Malaysia, the third most industrialised economy in the world, is heavily dependent on its manufacturing segment. It is one of the most economically prosperous countries in the world and an important trading partner of India.

Post 1991, India has pursued an active liberalisation policy to promote its trade relations with Malaysia. As a result of these efforts, bilateral trade between the two countries has increased by nearly 17% since 1992. Notably, in 2008, the total trade volume between India and Malaysia stood at $10.5 billion.

The Indian engineering industry, constituted primarily by SMEs, is one of the key growth drivers of our economy. At present, India accounts for only 1.4% of the global engineering goods trade.[ii] Hence, despite growing at an unprecedented rate, the industry is yet to cash in on the increasing demand for reasonably priced engineering goods.

A preferred destination

Malaysia is the largest importer of Indian engineering products. It accounts for nearly 19% of the Association of South East Asian Nations’ (ASEAN) total imports.

According to Engineering Export Promotion Council (EEPC) — the apex body of the Indian engineering segment — Malaysia will emerge as the leading trade partner of Indian engineering SMEs in the near term.

Malaysia’s burgeoning engineering supporting industries, that include metal stamping, machining and casting industries, have witnessed tremendous growth in the recent past. To accelerate the production and supply of its engineering goods, the Malaysian engineering industry is looking at India as a key partner for sourcing engineering products.

Indian SMEs can, therefore, grab a significant share of the Malaysian engineering sector by supplying their B2B Products at competitive prices.

Tax breaks tempt Indian SMEs

Furthermore, Indian SMEs can capitalise on the tax concessions offered by the Malaysian government to promote joint ventures and collaborations. The Malaysian government has recently announced tax sops for Indian engineering companies planning to invest in the country. This is expected to draw a large number of SMEs to Malaysia in the coming months.

With the objective to enhance mutual cooperation between India and Malaysia in the engineering segment, the EEPC is organising several trade fairs in Malaysia. These trade shows are giving Indian SMEs an opportunity to showcase their products before Malaysian buyers. These efforts are expected to boost the business of Indian engineering SMEs in Malaysia.

For more detail on B2B Portal log on to http://www.bizxchange.in

Export opportunities in Malaysia mainly come from its agricultural and mining sector with rubber and associated products like wood from a rubber plant being one of the leading and popular products that Malaysia exports to other countries. Major industries from across the world constantly buy products that are manufactured in Malaysia. The items like handicrafts made in Malaysia are in very high demand and sell at high prices in the International markets. People from all-round the globe are quite fascinated by Malaysian culture and products that are culturally significant can easily be exported to earn high profits. Other major export opportunities in Malaysia that come from many different products like semiconductors, computers and its accessories, equipment for telecommunications, electronic items, furniture and related products, household products, scientific equipment, hospital and medical supplies, oil seeds and food oils, and cotton clothing. Major fast growing export products include business machinery, industrial organic chemicals, automotive parts and accessories, and fuel.

Apart from export opportunities, there are also many import opportunities in Malaysia. Malaysia follows quite liberal policies when it comes to regulating imports as compared with the regulations adopted by other ASEAN countries. You can import most of the goods under Open Free License. There are some products that are regulated by restricted import license system like cement, cars and its components, iron, polypropylene and polyethylene. Other products like sanitary goods, electrical items, veterinarian or dietary products that don’t have a protectionist measure are also restricted in terms of approval under the import licenses. Quotas are rarely applied for import and are fixed for some of the products like rice, vegetables, fruits and meat depending on the domestic production. There are also some products that are prohibited for security or religious reasons. If you to benefit from various import opportunities in Malaysia you should carefully consider the multiracial population and social and economic disparities. It is recommended that you associate with a well reputed local agent or establishment, especially when starting a new business. The main products that you can import in Malaysia are civilian aircraft engines and its related parts, materials used for producing steel, telecommunications equipment, computer accessories, semiconductors, machinery for industry, testing, control and measuring instruments, plastic materials and electric apparatus. Fast growing imports in Malaysia include drilling and oilfield equipment, soybeans, corn, business machinery excluding computers, eggs, dairy products and, iron and steel mill products.

The strong increase in export and import opportunities in Malaysia is marked by the vast improvement it made in terms of transportation through road, rail, sea and air. The major harbors of Malaysia are Kelang located at Kuala Lumpur, Johor and Penang. The major airports of Malaysia are Kuala Lumpur, Penang, Johore Bahru and Subang.

Since the early of 90s, Malaysia has been enjoying a robust GDP growth between an average of 7-9%. Until recently, the growth rate is stabling between 5% to 6%. From export oriented economy and moving into services oriented. The milestones are changing to further stimulate internal growth as the government is pouring bullets into building the local infrastructures and creating special economic zones in its yearly fiscal policy and master growth plan. Even the growth of our neighbor’s countries (ASEAN) are enjoying a splendid growth. It is not becoming a competition in overall cause all countries have their own unique niche to certain extend. This combination is creating a unique ASEAN’s economy like the European Union. For the next 5 years, we forecast a growth rate between 4.5% to 5.5% due to the slow down in US economy and also sky high commodities prices that will need time of everyone to adjust. Many still parcel about the factors behind and what is the continuous factors may sustain it growth and will it be a major boom of the property prices. I have read many local and foreign experts views in this subject. However, we have come with some facts that may help to answer this question.

Government’s Policy on Property

Being an important factor that will contribute property prices stability and upside, government policy is always playing a major role in this segment.

But what is the reason that a need to boost the property prices? Government has been helping the lower income group by putting many policies like every project must has a low cost apartment in every township; putting taxes and pressures to avoid unnecessary speculation on property prices. All these policies are waived in 2007 like now there is zero tax on property gain transaction in Malaysia. Furthermore, the ministry of housing has set up better procedures to make the process of build, buy and sell more efficient; allowing EPF contributors to apply for monthly withdrawal to reduce their installment pressures or to buy a house; reduce stamp duty on RM 250,000 houses and below; lack the rules for foreign ownership and even provide incentives for foreigners with the recent 2nd Home Campaign to own a their second property as a home in Malaysia.

When we are moving into a high income, high margin and high tech service oriented economy. We cannot continue to have low cost strategy and we need quality human capital development in the country to compete in the global scale. Thus, boosting asset values is a wise strategy to boost local GDP income and also strong property price will have an effect in assisting the currency rate and also the local stock market- KLSE.

Population growth and its age group

Population is also the demand factor in the property market. Local population is the citizens of Malaysia and the foreign population is those who come in with 2nd Home campaign or as expatriate that temporally working in Malaysia.

It will not be a surprise why there are many hospitals establishing in everywhere of the country no matter they are government funded or private funded. This is due to the age group of Malaysia that almost 65% above of the whole nation population is at 35 years old and below. From 35 years old to 45 years old probably got another 10% are getting more buying power to invest in their 2nd or 3rd property. It means there will be a lot of buyers are flooding into the market in the next 5 to 10 years. Need not to count the foreigner investors and pensioners that always view Malaysia as one of the most cost effective country in the world.

Globalization Effect

It is by far even to tell all that the world is gradually becomes one. No matter where you stay and what country are you living in. Everyone can move from country to country due to business, education, cultural exchanges, sports and more.

The economics’ factors that drive prices sky high in Singapore, Thailand, Indonesia, Hong Kong, Shanghai, Korea, Japan, Australia and Europe. There will not be any cheap property anymore in any corners of the world depending on the urbanization rate of those cities. It is a matter of time but given those fundamentals in Malaysia economy, it will be also a pressure to boost the property price locally. We should not compare within ourselves between the current price and the historical prices. We have to look globally and compare with our peers.

Even today, if you compare to US property market that has been impacted by the sub-prime loan crisis. I believe apple to apple comparison between a bungalow in New York and in Kuala Lumpur, it has still a far difference between two. Well of course, some may argue that because of our GDP income is lower. But if you believe this figure will revise up in the coming year, It gives strong support that property prices in Malaysia will rise further.

Rising cost of materials

US dollar heading downwards, to certain extend I believe it is on purpose by the Federal Reserve and their governmental policies due to the strong challenge of China and Asian booming economies that cause continuous trade deficit in US. When dollar is heading down, all commodities trade with the benchmark using US dollar has been rising steadily. Example: Crude oil, steel, gold, iron and even food.

Couple with the intensifying demand from high growth countries like China, India, Indonesia and potentially African countries in the coming years. This is no more inflation, but is rather as asset revaluation stage. Most government has measured their CPI (Consumer Price Index) with core components that always excluded many necessity components that is vague in telling the clues related to actual inflation.

Conclusion

Given all factors that we have discussed above, It is strongly believes that low cost property in Malaysia is going to be a past subject. If we are following steps of Hong Kong, Singapore and Korea by example to be a developed nation, we should expect the property prices to be playing a catching role in comparison to these markets.
Hong kong Property
Australia Commercial Property

The goods meant for exporting in Malaysia should also be accompanied by certain documents like commercial or export invoices, documents ascertaining the origin of the goods, relevant bank documents, necessary export license, especially if the goods are restricted and prohibited by the Customs, packing list and KPWX form for Foreign Exchange Control if the worth of goods exported is equal to or exceeds RM 100,000.

There are certain goods that are absolutely banned for export in Malaysia. The list includes turtle eggs, rattan, petroleum and related products, arms, weapons, ammunition, military equipments including vehicles and spare parts, and equipment for police. The goods prohibited from exporting in Malaysia, unless accompanied by relevant export license include sugar, rice and paddy, eggs, meat, live animals, cockles, skin and parts of birds, minerals and ores, plants, coral, live fish, oil palms, milk and related products, rubber seeds, waste paper, logs and timber, scraps of iron, copper, tin and other metals, palm seeds and all goods to Israel.

In a current scenario, those involved with exporting in Malaysia are expected to experience negative growth because of the global recession. However, as per the report released in 2008 by Ministry of International Trade and Industry, Malaysian exports will continue to gain significantly because of the increasing demand of its goods in countries like United States, Japan and those belonging to European Union.

Electrical and electronic goods, chemicals and chemical related products, machine and related products, appliances and related parts will remain the major items that are exported from Malaysia during 2009. Major regional markets for Malaysian goods including ASEAN countries, Africa and West Asia are likely to maintain their requirement for the goods exported from Malaysia in the year 2009. Furthermore, the manufacturing sector will remain the main leading export sector in 2009 as it was in 2008. Electrical and electronic goods are expected to be the main products that will lead the export sector in Malaysia in 2009. Other major exports that are expected to be mainstay of the exporting business in Malaysia in the year 2009 include petroleum and related products, crude rubber, palm oil and liquefied natural gas (LNG).

Exporting in Malaysia has improved during the recent months as in comparison to the first quarter of 2009 mainly because of the rise in demand for Malaysian goods in China and ASEAN countries. The exports in Malaysia are expected to grow further with the recovery of the major world economies.

With the favorable signs of solid economic revival emanating from the major economies of the world the import export in Malaysia is bound to grow further. Improving global environment and rising commodity prices have allowed the economy to sustain its growth and is predicted to improve further. Improvement in business and consumer sentiments will further boost its growth. Extensive growth that covers all the major sectors has also contributed a lot in strengthening its economy. Domestic demand, especially in the field of private consumption, continued to increase at a steady pace and increase in private investments resulted in the economic growth led by the private sector.

As per the figures available for the year 2008, the total trade done by Malaysia rose to RM80.5 trillion, 6.8% more than what it achieved in the year 2007. Exports jumped to RM663.5 billion recording 9.6% increase and the imports also rose to RM521.5 billion registering 3.3% growth, ensuing RM142 billion in trade surplus. Though, the import export in Malaysia declined in December 2008, it still recorded the trade surplus of RM11.67 million, taking the tally of successive trade surplus months to 134 since November 1997.

Comparing in quarterly terms, RM269.84 billion worth of trade was registered in the 4th quarter of the year 2008, a decline of 9.6% from 4th quarter of the year 2007. Decline of RM151.3 (7.4%) was recorded in exports while imports in Malaysia went down to RM118.5 (12.3%).

Malaysia holds key position in ASEAN markets. In the year 2008, total amount of exports from Malaysia to ASEAN countries rose to RM171.19 billion recording an increase of 10%. 25.8% of Malaysia’s total exports in 2008 were made to ASEAN. Imports from ASEAN also went up to RM126.4 billion, an increase of 2.4%. 24.2% of Malaysia’s total imports were from ASEAN in 2008.

In March 2009, exports decreased to RM43.6 billion by 15.6% and imports reduced to RM31.1 billion by 28.7% as compared with March 2008. Malaysia registered a trade surplus of RM12.5 billion in March, making it a 137th consecutive month that recorded the trade surplus since November 1997.

Major products exported from Malaysia include electrical and electronic goods, liquefied natural gas (LNG), palm oil and related products, petroleum and related products, timber and timber based products, chemicals and metals. Major goods imported by Malaysia include machinery, appliances and articles, iron and steel products, chemicals and chemical products, food, mineral fuels, lubricants and transport equipments.

Major export destination for Malaysian goods includes Japan, China, USA, Singapore, South Korea, Thailand, India, Australia, Hong Kong and Netherlands. According to the figures available for first three months of 2009, 71.8% of Malaysia’s total exports were made to these countries.

Major countries from where Malaysia imports are USA, Japan, China Singapore, Indonesia, Thailand, Germany, Taiwan, South Korea and Hong Kong. These countries accounted for 70.6% of Malaysia’s total imports from January to March 2009.

Some other tourist destinations in Malaysia such as Langkawi, Genting and Cameron Highlands show flying colors of Asian culture and history. On the other hand, situated at the confluence of Sungai Gombak and Sungai Klang River, Kuala Lumpur is a commercial and business center of Malaysia and forms troika with Singapore and Bangkok as the most glamorous cities in East Asia. Tourist attractions in Kuala Lumpur such as Aquaria KLCC, the Batu Caves, the Makam Pahlawan, the National Science Centre, Petaling Street, the Royal Selangor Pewter Visitor Centre, the Zoo Negara (National Zoo), etc.

Kuala Lumpur is the capital and largest city of Malaysia spreading in an area of 244 km2 (94 sq mi) has as an estimated population of 1.6 million. Kuala Lumpur and its surrounding urban areas form the most industrialized and economically, the fastest growing region in Malaysia. Multifarious job opportunities in Kuala Lumpur make it a popular destination for unemployed youth living in villages. Today, Kuala Lumpur provides job opportunities to youth and has become a city of hope.

Hotels in Malaysia such as Hotel Capitol, Cititel Mid Valley, Crown Regency, Hotel Furama Kuala Lumpur, Grand Centerpoint, Grand Continental, Hotel Grand Olympic, Hotel Radius International, Hotel Stanford, Hotel Suitestay, Hotel Swiss Inn, and many others are known globally among travelers for offering fantastic range of accommodation facilities and amenities. Advanced modern technology is used to facilitate tourists for purposes of conferencing and meeting.

British colonizers built numerous architectural landmark buildings, and the same influence could be seen in various other structures  in Kuala Lumpur which are blend of old colonial influences, Asian traditions, Malay Islamic inspirations, modern, and postmodern architecture mix. Whereas, Petronas Twin Towers are modern wonder of architecture, Victoria Institution is a British made wonderful architectural piece. Spreading across the horizon, Petronas building is a major tourist attraction in Kuala Lumpur.

Kuala Lumpur Hotels such as Hotel Equatorial, Hotel Maya, Impiana KLCC Hotel & Spa, Istana Hotel, Alpha Genesis Hotel, Ancasa Hotel, Ascott Kuala, Best Western Premier Seri Pacific Hotel, Brisdale Hotel, etc. offer standard accommodation facilities to travelers at attractive tariff. Hotels Kuala Lumpur known to offering facilities such as round the clock room service, airport pick & drop, bar, restaurant, swimming pool, spa, gym, conferencing facilities, internet, and many others.

Hotels In Kuala Lumpur namely Capitol Hotel, Carcosa Seri Negara Hotel, Citin Hotel, Cititel Express Hotel, Cititel Mid Valley Hotel, Citrus Hotel, Concorde Hotel, Concorde Inn, Coronade Hotel, Corus Hotel, D’oriental Inn, Dorsett Regency Hotel, Dynasty Hotel, Federal Hotel, Grand Millennium, Grand Seasons Hotel, Holiday Inn Glenmarie, are amongst the most sought among travelers. Kuala Lumpur is one of the most popular honeymoon destination among newly married couples.