KOTA KINABALU: Sabah’s total export had dropped 7.3 per cent from January to May this year compared to the same period last year.
Statistics provided by Malaysia External Trade Development Corporation (Matrade) shows that the overall export of our State has decreased from RM15,582 million in 2014 to RM14,437 million in 2015.
Nonetheless, Matrade chairman Dato’ Noraini Ahmad said the export value exceeded the import value for Malaysia, despite the minor drop of 7.3 per cent of export value for Sabah.
Noraini said entrepreneurs should take advantage of Malaysia being the ASEAN chair and promote their products in the region.
She said the transactions did not necessarily have to be conducted in US dollar (USD), as entrepreneurs could also use the Chinese currency in China.
Noraini said this in a press conference after the opening ceremony of Exporters Forum 2015 organised by Matrade.
The event was officiated by the Assistant Minister of Industrial Development Datuk Bolkiah Ismail, who represented the Chief Minister Datuk Seri Panglima Musa Haji Aman.
On the other hand, Matrade’s Management Services Division senior director Wan Latiff Wan Musa said the global economic slowdown has a much bigger impact than the ringgit’s plunge in value.
China, Malaysia’s largest trading partner, was experiencing a less favourable economic growth and has a larger influence on our export performance compared to the drop of ringgit value, he said.
In general, Wan Latiff said the drop in Malaysian currency was an advantage to exporters and a disadvantage to importers.
“Hence, the government encourages local companies to use local input to reduce the impact caused by foreign currency exchange, especially in USD.”
Meanwhile, Bolkiah added that entrepreneurs would be at a disadvantage if they manufacture products based on imported components because the purchase was made in USD.
However, Bolkiah said if entrepreneurs could source raw materials locally at a cheaper cost, they could subsequently sell their products at a higher price to overseas market, provided the goods were of good quality.
“Quality means survival if you want to venture into the international market,” he said.