SMEs Key to Bolster Indo-Malay Trade

March 9, 2009 - PRLog -- Malaysia’s transformation from a commodity-based economy to the third most industrialised economy in the world can be credited to the rapid growth of its manufacturing sector and adherence to global norms of economic governance.

Since the last three decades, the country has been growing at an annual average of 7%.Though Malaysia’s economic growth has been largely driven by its manufacturing sector, it is increasingly focussing on the development of its services sector and technology industries to attract foreign investments and diversify its sources of growth.

Its major industries include electronics, tin mining and smelting, logging, timber processing, petroleum production & refining and rubber & palm oil processing.

With Malaysia accelerating its efforts to achieve its goal of becoming a comprehensively developed nation by 2020, it is looking towards India and West Asia to strengthen its trade and financial ties.

Malaysia is India's second largest trading partner in the Association of South East Asian Nations (ASEAN). Bilateral trade between the two countries from January to May 2008 was valued at $4.09 billion. This is expected to touch $16 billion by 2012.

India primarily exports meat and meat preparations, sugar, rice (in addition to basmati), wheat, fresh vegetables and fruits, cotton yarn, RMG cotton and accessories, primary and semi-finished iron, made-ups, fabrics, machinery & instruments, electronic goods and metal manufactures to Malaysia.

On the other hand, its major imports from Malaysia include crude petroleum, palm oil, electronic & electrical products, chemicals & chemical products and petroleum products.

The governments of both countries agree that increased cooperation between the small and medium enterprises (SMEs) in the two nations is imperative for further strengthening of their economic relations.

Indian SMEs can explore business opportunities in Malaysia’s high-end technology and knowledge-driven industries such as information technology (IT), information and communications technology (ICT), machinery & engineering, biotechnology and pharmaceuticals.

In the services sector, Indian and Malaysian SMEs can collaborate in the fields of construction and consultancy services, franchising and professional services, besides finance, banking and accounting services.

Small and mid-sized units in both countries can also form partnerships in the petroleum and gas, agro processing, healthcare, education, food processing, medicine and construction & engineering sectors.

Malaysian corporations in the construction, power generation, telecommunications, tourism, infrastructure, petrochemicals and steel sectors have shown keen interest to invest in Indian SMEs pertaining to these industry verticals.

Indian firms in the automobile, iron & steel, textiles, pharmaceuticals, chemical, petrochemicals, oil & gas, electricity generation and telecommunications sector can also build strategic linkages with their Malaysian counterparts for future business expansion in the lucrative ASEAN market.

Cross-border SME joint ventures can also be initiated in the domain of agricultural implements, automotive components, basic metals & metallic products, construction & earthmoving equipment, domestic appliances, electrical machinery, woodworking machinery, fabricated metal products and transport equipment.

With India and Malaysia committed to take their bilateral relations to newer heights, trade and investment activity between the two countries is likely to gain further momentum.

For more information visit: http://www.bizxchange.in

Saurabh Garg
2nd floor, Response
Times of India Bldg.
Dr.D.N. Road, Fort
Mumbai-400001

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