Session1 Forum Speakers (from left) P. Kandiah (KASS International), Zakaria Jusoh(MGV Ind), Oii Siong Hwa (TSSB), moderator Mikhail Raj Abdullah (BERNAMA), Noor Neelofa and Noor Nabila (NH Prima I'ntl). By Mohd Azhar Ibrahim
KUALA LUMPUR, 10 Feb (Bernama) --The MATRADE Export Day 2016 held recently attracted an enthusiastic crowd of 1000 participants comprising SME entrepreneurs, representatives from financial institutions and business graduates.
Carrying the theme 'Go The Extra Mile' the event featured talks by representatives from Bank Negara Malaysia, SME Bank, and EXIM Bank on how their respective financial institutions can assist aspiring exporters to market their trade overseas.
International Trade & Industry Minister, Datuk Seri Mustapa Mohamed (left), Deputy Minister, Ministry of International Trade & Industry, Datuk Lee Chee Leong, AB Teoh, and EXIM Bank President & CEO, Norzilah Mohammed, after the book launch.
In his opening speech, International Trade & Industry Minister, Datuk Seri Mustapa Mohamed said the formation of the ASEAN Economic Community, the TPP and other FTAs entered into by Malaysia have open the door for Malaysian entrepreneurs to expand their businesses globally.
Mustapa also launched a special edition book on 'Exporting and International Trade' written by veteran exporter, lecturer and columnist AB Teoh.
In conjunction with its 20th anniversary, EXIM bank had had commissioned Teoh to write the book which lays out all there is to know about exporting from Malaysia, including key aspects in generating ideas, planning, and setting up and managing a successful export business 'Exporting and International Trade' is the first publication of its kind and hence, is a must-read for the entrepreneur who wishes to learn the ropes on how to expand their market overseas.
EXPORT DAY 2016 participants listening in rapt attention to the speakers during the experience-sharing forum.
SMEs are the backbone of the economy. Through the SME Master Plan, the government aims to increase SME participation in export from the present 19% to 23% in 2020," MATRADE Chief Executive Officer Datuk Dzulkifli Mahmud said.
In line with MATRADE s tag line 'The Time To Export Is Now' Dzulkifli urged the SMEs, particularly the Bumiputra, Women and Youth entrepreneurs, to make use of MATRADE s advisory services, market intelligence, business matching and capacity building training to expand their business globally.
With 23 years of experience under its belt, MATRADE with its extensive global network of 46 overseas offices its various training programmes, and funding assistance such as the Market Development Grant and Services Export Fund, has evolved into the premier solution for SMEs participation in international trade, he added.
The event witnessed the exchange of documents between MATRADE and EXIM Bank to mark their collaboration in providing export financing for Malaysian SME entrepreneurs to export their products and services overseas, and between MATRADE and SME Bank for the Services Export Fund.
MATRADE also exchanged documents with China Inspection Consultancy (M) Sdn Bhd, and Lanzhou Longma ECommerce Technologies Co. Ltd. to facilitate the entry of Malaysian goods and services into the China market.
The highlight of EXPORT DAY 2016 was the experience-sharing forum moderated by BERNAMA Deputy Editor-In-Chief, Mikhail Raj Abdullah.
The forum which was divided into two sessions featured 8 successful SME entrepreneurs from various sectors of industry who shared the trial and tribulations they had to go through in their foray into the export market and how they managed to overcome them.
Session 1 presenters include entrepreneurs from NH Prima International Sdn Bhd (hijab), Tean Siong Sdn Bhd (birdnest), MGV Industries Sdn Bhd (carbonated drinks), and KASS International Sdn Bhd (IP Rights).
Clarity, Consistency and Colours
Model, actress and television presenter Noor Neelofa Mohd Noor and her sister Noor Nabila manage their family-owned hijab (shawl and headscarf) manufacturing business NH Prima International Sdn Bhd.
Theirs was a cottage industry which started selling hijabs online and at local bazaars in September 2014. In just over a year Naelofar Hijab has become one of Malaysia s biggest headscarf brands.
The company now operates in a 3-storey building from where they distribute their products to a network of 700 distributors nationwide.
The company currently exports to over 30 countries covering Europe, the USA, Middle East, and even in Israel.
Turnover reached RM50 million in 2015, more than double the family's target.
Neelofa summed up the reason behind her company s phenomenal success to: clarity, consistency and colours.
"We are very clear on our target market; we are consistent in fulfilling our customers' expectations; our brand carries its distinct range of colours that are feminine, romantic and soothes the eye," Nabila said.
It is not hard to penetrate the international markets. You need to utilise what you have
the social media, the e-commerce platform, and MATRADE's trade expos and programmes to promote your products to the world, she added.
Certification, Certification, Certification
Ooi Siong Hwa is in the edible bird s nest business. His company Tean Siong Sdn Bhd (TSSB) exports processed edible swiftlet nest to Hong Kong, Guangzhou and Shanghai in China.
He also has a trading arm Tean Siong Trading that provides professional services in Swiftlet Nests Ranching from building designs, equipment and maintenance.
His business nose dived when China issued a blanket ban on Malaysian bird s nests in July 2011 after the discovery of high levels of nitrite in unprocessed swiftlet nests.
After negotiations between the two countries, the ban was lifted in April, 2012 subject to three conditions.
Malaysian exporters must obtain the Veterinary Health Mark (VHM) certificate issued by the Veterinary Department, the Radio Frequency Identification (RFID) certificate issued by the Malaysian Multimedia Commission (MCMC), and the health certificate issued by the Health Ministry of Malaysia.
The product carries the '1Malaysia Best' brand once they have obtained the three certifications.
Ooi invested in training programmes to ensure his products comply with Good Veterinary Hygienic Practices (GVHP).
He also ensured his products have the mandatory certifications required by the Certification and Accreditation Administration of China (CNCA), including Halal Certification from the Department of Islamic Development Malaysia (Jakim).
Currently TSSB is one of 16 Malaysian companies that have obtained the green light from General Administration of Quality Supervision, Inspection and Quarantine of the People s Republic of China (Aqsiq) to sell their birdnests in China.
With MATRADE's assistance he managed to link up with a buyer in China. The company enjoyed a 'sold out' at the 12th China-ASEAN Trade Expo in Naning, China in September 2015.
Processed birdnest fetches Renminbi 40,000 (RM20, 000) per kilogramme in the China market.
This means that just one bird s nest is worth RM100, Ooi said.
Under the Economic Transformation Programme (ETP), the Government targets to have 63,000 swiftlet premises in 2020, producing 870 metric tonnes of bird's nest worth RM3.5 billion.
Innovation
The third speaker, Tuan Haji Zakaria Jusoh, is Founder & Managing Director of MGV Industries Sdn Bhd (previously known as Madura Ind), which manufactures carbonated soft drinks for the local market, and sparkling fruit juices under its IP-registered brand name 'S-Sotic' for export.
MGV exports between 150 and 200 containers a year or 4.25 million bottles a month of to Singapore, Brunei, Indonesia, Myanmar, Cambodia, Maldives, Dubai and China.
For this achievement, the company was bestowed with the Prime Minister Award and the Innovation Award (Agriculture & Agro-Based Industry), and the 'One Industry-One District Award' (Beverage) in 2012. Zakaria's clarion call is 'Innovation'.
Carbonated soft drinks falls in the low-end segment where competition is stiff and margins are low.
"You need continuous improvement and innovation to make your product stand out from the rest. Only then can you increase the price," Zakaria,who holds a degree in industrial engineering from the United States, said.
"By being innovative in the aspects of production, engineering and management we managed to remain one step ahead of the competition. Through innovation, we are able to penetrate international markets and secure a packaging contract from Singapore," he added.
The main job of the entrepreneur is to market their products and services. They need to identify and focus on their target market.
Zakaria urged the relevant authorities to cut down on the red tape in disbursing grant or loan and issuing certification.
Entrepreneurs should not be distracted by cumbersome procedures when they should be concentrating on more productive matters like product development and market penetration, he said.
IP Rights
KASS International Sdn Bhd (KISB) is an intellectual property (IP) boutique practice assists entrepreneurs, inventors and corporations in securing and exploiting their IP rights both locally and worldwide.
KISB Founder & Director, P. Kandiah said that if entrepreneurs want to maintain a long presence in the foreign market, they need to pay attention to three fundamental issues.
They need to comply with the regulatory requirements in the country they export their products to; they have to ensure that their product does not infringe the IP rights of others in that country, and they have to register their IP right in that country.
"Trademarks and patents are country specific. If you wish to build your brand internationally, you need to file for protection in the countries that you export to in order avoid misuse by other parties," Kandiah said.
Businesses normally engage a law firm to ensure that their product do not infringe third party rights in terms of patent, design, or trade mark, he added.
Kandiah said that unlike patents and industrial designs which have and expiry date, trademarks last forever.
Hence it is pertinent for trademark owners to regularly monitor the market to see that their trademarks are properly used. This requires constant monitoring of the print an electronic media including recordings and broadcasts.
In Session 2 of the forum participants heard ideas and suggestions from Strand Aerospace Malaysia Sdn Bhd (engineering services), Muhibbah Engineering (M) Sdn Bhd (building & construction), Animonsta Studio Sdn Bhd (animation), and Food Panda Malaysia (online food delivery).
Strand Aerospace Malaysia (SAM) was involved in the primary structures analysis and design work for the Airbus jet liner. The company exports its services to the United Kingdom and Germany.
SAM aims to become a national repository for aerospace structures knowledge and to promote the aerospace industry in Malaysia, Head of Business Development, Addi Faiz Adnan said.
Muhibbah Engineering carries out civil, marine, building and steel construction works in Australia, Denmark, Thailand, Sudan, Yemen, Qatar and Germany.
Muhibbah is the first Malaysian company to achieve the ISO 9002:1994 certification in the construction sector, Co-Founder & Managing Director, Mac Yin Boon said.
Animonsta s animation series are broadcasted over cable and satellite television stations in Malaysia, Indonesia, Singapore, Brunei, Disney Channel Asia, and the Carrere Group for the European Market.
According to Founder & Managing Director Nizam Abdul Razak, the company s animation series obtained one of the highest TV ratings for its genre in Malaysia and Indonesia.
Founded in 2012, Food Panda is the largest food delivery service in Malaysia, accepting online food orders and delivering them within Kuala Lumpur s Golden Triangle and certain pocket areas in the Klang Valley, Johor Baru, Penang, Ipoh and Malacca.
Managing Director Vladimir Samborsky said the company currently partners 900 restaurants and aims to increase its networking to 2000 restaurants in the near future.
Needless to say, the quest to export can be challenging especially in the current economic climate.
Malaysian SMEs should not shy away from the challenge. They should adapt and equip themselves with the knowledge, expertise and creativity to compete in the global marketplace, Mustapa said.
--BERNAMA
Last Updated 2016-02-16 12:01:35 by Fauziah Osman