Trade in Srilanka

Sri Lanka reported a trade deficit corresponding to 965 Million USD in January of 2012. Historically, from 2003 until 2012, Sri Lanka Balance of Trade averaged -1038.2000 Million USD success an all time high of -239.5000 Million USD in September of 2003 and a record low of -2974.0000 Million USD in December of 2011. Sri Lanka exports mostly textiles and garments (40% of total exports) and tea (17%). Others include: spices, gems, coconut food, rubber and fish. Main export partners are United States, United Kingdom, Germany, Belgium and Italy. Sri Lanka imports petroleum, textile fabrics, foodstuffes and machinery and transportation equipment. Main import partners are India, China, Iran and Singapore. This page includes a chart with chronological data for Sri Lanka Balance of Trade.

The balance of trade is the difference between the monetary value of exports and imports in an country over a certain period of time. A positive sense of balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit or, informally, a trade gap. The balance of trade forms part of the current account, which also includes other transactions such as income from the international investment position as well as international aid. If the current description is in surplus, the country's net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position. The Balance of Trade is identical to the divergence between a country's output and its domestic demand - the difference between what goods a country produces and how many goods it buys from abroad; this does not contain money respent on foreign stocks, nor does it factor the concept of importing goods to produce for the domestic market.

Sri Lanka State Trading (General) Corporation Ltd., is a fully government owned , well established organisation functioning under the purview of the Ministry of Co-operatives and internal trade. STC has been in the big business over more than 30 years whilst catering to both public and private sectors.

Today, the company deals with a wide range of products namely, Office Stationery and Equipments, Construction and hardware items, ICT Products, Office Furniture and Interior Decors, FMCG, Automotive Batteries & Tyres, Agricultural Products, Chemical Products etc. In addition, STC has taken steps to market world reputed brands such as 'Double A' photocopy papers, Frostair Airconditioners, Yokohama tyres, HP & Fugitsu Laptops, 'Exide' automotive batteries, 'Orange' Electrical items etc.

STC operates under the guidance of the government with a long term goal of developing Sri Lanka by providing the very best to consumers, and ensuring stability in market price for various goods, and thereby protecting consumer welfare. With this in mind the STC has partnered with Intel, Microsoft, and HP Lanka to make computing affordable and in doing so developing and laying a springboard for IT usage.

Under this scheme, laptops and desktop computers will be offered at very reasonable prices on installment-based payment schemes that can be tailored to suit any budget. HP computers will be powered by Intel processors and Genuine Microsoft operating systems while being maintained under HP’s three-year company warranty, ensuring the security and longevity of the product, and offering the very best experience to the shopper, and in doing so driving the growth of IT in the nation.

"To develop and promote Sri Lanka's foreign trade relations at bilateral, regional and multilateral levels by the effective implementation of rule trade policy, with a view to raising the standards of living and realizing a higher quality of life through the increase of total production, income and employment levels, thereby actively causative to the overall economic growth of Sri Lanka".

P.D Fernando, the new Director General of Department of Commerce was felicitated by the NCE at the Council Meeting held in May at the Taj Samudra.

He was presented with a plaque in recognition of his invaluable military to exporters, during his many years of service at the Department of Commerce to overseas Trade Missions. Fernando was known among many exporters as a person who had always strived to assist Sri Lankan exporters to the best possible extentby effectively engaging the bureaucrats and other relevant persons in overseas markets, who were impediments to Sri Lankan exporters. He requested member exporters of the meeting room to unhesitatingly

Sri Lanka is a South Asian island is situated 29 km off southeastern coast of India. Palk Strait separates Sri Lanka from India. It is 350km (217miles) elongated and it's maximum width is 180km (112miles). Its total land area is about 64.740 sq. km.

Sri Lanka has its own contrasts; its own fortunes and misfortunes. Over thousands of years travellers to this small island were surprised by its physical beauty and the richness of its culture. Many described it as a Paradise Isle and as the Pearl of the Orient. Then for many years it went from beginning to end a difficult period under colonial rule. At present it goes through its most difficult times in its history due to the continuing ethnic conflict.

For Centuries, Sri Lanka has been associated with the international trade in gems & jewellery, and has been referred to as the “Cradle of Treasures” due to its wealth of precious gemstones. The art of jewellery making and Sri Lanka’s gem industry have been widely acclaimed in literary works dating as far back as 250 B.C in the Legends of Arabia, folk-lore of China,India, Indonesia and in the tales of early European travelers to the East, which describe in grate detail the fabulous gems & jewellery of Sri Lanka.

The Earth’s greatest meditation of fine gems could be found within Sri Lanka’s land area of 65,525 square kilometers. Geo-scientific opinion estimates that 90% of the Island’s land mass is potentially gem bearing. Sri Lanka ranks with Burma, Brazil, South Africa and Thailand as one of the five most important gem bearing nations of the world.

A unique feature of Sri Lanka’s gem mines is that an assortment of gems such as Spinels, Corundums (Blue and Star Sapphires, Rubies) Cat’s Eyes, Zircon and many others are found in a single gem pit. Gem mining in Sri Lanka is almost entirely confined to sedimentary deposits. Gems as a resource belongs to the management, however licenses for mining could be obtained for privately owned lands.  Most often gem mining is done in agricultural lands during off-season.

The techniques of mining and processing in Sri Lanka though labour intensive is very efficient compared with gem mining in other developing countries and the recovery of fine gems as small as one millimeter or less is assured.  shield of the environment is ensured by law.

Product

Sri Lanka’s breathtaking natural heritage is blessed with over 150 varieties of gems  including Blue, Pink and Yellow Sapphires, Rubies, Padmaradchas, Star Sapphires, Star Rubies, Alexandrites, Cats’ eyes, Spinels, Aquamarines, Topazes, Zircons, Garnets, Tourmalines, Moonstones, Quartzes and variety of rare gems. Amongst the outstanding gem stones that Sri Lanka has produced in the up to date era is the Blue Giant of the Orient (466 cts), Logan Blue Sapphire (423 cts), Blue Belle of Asia (400 cts), Rossar Reeves Star Ruby (138.7 cts), Star of Lanka (393 cts. Star Sapphire) and Ray of Treasure (105 cts. Cat’s Eye). The first three gems are on display at the Smithsonian Institute in Washington DC, USA.  The Blue Sapphire is Sri Lanka’s gem supreme and can be considered, the highly prized of all gems. It is second only to the equilateral in hardness. The Blue sapphire is the National Stone of Sri Lanka.

Skilled labour at competitive rates combined with a global reputation as a country with a friendly and forward looking investment climate has created an beautiful base for cutting and polishing diamonds in Sri Lanka.
The country’s highly literate and trainable work force is the locomotive of its success as a cutting centre. Adaptability to new technology has helped the industry produce polished diamonds with high quality makes it is increasingly recognized internationally.
Sri Lanka ’s specialty is small diamonds of extraordinarily high quality, which are imported sawn or cleaved rough. In addition to the traditional brilliant cut, many cutting companies handle other specialized shapes and cuts, particularly tapers, baguettes and princes etc.
The industry in Sri Lanka is highly organized and the factories are equipped with modern bruting machines and polished wheels mainly from Belgium, Israel, Thailand, India and China.

 Sri Lanka’s jewellery makers have refined their hereditary skills over centuries, to attain the highest standards in exquisite craftsmanship and sophisticated creativity with the modern touch. With the addition of the latest expertise in design and construct, and a new focus on design excellence, Sri Lanka is emerging as a design centre offering high quality jewellery collections of Silver, Gold & Platinum.

Jewellery of Sri Lankan origin is hallmarked by an autonomous Authority, having membership in The Convention on the Control and Marking of Articles of Precious Metals (Hallmarking Convention) and the International connection of Assay Offices.  The Gemological Laboratory certifies the validity of gemstones.

The laws in Sri Lanka guarantees copyright protection of designs. Simplified import-export procedure offers intercontinental buyers peace of mind and ease of operation when dealing with Sri Lanka. Sri Lanka’s membership of the conference on the ATA carnet, facilitates the smooth transportation of jewellery.

An Import Export Gem Office at the Cargo Village at the International Airport in Katunayake expedites the clearance of rough gemstones and export of cut & polished gems, jewellery and diamonds.

A Sri Lanka-Korea Economic Co-operation Committee was set up on 4th November 1982, under the aegis of the Ceylon Chamber of Commerce. The objectives of the committee are to attract Korean investment to Sri Lanka, to promote two-pronged trade between the two countries with weight on the promotion of exports to Korea, to encourage the transfer of expertise from Korea to Sri Lanka and to encourage the growth of tourism from Korea to Sri Lanka. Over all, the economic co-operation board has met nine times, five times in Sri Lanka and four times in Korea.

Trade in Srilanka

 

In relation to coconut fibre and fibre based products, there is significant potential to further expand exports of bristle, twisted fibre, geo textiles, coir fibre pith, various kinds of brushes, door mats, matting as well as rubberised coir based products for the automobile industry. There seems to be a number of areas where upward interest has been observed in new applications for rubberised coir fibre, such as in civil construction weed killer mats. These can also be explored.

The trend for environmentally friendly biodegradable natural products like geo textiles manufactured from coir fibre, has opened opportunities for export to Korea.

There is also a lot of potential to expand exports of activate carbon to Korea since the total imports are in the region of about 12,000 million tons per year.

Other products with enormous potential are floricultural products particularly rooted plants, uprooted cuttings/cane, tissues, cultured plants, cut flowers, cut pretty leaves and flower seeds.

There is also opportunity for exports of calibrated gemstones, diamonds and jewellery, with prospects for collaboration with Korean partners.

Since Korea imports more than US$ one billion worth of garments, in attendance are also enormous prospects for export of Sri Lankan textiles and textile based products, which at the moment is only Rs. 200 to 300 million.

Other potential product areas are limonite, graphite and silica sand, canned and processed fruits and juices, processed gherkins, baby corn, essential oils and spices.

The Sri Lanka Export Development Board (SLEDB commonly known as the EDB) is the premier state organisation dealing with the promotion and development of exports. It was established in 1979 under the Sri Lanka Export enlargement Act No. 40 of 1979, and now functions under the Ministry of Industry & Commerce.

The Chairman is the Chief Executive who is assisted by the Director General and the Additional Director General. Its day-to-day functions are carried out by several divisions each of which is headed by a Director.

The Export Services Division provides assistance and creates opportunities for local professional services companies including ICT,BPO,KPO and Electronic harvest to extend their business worldwide, thereby increasing export sales and employment prospects in the country through integrated programmes such as supply development, quality improvement and training, initiate product development and adaptation of such products / services to export market requirements.  It offers assistance for the ICT/BPO/KPO exporters for market development and consultative services to small and mid-sized businesses and sponsors & co-sponsors educational seminars and training programs for exporters and potential exporters. 

In the Gulf region, the UAE is the largest export market for Sri Lanka, the largest source of imports to Sri Lanka, and the largest investor in Sri Lanka. The UAE is also home for a large number of Sri Lankan expatriate workers among Gulf countries. The number of tourists from the UAE visiting Sri Lanka is also on the increase and the UAE has become the largest tourist supplier among the Gulf countries to Sri Lanka in 2011.

ri Lanka has been trading with the UAE for a significant period of time and it continues to remain one of Sri Lanka's major trading partners ranking 7th position of top export market to Sri Lanka. Sri Lanka exported US$ 246 Mn worth of goods to UAE in 2010. The total trade between the two countries was at US$ 570 Mn in 2010, an increase of US$ 65 Mn compared to the figures registered in 2009. However, the balance of trade has been in favour of the UAE. Interesting to note that the two way trade jumped to US$ 807 Mn during January – September 2011, pushed up by rice and oil imports which accounted for over one third or USD 267 million of imports from UAE.

Tea, natural rubber, coconut oil, desiccated coconut, copra, cashew nuts, essential oil, fruits and vegetables, processed food, sea food, rubber products and toys are the chief export commodities from Sri Lanka to the UAE. However, tea has been the major export commodity (accounting 60%) of Sri Lanka to the UAE.

Among the items imported from the UAE, crude oil, diesel, gas oil and lubricants are the major trade in commodities accounting for 24% of whole imports. Other items include urea, lentils, iron & steel and machinery & parts.

Trade in Srilanka

Trade in Malaysia

Malaysia is one of Vietnam ’s most important strategic partners in the Association of Southeast Asian Nations (ASEAN), and is a huge potential market, said the Deputy Director of the Asian-Pacific Market Development Department under the Industry and Trade Ministry, Chu Thang Trung.

This year, the ministry chooses Malaysia , particularly the MIFB as one of trade promotion activities to introduce Vietnamese brand names that are exported to the exmarket, Trung added.

On display in Kuala Lumpur from July 12-14, Vietnamese pavilions were very popular with well-known brand names of agricultural products and seafood.

Statistically, over the last few years bilateral trade between Vietnam and Malaysia has been increasing at roughly 20 percent year on year. Two-way trade reached 6.66 billion USD in 2011, of which Vietnamese exports accounted for almost 2.76 billion USD. In the first six months of this year, the figure was about 4 billion USD.

This year’s MIFB attracted 350 businesses from 20 nations and territories across the world to display their various products, goods and services in 500 stands on an area of 11,800 sq.m.-VNA

Southeast Asia, particularly Malaysia, has been a trade hub for centuries. Since the beginning of history, Malacca has served as a fundamental regional commercial center for Chinese, Indian, Arab and Malay merchants for trade of precious goods. Today, Malaysia shares healthy trade relations with a number of countries, specifically the US. The country is associated with trade organizations, such as APEC, ASEAN and WTO. The ASEAN Free Trade Area that was established for trade promotion among ASEAN members also has Malaysia as its founding member. Malaysia has also signed Free Trade Agreements with countries including Japan, Pakistan, China and New Zealand.Malaysia was once the world’s largest producer of tin, rubber and palm oil. Its manufacturing sector has a crucial role in its economic growth. The export industry was hit hard during the late 2000 economic recession drastically dropping to 78% i.e. FDI to RM4.2 billion in the first two quarters of 2009. Total exports fell down to $156.4 billion in 2009 from $198.7 billion in 2008. The imports also reduced from 154.7 billion in 2008 to $119.5 billion 2009.

The scarcity of organs available to transplant in Malaysia is the main contributing factor in this organ trade. Dr Hasan and his ministry are partly to blame for this scarcity. They have failed to publicise the life-changing potential of donating organs.

They, and our communal and religious leaders, have never provided enough encouragement to Malaysians to carry a donor card, proudly and nobly.

Our conservative culture plays no small part in this organ shortage. Many Malaysians, of all races and religions, are fearful of death, and regard any discussion of death as taboo. This makes it difficult, of course, for a young Malaysians to bring up the subject of carrying a donor card at the family dinner table, for example.

Scarcity, perhaps inevitably, leads to high prices. Relatively affluent Malaysians can fly to China or India to have a liver or kidney transplant. Where does the organ come from? It’s best not to ask. It’s entirely believable, given the demand for organs, that living Bangladeshis can be imported to Malaysia, as a kind of organ delivery service.

Karachi—Pakistan and Malaysia have agreed that while bilateral trade had witnessed a steady growth after FTA in January 2008, there still existed a considerable untapped potential to enhance the two-way commerce and broaden the narrow range of products being traded between the two countries.

Leading businessmen and senior government officials from Pakistan and Malaysia underscored an effective use of various protocols and frameworks available under the Free Trade Agreement (FTA) to boost economic relations and broaden the scope of bilateral trade.

Trade in Malaysia

The consensus to work aggressively to forge business partnerships emerged at a daylong Pakistan Malaysia Business Forum held in Kuala Lumpur Tuesday under the joint aegis of the Trade Development Authority of Pakistan (TDAP) and the Malaysian Institute of Accountants (MIA). The event that drew nearly 200 leading Malaysian and Pakistani investors and businessmen for a daylong exchange of business ideas also served as an ideal opportunity for productive networking and business matchmaking. Malaysian Prime Minister’s Special Envoy on South Asia, Datuk Seri Samy Vellu who recently led a business delegation on a visit to Pakistan, also attended the Business Forum. 

The Department of Foreign Affairs says the agreement will see Malaysia cut tariffs on 99 per cent of Australian imported goods by 2017, and Australia will eliminate all tariffs on Malaysian imports.

After seven years of negotiating, the agreement will reduce tariffs on dairy, automotive, food manufacturing, wine and iron and steel products.

Malaysia is Australia's third-largest trading partner in South-East Asia and 10th biggest worldwide.

Two-way trade in goods and services reached $16 billion in 2011.

Australia has several similar agreements with Singapore, Thailand and the United States, and bilateral negotiations with China, Japan and South Korea are under way.

Trade Minister Craig Emerson described the deal with Malaysia as "a platinum agreement" in trade liberalisation.

"I know the business community in both countries value this agreement," he told reporters.

A statement released by his office said the deal "will further integrate the Australian economy with the fast-growing Asian region, benefiting Australian exporters, importers and consumers."

Malaysian trade minister Mustapha Mohamad hailed the deal as historic.

"Australian exporters to Malaysia will also be able to immediately enjoy significantly reduced tariffs for goods, reaching up to 99 per cent by 2020," he said at a signing ceremony with Mr Emerson.

The agreement also allows Malaysian investors to participate in Australian private hospital services including massage, homeopathy and traditional medicine.

Malaysia, meanwhile, has agreed to allow 100 per cent equity holdings by Australian entities in the Malaysian education and telecommunication sectors, and 70 per cent holdings in the Malaysian insurance and investment-banking sectors.

The Department of Foreign Affairs says the agreement will see Malaysia cut tariffs on 99 per cent of Australian imported goods by 2017, and Australia will eliminate all tariffs on Malaysian imports.

After seven years of negotiating, the agreement will reduce tariffs on dairy, automotive, food manufacturing, wine and iron and steel products.

Malaysia is Australia's third-largest trading partner in South-East Asia and 10th biggest worldwide.

Two-way trade in goods and services reached $16 billion in 2011.

Australia has several similar agreements with Singapore, Thailand and the United States, and bilateral negotiations with China, Japan and South Korea are under way.

Trade Minister Craig Emerson described the deal with Malaysia as "a platinum agreement" in trade liberalisation.

"I know the business community in both countries value this agreement," he told reporters.

A statement released by his office said the deal "will further integrate the Australian economy with the fast-growing Asian region, benefiting Australian exporters, importers and consumers."

Malaysian trade minister Mustapha Mohamad hailed the deal as historic.

"Australian exporters to Malaysia will also be able to immediately enjoy significantly reduced tariffs for goods, reaching up to 99 per cent by 2020," he said at a signing ceremony with Mr Emerson.

The agreement also allows Malaysian investors to participate in Australian private hospital services including massage, homeopathy and traditional medicine.

Malaysia, meanwhile, has agreed to allow 100 per cent equity holdings by Australian entities in the Malaysian education and telecommunication sectors, and 70 per cent holdings in the Malaysian insurance and investment-banking sectors.

Options trading is relatively new in Malaysia. However, did you know that Bursa Malaysia Derivatives offers the trading of options contracts?

Before you read on, you might be asking: “I’m an investor, but what does options trading, have to do with me anyway?” Well, options trading provides investors an alternative way of investing and can also be used as an effective risk management tool in an investment portfolio. More recently, the demand for courses teaching the basics of trade options has increased. In this article, we will discuss the simple basics of options trading in Malaysia. By the end of this article, you will be able to describe an option contract, the trading process of an option contract and identify the benefits of options trading.

Canada was one of the first countries to recognize Malaysia's independence and establish diplomatic relations in 1957.

In Malaysia, Canada is represented by the High Commission of Canada in Kuala Lumpur, and by a consulate headed by an honorary consul in Penang. Malaysia is represented in Canada by a high commission in Ottawa, a trade office in Toronto and a consulate in Vancouver. 

Canada and Malaysia have a long history of close and friendly bilateral relations that encompass a full range of political, economic, trade, social, and cultural relations. People-to-people links between Canada and Malaysia are the cornerstone of the bilateral relationship. Malaysia is an important source of students to Canada and a number of Canadian universities maintain exchange and study programs with Malaysia. Many Malaysians visit Canada every year and Canadians reciprocate by visiting, working and living in Malaysia.

Canada engages Malaysia on issues related to the promotion of good governance, human rights, and pluralism bilaterally and in multilateral organizations. Canada worked with Malaysia during Canada's tenure on the United Nations Human Rights Council (UNHCR) until 2009 and continues to work with Malaysia on the promotion of universal respect of all human rights and fundamental freedoms during its tenure on the UNHCR. 

Canada and Malaysia place a high priority on the security aspect of the relationship. Canada provides support for capacity-building initiatives related to counter-terrorism, security and defence. Through these programs, Canada has trained nearly 1000 Malaysians to safely respond to terrorist attacks. 

The Canada-Malaysia relationship is further fostered through close partnership and cooperation in international organisations such as the Commonwealth, the United Nations, the Asia-Pacific Economic Cooperation (APEC), and World Trade Organization (WTO). Canada also works with Malaysia as a dialogue partner in the Association of Southeast Asian Nations (ASEAN), and its security forum, the ASEAN Regional Forum (ARF).

Trade in Malaysia

Canada's trade relationship with Malaysia includes commerce across several sectors. Canadian companies in Malaysia employ thousands of Malaysians. This relationship is complemented by major investments by Malaysian companies in Canada in the oil and gas and agriculture sectors and Canadian investments in the aerospace, high tech, transportation and oil and gas sectors in Malaysia.

 In October 2010, at the third round of TPP negotiations in Brunei Darussalam, Malaysia joined the United States and seven other Asia-Pacific nations in negotiations to achieve a high-standard broad-based regional trade agreement known as the Trans-Pacific Partnership (TPP) Agreement.  Malaysia’s announcement followed more than a year of high-level consultations between Malaysia and the original eight TPP nations, including the United States.  In addition to working together on TPP, the United States and Malaysia meet frequently to discuss bilateral trade and investment issues and to coordinate approaches on APEC, ASEAN, and the WTO.

Malaysia was the United States' 18th largest supplier of goods imports in 2011.

U.S. goods imports from Malaysia totaled $25.8 billion in 2011, a 0.5% decrease ($129 million) from 2010, but up 0.8% from 2000. U.S. imports from Malaysia account for 1.2% of overall U.S. imports in 2011.

The five largest import categories in 2011 were: Electrical Machinery ($12.5 billion), Machinery ($4.0 billion), Fats and Oils (palm oil) ($1.7 billion).Optic and Medical Instruments ($1.4 billion), and Rubber ($1.4 billion).

U.S. imports of agricultural products from Malaysia totaled $2.4 billion in 2011, our 10th largest supplier of agriculture imports. Leading categories include: tropical oils ($1.7 billion), cocoa paste and cocoa butter ($274 million), and rubber products ($188 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $1.2 billion in 2010 (latest data available), up 19.7% ($205 million) from 2009 and up 248% from 1994 levels. The other private services (business, professional and technical services) category accounted for most of U.S. services imports from Malaysia.

Malaysia was the United States' 23rd largest goods export market in 2011.

U.S. goods exports to Malaysia in 2011 were $14.2 billion, up 1.0% ($138 million) from 2010, and up 29% from 2000. U.S. exports to Malaysia account for 1.0% of overall U.S. exports in 2011.

The top export categories (2-digit HS) in 2011 were: Electrical Machinery ($6.8 billion), Machinery ($1.6 billion), Aircraft ($1.0 billion), Optic and Medical Instruments ($686 million), and Iron and Steel ($571 million).

U.S. exports of agricultural products to Malaysia totaled $1.0 billion in 2011. Leading categories include: wheat ($158 million), soybeans ($150 million), dairy products ($137 million), and processed fruit and vegetable ($74 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Malaysia were $2.1 billion in 2010 (latest data available), 23.7% ($402 million) more than 2009 and 137% greater than 1994 levels. The other private services (business, professional, and technical services) category accounted for most of U.S. exports in 2010.

U.S. goods and services trade with Malaysia totaled $43 billion in 2010 (latest data available). Exports totaled $16 billion; Imports totaled $27 billion. The U.S. goods and services trade deficit with Malaysia was $11 billion in 2010.

Malaysia is currently our 22nd largest goods trading partner with $40.0 billion in total (two ways) goods trade during 2011. Goods exports totaled $14.2 billion; Goods imports totaled $25.8 billion. The U.S. goods trade deficit with Malaysia was $11.6 billion in 2011.

Trade in services with Malaysia (exports and imports) totaled $3.3 billion in 2010 (latest data available). Exports were $2.1 billion; Services imports were $1.2 billion. The U.S. services trade surplus with Malaysia was $853 million in 2010.

 A key factor that contributes to the economic incentive to trade in illegal cigarettes is the high price of legal cigarettes in Malaysia – already the 3rd highest in ASEAN. This is due principally to the high levels of tobacco taxes and duties that have been imposed over the years. Since 2004, excise tax has increased by a staggering 172%. High excise increases lead to high cigarette prices.

Malaysia is already one of the leading automobile markets in the ASEAN region and is expected to continue to grow. To capitalize on this potential, Mazda began local assembly of the Mazda3 (known as Axela in Japan) last year and with the new joint venture project, plans to begin local assembly of the Mazda CX-5 early in 2013. Mazda plans to produce 3,000 CX-5s per year in Malaysia.

Mazda’s sales in Malaysia have shown consistent growth since we started doing business with Bermaz in 2008. In the last financial year we achieved record sales results of approximately 6,000 units and one percent of the market share. Local assembly of Mazda3 started in January 2011 and is going well. Malaysia is one of our key strategic markets and we expect further growth there. The talks with Bermaz about the joint-venture production and sales company indicate Mazda’s strong commitment to business in Malaysia. Mazda will continue to focus on emerging markets to strengthen our overall business foundation,” said Takashi Yamanouchi, Mazda’s Representative Director and Chairman of the board, President and CEO.

Beginning with an exponential rise in the tourism, the relationship between the two countries has been further enhanced, opening new avenues for Malaysia and India to benefit mutually from each other’s economies. Over the past 10 years, trade between Malaysia and India has seen a healthy average growth rate of over 15.6% p.a.

In spite of a slowdown in the global trading scenario, Malaysia has shown signs of rapid growth, recording a total trade value of US$415 billion in 2011 – the highest ever achieved. For the 14^th consecutive year, Malaysia has recorded a trade surplus figure of US$39 billion – a growth rate of 9.4% for the year 2011. The merchandising trade has registered an impressive growth of 8.7% p.a. with exports from Malaysia growing to US$226.98 billion, while imports recorded a figure of US$187.66 billion – an 8.6% rise. This notable feat is at par with other developed countries in the region, like Singapore and ROK, which have registered similar records.

Trade in Malaysia