In a press conference by the Ministry of International Trade and Industry held on Friday, some important key performance evaluation was presented including the import and export statistics, challenging factors, impact of joining the Trans-Pacific Partnership Agreement (TPPA) and reviewing the e-commerce potential.
1. EXPORTS, IMPORTS AND TRADE SURPLUS RISES
Malaysia recorded an increase of 1.2 percent in foreign trades to RM1.466 trillion in 2015.
Exports rose 1.9 percent to RM779.95 billion, while imports rose 0.4 percent to RM685.65 billion. At the same time, a trade surplus of RM94.29 billion was recorded for the 18th year in a row and that is an increase of 14.3 percent.
This was contributed by the high demand by three major countries: China (23.09 billion), ASEAN (RM12.38 billion) and the United States (RM12.22 billion).
The manufacturing sector contributed RM625.46 billion to the country’s export performance.
2. A CHALLENGING YEAR IN 2015
This performance can be considered as good as 2015 was a challenging year for the global economy, with slow growth in emerging markets while developed countries recorded modest growth.
“The decline in commodity prices, especially crude oil, currency fluctuations, China’s economic slowdown and geopolitical tensions, all sparked volatility and put pressure on the global economy.”
DATUK SERI ONG KA CHUAN
International Trade and Industry Minister II
3. TRANS-PACIFIC PARTNERSHIP AGREEMENT (TPPA)
The newly-signed TPPA will increase the chance of a single cross-border market which has a population of 800 million people.
Malaysia’s total trade is projected to exceed RM2 trillion following the TPPA signing.
International Trade and Industry Minister II Datuk Seri Ong Ka Chuan said, TPPA immediate benefits will be proven by the influx of investors.
“The TPPA signing will boost sentiment and create confidence among investors.”
DATUK SERI ONG KA CHUAN
International Trade and Industry Minister II
4. ENTREPRENEURS URGED TO MAXIMISE E-COMMERCE
Entrepreneurs, especially youth, need to use the e-commerce platform to enhance their business including entering new markets.
Datuk Seri Ong Ka Chuan said, e-commerce can help market products and services more quickly in the global market as compared to conventional business.
“The development of the e-commerce segment ill also support the country in achieving the target of e-commerce contribution of 10-15 percent of gross domestic product (GDP) in the last two years.”
DATUK SERI ONG KA CHUAN
International Trade and Industry Minister II
Currently, e-commerce accounted for only 5-8 percent of the country’s GDP as compared to countries like United States and China, each with a contribution of 30 percent and 21 percent respectively.
5. PROSPECTS IN 2016?
Despite the economic slowdown that is expected to continue, positive performance can be seen in the stability of the Malaysian Ringgit.
Moving forward, exports are expected to remain the main drive of the national economy.
Ka Chuan said the Malaysia-ASEAN trade is expected to grow in tandem with the establishment of the ASEAN Economic Community and as a buffer for Malaysia to face of the current global economic uncertainties.
