MALAYSIA: Trade with UAE to grow despite ME unrest: Malaysia

The unrest in the Middle East could render a blow to Malaysia’s hopes for a sustained surge in exports to the UAE in 2011, but the overall two-way trade might still show an upswing on stronger imports from the Emirates, a senior trade official said.

Malaysia’s total trade with the UAE soared 22.6 per cent to hit Dh19.8 billion in 2010, driven by a strong performance by both export and import sectors in 2010.

Dato Dzulkifli Mahmud, senior trade commissioner at Malaysian Trade Centre in Dubai, said the ongoing political developments in the region might indirectly affect exports to Dubai, the region’s trade and re-export hub. “However, we expect to record positive overall trade figures this year.”

In January this year, Malaysia’s exports to the UAE registered 22.4 per cent increase to Dh1 billion while imports showed a 46.9 per cent growth to Dh666.3 million.

The early trends augur well. But the unrest would inevitably have its toll on exports, said Dzulkifli. In 2010, Malaysian exports to the UAE, saw an increase of 21.6 per cent to Dh12.19 billion compared to Dh10 billion in 2009. Imports from the UAE rose 24.3 per cent to DH 7.6 billion over 2009’s figure of 
Dh6.11 billion.

“The UAE is our largest trade partner in the Middle East, while Malaysia remains the number one trade partner of the Emirates in South East Asian region,” said Dzulkifli while attending a media conference to announce Malaysia’ International Halal Showcase, or Mihas 2011, in Kuala Lumpur from April 6-9.

He said the economy of Malaysia, a country with a population of 29 million and a per capita gross domestic product, or GDP, of $5,500, expects to grow at the same pace as in 2010 when it recorded a growth of 7.2 per cent. “Our target is to almost treble the per capita GDP to $15,000 by 2020 when the size of the economy is projected to grow from $200 billion at present to $550-600 billion,” said Dzulkifli.

In 2010, palm oil exports to the UAE registered the highest increase, at 184.4 per cent in 2010, to reach Dh1.3 billion while jewellery exports rose by 1.6 per cent to Dh3.67 billion.

Major imports from the UAE last year included crude petroleum valued at Dh2.2 billion, manufactured metal products Dh664.8 million and refined petroleum products Dh469.6 million, he said.   Mihas 2011, the world’s largest Halal trade fair, would seek to reinforce Malaysia’s position as Halal hub of the world, the trade official said.

“Malaysia’s Halal certification has been recognised internationally and its acceptance would make it easier for Malaysian firms to establish business ties with countries around the world,” Dzulkifli pointed out.

He said Halal industry is one of the fastest growing sectors in the world, particularly in the light of a projected 35 per cent surge in global Muslim population in the next 20 years to reach 2.2 billion from 1.6 billion 
at present.

“Globally, the Muslim population is forecast to grow at about twice the rate of the non-Muslim population over the next two decades – an average annual growth rate of 1.5 per cent for Muslim, compared with 0.7 per cent for non-Muslims.

“Mihas will be the best platform for Muslim and foreign countries to acknowledge and adopt Malaysia’s Halal certification system,” said Dzulkifli.

Matrade will organise an “Incoming Buying Mission” in conjunction with Mihas 2011. “This programme is an integral component of MIHAS, which acts as a platform for Malaysian exporters and foreign exhibitors to meet with international
buyers” he said.

“Under the theme “Expanding your business horizon,” the show aims to reach out to the Halal players in the international market with expectation of attracting over 500 buyers from 50 countries, especially after the achievements last year with total sales of  $400 million with over 32000 trade visitors from 81 countries and 600 booths,” Dzulkifli  said.