MALAYSIA TO EXPLORE OPPORTUNITIES TO EXPAND EXPORT TRADE

MELAKA (Malaysia), Feb 10 (Bernama) -- In an effort to expand trade and investment as well as a strategy towards overcoming the present international financial crisis, Malaysia will explore export opportunities to the Gulf countries, Africa and South America.

The Minister of International Trade and Industry Muhyiddin Yassin said
countries such as Bahrain, Qatar, South Afria and Egypt are seen as those
countries with the potential for trade expansion.

"We should admit that under the present difficult circumstances arising
from the financial crisis, we cannot depend on the United States and European
export markets as previously.

"We should take the initiative to consider trade opportunties among other
countries as well," he told reporters after a luncheon talk here yesterday.

The event which was held together with a dialogue session, was attended by
200 members of chambers' of commerce, industry associations and manufacturing
companies including those from the small and medium enterprises.

It was organised to consider current economic issues and the steps being
taken to face the global economic crisis.

Also present was the state Industry, Trade, Entrepreneur Development and
Cooperatives chairman Md Yunos Husin and the Malaysian Industrial Development
Authority (MIDA) director-general Jalilah Baba.

Muhyiddin said that his ministry was at the moment compiling information on
the sort of support and incentives that could help the manufacturing and
investment sector, to ensure Malaysian exports were not adversely affected.

"We also want to consider specific incentives for those factories which are
expanding their business overseas and which we had in the past encouraged," he
said.

To attract investments, Malaysia will make available opportunities for
investments in specific sectors for overseas factories such as from Japan to
establish their business locally based on the lower business cost and
investment.

"If we compare the business cost between Malaysia and Japan, it is still
lower here," he said.

On the contraction in the country's value of exports and imports this year
due to the financial crisis, he said that the ministry was still monitoring the
issue.

"We will see what the first quarter trade figures are before making an
overall assesment. But I feel it will be lower when compared to last year," he
said.

He said that there were signs that the electric and electronic sectors would
have a shortfall because of a lack of imports from developed countries.

Muhyiddin said the country's total trade was in a strong position with a
value of RM1.1 trillion from Januari to November last year through exports of
RM717.4 billion and imports of RM487.1 billion.

Among the key exports were electrical and electronic products, petroleum,
pam oil and chemicals while main imports constituted machines and iron and steel
products as well as equipment used for transporation.

Asean countries proved to be the dominant trading partners for Malaysia with
trade amounting to RM279.1 billion or 25.3 percent of the country's overall
trade figure.

On the lower electricity tariff as announced by the Minister of Energy,
Water and Communications Datuk Shaziman Abu Mansor before March 1, Muhyiddin
said that the matter would be discussed by the Cabinet either Wednesday or next
week.

"We will evaluate the request from the industrial sector, in particular that
of small and medium enteprises," he said.

He highlighted that the manufacturing sector in the country has requested an
electricity tariff reduction of 20 percent as an incentive and not three to 10
percent as announced by Shaziman. (US$1=RM3.61)