Mid-sized firms key to Asean’s future growth

Towards the future: Abrar speaking at the Export Excellence Awards roadshow at New World Petaling Jaya Hotel. 

PETALING JAYA: Mid-sized companies will need to play a major role in realising Asean’s future growth ambition.

These companies are expected to act as key suppliers to established global brands and as fast-growing businesses competing for access to the end consumers.

As the world’s fifth largest economy, Asean will remain a high-opportunity market.

The region’s Gross Domestic Product reached US$2.89 trillion (RM11.93 trillion) last year, and is expected to surpass the US$4 trillion (RM16.52 trillion) mark by 2023.

Specialised regional partners, including international banks with a well-connected network to finance investments and fund cross-border business expansions, can act as growth catalysts to help mid-sized firms explore new sources of finance.

This was revealed at the Export Excellence Awards (EEA) 2019 Klang Valley roadshow at the New World Petaling Jaya Hotel.

Standard Chartered Bank Malaysia Bhd managing director and chief executive officer Abrar A. Anwar said: “Mid-sized companies are crucial engines of economic growth and job creation across Asean, and are increasingly active in global trade.

“These firms will benefit from banks with multiple market presence to be able to navigate through new business environments.

“As Malaysia’s first bank with 144 years in the country, Standard Chartered has an unrivalled knowledge of the local market and understands the important role of mid-corporates in growing the Malaysian economy and their banking needs. We can help companies internationalise and grow through our network capabilities, market knowledge and expertise – elements that are crucial for expanding businesses overseas.”

Abrar was the moderator in the panellists’ discussion on capturing growth opportunities in Asean.

Fellow panellist, Standard Chartered Bank (Asean and South Asia) chief economist Edward Lee, shared that, “Malaysia’s exports grew about 14% yearly (in USD terms) in 2018, outperforming regional peers. However, with soft global demand and trade, Malaysia’s trade activity will be affected in 2019. Having said that, Malaysia’s diversified export structure will help mitigate the external headwinds”.

“Meanwhile, medium-term challenges including US-China trade tensions and the rise in restrictive trade measures globally need monitoring.

“Malaysia is, however, well-positioned to benefit from any shift in supply chains out from China due to US tariffs,” he added.

Another panellist, PwC Growth Markets Centre leader and partner David Wijeratne, urged the company owners to adopt Industry 4.0 solutions for their factories to improve productivity. Among others, Wijeratne said, those companies have to use various channels to get their goods to reach the consumers within the stipulated time.

International Trade and Industry Ministry deputy secretary-general (Trade) Datuk Seri Norazman Ayob spoke about Malaysia as the third highest for intra-Asean trade and said the exporters should enhance their trade and investment as encouraged by the Prime Minister.

Malaysia External Trade Develop­ment Corporation (Matrade) senior manager Muhd Shahrulmiza Zakaria was the moderator in a forum on Critical Aspects of Exporting featuring Getha Bedding (M) Sdn Bhd chief executive officer Melissa Tan, Mamee Double-Decker (M) Sdn Bhd sales and marketing director Pierre Pang and PKT Logistics Group Sdn Bhd chief operating officer P’ng Tean Hau.

Tan emphasised the importance of branding Malaysian products overseas and selling the belief on the quality of those products through advertisements to attract consumers.

Pang pointed out how the exporters should concentrate on selling their products to millennials by targeting their emotions and staying relevant.

“We will not win by targeting the price of those products but the consumers must feel good about taking the products,” he added.

P’ng underlined the importance of logistics, saying that “a good logistician will help to navigate the tariff and non-tariff barriers”.

He shared that the exporters could reduce costs if more people use the same service to move their products to the same place at the same time.

Standard Chartered Bank Malaysia Bhd transaction banking head of trade Segar Govindasamy said there are banking solutions for the exporters to expand to the new market with the risk involved transferred to the bank.

The key speaker, Top Glove Corporation Bhd (TGC) managing director Datuk Lee Kim Meow, spoke on “The Secrets of a Successful Exporter”.

He said TGC, being the world’s largest manufacturer of gloves, serves a network of 2,000 customers in 200 countries and practises a culture of learning, innovation and continuous improvement to be in the business.

“We continue to benchmark with successful companies such as Samsung and Toyota in revenue, research and development and other aspects, as well as diversify our business as part of our expansion plans,” he added.

Star Media Group in partnership with Standard Chartered launched the inaugural Export Excellence Awards 2019, with PKT Logistics as co-sponsor and Matrade as patron. The seven main award categories are electrical and electronics; oil and gas; chemical, mineral and alloy; agriculture; machinery, equipment and automation; services; and other industries.

Three companies will receive the Exporter of the Year title, while a special award will be given in the halal products category.

Admission to the Johor EEA Roadshow to be held on June 18 is free and officials from the companies can sign up at www.exportawards.com.my, which also contains details on participating in the awards.

Deadline for award submissions is Aug 2, and winners will be announced at the awards ceremony in November.