Capitalising on
Export Opportunities under
Regional Comprehensive Economic Partnership (RCEP)
Jamilah Ibrahim
International Collaboration Unit
Strategic Planning Division
MATRADE
Content
01
03
04
05
Major Exports & Imports in 2021
Programme with RCEP Member Countries
Free Trade Agreement
Regional Comprehensive Economic Partnership (RCEP)
Malaysia’s Trade Performance with
MATRADE’s Export Promotion & Exporters Development Programmes/Initiatives
Masterplan & Blueprint to Boost Exports
02
Content
01
03
04
05
Major Exports & Imports in 2021
Programme with RCEP Member Countries
Free Trade Agreement
Regional Comprehensive Economic Partnership (RCEP)
Malaysia’s Trade Performance with
MATRADE’s Export Promotion & Exporters Development Programmes/Initiatives
Masterplan & Blueprint to Boost Exports
02
FTAs signed by Malaysia
7 bilateral FTAs
9 regional FTAs
16
Total of FTAs implemented by Malaysia
MALAYSIA – NEW ZEALAND (MNZFTA)
BILATERAL FTAs
2006
2008
2015
2013
2011
2012
2010
MALAYSIA – JAPAN (MJEPA)
MALAYSIA – PAKISTAN (MPECEPA)
MALAYSIA – INDIA (MICECA)
MALAYSIA – CHILE (MCFTA)
MALAYSIA – AUSTRALIA (MAFTA)
MALAYSIA – TURKIYE (MTFTA)
7
ASEAN – KOREA (AKFTA)
REGIONAL FTAs
1993
2003
2010
2009
2010
2006
ASEAN FREE TRADE AREA (AFTA))
ASEAN – CHINA (AFCTA)
ASEAN – JAPAN (AJCEP)
ASEAN – INDIA (AIFTA)
ASEAN - AUSTRALIA – NEWZEALAND (AANZFTA)
9
2019
ASEAN – HONG KONG (AHKFTA)
2022
REGIONAL COMPREHENSIVE ECONOMIC
PARTNERSHIP (RCEP)
Malaysia has signed 16 FTAs and all FTAs have been implemented
1
COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)
2022
Malaysia’s Trade Performance with FTA Partners in 2021
Source: DOSM
Note: *Share of trade/exports/imports
TRADE
RM1.49 tril
(66.8%*)
25.3%
↑
EXPORTS
IMPORTS
(67.0%)
24.3%
↑
RM831.92 bil
(66.8%)
26.7%
↑
RM659.22 bil
RM4.43 bil
New Zealand
↑16.0%
10
RM0.94 bil
Chile
↑38.0%
11
EXPORTS TO �FTA MARKETS
RM343.50 bil
ASEAN
↑25.8%
1
RM192.47 bil
China
↑20.9%
2
2
RM76.71 bil
Hong Kong
↑12.5%
3
3
RM75.82 bil
Japan
↑21.2%
4
4
RM45.20 bil
India
↑48.7%
5
5
RM38.22 bil
ROK
↑10.1%
6
RM34.48 bil
Australia
↑41.5%
7
7
RM14.15 bil
Turkiye
↑82.9%
8
RM6.00 bil
Pakistan
↑26.0%
9
MAJOR EXPORT PRODUCTS
E&E Products
RM301.75 bil
↑17.0%
Petroleum Products
RM74.19 bil
↑39.0%
Chemicals & Chemical Products Products
RM60.66 bil
↑37.7%
Manufactured, agriculture & mining goods recorded double-digit export growth
Exports to FTA partners posted double-digit expansion & highest value ever
Manufactures of metal
RM48.12 bil
↑65.7%
Palm Oil (Agriculture)
RM40.83 bil
�↑46.9%
Malaysia’s Trade Performance with FTA Partners in Jan-Oct 2022
Source: DOSM
Note: *Share of trade/exports/imports
TRADE
RM 1.57 tril
(66.2%*)
%
↑ 30.4
EXPORTS
IMPORTS
(67.3%)
%
↑ 29.4
RM 867.89 bil
(64.6%)
%
↑31.6
RM 700.51 bil
RM4.86 bil
Pakistan
-3.3%
10
RM0.82 bil
Chile
↑13.6%
11
EXPORTS TO �FTA MARKETS
RM376.13 bil
ASEAN
↑36.0%
1
RM173.86 bil
China
↑12.3%
2
RM81.44 bil
Japan
↑31.1%
3
3
RM78.97 bil
Hong Kong
↑28.3%
4
4
RM45.31 bil
India
↑28.4%
5
5
RM44.97 bil
ROK
↑47.3%
6
6
RM40.76 bil
Australia
↑41.3%
7
7
RM15.11 bil
Turkiye
↑29.1%
8
RM5.66 bil
New Zealand
↑63.1%
9
MAJOR EXPORT PRODUCTS
E&E Products
RM317.13 bil
↑30.2 %
Petroleum Products
RM96.13 bil
↑59.6 %
Chemicals & Chemical Products
RM56.45 bil
↑14.5%
Manufactured & mining goods recorded double-digit export growth
Exports to FTA partners posted double-digit expansion
RM54.00 bil
↑85.9 %
RM41.12 bil
↑32.2 %
LNG Products
Palm Oil (Agriculture)
Content
01
03
04
05
Major Exports & Imports in 2021
Programme with RCEP Member Countries
Free Trade Agreement
Regional Comprehensive Economic Partnership (RCEP)
Malaysia’s Trade Performance with
MATRADE’s Export Promotion & Exporters Development Programmes/Initiatives
Masterplan & Blueprint to Boost Exports
02
Masterplan & Blueprint to boost exports
Focusing on three themes:
to the contribution of MSMEs to GDP
to the contribution of MSMEs to Total Exports
Source: https://rmke12.epu.gov.my/en
Micro, Small and Medium Enterprises (MSMEs) is highlighted in Chapter 3: Propelling Growth of Strategic and High Impact Industries as well as MSMEs
45%
25%
to increase MSMEs contribution to economy
2
3
Sets the strategic direction for Malaysia’s development for 2021- 2025
Aims to achieve the objective of “Prosperous, Inclusive, Sustainable Malaysia”
1
Advancing sustainability
Resetting the economy
Strengthening security, wellbeing and inclusivity
4
1. Twelfth Malaysia Plan 2021-2025 (RMK-12)
5.1
Enhance Malaysia’s export competitiveness through strengthening of the business ecosystem.
Improve Malaysia's position as a leading exporting country in the merchandise sector.
5-year action plan
Export target RM1.252 trillion in 2025 (set by RMK-12).
Official Launch
Implementation
JK-X chaired by KSN, supervises the implementation of the Blueprint
8 Strategic Thrusts and 40 Recommendations
by YAB Prime Minister on 25 October 2021
Market Access
Digitalisation & Technology
Branding
Sustainability &
Innovation
Trade Facilitation
Standards & Conformance
Investment
Logistics
8
WORKING GROUPS
(members from
public & private sectors)
2. National Trade Blueprint (NTBp) 2021-2025
Improve market access through FTAs, MRAs, PTAs and continuous monitoring of NTMs
Content
01
03
04
05
Major Exports & Imports in 2021
Programme with RCEP Member Countries
Free Trade Agreement
Regional Comprehensive Economic Partnership (RCEP)
Malaysia’s Trade Performance with
MATRADE’s Export Promotion & Exporters Development Programmes/Initiatives
Masterplan & Blueprint to Boost Exports
02
Background of RCEP
Non-ASEAN signatory States (5)
ASEAN Member States (10)
Signed on 15 November 2020 & entered into force on 1 January 2022
World’s largest FTA with 15 member countries
13 members have ratified the agreement
Brunei
Cambodia
Lao PDR
Singapore
Thailand
Vietnam
Japan
Australia
China
New Zealand
ASEAN Member States (10)
Non-ASEAN
States (5)
Republic of Korea (ROK)
Malaysia
Indonesia
Myanmar*
The Philippines*
*Pending ratification
1
2
3
Benefits to Exporters
Market access to 1/3 of world population &
opportunity for intra-regional sourcing of raw materials at competitive prices
Promoting greater sharing of information & trade facilitation
Provide clarity in the protection of intellectual property rights
Closer integration into supply chain within RCEP region
Standardisation of international rules on e-commerce & trade in other sectors
Mutually recognising international standards, trade & technical regulations among members
1
2
3
4
5
6
Content
01
03
04
05
Major Exports & Imports in 2021
Programme with RCEP Member Countries
Free Trade Agreement
Regional Comprehensive Economic Partnership (RCEP)
Malaysia’s Trade Performance with
MATRADE’s Export Promotion & Exporters Development Programmes/Initiatives
Masterplan & Blueprint to Boost Exports
02
Malaysia’s Trade Performance with RCEP Countries in (2012-2021)
Source: DOSM
1
Average annual growth for trade was 6.2%, exports, 5.9% and imports, 6.5%
2
Higher exports attributed to strong demand of E&E products, chemical products and manufactures of metal driven by robust external demand as well as higher commodity prices.
Over a decade, Malaysia’s trade with RCEP countries increased by 65.8% (to RM1,299.47 billion). Exports ↑64.4% (RM688.15 billion), imports ↑67.4%. (RM611.31 billion)
Trade
Exports
Imports
Trade Balance
Malaysia’s Trade Performance With RCEP Countries, 2012-2021
Major Exports & Imports for RCEP Countries in 2021
Source: DOSM
Note:
* Share of exports/imports
E&E Products
RM228.11 bil
↑17.0% (33.1%*)
↑40.5% (10.2%)
↑34.1% (7.7%)
↑55.9% (5.9%)
↑25.2% (5.2%)
↑23.3% (30.4%)
↑61.7% (10.2%)
↑40.0% (8.8%)
↑21.8% (7.6%)
↑51.3% (6.0%)
E&E Products
RM185.93 bil
RM70.25 bil
RM62.57 bil
RM52.78 bil
RM53.79 bil
RM40.79 bil
RM46.36 bil
RM36.03 bil
RM36.73 bil
Petroleum Products
Petroleum Products
Manufactures �of Metal
Chemical Products
LNG
Machinery Equipment
Chemical Products
Manufactures �of Metal
62.1% of EXPORTS
63.1% of IMPORTS
5 major products grew significantly and contributed >60% of exports & imports
Malaysia’s Trade Performance with ASEAN in 2021
Source: DOSM
RM173.39 bil
Singapore
1
Thailand
RM52.40 bil
2
Viet Nam
RM45.50 bil
3
Indonesia
RM39.22 bil
4
Philippines
RM22.62 bil
5
Cambodia
RM1.89 bil
8
Myanmar
7
RM2.71 bil
Brunei
RM5.78 bil
6
Laos
RM0.11 bil
9
↑26.7%
↑101.4%
↑47.2%
↑28.5%
↑108.1%
↑32.5%
↑22.0%
↑15.6%
↓11.6%
Note:
*Share of trade/exports/imports
MAJOR EXPORT PRODUCTS
E&E Products
RM127.85 bil
↑23.2%
Chemical Products
RM27.81 bil
↑40.8%
Petroleum Products
RM48.11 bil
↑46.7%
EXPORTS BY COUNTRY
Exports of major products notably E&E products, petroleum products, chemical products, machinery as well as manufactures of metal recorded a new high and double-digit expansion
TRADE
RM576.44 bil
(25.9%*)
28.7%
↑
EXPORTS
IMPORTS
(27.7%)
25.9%
↑
RM343.62 bil
(23.6%)
33.1%
↑
RM232.82 bil
Remained as largest export destination with outstanding trade performance
Machinery equipment
RM20.94 bil
↑26.7%
Manufactures of metal
RM14.25 bil
↑50.2%
Malaysia’s Trade Performance with China in 2021
Source: DOSM
Note:
* Share of trade/exports/imports
**SSD= Solid-state storage devices
E&E Products
RM59.61 bil
↑10.6%
Chemical Products
RM17.94 bil
↑25.6%
Manufactures of Metal
RM17.37 bil
↑50.3%
China remained as the largest export market since 2019
Major products namely E&E products, chemical products, manufactures of metal, iron & steel products as well as LNG recorded a new high and expanded >RM3 bil
Palm oil (manufactured), SSD**, paper & pulp and machinery increased >RM1 bil and �reached its highest value
MAJOR EXPORT PRODUCTS
EXPORT HIGHLIGHTS
TRADE
RM421.07 bil
(18.9%*)
27.0%
↑
EXPORTS
IMPORTS
(15.5%)
20.6%
↑
RM192.05 bil
(23.2%)
33.0%
↑
RM229.02 bil
Largest trading partner for 13 consecutive years and registered the highest export value
LNG
RM12.46 bil
↑82.9%
Iron & steel products
RM12.77 bil
↑32.7%
Content
01
03
04
05
Major Exports & Imports in 2021
Programme with RCEP Member Countries
Free Trade Agreement
Regional Comprehensive Economic Partnership (RCEP)
Malaysia’s Trade Performance with
MATRADE’s Export Promotion Programmes
Masterplan & Blueprint to Boost Exports
02
MATRADE - Who We Are
VISION
“Malaysia A Globally Competitive Trading Nation”
MISSION
MATRADE is the National Trade Promotion Agency in Malaysia, under the Ministry of International Trade and Industry (MITI). We are tasked to promote Malaysian products and services overseas.
“Promoting Malaysia’s Enterprises To The World”
INTRODUCTION TO MATRADE
• Malaysia’s National Trade Promotion Agency
• Positioning Malaysia as a globally competitive nation
• Raise the profile of Malaysian exporters in foreign markets
• Promoting exports of Malaysian products and services through various programmes overseas and in Malaysia
• Provide financial assistance / grants to Malaysian exporters
Northern Regional
Office (Penang)
Southern Regional
Office (Johor)
Eastern Regional Office
(Kuala Terengganu)
Kuching
(Sarawak)
Kota Kinabalu
(Sabah)
5 Offices across Peninsular Malaysia, Sabah and Sarawak
Regional Offices
Almaty
Tashkent
Cairo
Nairobi
Johannesburg
Lagos
Istanbul
Budapest
Kiev
Warsaw
Moscow
Frankfurt
Milan
Paris
The Hague
London
Sao Paulo
Buenos Aires
Santiago
Miami
New York
Mexico City
Los Angeles
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
39
37
36
35
34
33
29
30
26
27
28
22
21
11
24
25
31
32
23
10
7
13
15
16
17
18
3
4
5
6
14
12
42
43
8
1
2
34 Trade Offices 12 Marketing Offices
9
20
19
Global Network
38
40
41
42
43
44
45
46
1
Jakarta
2
Medan
3
Bangkok
4
Ho Chi Minh City
5
Hanoi
6
Manila
7
Yangon
8
Phnom Penh
9
Melbourne
10
Chennai
11
Mumbai
12
Hong Kong
13
Guangzhou
14
Taipei
15
Shanghai
16
Chengdu
17
Beijing
18
Seoul
19
Osaka
20
Tokyo
21
Dubai
22
Doha
23
Jeddah
Core Functions
Contents
Core Functions – Export Promotion
Summary of Export Promotion Programmes in 2022 by Sectors
54
events
Number of Events | Type |
28 | Trade Fairs (TF) |
14 | Export Acceleration Missions (EAM) |
7 | International Sourcing Programmes (INSP) |
4 | Trade & Investment Mission (TIM) |
54 | Total |
Mixed
sectors
18
Services
(ICT, Prof. Serv, MRO, Ship building & ship repair)
7
F&B
6
Building
Materials
5
Lifestyle
(Fashion, Furniture & Cosmetics)
4
Oil & Gas
3
Medical
& Pharmaceutical
3
Aerospace
2
Machinery & Equipment
1
Electrical & Electronics
2
Green Technology
2
Chemical & Chemicals Products
1
Disclaimer : programmes are subject to change, please refer to MATRADE's portal for latest updates
NORTH AMERICA
4
Sectors
Lifestyle
Oil & Gas
E&E
Food & Beverage
Building Materials
Services
Medical & Pharmaceutical
Aerospace
Mixed
No. of Programmes
Trade Promotional Programmes by Market
Machinery
Note :
Most of the planned programmes are in ASEAN (17 progs), Europe (9 prog ), China (7 prog ), West Asia (6 progs), Americas & East Asia (4 prog respectively), Central Asia (3 progs), Oceania (1 progs ) and South Asia & Africa (1 prog respectively)
AFRICA
SOUTH ASIA
EAST ASIA
4
1
CENTRAL ASIA
3
1
Chemicals and Chemical Product
Green Technology
OCEANIA
2
ASEAN
17
CHINA
7
EUROPE
9
WEST ASIA
6
Core Functions – Exporters Development
Summary of Exporters Development Programmes in 2022
232
events
Bumiputera, Women & Youth
20
Exporters Advisory
25
eTRADE 2.0
36
Exporters Training
40
Services Export Fund
24
Business Information Center
28
Mid-Tier Companies
10
Market Development Grant
10
MEEC
7
x-SEED
25
eCommerce Ecosystem
3
MyExport
4
Customised Programmes
MTCDP
Mid-Tier Companies Development Programme
A 3-year hand-holding programme
Creating competitive & sustainable Bumiputera, Women & Youth exporters
BWYEDP
Bumiputera, Women, Youth & Exporters Development Programme
An inter-agency collaboration to increase the SMEs’ contribution towards the country's exports.
BEP 2.0
Business Exports Programme
Collaboration programme to increase the number of qualified and high-performing Bumiputera SMEs with export market
GEB
Galakan Eksport
Bumiputera
Customised export programme for Mid-Tier Companies (MTCs) to enhance export growth, capabilities and global competitiveness
Customised Programmes
X-SEED
SME Exporters Development
SME exporters capacity building program promoting sustainability & inclusiveness through collaboration with export eco-system stakeholders.
Comprehensive development programme to boost export capabilities
BIG
Bumiputera Initiative for Globalisation
Export Facilitation
A financial assistance to partly defray the cost of export promotion by SMEs
MDG
Market Development Grant
A financial assistance to encourage Malaysian service providers to promote export of services
SEF
Services Export
Fund
eTRADE
Programme to promote the adoption of e-commerce among Malaysian companies to accelerate exports through participation in cross border eCommerce platforms and to enhance the presence of SMEs through digital marketing, eCommerce training and online export promotion.
Exporters Training Programmes
To organize an event relevant to export topics covered are wide ranging and include gaining export excess, trade documentations, export procedures in specific markets, developing brand names, product packaging, international marketing and many more
Seminars &
Workshop
MARKET ACCESS
TRADE DOCUMENTATION
MARKETING
BRANDING
POLICY
Serve to inform local companies the latest export opportunities around the world, strategies to win global market demands, current issues in international trade, MATRADE’s services to Malaysian companies as well as MATRADE’s programmes.
National Export Day & eNational Export Day
Moving Forward
Outreach programmes in collaboration with trade associations to promote better understanding and utilisation of RCEP benefits, rules and regulations
1
Capitalising on opportunities of business in e-commerce & digital economy
2
Investment to improve quality & innovation of products to remain competitive in the supply chain
3
Engage in technical cooperation & capacity building activities by SMEs and trade associations
4
www.matrade.gov.my
Thank You