Editorial Team (3rd from left) Puan Fatimah Sulaiman, Editor with (left to right) Ms Christine Leong, Ms Phoon, Ms Ng Su Fun, Ms Florence Khoo and Puan Noraini Mamat

As we bid farewell to 2013, we want to usher in 2014 with cautious optimism amidst global uncertainties that continue to reign.

In this December 2013 edition, we have the privilege to work with the High Commission of Papua New Guinea to feature this developing country. Papua New Guinea is richly endowed with natural resources, including mineral and renewable resources such as forests and marine. Strong growth in its mining and resource sector led Papua New Guinea to become the 6th fastest growing economy in 2011. In spite of this, the other sectors of their economy lack much needed development. Herein lies the business opportunities. We welcome readers to peruse the article prepared by the High Commission of Papua New Guinea. The High Commissioner and his officials in Kuala Lumpur would be most pleased to meet you for business discussions.

In this last quarter of 2013, MASSA had a few visitors. They include a follow-up visit from the Trade and Investment South Africa (TISA), Republic of South Africa soon after the President of the Republic of South Africa made an official visit to Malaysia in August 2013.

Dr Didar Singh, Secretary-General of the Federation of Indian Chambers of Commerce & Industry (FICCI), India called on President of MASSA, Tan Sri Azman Hashim together with members of the Executive Committee of MASSA had frank and open discussions on economic relations between Malaysia and India and the emerging trade and investments patterns in the region.

A delegation from the Economic Community of West African States (ECOWAS) led by Mr Alfred Braimah, Director Private Sector Development of ECOWAS called on MASSA in November 2013. The delegation was upbeat on strengthening ties with Malaysia, and through Malaysia, with ASEAN. MASSA will endeavour to link members to these West African countries through ECOWAS.

The 7th Edition of INTRADE was successfully held in November 2013. There was a busy line-up of seminars, business one-to-one matches, exhibits for 3 days from 26 to 28 November. Thanks to the efforts of MATRADE and all its offices worldwide, foreign buyers converged in Kuala Lumpur at this premier event to give Malaysian exports a boost.

In the pipeline for 2014, MASSA will be collaborating with ACCCIM and MIA to host the SME Products and Services Exhibition in Yangon, Myanmar from 27 February to 2 March 2014. Members of MASSA and ACCCIM have enthusiastically responded to participating in this 2nd edition. Myanmar is rapidly undergoing positive economic transformation and we are desirous for Malaysians to have a stake in this emerging economy.

Last but not least, we in the editorial team would like to take this opportunity to thank all members, associates, sponsors and contributors, for assisting us in the publication of our e-newsletters through 2013. We want to work closely with all of you in 2014 to strengthen and further enhance the South-South platform.

We also want to wish all members and readers “Season’s Greetings” and a fruitful and prosperous New Year.

Fatimah Sulaiman
Editor

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      

1)  INTRADE Malaysia 2013 from 26 – 28 November 2013 at Menara MATRADE, Kuala Lumpur

Showcase Malaysia 2013

  At Pan Pacific Sonargaon Hotel,

Dhaka, Bangladesh from 23 to 25 May 2013

Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI) successfully organized Showcase Malaysia 2013 for the 3rd time in Dhaka from 23  to 25 May, 2013 at the Ballroom, Pan Pacific Sonargaon Hotel, Dhaka, Bangladesh. The Show was inaugurated by Mr. Dilip Barua, Honorable Minister, Ministry of Industries, Government of the People’s Republic of Bangladesh. H.E. Norlin Othman, High Commissioner of Malaysia to Bangladesh & Patron, BMCCI attended as Special Guest. Tan Sri Dato’ Soong Siew Hoong, Executive Adviser of The Associated Chinese Chambers of Commerce & Industry of Malaysia (ACCCIM) and also Executive Committee member of MASSA and Dr. Mary Wong Lai Lin, Chief Executive Officer of Malaysia Healthcare Travel Council (MHTC) were present as the Guests of Honour. Besides, foreign diplomats, high government officials, business leaders and members of BMCCI attended the inaugural function. The inaugural function was widely covered by both print and electronic media.

VIPs at the Inaugural Ceremony – (left to right) Mr Nasir A. Choudhury, Vice President, BMCCI, Mr Dilip Barua, Honorable Minister, Ministry of Industries, Government of the People’s Republic of Bangladesh, Mr Syed Nurul Islam, President, BMCCI, H.E.Norlin Othman, High Commissioner of Malaysia to Bangladesh, Mr A.R. Md Alamgir Jalil, Hon. Secretary-General, BMCCI and Tan Sri Dato’ Soong Siew Hoong, Executive Adviser of ACCCIM and EXCO member of MASSA

47 Stalls comprising 34 Companies/Organizations including Malaysian High Commission, MASSA, MATRADE, Tourism Malaysia, Malaysia Airlines and Malaysia Healthcare Trade Council (MHTC) participated in the 3-day event with Malaysian products and services. Moreover, 4 Seminars and more than 475 one-to-one business meetings took place. The Show attracted huge audience both trade visitors and general public. About 10,000 visitors visited the 3 day show.

VIPs visiting MASSA Booth (3rd from right) Mr Dilip Barua, Honorable Minister, Ministry of Industries, Government of the People’s Republic of Bangladesh shaking hands with Ms Ng Su Fun, Executive Secretary, MASSA

(5th from left) H.E. Norlin Othman, High Commissioner of Malaysia to Bangladesh and other mission members at MASSA booth

(Center) Mr Shah Nizam Ahmad, Consul (Trade), MATRADE, (left) Mr Ramaneedharan P., Marketing Manager (Trade Section), MATRADE and (right) Ms Florence Khoo, MASSA

Ms Ng Su Fun, Executive Secretary of MASSA answering enquiries from visitors at MASSA Booth

About 77 Malaysian businessmen including the exhibitors representing products & services sector, which includes Telecommunication, Banking, Tourism, Healthcare Services & Healthcare Tourism, Information Technology, Education, Training & ICT, Insurance & Takaful Software Solutions, Engineering Services, MG Oil/Fireguard, Food & Beverages, PP Compression Fittings, Property, High Density Fiberboard/Door Facing, Soil Stabilizer and Soil Sample, Cleaning Items, Fragrance Concentrate Liquid, Detergents and Industrial Cleaning Chemicals, Cleaning Equipment, Solar System, Herbal based and Health Food Products, Plastic Cistern & Fitting, Wet Tissue Products, Cosmetics & Chemicals, Real Estate & Housing participated in the trade show.

Under the leadership of Tan Sri Dato’ Soong Siew Hoong, Executive Adviser of The Associated Chinese Chambers of Commerce & Industry of Malaysia (ACCCIM) and also Executive Committee of MASSA,  a 17-member Trade and Investment delegation visited Bangladesh from 21 to 24 May, 2013.  During their visit, they made courtesy calls on Dhaka Chamber of Commerce & Industry (DCCI) and the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) followed by One to One Business meetings. Other 19 member Business Delegation under the leadership of Dr. Mary Wong Lai Lin, Chief Executive Officer of Malaysia Healthcare Travel Council (MHTC) also participated in the Showcase Malaysia 2013.

Meeting at Dhaka Chamber of Commerce & Industry (DCCI) with (2nd from left) Mr Md Sabur Khan, President of DCCI

Individual Networking meetings at Dhaka Chamber of Commerce & Industry (DCCI)

Meeting at The Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) (2nd from right) Mr Kazi Akram Uddin Ahmed, President of FBCCI with (left) Tan Sri Dato’ Soong Siew Hoong, Executive Adviser, ACCCIM and EXCO Member of MASSA

Group photo with Business Mission members (1st row, sitting, 4th from left) Tan Sri Dato’ Soong Siew Hoong (Leader of the Trade and Investment Mission)

BMCCI had also arranged the following seminars alongside the Showcase event:-

– Innovative SME Start with A Positive Attitude

– Inauguration of Bangladesh Malaysia Healthcare

– MM2H and Eco Tourism of Malaysia and

– Enhancing Investment Climate

On the Second day of the event, a Cultural show followed by Grand Gala Dinner was organized where in Honorable Minister of Civil Aviation and Tourism Mr. Muhammad Faruk Khan, M.P. attended as the Chief Guest. H.E. Norlin Othman, High Commissioner of Malaysia to Bangladesh and Patron of BMCCI and Mr. Kazi Akram Uddin Ahmed, President of FBCCI also attended as  Special Guests. On behalf of MATRADE, Mr. Shah Nizam Ahmed, Consul (Trade), MATRADE, Chennai was also present on the occasion. Two Cultural teams (one from Tourism Malaysia) performed their dances and songs on the cultural aspects of their respective countries during the show. The Malaysian Businessmen and guests enjoyed the Cultural show and dinner.

Showcase Malaysia 2013 was a success.  The event strengthened the relationship between the following:-

• Organiser – Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI)

• Sponsor organisations

– ROBI Axiata Limited

– Dana Engineering International Ltd.

– Pubali Bank Limited

– Green Delta Insurance Company Ltd.

– The City Bank Limited

• Supporting organisations

–  High Commission of Malaysia in Bangladesh

– Malaysia External Trade Development Corporation (MATRADE)

– Tourism Malaysia

– Malaysia Airlines

– Malaysia Healthcare Travel Council (MHTC)

– Malaysia South-South Association (MASSA)

• The Government of Bangladesh and The Government of Malaysia

MASSA wish to record its appreciation to BMCCI, High Commissioner of Malaysia to Bangladesh, H.E. Norlin Othman and members of the High Commission in Dhaka, MITI and MATRADE for the support extended to MASSA and the participating Malaysian companies at “Showcase Malaysia 2013”.

 Malaysia-Vietnam Business Forum

at Hotel Royal, Kuala Lumpur on 7 June 2013

Her Excellency Madame Nguyen Thi Doan, Vice State President of the Socialist Republic of Vietnam led a 35 business delegation from Vietnam attended the 2013 Global Summit of Women held in Kuala Lumpur from 6 to 8 June 2013.

The delegation members comprised from sectors covering leather, food, confectionery, beverages, beauty products, tourism, garments, footwear and constructions materials.

In conjunction with the visit, the National Chamber of Commerce and Industry of Malaysia (NCCIM), the Vietnam Chamber of Commerce and industry (VCCI) and the Embassy of the Socialist Republic of Vietnam in Malaysia organised a “Malaysia-Vietnam Business Forum on 7 June 2013 at the Royal Hotel, Kuala Lumpur.

(2nd from right) Her Excellency Madame Nguyen Thi Doan, Vice State President of the Socialist Republic of Vietnam, (2nd from left) YB Datuk Ir. Hj. Hamim Samuri, Deputy Minister of the Ministry of the International Trade and Industry (MITI) Malaysia and (right) Mr Vu Tien Loc, Chairman and President of Vietnam Chamber of Commerce And Industry (VCCI) at the Opening of the Business Forum

Her Excellency Madame Nguyen Thi Doan delivered a Keynote Address at the business forum.  H.E. Mr Nguyen Hong Thao, Ambassador of Vietnam to Malaysia also delivered a Speech at this event.

YB Datuk Ir. Hj. Hamim Samuri, Deputy Minister of the Ministry of International Trade & Industry (MITI) Malaysia  presented a paper on the “Economic Environment, Investment and Trade Development Opportunities in Malaysia” to the participants.

Mr Vu Tien Loc, Chairman and President of Vietnam Chamber of Commerce And Industry (VCCI) also delivered a Speech and Presentation on the “Opportunities and Potential of Economic and Trade Cooperation between Vietnam & Malaysia” at this forum.

(right) Tan Sri Dato’ Michael Chen Wing Sum, Vice President of MASSA with (left) Mr Vu Tien Loc, Chairman and President of Vietnam Chamber of Commerce And Industry (VCCI) having a word after the Forum

MASSA was represented by Tan Sri Dato’ Michael Chen Wing Sum, Vice-President of MASSA and Ms Florence Khoo of MASSA Secretariat at this event.

Visit by MATRADE Officials to MASSA

on 11 June 2013

(i)    MATRADE Officials namely Puan Wan Norma Wan Daud, Director, Cross Border Division and Ms Amilatun Fazlina Zakaria, Manager visited MASSA office on 11 June 2013.  The following were the gist of the discussion:-

        (a)    To familiarise each other (MATRADE & MASSA) of its activities and programmes for members and the business sector.

        (b)    To inform MASSA that the Cross Border Division in MATRADE will be the focal point on matters relating  to cross border investment or reverse investment and led by its director, Puan Wan Norma Wan Daud,

         (c)    This Cross Border Division aims to:-

          (i)    Collate and disseminate information pertaining to the investment regime of countries that have the potential for Malaysia investments.

          (ii)    Collate and build data/information of Malaysian companies who are currently investing overseas.

          (iii) Collate and build data/information on Malaysian diaspora.

          (iv)  Provide information as above, to the Malaysian investing community to assist them in the process of evaluating the potential to invest abroad in their chosen field.

(ii)  MASSA was grateful for the MATRADE visit.  Together, MASSA and MATRADE will share its networks and contacts and will cooperate to organise events and programmes for the benefit of members and Malaysian businesses.

(iii)  MASSA members may access MATRADE’s website @ www.matrade.gov.my for the programmes for this Cross Border Division.

(2nd from left) Puan Wan Norma Wan Daud, Director, Cross Border Division, MATRADE with (left to right) Ms Florence Khoo, MASSA, Ms Ng Su Fun, Executive Secretary, MASSA and Ms Amilatun Fazlina Zakari, Manager, Cross Border Division, MATRADE

MATRADE Cross Border Division is located at:-

Contact:

22nd Annual General Meeting of MASSA

on 13 June 2013

MASSA held its 22nd Annual General Meeting (AGM) at Restoran Seri Melayu, Jalan Conlay, Kuala Lumpur on 13 June 2013, chaired by Tan Sri Azman Hashim, President of MASSA.

The AGM convened promptly at 4:30pm upon obtaining the requisite quorum of members.  The President, Tan Sri Azman Hashim gave a welcoming address to the members present as well as to the Committee members.  Therefore, he proceeded with the business of the AGM according to the Agenda of the meeting proceedings.

(left) Tan Sri Azman Hashim, President of MASSA chairing the 22nd Annual General Meeting of MASSA with (2nd from left) Tan Sri Dato’ Michael Chen Wing Sum, Vice President, MASSA, Tan Sri Dato’ Krishnan Tan Boon Seng, Datuk Lim Fung Chee, Hon. Treasurer, MASSA and Tan Sri Ghazzali Sheikh Abdul Khalid

(left to right) Datuk T.Y. Lee, Hon. Secretary, MASSA, Tan Sri Datuk Seri Utama Thong Yaw Hong, Vice President, MASSA, Tan Sri Dato’ Soong Siew Hoong and Puan Fatimah Sulaiman, Asst. Hon. Secretary of MASSA

MASSA members present at the MASSA 22nd Annual General Meeting

Cover of MASSA Annual Report 2012/2013

The meeting unanimously adopted the Annual Report  

and the Audited Accounts of the Association for the

year ended 31 December 2012.

The Executive Committee and Office Bearers elected for the term 2013/2015 at the AGM were:-

OFFICE BEARERS

President                      :   Tan Sri Azman Hashim

Vice President (i)        :   Tan Sri Datuk Seri Utama Thong Yaw Hong

Vice President (ii)       :   Tan Sri Dato’ Michael Chen Wing Sum

Hon. Secretary             :   Datuk T.Y. Lee

Asst. Hon. Secretary   :   Puan Fatimah Sulaiman

Hon. Treasurer            :   Datuk Lim Fung Chee

MASSA EXECUTIVE COMMITTEE MEMBERS

1.  Tan Sri Datuk Tee Hock Seng

2.  Tan Sri Dato’ Mohd Ramli Kushairi

3.  Tan Sri Dato’ Soong Siew Hoong

4.  Dato’ Teh Kean Ming

5.  Dato’ J Jegathesan

6.  Dato’ Cheah Sam Kip

7.  Datuk Looi Cheok Hun

8.  Tan Sri Ghazzali Sheikh Abdul Khalid

The President thanked the 2011/2013 Executive Committee and Office Bearers that had served in the last term.  The President also made a special reference and recorded a vote of thanks to Tan Sri Dato’ Krishnan Tan Boon Seng who retired as Executive Committee Member at this AGM.  Tan Sri Dato’ Krishnan Tan Boon Seng has served on the MASSA Executive Committee since the Association’s inception in 1992.

The President further thanked and welcomed the Executive Committee for the new term of 2013/2015 and look forward to working together  to steer the Association forward successfully.

President’s Statement by Tan Sri Azman Hashim

(left to right) Tan Sri Dato’ Michael Chen Wing Sum, Tan Sri Datuk Seri Utama Thong Yaw Hong, Tan Sri Datuk Tee Hock Seng and Datuk Lim Fung Chee

(lef to right) Datuk Looi Cheok Hun, Mr Tam Sing Khow, Dato’ Cheah Sam Kip and Tuan Hj Yaakub Arshad

(left to right) Tan Sri Datuk Seri Utama Thong Yaw Hong and Dato’ Cheah Sam Kip

(left to right) Tan Sri Ghazzali Sheikh Abdul Khalid and Mr Aziz Bahaman, Northwest Holdings Sdn Bhd

(left to right) Mr Kimis s/o Velu Arumugam Nadar, Asia Communication & Electronic Sdn Bhd and Dato’ Teh Kean Ming, IJM Corporaition Berhad

(left) Tan Sri Dato’ Michael Chen Wing Sum sharing a light moment with (right) Puan Fatimah Sulaiman

At the conclusion of the AGM, the members enjoyed a sumptuous high tea spread.

(right) Mrs Jothy Singam, JJ Ishwara Connect (JJIC) Malaysia, Ms Lim Su Hui, Malayan Banking Berhad (MAYBANK) and Ms Tan Ley Theng, Wah Seong Corporation Berhad

MASSA members enjoying the high tea spread after the AGM

Interview with the President of MASSA

by Asia Business Channel  on 12 July 2013

Mr Thomas Leamy and Ms Ulrike Bruening from Asia Business Channel had an interview with the President of MASSA, Tan Sri Azman Hashim on 12 July 2013 for Channel News Asia.

(left) Tan Sri Azman Hashim, President of MASSA and (right) Ms Ulrike Bruening of Asia Business Channel

(left) Tan Sri Azman Hashim and (right) Mr Thomas Leamy of Asia Business Channel

The interview gave MASSA President the opportunity, amongst others to share the  following:-

– A brief introduction and history of Malaysia South-South Association (MASSA)

– MASSA’s roles and effort as a business NGO

– Its achievements todate and the challenges it will face going forward

(left to right) Ms Ulrike Bruening (Asia Business Channel), Tan Sri Azman Hashim, President of MASSA, Mr Thomas Leamy (Asia Business Channel) and Ms Ng Su Fun, Executive Secretary, MASSA

Courtesy Call on President of MASSA

by Ambassador of Malaysia to Chile

On 15 July 2013

H.E. Ganeson Sivagurunathan, Ambassador of Malaysia to Chile made a courtesy call on President of MASSA, Tan Sri Azman Hashim on 15 July 2013.

H.E. Ambassador updated MASSA President on the status of the economy of Chile being now located at the 10th place in the ranking of the fastest growing economies in the world, registering a growth of 3.8% in April 2012 and 4.7% in July 2012.  The IMF Report predicts a 4.9% GDP expansion for Chile in 2013 while the OECD has forecasted Chile’s growth to reach 5.4% in 2014.  Chile prides itself on economic stability and has a market economy characterized by a high level of foreign trade with a reputation for strong financial institutions and solid policy that has hitherto given it a strong sovereign rating in South America.

H.E. Ambassador urged Malaysian companies to look at Chile as a hub to enter the South American markets.  Chile is a member of the Rio Group, an associate member of MERCOSUR (Southern Common Market), a full member of Asia Pacific Economic Cooperation (APEC), a founding member of Union of South American Nations (UNASUR) and Pacific Alliance (comprising Chile, Colombia, Mexico, Peru and Costa Rica).

(left to right) Tan Sri Azman Hashim, President of MASSA, H.E. Ganeson Sivagurunathan, Ambassador of Malaysia to Chile and Ms Ng Su Fun, Executive Secretary, MASSA

Chile has a highly open economy.  It has signed 23 Free Trade Agreements with 60 countries including Malaysia, which collectively represent more than 86% of the world’s GDP, and hold double taxation agreements with 24 countries.

Total trade in 2012 between Malaysia and Chile amounted to RM1.07 billion.  Exports to Chile in 2012 recorded a growth of 10.9% totalling RM421.29 million with the top five exported products being E & E products, rubber products, timber products, machinery appliances and parts, and chemical products.  Meanwhile, imports from Chile were valued at RM646.7 million for the year 2012.  Products imported were mainly metal, agricultural goods, processed food and chemicals and chemical products.  The bilateral trade balance has however been in Chile’s favour over the years due to the high volume of copper imported for our electronics industry.

MASSA President assured H.E. Ambassador of MASSA’s cooperation with our Embassy in Santiago and to continue its role to build bridges to South-South countries especially with Chile in Latin America.

Visit by Officials of the Embassy of the

Republic Kazakhstan on 22 July 2013

Mr Daniyar Sarekenov, Minister Counsellor and Mr Yerzhan Assaubay, First Secretary (Head of the Economy Division) of the Embassy of the Republic of Kazakhstan in Kuala Lumpur visited MASSA on 22 July 2013.  The visit was to establish ties and to be acquainted with each other.

(left to right) Mr Daniyar Sarekenov, Minister Counsellor, Ms Ng Su Fun, Executive Secretary, MASSA and Mr Yerzhan Assaubay, First Secretary (Head of the Economy Division) of the Embassy of the Republic of Kazakhstan

Kazakhstan was one of the top 3  most rapidly growing economies in terms of annualized GDP growth between 2000 and 2010 (8.3%).  The country has successfully implemented a number of key regulatory and structural reforms, preserving political and macroeconomic stability.  Kazakhstan’s vision in supporting diversified economic development, strengthening entrepreneurship and holding open and constructive dialogue with investors has certainly benefited the well-being of the country.

While Kazakhstan’s rich endowment in natural resources has played an important role in its economic development, the country is diversifying away from an overdependence on extractive industries.  By 2016, GDP per capita is expected to reach US$15,000, compared with the current level of US$11,300, and Kazakhstan will be classified as a “high income economy” according to the World Bank’s classification.

 Networking and Business Seminar with

H.E. Jacob Gedleyihlekisa Zuma,

President of the Republic of South Africa

on 26 August 2013

The South Africa High Commission and the Department of Trade & Industry of the Republic of South Africa in partnership with MITI, MIDA, MATRADE, MASSA and the Malaysia-South Africa Business Council (MSABC) organised a Networking and Business Seminar with the President of the Republic of South Africa, H.E. Jacob Gedleyihlekisa Zuma together with a high level business delegation on 26 August 2013 at Putrajaya Marriott Hotel & Spa, Putrajaya.

Participants at the Networking and Business Seminar with the President of the Republic of South Africa

The Networking and Business Seminar provided a platform for the business communities of both countries to interact and to exchange business information.

(2nd from left) H.E. Jacob Gedleyihlekisa Zuma, President of the Republic of South Africa with (right) Hon. YB Dato’ Seri Mustapha Mohamed, Minister of International Trade & Industry of Malaysia and (left) Hon. Dr. Rob Davies, Minister of Trade & Industry of South Africa

Address by Hon. Dr. Rob Davies, Minister of Trade & Industry of South Africa

Presidential Address by H.E. Jacob Gedleyihleka Zuma, President of the Republic of South Africa

Minister of International Trade & Industry (MIT) of Malaysia, Hon. YB Dato’ Seri Mustapha Mohamed gave a welcome opening address which was followed by an address by Hon. Dr. Rob Davies, Minister of Trade & Industry of the Republic of South Africa.

H.E. Jacob Gedleyihlekisa Zuma gave a Presidential Address at the Seminar.  The Hon. President acknowledged and gave recognition to the 20 years of diplomatic ties that Malaysia and Republic of South Africa have built on.  The Hon. President called on the business communities of Malaysia and Republic of South Africa to revitalise their business exchanges as both Republic of South Africa and Malaysia are gateways to Asean and the greater African continent.  The African continent is on the move and Republic of South Africa is keen to consider Malaysia as a strategic partner for mutual economic development.  The President encouraged the business communities of both countries to engage in constructive economic exchanges especially in areas of poverty alleviation, healthcare, crime and corruption and jobs creation.

Networking Session between Malaysian and South African businessman at the Seminar

(left) Ms Ng Su Fun, Executive Secretary of MASSA with business delegates at the Seminar

More than 200 Malaysian business people attended the Seminar and had the opportunity to meet the Republic South Africa business delegates at a cocktail session in the evening.

Forthcoming Events

1) INTRADE Malaysia 2013 will be held at Menara MATRADE, Kuala Lumpur from 26 to 28 November 2013.

Editorial Team (3rd from left) Puan Fatimah Sulaiman, Editor with (left to right) Christine Leong, Ms Phoon, Ms Ng Su Fun, Ms Florence Khoo and Puan Noraini Mamat

Greetings from MASSA!  We will be highlighting some events in the 2nd quarter of 2013 and information thereat for members in this August 2013 issue including: 

• MASSA Events on:

– 3rd Showcase Malaysia 2013 in Dhaka, Bangladesh and ACCCIM and MASSA Trade and Investment Mission to Dhaka, Bangladesh

– Visit of Head of States from S.R. Vietnam in June and Republic of South Africa in August to Malaysia

– MATRADE’s Cross Border Division Official visit to MASSA Secretariat

– MASSA 22nd Annual General Meeting on 13 June 2013

– Interview by Asia Business Channel of the MASSA President

– Courtesy Call on President of MASSA by Ambassador of Malaysia to  Chile

– Visit of Officials from the Embassy of the Republic of Kazakhstan in Malaysia to MASSA Secretariat

• Forthcoming Events

– INTRADE Malaysia 2013 from 26 to 28 November 2013 at Menara MATRADE, Kuala Lumpur

We welcome your feedback on the above articles and any constructive suggestions on how we can be of further assistance to you in your South-South business endeavours.

Fatimah Sulaiman

Editor

Malaysia’s economy in the 2nd quarter of the year grew 4.3%.  This was sustained by domestic demand, inspite of the weak external sector which is expected to stay prolonged.  Domestic demand will be driven by private consumption, capital spending in the domestic industries and the ongoing implementation of infrastructure projects.  In view of this, Bank Negara Malaysia forecast Malaysia’s GDP growth target for 2013 to be in the range of 4.5% to 5%.  

In the past months, we have seen weak external demand growth as reflected in our slowing exports, weak commodity prices and concerns over currency volatility and the global financial stability.  Going forward, we need to be vigilant of the oncoming headwinds and  global challenges.  Translating this to our businesses, we must navigate these challenges with a clear and focused goal.  Through MASSA, we endeavor to link our members and readers to the latest news in emerging markets, the practical tips, expectation gaps and realist strategies of avoiding common pitfalls and potholes of operating in these emerging markets. All these can contribute towards business success.

MASSA is grateful for the continuing support of our Government, especially from MITI and its agencies, MOFA and our Malaysian diplomatic missions in the developing countries.

I also want to thank all members of the MASSA Executive Committee for 2013/2015 who were re-elected at MASSA’s last Annual General Meeting held on 13 June 2013.  Your commitment to serve is a testimony that business opportunities remain to be tapped in the developing countries of the South.

TAN SRI AZMAN HASHIM

President

1) The 3rd Showcase Malaysia 2013 from 23rd to 25th May 2013 at the Grand Ballroom, Pan Pacific Sonargaon Hotel, Dhaka, Bangladesh.
2) MASSA and ACCCIM Trade and Investment Promotion Mission to Dhaka, Bangladesh from 21st to 24th May 2013 in conjunction with the “3rd Showcase Malaysia 2013”.
3) MASSA 22nd Annual General Meeting on 13th June 2013 at Restoran Seri Melayu, Jalan Conlay, Kuala Lumpur.
4) MASSA’s Trade and Investment Mission to Tatarstan (To be advised).

Visit of BMCCI President and delegation to
Kuala Lumpur from 6th to 9th March 2013

Mr Syed Nurul Islam, President of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) and Chairman, Organizing Committee of Showcase Malaysia 2013, led a 3-member delegation to Kuala Lumpur to promote the “Showcase Malaysia 2013” to Malaysian businessman.

BMCCI in collaboration with the High Commission of Malaysia in Bangladesh, Bangladesh High Commission in Malaysia and supported by Malaysia External Trade Development Corporation (MATRADE) and Malaysia South-South Association (MASSA) will hold this 3rd edition of the “Showcase Malaysia 2013”, on 23rd to 25th May 2013 at the Grand Ballroom, Pan Pacific Sonargaon Hotel, Dhaka, Bangladesh.

In conjunction with this visit, BMCCI in collaboration with MATRADE organized a Seminar on “Business Opportunities in Bangladesh” on 7th March 2013 at Menara MATRADE, Kuala Lumpur.

On 8th March 2013, MASSA arranged for BMCCI delegation to meet Dato’ Hafsah Hashim, Chief Executive Officer to encourage SME Corporation Berhad and its members to participate in “Showcase Malaysia 2013”. Ms Florence Khoo, Assistant Executive Secretary of MASSA accompanied the BMCCI delegation to this meeting.

In conjunction with the “Showcase Malaysia 2013”, ACCCIM and MASSA will jointly organize a Trade and Investment Promotion Mission to Dhaka, Bangladesh from 21st to 24th May 2013.

WESGRO Visit to MASSA on 18th March 2013

The Western Cape Destination Marketing, Investment and Trade Promotion Agency (WESGRO), South Africa representatives, Mr Dinesh Harry and Ms Rehana Boolay, visited MASSA Secretariat.

Investment Promotion Conference for the
Central Coastal Region of Vietnam
from 21st to 22nd March 2013

Ms Ng Su Fun, Executive Secretary and Ms Florence Khoo of MASSA participated in the “Investment Promotion Conference for the Central Coastal Region of Vietnam” organized by The Central Coastal Region Coordination Board and The People’s Committee of Danang City.

This Conference held in Danang City, focused on promoting the regional investment potentials and business opportunities available in the 9 Central provinces comprising Thua Thien – Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan.

Meeting with Dr Ali Sher Mohamad,Trade Advisor of MATRADE,Kazakhstan on 3rd April 2013

Ms Ng Su Fun, Executive Secretary and Ms Florence Khoo of MASSA met Mr Abas A. Jalil, Chief Executive Officer, Amanah Capital Group Limited and Dr. Ali Sher Mohamad, Trade Advisor of MATRADE in Kazakhstan at Amanah Capital Group Limited office to discuss joint activities to promote Malaysia-Kazakhstan economic ties.

Forthcoming Events

1) The 3rd Showcase Malaysia 2013 from 23rd to 25th May 2013 at the Grand Ballroom, Pan Pacific Sonargaon Hotel, Dhaka, Bangladesh.
2) MASSA and ACCCIM Trade and Investment Promotion Mission to Dhaka, Bangladesh from 21st to 24th May 2013 in conjunction with the “3rd Showcase Malaysia 2013”.
3) MASSA 22nd Annual General Meeting on 13th June 2013 at Restoran Seri Melayu, Jalan Conlay, Kuala Lumpur.
4) MASSA’s Trade and Investment Mission to Tatarstan (To be advised).

The Republic of Tatarstan, one of Russia’s fastest-growing regions, is located at the intersection of strategic trade routes connecting northern and southern Russia, as well as Asia and Europe. Tatarstan covers a total area of 67,836.2 sq km with a population of 3.8 million people.

Kazan is the capital of Tatarstan with a population of 1.161 million people.
Tatarstan has significant potential in terms of attracting direct investment, primarily from foreign countries, and is one of the most favourable region in terms of investment climate and business opportunities with its developed transportation network.

Tatarstan has established the Tatarstan Investment Development Agency (TIDA) to ensure effective collaboration between the authorities and investors. TIDA’s key objectives are to promote Tatarstan in the global economy, to attract investors to the republic, and to support ongoing investment projects.

Besides the Special Economic Zone Alabuga, Technopolis Himgrad and Kama Industrial Park (KIP) set-up to cater to the business communities, a new state-of the-art international business hub called “SMART City Kazan” is being developed and is envisioned to have the latest ICT facilities and high quality infrastructure and eco-friendly technologies to create high quality living and working environments.

The key priority industries for investments in Tatarstan are chemicals and petrochemicals, machinery and automotive parts, construction, building materials and furniture production, health and pharmaceuticals, IT and telecommunications, agriculture, service industry and tourism and food processing.

His Excellency Rustam N. Minnikhanov, President of Tatarstan led a 25- member delegation to Malaysia from 8th to 9th January 2013. In conjunction with this visit, a “Malaysia – Tatarstan Investment Seminar” was organised by the Malaysian Investment Development Authority (MIDA) and the Tatarstan Investment Development Agency (TIDA) on 9th January 2013.

Hon. Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry (MITI), Malaysia delivered the Welcome Remarks. H.E. Rustam N. Minnikhanov, President of Tatarstan addressed the delegates at this event.

YBhg Datuk Phang Ah Tong, Deputy CEO II of MIDA also presented a paper on “Business Opportunities in Malaysia” followed by a presentation on “Business Opportunities in Tatarstan” by Mr Linar Yakupov, Chief Executive of Tatarstan Investment Development Agency (TIDA) and “Kazan Smart City” by Mr Abas A. Jalil, Chief Executive Officer of Amanah Capital Group Limited.

Republic of Tatarstan  

Sources:  Tatarstan Investment Development Agency (TIDA) www.invest.tatarstan.ru

For more information on the Republic of Tatarstan, For more information on the Republic Tatarstan, please refer to the following:-

1) Republic of Tatarstan by Tatarstan Investment Development Agency (TIDA)
2) PwC experience: Tatarstan by Denis Derevyankin, Kazan PwC office leader
3) The Tatarstan investment appeal. PwC Russia independent survey

LESOTHO
Location : Southern Africa, an enclave of South Africa
Population : 1,930,493 (July 2012 est.)
Total Area : 30,355 sq km
Capital City : Maseru
Languages : Sesotho (Official) (Southern Sotho), English (Official),
Zulu, Xhosa
Religion : Christian 80%, Indigenous Beliefs 20%
Natural Resources : Water, agricultural and grazing land, diamonds, sand, clay, building stone
Government Type : Parliamentary Constitutional Monarchy
Currency : Maloti
GDP (composition by sector) : Agriculture – 6.7%, Industry – 34.6%,
Services – 58.7% (2012 est.)
GDP – Real Growth Rate : 4.3% (2012 est.)
GDP per capita (PPP) : $2,000 (2012 est.)
Exports – Commodities : Manufactures 75% (clothing, footwear, road vehicles),
wool and mohair, food and live animals
Export : $1,039 billion (2012 est.)
Imports – Commodities : Food, building materials, vehicles, machinery, medicines,
petroleum products
Import : $2,469 billion (2012est.)

Sources: The World Factbook (https://www.cia.gov)

Overview

The Kingdom of Lesotho is one of the three remaining monarchies in the continent. It provides a politically stable democracy and attractive destination for tourism and business. Lesotho is a land-locked country and entirely surrounded by the Republic of South Africa. The name Lesotho roughly translates into ‘’The Land of People who speak Sesotho”. The capital city is Maseru.

The official language is Sesotho but English is widely spoken in business and commerce. The local currency is the Loti (plural Maluti) which is equivalent to the South African Rand. Daily flights are available to Moshoeshoe International Airport from Johannesburg. For visa requirements, visitors are advised to serve the internet for the Embassy or High Commission of Lesotho anywhere in the world. This is to allow for visitors to access the right procedure of applying visas depending on country of origin. Lesotho has a good record with health issues although precautions are still necessary.

The Economy

The Lesotho Highlands Water Project, which sells water to South Africa, has aided the economic growth in the country. There has also been growth in the manufacturing sector of the economy. There is a fledgling mining industry in Lesotho which has known deposits of uranium and diamond mining. Textile exports in particular are fairly strong.

Agriculture contributes about 18 % of GDP, but has remained a supplementary source of income. Agriculture accounted for 18.3% of GDP in 2002, industry 52.2% and services 29.5%. Total GDP in 2002 stood at US$729.9 million. FDI in 2001: US$117 million.

Lesotho’s main exports include ceramics, clothing, inedible crude materials, cut diamonds, footwear & footwear components, furniture, miscellaneous manufactured goods and wool. The main imports include cereals, electricity, food ingredients, machinery, medicines, miscellaneous manufactured goods, oil products and petroleum products. The framework of the external tariff of Lesotho is the two-column Harmonised Commodity Coding and Description System (HS).

Investment And Trade Opportunities

Textile and Garment Sector

Lesotho’s garment sector produces approximately 90 million knitted garments annually. It is estimated that Lesotho consumes between 22,000 and 26,000 metric tons of knitted fabric per year. Garments from knitted fabric are produced by 33 factories which collectively employ about 22,000 workers. An opportunity exists to establish knit mills to support the local garment industry in order to satisfy international market access conditions which demand a vertically integrated garment industry for continued access into these markets. Knitwear and jeans manufacturing companies in Lesotho produce large volumes of garments mainly for the US market. Opportunities exist to manufacture finishing accessories including zips and buttons designed to different customer specifications.

Packaging Material

While some cartons required for packing are manufactured in Lesotho, most of the packaging materials are imports. There is need for production of packaging material for use by households, retailers, designers, engineers for use along other traditional materials. There is also a high need in industrial and manufacturing industry.

Leather – Leather and Footwear

Foreign direct investment opportunities are huge in this sector. It include leather tanning and finishing, footwear and footwear components, leather garments, leather goods including bags, car seat covers, wallets, belts, gloves and other accessories.

Electrical – Assembly of Consumer Electrical and Electronic Appliances

Opportunities exist in the production of a wide range of finished goods from manufactured parts or subassemblies, such as engines, computers, cell phones, electrical and electronic components, radio or test equipment, machine-tool controls, and prototypes of different types of products to meet the domestic and international markets. The country boasts a pool of labor resources readily available equipped with good technical skills to work on subassemblies or the final assembly plants.

Water – Water Bottling

Lesotho’s major natural resource is water, often referred to as ‘White Gold’ by the Basotho people. The water is considered one of the most pure in the world with very little microbiological and chemical contamination which does not require intensive treatment. Many natural springs of Lesotho flow year round. They are fed by renewable groundwater reserves recharged by rainfall and cleaned by the natural environmental system with little or no anthropogenic influence. The water from most of these springs is physically, chemically and biologically clean/ acceptable as well as sparking, cool and refreshing.

Bottled water is also considered a food product internationally, thus investment in water bottling would have the benefit of creating a positive impact on public health in the region by providing safe drinking water for areas with poor water supply of water. An opportunity exists for establishing a procurement plant and equipment to bottle water for local, regional and international markets.

Development of Transport Infrastructure

Lesotho is heavily reliant on its roads network to connect it with regional and international markets. Centrally situated within RSA Lesotho government continues to invest in developing better quality transport networks in the knowledge that this has important economic and social spin offs. Lesotho’s transport infrastructure comprises a road network of 7437 kilometres, of which 16 percent is bitumen, 51 percent is gravel and 33 percent is earth and other surfaces. Therefore, investment opportunity is available in:

• Developing road infrastructure to strengthen investment to increase social and economic opportunities to gain market access – locally and with neighboring countries.
• Road construction, maintenance and upgrading creates employment, which also has positive impact on income levels.

For further details and information, please contact:

The High Commission of The Kingdom of Lesotho
No. 5, Persiaran Ampang Off Jalan Ampang
55000 Kuala Lumpur
Tel: 03 4253 2162 / 2163
Fax: 03 4253 2164
Email: Info@lesothokualalumpur.org
Website: www.lesothokualalumpur.org