M'sia To Revitalise Trade With UK, Says Rafidah

From Mikhail Raj Abdullah

BIRMINGHAM, March 6 (Bernama) - Concerned with declining exports to the United Kingdom, Malaysia is seeking to revitalise trade with the trillion dollar economy in more ways than one, International Trade and Industry Minister Datuk Seri Rafidah Aziz, said here Monday.

She said Malaysia was in a position to supply a wide range of high value-added products and services to the UK industrial, consumer and commercial markets.

She said that commercial linkages could also be stepped up if British investors exploit Malaysia's free trade agreements being negotiated with trading partners for expanded markets regionally and internationally.

If they play their cards right, Rafidah said, numerous trading and investment opportunities await businesses and investors from Birmingham, the regional capital of the UK's West Midlands region and largest financial centre after London.

Rafidah suggested that two-way commercial ties between Malaysia and the UK which have long historical ties could be revitalised if British importers source more higher value-added products.

Rafidah said this to some 250 participants at the "Business Opportunities in Malaysia" seminar held in conjunction with the trade and investment mission which she led to three European nations with the UK being the last leg after Italy and Germany.

During the mission in Birmingham, the second largest city in the UK, the participants held over 150 business meetings with Malaysia's private sector and government agencies organised by the Malaysian Industrial Development Authority (Mida).

Also in the team was the Malaysia External Trade Development Corporation (Matrade).

Rafidah said that one area which holds potential was electrical and electronics (E&E) products, which have responded to the changes in the global market by ably embracing both technology and innovation.

This has been characterised by increased convergence of competing functions with digital media and the increasing use of wireless applications, she said.

As a result, Malaysia's exports of E&E products to all regional markets recorded growth in 2005 while offtake to the United States surged by 19.3 percent and greater inroads made into the European Union (EU).

Malaysia's global exports of E&E products last year expanded by 9.6 percent to US$69.7 billion. (US$1=RM3.73)

This was mainly due to the increase in exports of automatic data processing machines and parts, hybrid and digital integrated circuits, other semi-conductor devices and telecommunication equipment and parts.

Despite Malaysia's uptrend export, she said E&E products exports into the United Kingdom, which made up 48.4 percent of exports to the UK, declined 19 percent in 2005 in contrast to a surge of 23.7 percent in E&E exports in 2004.

The decline in E&E exports led to overall exports to the UK declining last year, the minister said.

Malaysia's exports to the UK in 2005 decreased by 10.3 percent to US$2.5 billion while imports declined by 1.8 percent to US$1.7 billion.

Rafidah lamented that the performance of Malaysia's trade with the UK was not consistent with Malaysia's trade with the whole of the EU, which in 2005, increased by 4.4 percent.

While the UK remained Malaysia's third largest trading partner in the EU last year and 15th largest individual trading partner globally, total trade with the UK had declined by 7.0 percent.

This was in sharp contrast to the performance in 2004, when total trade between Malaysia and the UK had increased by 15.9 percent

Malaysia's major exports to the UK last year were E&E, valued at US$1.21 billion, wood products (US$212.2 million), manufactures of plastics (US$186.1 million), transport equipment (US$132.3 million) and textiles and clothing (US$119.6 million).

She said the Malaysian delegation to the seminar include suppliers of automotive parts and components, precision tools, pumps and valves, elevators, escalators and parts, rubber and plastic components and information and communications technology (ICT) products and services.

Turning to investments in the manufacturing sector, she said to-date, UK investments totalled US$987.4 million in 309 implemented projects.

Approved investments from the UK in manufacturing projects last year totalled US$26.5 million from US$40.3 million in 2004.

She said 78.1 percent of investments from the UK in 2004 were new projects.

British investments in Malaysia were concentrated in basic metal products, E&E products, petroleum products (including petrochemicals), machinery manufacturing and transport equipment.

West Midlands-based companies which have operations in Malaysia include Albright & Wilson, Cadbury Schweppes, GEC, Greenmech, Griptight, Trebor Bassett and Dyson Limited.

-- BERNAMA

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M'sia To Revitalise Trade With UK, Says Rafidah

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