Malaysia companies are seeking new business opportunities in Myanmar that the fall in export figures dented oil prices and the national economy was hit by a slowdown in Chinese growth.
The price of crude oil and palm oil has fallen dramatically in the last year, the export value of hurting, said Wan Latiff Wan Musa, director of the Foreign Trade Development Corporation Malaysia (MATRADE) .
Refined petroleum products, edible vegetable oil and other hydrogenated oils, all of which were affected by lower prices, are a major component of exports from Malaysia to Myanmar, he said.
On the other hand, exports of processed food products Myanmar have increased, with chemicals and machines, even though they represent a small part of the total.
According to the latest figures from the Central Statistical Organization Myanmar (CSOs) in March, Myanmar imported $ 6.18 billion in edible vegetable oil and other hydrogenated Malaysia and $ 4.74 million of refined petroleum products .
Imports of chemical elements and compounds were $ 1.1 million and imports of $ 1.31 million machines.
“Trade relations and trade relations between the two countries can not go up – can not go down,” said Wan Latiff Wan Musa.
Bilateral trade between the two countries was $ 972.1 million in 2014, about 6.6 percent more than in 2013, according to the Department of Statistics, Malaysia.
Until June 2015, Malaysia was the seventh largest investor in Myanmar, having invested about $ 1.66 billion, according to the CSO.
Read also : Knowing about Myanmar exports
However, Malaysian companies should continue to visit Myanmar to show they are serious about doing business, said Wan Latiff Wan Musa. “If we do not, we will not have opportunities. Big or small, we need to build trust with our partners.”
MATRADE Malaysia ran the fourth SME services & Exhibition September 30 to October 3 at Tatmadaw Hall in Yangon.
“In the exhibition last year, we were looking for $ 290 million in business opportunities and we aim to achieve at least the same level this year,” he said.
Thirteen Malaysian companies investing in Myanmar – the largest of the state energy giant Petronas which is engaged in the exploration and production of oil and gas, and is considering moving to assembling cars and construction projects, has said Wan Latiff Wan Musa.
MATRADE wants to encourage more companies to actively participate in Myanmar, especially in the service sector, he said.
Approximately 50 companies offering services such as construction, health, education, business services and logistics to expose the showcase of this year. However, it is below the 70 exhibitors last year.
“Our expectations are very high, and we had a good response from companies in Myanmar,” said Wan Latiff Wan Musa.
“We see Myanmar as a rapidly developing market. As for services, we have a lot of experience and we are able to form trusted partnerships and help with technology and capacity.”
Malaysia generally have more success by offering services products, he added.
He does not believe that the general elections of November 8 will have a significant impact on the business environment. “We remain neutral, and I am sure that the elections will run smoothly. We expect the growth of our business relationship with Myanmar after the elections, and not worried at all,” he said.
Read also : Myanmar Caneware industry
CEO Dato Dzulkifli Mahud MATRADE said that with the launch of the Economic Community of ASEAN this year, there will be more opportunities for cross-border trade and investment in the broader market.
“As Malaysia is a leading country in terms of trade, technology and experience, we are ready to assist companies in Myanmar through collaboration and partnership,” he said.