Malaysia is among five Association of Southeast Asian Nations (ASEAN) countries to benefit from the global demand recovery, particularly for electrical and electronic (E&E) products, said RHB Research.
The think tank said the country’s export numbers charted a strong double-digit growth of 12.6 percent in the first half of 2014, rebounding from a 4 percent contraction in the same period a year ago, reported Bernama, Malaysia’s national news agency.
“This was underpinned by a recovery in the exports of E&E products, in line with a pick-up in global semiconductor sales. These were aided by a stronger growth in non-E&E exports.”
The research firm said the country’s E&E exports were likely to have also benefited from a relocation of some E&E companies from Singapore to the country due to the relatively cheaper cost of production, though the country’s cost of doing business was also on the rise.
“The improving relationship between Malaysia and Singapore that led to a joint-venture development of the technology and industrial Park by Singapore’s Ascendas and Malaysia’s UEM Sunrise also helps. We believe the above factors will continue to underpin Malaysia’s E&E exports in 2H 2014 and in 2015,” it said.
Halal nurturing program
Meanwhile, the country’s Halal Business Transformation Programme (HBT) has generated MYR1.51 billion (US$479 million), or an average of MYR500 million annually, in sales for companies in various halal-related sectors in the country, according to Halal Industry Development Corporation (HDC), an agency under the Ministry of International Trade and Industry.
HDC said membership to the program has grown from the initial 149 companies to 520 companies at present, said a Bernama report.
It added that 50 participant companies have become regular suppliers to hyper markets and main distributors to food producers.
The HBT is a nurturing program introduced by HDC in 2011 to facilitate the development of local companies to transform them into global players in the halal industry.
Besides mentoring, HDC also organizes business matching sessions with multinational companies and distributors to promote business networking and enable entrepreneurs to penetrate the global market for halal products.
The market for halal products is not only confined to food products but also to halal cosmetic and pharmaceutical products and logistics services.
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