As of 3 July 2009, there were 102 applications for grants worth RM50.74 million received by MIDA. Of this total, 28 were from associations or professional bodies and 74 were from domestic service providers, two of which originated from Sarawak. The highest number of applications received was from the business and professional services sub-sector (30). Other sub-sectors which were actively applying for the SSCDF were the healthcare sub-sector with 17 applications, ICT sub-sector (14), the logistics sub-sector (12), the education sub-sector (8), the tourism sub-sector (2) and others sub-sector (19). To date, 31 applications have been approved with grants amounting to RM10.77 million. MIDF received 128 applications worth RM51.71 million for soft loans. The distributive trade sub-sector reported the highest number with 54 applications received, followed by the healthcare sub-sector (31), the business and professional services sub-sector (23), the logistics sub-sector (9), ICT...

MITI takes proactive action to shelter consumers and industries interests Malaysian consumers and industries can expect better quality and safety products with the implementation of mandatory standards. The implementation of mandatory standards will ensure that only products of acceptable quality are imported or produced locally. The mandatory standards will ensure that products meet safety, health, and environment requirements which are aligned to international standards. Mandatory standards requirement provides a competitive edge to Malaysian exporters in the global arena, while protecting the interests of consumers in the local market. As of 31 March 2009, a total of 5,588 Malaysian Standards have been developed, out of which 3,101 standards are aligned with international standards and 173 standards have been made mandatory. The sectors in mandatory standards are 3 for iron and steel, 57 for electrical equipment and accessories, 38 for food and food products including...

Excerpts from YB Minister’s speech during MITI Dialogue 2009 MITI continues to negotiate FTAs to open markets for businesses. Malaysia has signed and implemented bilateral FTAs with Japan and Pakistan and recently concluded negotiations with New Zealand. Malaysia is also a party to five regional FTAs namely ASEAN-China, ASEAN-Korea, ASEAN-Japan, ASEAN-Australia-New Zealand and ASEAN-India. Currently, Malaysia is negotiating bilateral FTAs with the US, India, Chile and Australia, and the regional ASEAN-EU FTA. Malaysian companies should capitalise on the regional and bilateral FTAs to gain an edge over their competitors, particularly under these trying times. It should be worth noting that the number of certificates of origin issued by MITI to our exporters, under the preferential schemes of the five regional ASEAN FTAs and the ASEAN CEPT increased 13.0 per cent to 222,476 in 2008. The number of companies exporting under the various FTAs has also increased from 4,160 in 2007 to...

The Government will continue to address business related issues in an expeditious manner. The Government, through PEMUDAH, is currently implementing many new measures to further facilitate business in Malaysia, including: • establishment of the Kuala Lumpur Commercial Court by end 2009 to speed up resolution of commercial disputes; • implementation of MyCoID, a standardised identification number to be adopted for companies dealing with all Government agencies; • preparing a ‘Guidebook on Industrial Relations’ to provide guidelines on hiring and firing of workers; and • compiling an ‘Asset Search Directory’ that contains organisations and agencies that assist in identifying and tracing company assets to facilitate closing businesses. Malaysia’s reform initiatives have resulted in improvements in the public service delivery system. These improvements are reflected in the World Bank’s ‘Ease of Doing Business Index’ where Malaysia moved from 24th place in 2008...

The petrochemical and chemical industry is the second largest contributor to our total exports. For the period of January to May 2009, exports of petroleum products amounted to RM997.4 million, while imports reached RM381.6 million. For the chemicals and chemical product sub-sector, imports and exports totaled RM12.7 billion and RM12.3 billion respectively. During the first five months of 2009, total investments in petroleum products (including petrochemicals) totalled RM1.1 billion, while that for chemical and chemical products amounted to RM1.5 billion. The pharmaceutical industry, which is mostly dominated by SMEs, saw an increasing demand trend in the domestic market. The pharmaceutical industry productivity in 2008 grew by 11.6 per cent, while sales value expanded by 11 per cent to RM1.4 billion in 2008. This increase is due to demand from the domestic market, arising from better health awareness and ageing population. Manufacturers must continue to expand and upgrade their...

For the first five months of 2009, exports of the wood and wood-based sub-sector, encompasses both wood and paper products, fell 19.3 per cent to RM5.3 billion compared to the corresponding period last year. This was a result of dampened demand from Malaysia’s major export markets, such as the USA and Europe. To streamline and improve the efficiency of the timber sub-sector, the government launched the National Timber Policy (NATIP) on 17 February 2009. Among its objectives, NATIP serves to ensure that the industry continues to enhance its competitiveness in the global marketplace. The Government continues to promote higher value-added downstream activities through the provision of special funding and grants. These support facilities assist Malaysian companies in setting up and expanding infrastructure facilities, R&D, training and streamlining procedures to facilitate increased production. The Malaysian government has also embarked on several initiatives to enhance market...

China’s foreign exchange reserves stood at US$2.13 trillion as at end June 2009, indicating that China’s economy is on track for recovery. Asian Development Bank noted that the rapid growth in China’s foreign exchange reserves was led by the rising trade surplus and by the confidence of overseas investors as they buy up China’s assets. China’s trade surplus in the first half of 2009 was US$96.94 billion. The stock and property markets remained bullish. China’s shares have rallied 70% from the beginning of the year. Property sales surged 53% to reach 1.58 trillion Yuan (US$231.3 million) as investors took advantage of low interest rates. China’s property and equity markets are closely watched by international speculative fund holders. It is believed that the bullish property and equity markets are among the reasons contributing to the surge in China’s foreign exchange reserves.  

The metals sub-sector which consists of ferrous and non-ferrous metals is a key component in Malaysia’s manufacturing and construction industry. Taken as a whole, exports of the metals industry in January to May 2009 fell by 26.9 per cent to RM9.2 billion from RM12.6 billion in the first five months of last year. Imports of metals which are critical inputs in our fabrication industry, also declined by 35.3 per cent in the same period. A total of 47 projects were approved in the metal industry with investments valued at RM2.6 billion for the period of January – May 2009. As part of the metals industry, the iron and steel sub-sector provides basic raw materials and intermediate inputs to other sectors such as agriculture, construction and engineering. The Government had introduced measures to help spur production and trade in this sub-sector. Effective 1 August 2009, steel manufacturing licences will be issued without restriction to meet the demand for long and flat steel...

WTO Members may impose measures for the protection of human, animal, plant life or health reasons, under the Agreement on Sanitary and Phyto-Sanitary Measures (SPS). The measures imposed should conform to international standards and guidelines, in order to ensure harmonisation in implementation. The measures should not restrict the flow of trade, implemented in a non-discriminatory manner and should be applicable to all countries and domestic producers or suppliers. Despite these guidelines, disputes have been referred to the WTO on SPS measures. For example, the ban imposed by the US on importation of poultry products from China is viewed as discriminatory protectionism by China as it violates the obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the SPS Agreement. The US however insists that the SPS measures taken by them are to ensure food safety and is based on scientific evidence as required under the SPS Agreement and therefore is in compliance...

Malaysian companies are encouraged to explore opportunities offered by India for investment and collaboration in the development of highways. India’s Minister of Road Transport and Highways, Mr. Kamal Nath, announced during a visit to Singapore in mid-July 2009 that infrastructure, particularly development of roads, will be the key defining sector for attracting foreign investments in India in the coming decade; much like ICT was the focus sector in the 90’s and the present decade. India’s priority is on building world-class infrastructure through public-private partnerships (PPPs). India’s ‘Action Plan for Development of the National Highways Network’ expects that 45,974km of highways with an estimated investment of US$45 billion will be built during the period 2001-2012. To date, only 5,152km or 11.2% of the envisaged 45,974km of highways has been completed. In view of the slow progress, Minister Nath has set a target of 20km a day of highway construction as compared to...