Volcanic Eruption

April Trade Figures May Be Affected If Situation In Europe Persists


KUALA LUMPUR, April 19 (Bernama) -- Malaysia's trade figures for April may be affected, if Europe continues to be impacted by the volcanic eruption in Iceland, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

He said trade figures from January to March were very good but foresaw activities slowing down in April.

The volcanic eruption spewed a thick ash cloud into the air, causing flight chaos in Europe, and affecting people globally.

"Our biggest market is Asia. Although Europe is not the biggest, there will be some impact on economic activities.

"We will monitor the situation closely," Mustapa said at a press conference after visiting Innopeak (M) Sdn Bhd, an engineering solutions provider in aerospace and automotives.

The minister said there are a few thousand Malaysians, especially businessmen, stranded in Europe due to flights cancellations caused by the volcanic eruption.

Last Friday, Malaysia Airlines alone recorded five flight cancellations, affecting nearly 1,400 passengers while the daily AirAsia X flight to London was also hit, stranding its 300-odd passengers at the low-cost carrier terminal.

Meanwhile, the minister said the government is encouraging SMEs involved in the aerospace industry to participate in the Maintenance, Repair and OverHaul (MRO)business in Subang.

This is in line with the government's efforts to promote Subang as an aviation hub.

He said currently there are about 30 companies involved in the MRO business in Subang.

Citing Innopeak as an SME company that has established a network and business in Subang, he said other SMEs should do the same.

Innopeak Managing Director Suzanna Shahari said the company is taking steps to venture into the global supply chain in aerospace tooling.

"Currently, we are in the midst of obtaining approval for the certified license for Class A toolings.

"We hope to acquire the license by this year and look to establishing apresence in the global supply chain in 2011, by tapping the United States or UK market," she added.

Innopeak, which started its business operation in 1993, is diversified into customisation in design and manufacturing of high quality precision toolings, jigs and and fixtures, engineering components, precision machining, fabrication, tool repair and services.

According to Suzanna, the aerospace business currently contributes 30 per cent to the company's growth.

"By spreading our wings to the global supply chain, we are targeting it to contribute 70 per cent from the current 30 per cent," she said.

She also said the potential value of the aerospace industry the company is looking to bid for globally, is about RM50 million, for Class A toolings.


Ash cloud has not hurt Malaysia traders as yet
By Goh Thean Eu
gohtheaneu@nstp.com.my
2010/04/20

Malaysia's trade activities this month may be affected if air travel in Europe continues to be disrupted by the volcanic ash cloud from Iceland.
"Although Europe is not our biggest market - our biggest market is still Asia - we will still see some impact if the situation is prolonged," International Trade and Industry Minister Datuk Seri Mustapa Mohamed said.

The closure of much of Europe's airspace is costing the airline industry hundreds of millions of dollars, while millions of passengers have been stranded.

Although importers and exporters alike have been hit, economists believe the situation will not hurt Malaysian traders as the problems are "localised".

"A bulk of global trades, some 80 per cent, are still done via sea freight," RAM chief economist Dr Yeah Kim Leng said when contacted.

Nevertheless, Mustapa and his team are keeping a close watch on the situation in Europe.

"The preliminary trade numbers we got for the first three months have been very good," he said after visiting Innopeak (M) Sdn Bhd, an engineering firm specialising in developing precision tools, in Petaling Jaya, Selangor, yesterday.

Mustapa also said that the government wanted small- and medium-scale enterprises specialising in the aerospace industry to take part in more maintenance, repair and overhaul (MRO) jobs in Subang, Selangor.

"This is in line with the government's efforts to promote Subang as an aviation hub," he said.

Currently, there are about 30 com-panies involved in the MRO business in Subang