Amran fielding questions from reporters.
KUCHING: Sarawakian companies should participate in Malaysia External Trade Development Corporation’s (Matrade) international partnership programme to tap the vast investment opportunities globally.
Matrade International Partnership Division director, Amran Yem, said cross-border investments had a primary economic mover today and Malaysian firms should not miss out.
He cited Africa, the Middle East, Central Asia and Asean countries as key target markets with infrastructure development and financial services (including Islamic banking) being the main sectors.
“We are being selective when we choose target markets. In Africa, we looked into Kenya, Nigeria and Mozambique, as these countries presented a higher success rate for Malaysian companies.
“The Middle East provides a lot of emerging opportunities for Malaysian companies in infrastructure development projects to build housing, healthcare facilities, bridges, highways and schools, among others,” Amran told reporters during Matrade’s Cross Border Trade and Investment Seminar at Kuching Hilton Hotel yesterday.
“Matrade, through our international partnership programme, provides a selective market overseas with opportunities for local firms to invest in. We have successfully assisted three Sarawak companies in several infrastructure projects in the Middle East and Asean countries. We already have the support from the Sarawak government, now we want to establish support from the private sector, encouraging more companies to participate.”
In 2013, the country’s national trade promotion agency reported that foreign investments by Malaysian companies accumulated up to RM418 billion. The Asian region remains the top Malaysia investment abroad, at 50 per cent or RM202 billion. Second was Latin America at RM59.7 billion, Europe (RM52.7 billion) and African region (RM46.3 billion).
Services activities such as financial and insurance, ICT, wholesale and retail made up the highest number at RM235 billion or 56 per cent. This was followed by mining and quarrying, mostly oil and gas, at RM120.9 billion, or 29 per cent, and agriculture at RM32.6 billion.
Over 100 companies have forged partnerships with Matrade in international trade, accumulating revenues of over RM150 billion in investments. Services and finance remains the highest profitable sectors.
Amran encouraged local firms to collaborate with Matrade instead of pursuing direct export because forging international partnership ensures sustainability and strengthened capability in the long run.
Matrade, as a government agency under the Ministry of International Trade and Industry, will help local companies to establish their presence abroad.
He mentioned that the agency could help establish better dealings with foreign host countries and generating greater confidence, compared to those establishing their own network and often subjected to more scrutiny.
Matrade is looking to accelerate market penetration and expansion of products and services of Malaysian companies.
“Our services are free of charge. The main objective is to turn Malaysia into one of the premier exporting countries in the world. Matrade is willing to assist companies in their initial meeting with potential foreign collaborators. The agency will provide certain expertise and market intelligence that local companies are targeting, which in turn, enhance possibility of success.”
In light of the establishment of the Asean Economic Community (AEC) this year, he encouraged local companies to consider establishing themselves in Asean countries in various aspects of products and services.
Vietnam and Indonesia were identified with vast investment opportunities.