BAYAN LEPAS – Penang alone contributed 30.5% (RM434.74 billion) of Malaysia’s RM1.426 trillion in exports last year, said Malaysia External Trade Development Corporation (Matrade) chairman Datuk Seri Reezal Merican Naina Merican.
He credited multinational corporations (MNCs) based in the northern state for playing their role in making Penang the country’s leading exporter state.
“I see that Penang is a crucial state as it has an environment where more export-ready companies could be created,” said Reezal in his speech at the Penang Export Day 2024 held at the Olive Tree Hotel, here.
However, he also wanted more exporters to be created from the 9,000 mid-tier companies in the country, 637 of which are based in Penang.
The Matrade chairman said Malaysia should not only function as a manufacturing base but also as “a centre of excellence,” or a place for the discovery of new technologies and innovations.
Meanwhile, Penang Chief Minister Chow Kon Yeow said Penang remains the top exporter state for the year, as it recorded an export value of RM177.99 billion from January until June, an increase of 3.9% compared to the same period last year.
On the 2023 export figures, he said transportation machinery and equipment, chemical products, factory goods, and food products were the five main exports to come from the state.
Look into Africa as new emerging market
Reezal also said Malaysia could not afford to be overly reliant on traditional export markets, such as Europe, as the global trade market has been negatively impacted by the Gaza-Israel conflict.
To mitigate this, he proposed for Malaysia to look into emerging markets in Africa, which is experiencing significant population growth and democratisation.
“Last time, there were some 13 countries that were under dictators. But now, all 54 countries (in the continent) are being democratised.
“Some of the countries’ ratings have been upgraded by the World Bank, International Monetary Fund (IMF) and rating agencies. They also have multilateral free trade agreements like the Common Market for Eastern and Southern Africa (Comesa).
“In other words, those countries are emerging markets and I have been convincing the Malaysian government to look at these countries,” he said in a press conference.
Reezal was asked whether the government was considering providing incentives that would help exporters lower shipping costs that have skyrocketed following the Israel-Gaza war, as Yemei-based Houthi rebels are attacking commercial ships that pass through the Red Sea.
The surge of insurance premiums has exacerbated costs for exporters who are already struggling with rising freight rates and longer alternative trade routes. – July 22, 2024