Leverage on German international trade fairs to boost exports, Matrade urges

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FRANKFURT: The Malaysian Trade Commissioner in Frankfurt has urged Malaysian companies to showcase their products and services at German international trade fairs which veritably turn into platforms for buyers and sellers from around the world.

“Trade fairs in this country, some of the finest in the world, serve as a vehicle for companies to push their exports not just to Germany but to many world markets.

“Buyers and sellers meet each other under the common roof of industry-specific trade fairs,” Badrul Hisham Hilal, Director of the Frankfurt Office of Malaysia Trade Development Corp (Matrade), told Bernama.

Badrul Hisham, who has provided active support to Malaysian companies participating in some leading German trade fairs, pointed out that trade fairs such as the CeBIT Information Technology (IT) (Hannover), Interpack Packaging Fair (Dusseldorf), K Fair for plastics and rubber (Dusseldorf), Anuga Food Fair (Cologne) and Medica (medical technology and devices show in Dusseldorf), among others, serve as vehicles for promoting Malaysia’s exports.

Germany, Europe’s biggest market for IT products and services, accounting for some 20.6 per cent of the total European Union’s IT market, is also the world’s fifth largest market, and is important for Malaysia’s IT exports in 2015.

Malaysia’s global IT products exports amounted to some RM185.3 billion, while IT services hit RM20.8 billion in value.

The Malaysian government, Badrul Hisham explained, had identified four IT priority segments – big data analytics (BDA), data centre and cloud, e-commerce and Internet of Things

(IoT).

According to Matrade, the IoT was expected to contribute some US$2.5 billion to the country’s gross national income while e-commerce was forecast to contribute about US$26 billion to the country’s gross domestic product by 2020.

Some German companies are considering setting up data centres abroad.

“Malaysia offers a well-developed infrastructure and a business-friendly environment for companies interested in setting up such data centres. We are pitching to German companies to look at Malaysia,” Badrul said.

The Interpack show, held every three years, is the world’s biggest event for the packaging industry and is held in May.

The fair was a “must” for Malaysia’s diversified and expanding packaging industry, he said, as it represented the entire supply chain and offered trade visitors across all industry sectors tailored solutions and innovative designs based on a variety of materials.

Badrul Hisham described the plastics industry as one of the “most dynamic growth sectors” in Malaysia’s manufacturing sector.

“There are four sub-sectors in the plastic products industry – plastic packaging, electrical and electronics, automotive components, and consumer and industrial products.  Malaysia has more than 1,500 plastic manufacturing units that export to Europe, China, Singapore, Japan and Thailand.

“The packaging sector accounts for 45 per cent of the total plastic consumption market, followed by electronics (26 per cent), automotive (10 per cent) and construction industry (8.0 per cent),” he added. Malaysia’s total export of plastic-based manufactured products in 2016 amounted to RM13.1 billion, up 1.1 per cent over the previous year.

The just-concluded four-day Medica show on November 16 also provided an international platform for Malaysians to showcase their products. In fact, the contingent of 33 Malaysian exhibitors at the show were participating on their own; additionally, there were many Malaysian visitors who were scouting for business opportunities and exploring possibility of participating in future Medica events.

Badrul Hisham said some 200 Malaysian companies specialise in the manufacturing medical devices.

“Medical devices, electronics and electrical, and aerospace are designated priority sectors by the Malaysian Government,” he said. Malaysia’s total exports of medical devices and allied products amounted to RM15.84 billion in 2016, up from RM15.54 billion in 2015. The major markets for such products include the US, Germany, Belgium, Singapore and Japan.

“I would encourage Malaysian companies to have research and development collaboration with German companies,” he said.

Meanwhile, Anuga, the world’s biggest food show held in Cologne in October, attracts many Malaysian exporters with a wide array of food products, beverages, perishables as well as ready-to- eat food.

“We had 33 exhibitors at Anuga in October under the Malaysia Pavilion and there were many who came on their own, bringing the total number of exhibitors to 50. We have big companies such as F&N and Brahim’s participating in the show. One company, Stancodex from Selangor, won the Taste Innovation Award given by the organiser, Messe Koln.

“Stancodex launched its coconut spray at the show. Coconut oil is available in bottles and other containers, but it is unique in spray form. The award uplifted not only the company’s image but also that of Malaysia,” Badrul Hisham said.

Malaysia’s global processed food exports in 2016 amounted to RM19.9 billion, with seafood exports amounting to RM1.9 billion and beverages RM 4.6 billion. — Bernama