The world’s economy, particularly world trade and production are increasingly being structured around ‘global value chains’ (GVC).  This chain encompass the activities that a company would undertake to bring a product or service from its conception to its end use by final consumers.  Between these two ends, we have to address the technological progress, costs, access to resources and markets and trade policy reforms not mentioning the risks involved at each level of the chain.  Malaysia is an important component of this global value chain as it is a major exporter of primary goods, intermediate goods, parts and components and semi-finished products, amongst others. 

Malaysia is transitioning from labour intensive to high technology investments that is now spurring the next phase of our country’s drive and aspiration to become a developed nation by Year 2020.  While our progress and successes todate, are still work-in-progress, we must take cognizance that because of the growing interdependencies within GVCs, Malaysia cannot rely exclusively on its own domestic resources to produce goods and services for the world market.  Hence, our national competitiveness is constantly challenged to deliver on operational efficiencies at all levels in the value chain.

Our South-South connections play an integral role in this global connectivity and interdependency.  This is especially so, in areas of access to resources, both primary and intermediate, labour and skills, and technology and Research & Development.  

Over the last two decades, MASSA has been assisting its members to focus on the developing countries of the South as a source of procurement of resources, manufacturing base, export centres and even research & development, playing an important role to plug these South-South countries into the global grid of the GVCs.  Today, there are many successful Malaysian companies in many sectors that have established their bases in Asean, Indo-China, China and Latin America, producing Malaysian brands for the global market.  These include our Malaysian rubber gloves, automotive parts and components, palm oil products, innovative financial banking products and services and many more.

The global economy is in a constant state of change and the ways of doing business will also be such.  MASSA will continue its efforts to steer and focus members towards emerging trends and markets.  Together with our members’ hindsight  of experience and business acumen and foresight of wisdom, collectively assist Malaysia to  navigate through the constant change and challenging headwinds.  As 2013 comes to a close, we must stay optimistic for new and innovative approaches to do business and stay connected with the global grid.
 
I take this opportunity to express my gratitude to all members and the Executive Committee for their valuable participation and contribution to the Association throughout the year. 

I wish you and your families Seasons’ Greetings and a Happy and Successful 2014.

Tan Sri Azman Hashim
President