Local News
@ Halal | May-June . 2022
Malaysia named as top market Middle East companies focus on Southeast Asia for expansion
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MIDDLE EAST companies focusing on ASEAN are optimistic about business growth in the region – and a significant 78 per cent view Malaysia as their top ASEAN market for expansion , according to a survey commissioned by Standard Chartered for its Borderless Business : Middle East-ASEAN Corridor . This strategic report explores high-potential opportunities for cross-border growth in this corridor .
A similar sentiment was shared in another survey conducted by Standard Chartered in the Borderless Business : India-ASEAN Corridor survey for Indian companies with an ASEAN focus . Malaysia is tied in third place with neighbour Singapore as the top three most preferred destinations among Indian companies looking at expansion in ASEAN .
Abrar A . Anwar , Managing Director and Chief Executive Officer , Standard
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Chartered Malaysia , said : “ ASEAN is a fast-growing trade bloc with increasing economic and financial influence . We continue to see many opportunities for businesses in the region .
“ Having grown with Malaysia the past 147 years and being the only international bank present in all 10 ASEAN markets , we are well-positioned to support companies from the Middle East and India to venture into Malaysia .
“ We can also help our clients leverage these potential growth opportunities that ASEAN and Malaysia have to offer , especially in growth sectors important to their economies .”
“ We are committed to delivering sustainable trade finance solutions to our clients . We foresee these trade corridors snowballing from a strong government impetus and a perceptible shift in consumer demand favouring clean technology .”
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Middle East-ASEAN Corridor
The report cites increased collaboration through multiple regional and countrylevel alliances between the Middle East and ASEAN , having enabled greater participation of Middle East companies in Southeast Asia .
In particular , the ASEAN-GCC Joint Vision has served as the foundation for pursuing closer economic and cultural cooperation between the regions . In contrast , bilateral partnerships between individual countries , such as the Malaysian Investment Development Authority ’ s ( MIDA ) memorandum of understanding with the Investment Promotion Agency of Qatar in 2019 , serve a notable example of how growth opportunities are being explored to
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expand business and innovation partnerships in this corridor .
In the report ’ s growth watchlist , key growth sectors for Malaysia that are attractive to Middle East companies are refining and petrochemicals , renewable energy , and retail and consumer goods . In this regard , Malaysia has established integrated petrochemical zones that offer centralised utilities , storage services and a comprehensive transportation network to help reduce capital and operations costs for companies .
The country has also emerged as a major hub for solar photovoltaic ( PV ) production . It is a key market for halal goods as it works towards building a more robust halal ecosystem between ASEAN and the Middle East .
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Malaysia builds online trade bridge with Turkey
MALAYSIA EXTERNAL Trade Development Corporation ( MATRADE ) in collaboration with the Malaysia Airports Holding Berhad ( Malaysia Airports ) is building another bridge between Malaysian and Turkish companies by launching an e-Gallery at the Istanbul Sabiha Gökcen Airport .
The e-Gallery Board is an offline-to-online platform that contains the introduction and connection of Malaysian companies from several sectors such as the halal industry and consumer goods , rubber products , building materials and automotive parts and components .
Visitors need to scan the QR code of the sector they are interested in and access company and product details along with a direct one-click connection to Malaysian companies and capture business-tobusiness ( B2B ) connection opportunities , eliminating distance in just minutes .
“ Leveraging on public and private sector strength to spur the business activities and strategic collaborations among companies from Malaysia and Turkey will expedite growth momentum of our economic ties that bring enormous impacts for business communities from both sides ,” Sazali Mustafa Kamal , Ambassador of Malaysia to the Republic of Turkey stated .
Driven by the Malaysia-Turkey Free Trade Agreement ( MTFTA ) that came into force in 2015 , Malaysia and Turkey have continued to experience growth in bilateral trade volume as both countries are gateways to Europe and the Southeast Asian region .
In 2015 , the total trade value between the two countries was US $ 1.4 billion , and this figure increased to US $ 4 billion in 2021 . Efforts to strengthen trade between the two countries continue with MATRADE leading the way .
“ Despite the pandemic , Malaysia ’ s trade with Turkey recorded the highest performance in 2021 and continued its positive momentum in 2022 . MATRADE is committed to facilitating companies from both countries to expand their market2reach further and encourage strategic partnerships for greater opportunities globally ,” Rosmizah Mat Jusoh , Director of MATRADE Istanbul , stated .
Operated by Malaysia Airports , one of the largest airport operator groups in the world in terms of the number of passengers handled , Istanbul Sabiha Gokcen International Airport ( ISG ) was chosen for this initiative as it is one of Malaysia ’ s most significant investments in Turkey .
“ ISG is a testimony of the strong bilateral relationship between Malaysia and Turkey . Malaysia Airports is fully committed to strengthening this relationship further through this latest collaboration with MATRADE as it will provide numerous benefits to businesses in both countries .
“ ISG is also the ideal platform for such an initiative as it is a place of confluence for business travellers . Thanks to the efforts of the Turkish Government in managing the pandemic and promoting safe travel , the airport was ranked Europe ’ s 6th busiest airport in 2021 ,” said Dato ’ Iskandar Mizal Mahmood , Managing Director of Malaysia Airports .
In addition to the peak bilateral trade relations in 2021 , more Malaysian companies have expanded their businesses in Turkey .
The e-Gallery at ISG will serve as another platform to bridge Malaysia and Turkey ’ s vast potential business areas . MATRADE is optimistic that every effort invested in promoting business relations between Malaysia and Turkey will open the door to a broader market .
Integrated Media Technology Limited announces distribution agreement on halal products
INTEGRATED MEDIA Technology Limited ( IMTE ) announced the World Integrated Supply Ecosystem Sdn Bhd ( WISE ), a subsidiary of the company , entered into a distribution agreement with KMF Malaysiawe ( KMF ) to sell and distribute halal products in France initially and then to Germany and United Kingdom .
The distribution service agreement is for three years . KMF shall promote , market and sell halal products on an indent basis for WISE . WISE will purchase the halal products for distribution in Europe and use the existing KMF distribution infrastructure and network , including warehousing . The parties agree on a profit share arrangement and to develop the European market .
Dato ’ Seri Dr Hilmi Yahaya , the Chairman of WISE , commented : “ There is a tremendous demand for halal products in Europe where the market is estimated to be about Euro 70 billion in 2021 .
“ We are focusing on the market in France first and then expand to Germany , the UK and other European markets . We plan to source the halal products in Asia from our supply network of Halal producers and manufacturers .
“ KMF has been selling halal products in France since 2013 . They have built an established distribution network locally . By working with KMF , we can have our products tap into this distribution network in France and other parts of Europe . Also , as we develop our halal products , this KMF network will be an important channel for us to access the European markets .”
Ku Yasin Ku Muhammad Farid , founder and CEO of KMF , stated : “ We look forward to growing the business with WISE . France and the other European countries are very attractive markets as there is a growing demand for creditable and safe halal food products to serve the local Muslim community . WISE will be able to secure and source products in Asia and distribute through our existing sales network and infrastructure .”