Introduction

The global economy is currently being shaped by two widely anticipated but opposing events, which are creating a lot of economic uncertainty and sharp volatility in the global financial markets. Firstly, it is due to the expected growth slowdown in China,the world’s second largest economy and global manufacturing powerhouse and secondly to the strengthening of the US economy, boosted by strong consumer spending and recovery in the housing market. The International Monetary Fund (IMF) in its latest World Economic Outlook (WEO, October 2015), revised downward the 2015 annual growth estimate for the world economy to 3.1% (2014: 3.4%). However, growth in advanced economies is expected to be on the uptrend, growing slightly higher by 2.0%, while that in emerging market and developing economies, as a group, is projected to moderate slightly to 4.0% this year, ASEAN-5 (Indonesia, Malaysia, Philippines, Thailand and Vietnam) is projected to grow at 4.6% in 2015.

Third Quarter 2015 Update

In Malaysia, the real GDP growth moderated in the third quarter of 2015, registering 4.7% year-on-year (y-o-y) compared to 4.9% in the previous quarter. Aggregate domestic demand continued to be the key engine of growth, growing by 4.0% y-o-y. Growth in external demand was improving, registering 3.3% in the third quarter of 2015. On the supply side, all economic sectors recorded positive growth rates in the third quarter of 2015, with services and manufacturing being the major contributors to the GDP with a combined share of 76.1%. The overall position of Malaysia’s balance of payments (BOP) improved in the third quarter of 2015, registering a bigger surplus of RM17.0 billion. The continuous improvement was attributed to continued strong net current account balance (NCAB), registering about RM5.1 billion. While the goods and services account increased in the third quarter, there are continued higher deficits in the primary factor income accounts of RM10.3 billion. The financial account in the third quarter of 2015 registered a deficit of RM31.2 billion, representing a sharp reversal from surplus in the previous quarter. “Other investment” recorded net outflows after having registered substantial surplus in the second quarter 2015, recoeding a deficit of RM6.4 billion. While direct investment improved in the third quarter, portfolio investment recorded a bigger deficit, amounting to RM24.4 billion, driven by continued outflows of portfolio investment during this period. Meanwhile, “net errors and omissions” recorded a huge surplus of RM43.1 billion.

While overall BOP improved dramatically on a quarterly basis in the third quarter of 2015, Bank Negara seemed to be intervening heavily in the foreign exchange market to support the ringgit level, especially in August and September 2015. This has been reflected in a steady reduction in net international reserves, which continued its downward trend, registering USD93.9 billion as at 13 November 2015, well below the “psychological threshold” of USD100 billion. But, the international reserves remain ample to facilitate international transactions without disruptions. It is sufficient to finance 8.6 months of retained imports, significantly higher than the 3-month international thresholds. Fortunately, the ratio of international reserves to short-term external debt stood at 1.1 times, marginally above the standard international threshold of 1.0.

Overall, unemployment edged upward slightly to 3.2% of the total labour force in August this year, indicating full employment (threshold at 4%) while consumer price inflation moderated slightly in October 2015, registering 2.5% year-on-year, on account of mostly policy-driven domestic cost-push factors. Price inflation was the result of cumulative direct and indirect effects of GST implementation, adjustments in fuel end-user prices in August 2015 and higher import prices, following almost across-the-board declines in bilateral ringgit exchange rates, especially against Malaysia’s major trading partners.

Gross exports registered a growth of 5.5% in the third quarter of 2015, expanding from a slower growth of 1.5% in the corresponding quarter of last year and pointing to a recovery performance of the external trade account. Gross imports also increased markedly, registering a growth of 2.9%. Trade surplus remained high in the third quarter of 2015, registering RM22.2 billion. The performance of the external trade account in the first three quarters of 2015 remained as a source of concern, albeit better performance in the months of August and September. Commodity export prices remained low. The commodity prices encompasses not only crude oil and LNG prices, but also palm oil and rubber prices.

The Monetary Policy Committee (MPC) meeting on 11 September 2015 decided to maintain the OPR at 3.25%, the same rate as last year. The stance of BNM’s monetary policy remains accommodative and supportive of economic activity. Monetary policy is specifically tailored to ensure sustainability of the overall growth prospects, while headline inflation is expected to peak early next year, following the impact of the GST and sharper-than-expected depreciation of the ringgit. In fact, bilateral ringgit exchange rate with the USD has been depreciating all the way in the last five years with rising volatility before finally breaking to sharply lower value since September 2014 until recently. Sadly for Malaysia, the ringgit has been allowed to cross the psychological threshold of RM3.80 per USD on 6 July 2015, and touched its lowest external value in the last 17 years at RM4.4725 per USD on 29 September 2015. Latest available data show that MYR per USD closed slightly higher at 4.3775 on 13 November 2015. Since end-September 2014, y-o-y, ringgit depreciated almost across-the-board against currencies of Malaysia’s major trade partners, especially with the US dollar (33.81%), Chinese Yuan (29.04%) and UK pound (25.17%). Ringgit also depreciated sharply against the Japanese Yen (19.35%), Singapore dollar (19.92%), Thai Baht (20.67%) and Euro (13.77%). However, in terms of nominal effective exchange rate (NEER), the ringgit depreciated by only 19.63% during the same period.

In the third quarter of 2015, MIER’s CSI fell not only for the fifth consecutive quarter but also all time low to 70.2 points, signaling a significant deterioration in overall consumer sentiments. The MIER’s Business Conditions Index (BCI) settled lower at 86.4 points in the third quarter of 2015. The index is made up of the Current Index (CI), which lost 9.7 points and Expectation Index (EI), which dropped 6.7 points. The Automotive Industry Index and Residential Property Index followed the trend exhibited by BCI to 74.4 points and 79.9 points, respectively. The Retail Trade Index gained 16.5 points to settle at 93.3 points. The Tourism Market Index, meanwhile, went above the 100-point threshold to settle higher at 116.5 points.

Conclusion

Given the above domestic scenario and global economic developments, the growth of Malaysia’s real GDP is projected to moderate to 4.9% this year, driven mainly by private sector expenditure. In 2016, real GDP growth is expected to remain more or less the same as 2015, registering growth of between 4.5% to 5.0%. The growth projection remains sustainable, especially with the output gap narrowing to about zero, while the consumer price inflation is expected to edge slightly to 3.0% from a relatively low inflation estimated for this year at 2.2% (remain low at monthly average of 2.0%). The prediction for unemployment rate at 3% in 2016 seems achievable, considering that rate is still below the full employment threshold (=4.0%), as labour market conditions remain healthy.

4th Showcase Malaysia 2015

Introduction

Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) has been working with a mission to foster strategic capabilities through business Forums, Trade Fairs, Exchange of Business Delegations, etc. escalating to trade and investment opportunities between Bangladesh and Malaysia. BMCCI thrives to reinforce and create multiple channels for enhancing linkages with the government as well as the private sector. As a private sector driven organization, its mandate is to facilitate trade between Malaysia and Bangladesh.

Malaysia is one of the largest investment partners of Bangladesh. It is encouraging to note that more Malaysian investors are reported to have shown their interest to invest in different sectors of Bangladesh. We welcome them and assure them to extend our full support and cooperation to implement their projects.

Objectives

The main objective of this showcase was to emphasis a Malaysia as a reliable and effective source of diversified products & services and creating scope for making wide network for the Malaysian Businessmen with the local business community.

This event is the above showcase, was also to provide a great avenue to attract large number of businessmen, visitors and professionals from Bangladesh and is expected to achieve its purpose to project Malaysia as the preferred destination and source for higher education, healthcare, tourism, property investment, automobiles, construction, building materials, petroleum explosion, banking & financial services.
 

Overview

Event           :   4th Showcase Malaysia 2015

Date             :   15-17 October, 2015

Venue          :   Pan Pacific Sonargaon Dhaka, Bangladesh

Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) have successfully organized 4th Showcase Malaysia 2015 in Dhaka from 15 to 17 October, 2015 at the Pan Pacific Sonargaon Dhaka, Bangladesh.

Support & Cooperation

The Showcase was supported by Malaysia External Trade Development Corporation (MATRADE), Malaysia South-South Association (MASSA), High Commission of Malaysia in Bangladesh and High Commission of Bangladesh in Malaysia. Board of Investment (BOI) and Bangladesh Economic Zones Authority (BEZA) were strategic partners.

Promotional Activities

15 member Organizing Committee was formed for enhancing 4th Showcase Malaysia 2015. There was 5 Sub-Committees appointed to support the Organizing Committee.

A promotional Seminar on “Business and Investment Opportunities in Bangladesh” was held at Menara MATRADE, Kuala Lumpur on 30 July, 2015, which was jointly organized by Malaysia External Trade Development Corporation (MATRADE) and Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) with support from Malaysia South-South Association (MASSA), Board of Investment (BOI), Bangladesh Economic Zones Authority (BEZA), Infrastructure Investment Facilitation Company (IIFC), Government of Bangladesh, Robi Axiata Ltd., High Commission of Malaysia in Bangladesh and High Commission of Bangladesh in Malaysia.

A press conference was held at the Menara MATRADE, where many of the Malaysian journalists were present. Among others, The High Commissioner of Bangladesh to Malaysia H.E. Mr. Md. Shahidul Islam and the Chief Executive Officer of MATRADE Datuk Dzulkifli Mahmud were also present in the press conference.

Another Briefing Session on 4th Showcase Malaysia 2015 in Chittagong was held on 12th September, 2015 at CMCCI Auditorium organized by Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) and Chittagong Metropolitan Chamber of Commerce & Industry (CMCCI).

Special webpage was created and open Facebook account for promoting 4th Showcase Malaysia 2015. Provided newspapers advertisements, distributed leaflets, arranged special publication in the other leading chamber and association newsletters, social media campaign, e-mail campaign initiated. A several TV talk show were arranged to promote 4th Showcase Malaysia 2015.

Press Conference (KL & Dhaka)

In cooperation of MATRADE and MASSA there was a Press Briefing on 4th Showcase Malaysia 2015 on 31st August, 2015 at MATRADE Centre, Kuala Lumpur.
 
Another Press Briefing was organized on 4th Showcase Malaysia 2015 on 13th October, 2015 at Pan Pacific Sonargaon Dhaka.

Inaugural Ceremony

Inaugural Ceremony of the “4th Showcase Malaysia 2015” at Pan Pacific Sonargaon, Dhaka , Bangladesh

Honorable Commerce Minister of the Government of Bangladesh Mr. Tofail Ahmed, M.P., inaugurated the 3-day Showcase Malaysia 2015. The Commerce Minister lauded the role of BMCCI for organizing the Showcase. He also thanked the Malaysian High Commissioner in Bangladesh for maintaining good commercial ties with Bangladesh. FBCCI President Mr. Abdul Matlub Ahmad also spoke on the occasion while H.E. Norlin Binti Othman, High Commissioner of Malaysia in Bangladesh & Patron, BMCCI expressed her satisfaction for organizing Showcase Malaysia 2015. Mr. Abu Bakar Koyakutty, Director of MATRADE and Ms. Kavitha of Malaysia Healthcare Travel Council (MHTC) were also present on the occasion. Mr. Nasir A. Choudhury, President of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) and Chairman Organizing Committee of 4th Showcase Malaysia 2015 and Past President of BMCCI Syed Moazzam Hossain delivered welcome addresses. After the formal inaugural session, Mr. Tofail Ahmed visited the fair venue and talked with the exhibitors. Besides, foreign diplomats, high government officials, business leaders & members of BMCCI attended the inaugural function. The inaugural function was widely covered by both print and electronic media.

VIPs attending the Inaugural Ceremony of the “4th Showcase Malaysia 2015”

Exhibitors and Number of Company participated

55 Stalls Comprising 70 Companies/Organizations including Malaysian High Commission, MATRADE, Tourism Malaysia, Malaysia Palm Oil Council, Malaysia Airlines and Malaysia Healthcare Trade Council (MHTC) have participated in the 3-day event with Malaysian products and services.

About 100 Malaysian businessmen including the exhibitors representing products & services, which include Telecommunication, Banking, Tourism, Healthcare Services & Healthcare Tourism, Higher Education, Food Products, Palm Products, Automobiles, Construction, Building Materials, Plastic, and business have attended the trade show.

Number of Visitors & Trade Visitors

The Show has attracted huge audience both trade visitors and general public. About 5,000 visitors including 2,000 trade visitors have visited the show.

In order to facilitate uninterrupted interactions and business negotiations between the buyers, sellers/exporters, importers/exhibitors & visitors in the Showcase Malaysia 2015, BMCCI had also arranged separate timing for the trade visitors.

Business Delegation

Under the leadership of Mr. Amran ABD Rahman, Director of Tourism Malaysia a 17 member Trade and Investment delegation visited Bangladesh during 14th to 18th October, 2015.

In conjunction with 4th Showcase Malaysia 2015 Malaysia Healthcare Travel Council (MHTC) organized Malaysia Healthcare Week from 10th October to 17th October, 2015. Other 7 member Business Delegation under the leadership of Ms. Kavitha Mathuvay, Regional Director, Market Development of Malaysia Healthcare Travel Council (MHTC) also participated in the Showcase Malaysia 2015.

One to One Business Meeting

During the Showcase Malaysia 2015, Malaysian Companies participated in the One-to-One business matching sessions organized by the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) at Pan Pacific Sonargaon Dhaka, Bangladesh. Approximately 175 One-to-One business matching meetings were also organized during fair wherein a good number of local businessmen exchanged their business information and negotiated business deals with their Malaysian counterparts.

Seminars

BMCCI had also arranged seminars on issues like:

Seminar 1 : Bangladesh-Malaysia Trade Relationship

Seminar on “Bangladesh-Malaysia Trade Relationship: Opportunities and Challenges”

President of the Dhaka Chamber of Commerce and Industry (DCCI) Mr. Hossain Khaled chaired the seminar. Two papers were presented – one by Mr.  Paban Chowdhury, Executive Chairman of Bangladesh Economic Zones Authority (BEZA) and the other Mr. Abu Bakar Koyakutty, Director of MATRADE. Mr. Md. Ariful Hoque, Deputy Director of Board of Investment (BOI) and Mr. Darryll Sinnappa, Managing Director, Edotco Bangladesh Co. Limited participated in the seminar as discussants.

 
Seminar 2 : Understanding Your Health

Seminar on “Understanding Your Health”

Her Excellency Norlin Binti Othman High Commissioner of Malaysia in Bangladesh graced the seminar as the Chief Guest while Director General, Health Economics Unit of Ministry of Health and Family Welfare Mr. Ashadul Islam was present as the Special Guest. Two papers were presented – one by Dr. Kumara Gurupparan, National Heart Institute (IJN)   on Heart Disease and Prevention and the other by Dr. Sarenjit Kaur, KPJ Healthcare on Stroke and its Complication. Introductory remarks by Ms. Kavitha Mathuvay, Regional Director, Market Development of Malaysia Healthcare Travel Council (MHTC) while Mr. Nasir A. Choudhury, President of Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) welcomed address. Mr. Jahurul Islam Chowdhury, Chairman, Seminar and One-to-One Business Meetings Sub-Committee, 4th Showcase Malaysia 2015 played one part in the Seminar.

Seminar 3 : Tourism Opportunities in Bangladesh and

Malaysia 

Chairman Organizing Committee of 4th Showcase Malaysia 2015 and Past President of BMCCI Syed Moazzam Hossain chaired the seminar. Two papers were presented – one by Mr. Amran ABD Rahman, Director of Tourism Malaysia (Delhi) and the other Mr. Md. Ziaul Haque Howlader, Deputy Manager (Planning) of Bangladesh Parjatan Corporation (BPC). Mr. Mohiuddin Helal, CEO of River and Green Tours and CEO of Industry Skills Council for Tourism and Hostility of ILO Bangladesh participated in the seminar as a discussant. Mr. Jahurul Islam Chowdhury, Chairman, Seminar and One-to-One Business Meetings Sub-Committee, 4th Showcase Malaysia 2015 conducted the program.

Cultural Night & Gala Dinner

On the Second day of the event a Cultural show followed by Grand Gala Dinner was organized where in Hon’ble Minister of Industries Mr. Amir Hossain Amu, M.P. has attended as the Chief Guest. H.E. Norlin Binti Othman, High Commissioner of Malaysia in Bangladesh & Patron of BMCCI and Mr. Matlub Ahmad, President of FBCCI also attended as the Special Guests. On behalf of MATRADE, Mr. Abu Bakar Koyakutty, Director of MATRADE was also present on the occasion. Two Cultural teams (one from Tourism Malaysia) have performed their dances and songs on the cultural aspects of their respective countries during the show. The Malaysian Businessmen and guests enjoyed the performances and highly appreciated the performance. Hon’ble Minister distributed the crests amongst those who made the showcase as success.

Closing Ceremony

There was a briefed closing ceremony held on the last day of the Showcase. H.E. Norlin Binti Othman, High Commissioner of Malaysia in Bangladesh & Patron of BMCCI. Syed Moazzam Hossain, Chairman of the Organizing Committee of Showcase Malaysia 2015 Mr. Abu Bakar Koyakutty, Director of MATRADE was also present on the occasion. Syed Almas Kabir, Showcase Director conducts the program.

Publications

A colorful Show Directory containing inter-alia, list of exhibitors with their products & services was brought out and circulated to the exhibitors and the trade visitors.

Sponsorship

BMCCI expressed sincere thanks and gratitude to the Platinum Sponsors ROBI Axiata Limited and Green Delta Insurance Company Ltd. Gold Sponsors MHTC, GDASSIST and Pubali Bank Ltd., Silver Sponsors Amber Group and The City Bank Ltd. for their financial support.

Advertisement in Souvenir

BMCCI also extend thanks to the exhibitors and contributors to the Show Directory. Without their help & support BMCCI could not be able to make the event successful. BMCCI also expressed appreciation for those business houses who cooperated with us by giving advertisements etc.

Recognition

The dignitaries, sponsors and the exhibitors were presented with BMCCI crests in recognition to their kind presence, active support and participation in the Showcase.

Documentation

Entire program was documented in Video and Still Photography.

Outcome/Achievement

Spot Business

MATRADE and Malaysian High Commission in Bangladesh were very much impressed on the success of the show.  Malaysian businessmen obtained spot order RM 45 million during Showcase Malaysia.

Joint Venture

There was a scope of Joint Venture between Malaysia and Bangladesh. 7 companies negotiated for Joint Venture during Showcase.

Future Business

Every company got substantial enquiries and expecting good business.

Finally, it is mentioned below in short, what actually we have achieved out of the show:

1.  BMCCI has been widely recognized in the trade circle both in Bangladesh and Malaysia. As a result the image of the Chamber has further been improved;

2. Our relationship with the partner organizations in Malaysia has further been strengthened;

3. Trade relations among the businessmen of both the countries have been developed;

4. About 5,000 visitors attended the fair and 562 trade enquiries have been received during and after the Showcase;

5.    Build up a confidence among the business circle;

6. Gathered experience which will help in organizing similar events in future both in Bangladesh and Malaysia;

7.    Obtained assurances from our partners to extend more and  more supports in our future programs;

8.   Obtained unprecedented coverage both in print and electronic media. As a result we are getting inquiries both from the media and the business circle about of next programs;

9.  Received appreciating messages from the Hon’ble President of Bangladesh, Hon’ble Prime Minister of Bangladesh, Commerce Minister, Industries Minister, High Commissioner  of Bangladesh in Malaysia, High Commissioner of Malaysia in Bangladesh, President FBCCI, Chairman MATRADE and President of MASSA which inspired us much in our activities;

10.  Received 2 (Two) Articles from Board of Investment (BOI) and MASSA which have been incorporated in our Show Directory;

11. BMCCI will move forward with more pragmatic events to enhance trade and investment in between Malaysia and Bangladesh.