Matrade: Make use of China-Asean FTA

By Sim Bak Heng Published: 2009/12/19

MALAYSIAN exporters should take advantage of a free-trade pact between China and Asean because the country is the biggest exporter to China in the regional grouping.

Malaysia is also the seventh biggest exporter to China after Japan, South Korea, Taiwan, the US, Germany and Australia.

Malaysia External Trade Development Corp (Matrade) manager for East Asia and Asean, Sarah Johana Yusof, said Malaysia's export volume to China was ahead of other Asean members.

Last year, China's total imports from Malaysia stood at RM109.82 billion (US$32.11 billion). This was 27.5 per cent of the total value that Asean exported.

"Our major exports to China are electronic integrated circuits, crude oil and petrol," she said.

Sarah was presenting her paper titled "Expanding Your Business Globally - Leveraging on Afta and other Asean FTAs" during an interactive discussion on optimising opportunities under Afta organised by Matrade in Johor Baru on Thursday.

The event, opened by Matrade deputy chief executive officer Mohd Kamarudin Hassan, was aimed at informing the private sector on the various export opportunities available for Malaysian companies.

The other exports to China are automatic data process machines, semiconductor devices, electrical apparatus for switching, parts for television, radio and radar apparatus, and polymers of ethylene.

Under the China tariff schedule, Sarah said the Chinese importers would save substantially if the imports are from Malaysia.

Citing examples, she said Chinese importers of wooden door frames would save additional 30 per cent of import tariff if the imports are from Malaysia.

"In 2008, Malaysia ranked 15th as China's import source for the item. However, as of July this year, the ranking was upgraded to seventh," she said, pointing the sharp jump in ranking to the positive effect derived from the China-Asean FTA.