MALAYSIAN COMPANIES SEEK TO INCREASE EXPORTS TO IRAN

DUBAI, Oct 17 (Bernama) -- The eleven Malaysian companies which participated
in the recently concluded 8th Tehran International Industry Exhibition, chalked
up potential sales of RM3.74 million (US$1.06 million).

Coming under the umbrella of the Malaysia External Trade Development
Corporation (MATRADE), the companies also raked in spot sales worth RM953,870
(US$270,499) during the show which ended on Oct 9.

"Encouragingly, the Malaysian delegation managed to meet up with more than
450 potential agents and distributors in Iran during the four-day event," said
Noraslan Hadi Abdul Kadir, the Dubai-based Malaysian trade commissioner.

He said six Malaysian companies were also successful in appointing agents
for the Iranian market.

The participating firms showcased various products such as heat exchangers,
pressure vessels, switchgears, electrical and electronic goods, plastic
injection moulds, fingerprint readers, rubber tiles, circuit breakers,playground
equipment and other items.

Noraslan Hadi said the Malaysian delegation saw significant opportunities
in various sectors of the Iranian economy such as infrastructure, construction,
agriculture, auto parts, tools and machinery, chemicals and electronics.

It was Malaysia's fourth consecutive participation in the Iranian fair in
an
effort to boost exports to Iran, a member of the Organisation of the Islamic
Conference (OIC) with a population of around 70 million.

"The continued Malaysian participation is considered a compulsory exercise,
especially with the increasing requests coming from industries in Iran," said
Noraslan Hadi.

However, he said, some of the companies reported difficulties pertaining to
the acceptance of letters of credit by Malaysian banks.

Besides Malaysia, a number of international companies were present at the
exhibition, including those from China, India, Turkey and Romania.

Bilateral trade between Malaysia and Iran stood at RM3.59 billion in
2007.
During the first eight months of 2008, exports from Malaysia to Iran were
recorded at RM1,606.6 million, an increase of 10.2 percent over the same period
in 2007. (US$1=RM3.5)

Malaysia's major exports to Iran include palm oil, chemicals and chemical
products as well as agricultural products.

According to the Middle East Economic Digest (MEED), Iran's economy is
expected to grow by over five percent during 2008-2009, mainly as a result of
high oil prices.

Noraslan Hadi encouraged Malaysian companies to further explore the
potential of this growing market.
-- BERNAMA