Local SMEs advised to take advantage of FTAs to do more business in foreign markets

File image of a trade fair organised by Matrade in a foreign country to introduce Malaysian businesses.

Malaysia External Trade Development Corporation (Matrade) chief executive officer Datuk Dzulkifli Mahmud has urged local businesses to leverage on the country’s trade agreements to grow their exports.

“Malaysia has signed many bilateral and other trade agreements with a lot of countries. This is a platform for businesses and companies should make use of these free-trade agreements to penetrate the export market,” he said at a recent talk organised by Matrade for the Indian business community.

Additionally, with the ringgit depreciating against the greenback, Dzulkifli reiterated that now was a good time to look at the global market.

“Fundamentally, we are still strong even with the US dollar strengthening. Our inflation is still under control, we have full employment and Malaysia produces quality products. We need to be hungry for exports,” he said.

However, a stronger US dollar also means more expensive imports of raw materials, but Dzulkifli advised importers to look at using other currencies to trade, such as the renminbi.

He also encouraged local exporters to make use of e-commerce platforms to reach a wider market. Dzulkifli said the agency is currently in talks with companies such as Amazon and Lazada to pave the way for more local companies to use these platforms. Matrade had earlier firmed up an agreement with e-commerce giant Alibaba for local companies using the platform.

Dzulkifli says businesses should make use of freetrade agreements to penetrate the export market.

Matrade has been organising many overseas exhibitions to take local businesses abroad and Dzulkifli hopes to see more participation from the Indian community in its trade programmes overseas.

He noted that the number of Indian companies currently registered with Matrade make up less than 5% of the total registered with the agency.

“We want to see more of the Indian community joining our programmes.

“We want to tell them about the opportunities of going into the export market and to join them, particularly the SME programmes,” said Dzulkifli.