ADS/Country Profile: Malaysia

ADS/Country Profile: Malaysia

Partnering the world in trade

The last decade saw Malaysia's merchandise trade grow by more than twofold from RM347.33 billion, or US$136.74 billion, in 1995 to RM880.82 billion ($231.79 billion) in 2004.

Merchandise exports surged from RM184.99 billion ($72.83 billion) in 1995 to RM480.74 billion ($126.5 billion) in 2004, while imports reached RM400.08 billion ($105.28 billion).

The Malaysian economy in the first quarter of 2005 remained strong and resilient with real GDP growth recording a growth of 5.7 percent despite escalating oil prices and signs of a slowdown in global semiconductor demand.

Malaysia's merchandise exports in the first four months of 2005 were RM165.97 billion ($43.67 billion), 12.5 percent higher compared with RM147.49 billion ($38.81 billion) in the corresponding period in 2004.

For the period under review, manufactured goods remained the major contributor to Malaysia's merchandise exports, with a 77.3 percent share. ASEAN, the United States, the European Union (EU), Japan and the People's Republic of China were Malaysia's major exports markets.

These markets collectively absorbed 73.4 percent of Malaysia's total exports. In terms of a single market, the U.S. remained the largest single export market with a 17.6 percent share valued at RM21.59 billion ($5.68 billion), followed by Singapore and Japan at 16.1 percent and 10.3 percent, respectively.

For the period of January to April 2005, Malaysia's total imports registered an increase of 8.6 percent to RM132.69 billion ($34.92 billion) compared with RM122.17 billion ($32.15 billion) in the corresponding year.

To sustain and enhance Malaysia's export performance in 2005, the Malaysia External Trade Development Corporation, or MATRADE, which is the national trade promotion agency, is currently aggressively undertaking a number of trade promotion activities.

These include mounting 65 international trade fairs in 29 countries, some of which are traditional markets, while others are new and emerging markets.

Special emphasis is given to marketing products and services with high growth potential such as processed food, building materials, consumer electrical and electronic items, education, health care, information, communication and technology services, construction, professional services and franchising. Efforts are also being taken to showcase Malaysian brands in international trade fairs as hallmarks of Malaysian quality.

In addition, eight trade missions are being organized to markets such as the U.S., ASEAN, east Asia, west Asia, eastern Europe and Africa. These missions are led by the minister of international trade and industry. Ten Specialized Marketing Programs have also been planned in 2005, seven of which are for marketing services and three for general products.