A. BUSINESS OPPORTUNITIES
Countries Malaysia Exports of Products / Services & Investment Opportunities
ARGENTINA MANUFACTURED GOODS
? Household furniture
? Medical supplies such as rubber gloves, catheters, suture, dialysis
? raw materials (polymers and resins) and machines for the plastic
? electronics and electro-domestic such as web cams, air conditioners,
sound systems, computer parts etc;
? manufacturing inputs for the food processing industry such as palm oil,
shortening, vegetable fats, emulsifiers, cocoa, citric acid, folic acid;
? industrial chemicals;
? telecommunication equipment;
? auto parts;
? computer hardware and software;
? packaging machinery
? safety and security equipment;
? building materials and construction machinery;
? hotel and gastronomy equipment. Argentina has fully recovered from its economic crisis 2001/02. The GDP
reached a healthy growth of 8.8% in 2003, and economic conditions
remained favourable throughout 2004 with a 9 per cent surge in real GDP,
9.2% in 2005 and 8.5% in 2006. There is a rising trend for both exports and
imports. The growing industrial and export activities require raw materials,
semi-manufactured products and equipments to enhance production capacity
and export competitiveness. The Argentina recovery signals opportunities for Malaysian companies to increase their exports.
The construction industry has been one of the pillars that contributed towards
the economic recovery of Argentina. It directly contributes 5.2% of GDP in
Argentina, and indirectly contributes to 14% of GDP. 15% of the construction
activities in Argentina are undertaken by the public sector and the remaining
by the private sector. Malaysia could explore opportunities in infrastructure
projects in Argentina.
The software and computer services is one of the fastest growing sectors in
Buenos Aires, which represents over 40% of Argentina’s software and
computer services firms. There are 300 software and computer services firms
in Buenos Aires City and 700 in Argentina. The industry generates a
turnover of US$ 1.1 billion and exports US$210 million in software creating
over 40,000 jobs. Similarly, outsourcing activities such as call centers are
growing and currently such services are provided to USA, Australia and
Europe. Malaysian ICT companies may consider the possibility of forging a
partnership with their counterparts in Argentina to venture into third countries
by complementing each other in both technological and business
Consistent with the Government’s aspiration to make Malaysia a regional hub
for production of halal products, particularly food, Malaysian companies can
form strategic alliances with Argentine companies to export to third countries
considering the huge Muslim population of 1.8 billion around the world with
size of the market (food and non-food) estimated at around US$560 billion a year.
CROSS-FLOW INVESTMENT Argentina can be used as Malaysia’s strategic investment destination for the
South American region taking advantage of the preferential tariffs accorded
by MERCOSUR. Already, there are more than 100 multinational and
transnational companies operating in Argentina. Key sectors, particularly, the
E&E, plastics, rubber, wood, textiles & apparels, petroleum, among others,
could be explored either independently or joint venture by Malaysian
companies in the set up of manufacturing plants. The locally manufactured
products would enjoy lower duty compared to the higher external tariffs
imposed by MERCOSUR at an average of 40%.
URUGUAY MANUFACTURED GOODS Companies prefer to import finished products for domestic market in lieu of
having domestic production. Many factories discontinue production of
manufactured products due to high cost of production in the last five to ten
years. Malaysia’s company could explored new market opportunities in:
? home furniture,
? decorative items
? bathroom accessories
? auto parts
? decorative items.
? palm oil,
? electronic components,
? ICT products (hardware and software)
? general machinery,
? beverage and Halal food. Overvaluation of local Uruguayan currency Uruguayan pesos thus making
import more attractive
BRAZIL PALM OIL AND PALM OIL MANUFACTURED PRODUCTS ? Brazilian government imposed a mandatory requirement for the use of
2% of biodiesel content in diesel from 2008. Malaysian palm oil is an
ideal feedstock to be blended with soya oil-based biodiesel because of
its lower price.
? There has been an increasing awareness that palm oil is a healthier
substitute of harmful hydrogenated soya oil in packaged food in Brazil.
? Brazilian importers has been looking more aggressively to source
palm olein and fats to replace the soya oil application.
There has been consistent inquiry made from Brazil on the following: ? E&E products,
? wood products / rubber products / plastic products ? food,
? auto parts,
? textile/garment & accessories,
? building materials,
? footwear / jewellery /costume jewellery/ cosmetic/toiletry, ? glassware, giftware/souvenir items, household products ? metal/steel/aluminum products.
? Taking advantage of Brazil being the members of MERCOSUR which
comprises of Argentina, Paraguay, Uruguay, Venezuela and Brazil
themselves, having a joint venture partner in manufacturing in Brazil
would enable the Malaysian investor to enjoy the MERCOSUR stcommon external tariff (CET) which was implemented on 1 January
1995.The CET levels range between 0 to 20%. ? Among the potential areas of collaboration are in the sectors of
semiconductors, palm oil plantation, airline services, alternative
energy technology (Ethanol and Biodiesel) and construction.
B. REGISTRATION FORM AND FEE
Completed registration form to participate in the mission together with a cheque of
RM500.00 per participant made payable to “Ketua Eksekutif MATRADE”, should be submitted to MATRADE before 16 July 2007. This fee will be utilized to offset the costs
incurred for local transport, tips and other expenses related to the mission. Participating
companies must bear the cost of airfare and accommodation.
Each participant is required to submit one passport sized coloured photograph (in
business attire) with name and company written clearly at the back of the photograph for the mission handbook.
D. TRAVEL AGENT
City Connections Travel & Tours Sdn. Bhd. has been appointed as the official travel
agent for this mission. All participants are required to make their air-ticket reservation
with the agent at the following address:
City Connections Travel & Tours Sdn. Bhd.
No. 45 Jalan Snuker 13/28