Malaysian companies urged to leverage on HKTDC services to tap into China market
by Chai Li Tiing. Posted on June 29, 2012, Friday
KUCHING: Malaysian companies are urged to take advantage of the Mainland-Hong Kong Closer Economic Partnership Agreement (CEPA) through outsourcing or partnership to tap into the lucrative China market.
A representative from the Hong Kong Trade Development Council (HKTDC) said during an interview with The Borneo Post, hile well-established multinational companies can go directly to the mainland, for small and medium-sized enterprises, however, the picture is different.?
He added that businesses had the freedom of choice, but successful companies would soon realise that working with Hong Kong could add value to their businesses.
perating through Hong Kong also provides certain advantages over going directly to the mainly, since companies can take advantage of the city’s robust legal system, advanced infrastructure, free flow of information and international connections,?he said.
He further noted that Hong Kong companies had a comprehensive knowledge of the mainland and their services complied with international standards. The city’s profit tax was also noted to be among the lowest in the world while there was also no capital gains tax in Hong Kong and no taxes on dividends.
Malaysian companies were also urged to collaborate with a CEPA-qualified manufacturer or service provider in Hong Kong.
The representation explained, EPA works like a free-trade agreement between the Chinese mainland and Hong Kong. It was initiated in June 2003 and since then, it has opened up huge markets for Hong Kong goods and services.?
The HKTDC can help overseas companies to tap into the Chinese mainland market by connecting them with mainland business partners and providing them with market information.
e can do so with a variety of services such as our online marketplace, world-class exhibitions, conferences and seminars, product magazines and timely business news and trade information,?he explained.
Apart from its online marketplace, a platform connecting one million buyers and 120,000 suppliers. The representative noted that during the 2011 to 2012 fiscal year, some 13 million business connections were mae through the service.
He encouraged Malaysian companies to register as listed suppliers on the website to reach mainland and international buyers.
In addition, the HKDTC organises over 30 international trade fairs in Hong Kong each year, three of which were the world’s largest, namely the HKTDC Hong Kong Electronics Fair, Hong Kong Gifts and Premium Fair and the Hong Kong Watch and Clock Fair.
The representative believed that Malaysian companies could exhibit at these fair to reach mainland buyers.
On a side note, he went on to highlight that Malaysia was also an attractive market for Hong Kong companies.
Electronics items account for more than half of Hong Kong’s exports to Malaysia, many of them are parts and components. Hong Kong exported consumer goods worth some US$660 million to Malaysia in 2011, accounting for one-sixth of the city’s total exports,?he revealed.