Monday, June 25, 2012

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 14th 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

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