“ Trade Opportunities for SMEs among SAARC & ASEAN Countries” 12 December 2009 Le Royal Meridien Hotel Chennai

PRESENTATION OUTLINE MALAYSIA - Snapshot - Malaysia’s Trade & Trade Performance Business Opportunities in Malaysia Why Do Business With Malaysia ?

Malaysia’s Map

Parliamentary democracy & constitutional monarchy 13 states & 3 FTs Population (27.7 million) (2008) Capital Kuala Lumpur Administration Centre Putrajaya Time difference 2 ½ hrs Flight time Chennai - KLIA (3 ½ hrs) Currency Ringgit Malaysia (RM) - US$1 = RM RM1 = Rs13.72

Employment 11.8 mil (2007) Unemployment 4.0 % Base lending rate 6.72% Inflation 2.5% (Jan-June 2009) Foreign Reserves US$ 91.6 bil (Sept’09) Climate 21º C – 32 º C Malaysia Airlines, Jet Airways, Air India and Indian Express Internet Domain (my) International dialing code (+60)

Total 2008 (US$ bil) bil - Exports bil - Imports bil - Surplus bil MALAYSIA Global Trade

Direction of Exports US, Singapore, North East Asia (excl. Japan & PRC), ASEAN 10, Japan & China. Sources of Imports North East Asia (excl. Japan & PRC), Japan, ASEAN 10, US, China & Singapore. Sector breakdown - Manufacturing (50.3%), - Services (44.0%) - Agriculture (7.7%)

Exports oriented industries Electrical & Electronic products; Chemicals & chemical products, Petroleum products, Textile & wearing apparel & footwear, Wood products and rubber products. Domestic oriented industries Construction related products, Food products, Transport equipment, Fabricated metal products, Paper products & Beverages

Malaysia Major Export Destinations (Value in USD million) Malaysia External Trade Development Corporation RankCountry Total173,225177,986184,304 1.Singapore26,69126,03227,162 2.USA32,52527,80022,980 3.Japan15,35716,24719,944 4.China12,54715,59917,558 5.Thailand9,1708,8198,815 6.Hong Kong8,5728,2267,866 7.Korea6,2626,7747,191 8.India5,5245,9426,870 9.Australia4,9156,0006, Netherlands6,3036,9416,512

Malaysia Major Import Sources (Value in USD million) Malaysia External Trade Development Corporation RankCountry Total141,404148,475144,892 1.China17,12519,08918,578 2.Japan18,69719,27618,091 3.Singapore16,52617,04615,924 4.USA17,70916,08515,682 5.Thailand7,7287,9438,132 6.Taiwan7,7128,4456,970 7.Korea7,6217,3336,730 8.Indonesia5,3436,2886,718 9.Germany6,1956,8896, Hongkong3,7214,3173,794 17th.India1,4372,0792,862

Bilateral trade (US$ bil) Total bil. Exports bil Imports bil Surplus bil Malaysia – India Bilateral Trade 2008

Year Value US$ mil Change from 2007 (%) Share of Import (%) Manufactures of metals Cereal (maize & corn) Chemicals & Chemical Products Refined petroleum products Live animals & meat (frozen meat & bovine animals) Malaysia Major Imports from India Malaysia External Trade Development Corporation

Year Value US$ mil Share of Import (%) Manufactures of metals Chemicals & Chemical Products Live animals & meat (frozen meat & bovine animals) Refined petroleum products Machinery, Appliances & Parts Malaysia Major Imports from India Malaysia External Trade Development Corporation

Year Value US$ mil Change from Jan- Aug (%) Share of Imports (%) Chemicals & Chemical Products Iron & Steel Live animals & meat Manufactures of metal Refined petroleum products Malaysia - Major Imports from India January – August 2009 Malaysia External Trade Development Corporation

Year Value US$ mil Share of Imports (%) Chemicals & Chemical Products Iron & Steel Live animals & meat Manufactures of metal Refined petroleum products Malaysia - Major Imports from India January – August 2008 Malaysia External Trade Development Corporation

Opportunities for Indian SMEs ASEAN market: 550 million people; Malaysia’s strategic location – base, connectivity & logistics, sales and service centre; Malaysia - cost of doing - competitive; Smart collaboration with Malaysian – familiarity of ASEAN market; Capitalise on increasing Intra ASEAN trade; In 2007, India was ASEAN’s 7 th largest trading partner with total trade value at US$37.1 billion from US$28.7 billion in 2006.

In 2007, India was ASEAN’s 7th largest trading partner with total trade value at US$37.1 billion from US$28.7 billion in Leverage on ASEAN-India FTA; Malaysia’s import duties elimination on: - 6,792 tariff lines or products in the Normal Track (1) by 31 December 2013; and - 1,266 tariff lines in the Normal Track (2) by 31 December 2016.

Business Opportunities for Indian SMEs Malaysia - Exclusion List Under AIFTA, Malaysia excluded 898 tariff lines from tariff concessions. The products excluded are: - Poultry products; - Tropical fruits and rice; - Iron and steel; - Automotive products; - Chemicals; - Alcoholic beverages; - Tobacco and tobacco products; and - Used tyres.

WHY DO BUSINESS WITH MALAYSIA? Pro-business government; Consistence business policies; Liberal & transparent policies; Modern & highly developed infrastructure; Harmonious industrial relations; Cost efficient & productive operations; English speaking.

Why Malaysia ? Accessibility to ASEAN’s market – thru’ ASEAN FTA’s single market; Strategic location – Asia Pacific and Northeast Asia; Multi lingual advantage; Favorable time zone 2 ½ hours difference Just 3 hours away by flight;

New Growth Areas NORTH – Northern Economic Corridor Region (Penang, Perak, Kedah & Perlis); SOUTH – ISKANDAR MALAYSIA ; EAST – East Coast Economic Region (Pahang, Terengganu & Kelantan); EAST MALAYSIA - Sabah Sarawak Economic Region Cyberjaya – Multimedia Super Corridor

Why Malaysia ? Government sponsored Exhibitions Malaysia International Halal Showcase (MIHAS) - May International Trade Malaysia Exhibition (INTRADE) - November Components: International Exhibition Seller-Buyer Meetings International Biz Forums

SPECIAL TASK FORCE Undertake to f acilitate doing business Improve ranking - World Bank ‘Doing Business Index 2008 – 24/178 Achievements New business registration - 3 days to 1 hour; - Company name approval – 5 days to 1 day; - Incorporation of company – 5 days to 1 day; - Renewal business license - 1 day to 15 minutes.

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