact on imports and exports of products and services in the country in the current global economic situation, new measures taken to increase exports as well as the latest markets explored.Liew said total trade for 2008 rose 6.8% to RM1.185 trillion while exports were up 9.6% to RM663.5 billion and imports expanded 3.3% to RM521.5 billion.

Some of the main markets that recorded positive growths last year were Japan (30%), India (22.4%), Australia (19.7%), China (19.2%) and South Korea (12.4%).In traditional export markets such as the United States of America and Europe, there was a decrease due to decline in demand, especially in electrical and electronic goods.

Exports to new markets include Ukraine (126.7%), Russia (47%), Egypt (45.8%), Saudi Arabia (42.6%), Mexico (33.7%), United Emirates of Arab (24%), Brazil (23.8%) and Iran (15.3%).Other main sectors also recorded positive growth in exports such as natural gas (55.7%), palm oil (46.3%), crude oil (31.5%), and chemical products (10.4%).

Liew said steps taken by the ministry to ensure increase in exports include special programmes to promote the service sector in the Middle-East through the Malaysia Services Exhibition in UAE, diversification of promotional activities planned this year to markets in Asia and the Middle-East so that the country did not end up dependent on the American and European markets.

"We also plan to provide Market Development Grant and export service funds to promote and expand exports of products and services to new markets. Apart from that, the ministry is also giving a 30% to 100% tax exemption on exports, increase value of local companies in manufacturing sectors.

"We will also provide incentives on the implementation of RosettaNet, an electronic system that connect exporters with supply chains.

"Liew said the ministry would also give double tax exemption for premium insurance and export credits, conduct more outreach programmes with local export companies on tariff benefits in the Free Trade Agreement (FTA) signed by the government.