ANNUAL REPORT 2020 SPURRING EXPORTS IN THE NEW NORM
MATRADE trade data is based on data as reported up to 24 August 2020 by the Department of Statistics Malaysia. Although every effort has been made to ensure that the contents of this annual report are accurate and up to date, MATRADE will not be liable for any omissions or errors, and will not be held responsible for any loss or dispute arising from the use of the information provided. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or otherwise, without the consent of the publisher. Patron: Chief Editor: Arrangement & Layout: Distribution: YBrs. En Mohd Mustafa Abd Aziz YBhg Datuk Aureen Jean Nonis Noor Hayati Abu Noh Mohamad Haris Abd Latif Syarifah Fadhilah Syed Mohd Dardin Muhammad Hijaz Jamal Abdul Nasir Mohd Khairiazhar Mohd Riza Noor Hazlin Muhammad Paham Mohd Iqbal Adzhar Published by: Corporate Communications Unit MATRADE Strategic Communications Section Strategic Planning Division Email: communications@matrade.gov.my Strategic Planning Division Malaysia External Trade Development Corporation (MATRADE) Menara MATRADE Jalan Sultan Haji Ahmad Shah 50480 Kuala Lumpur, Malaysia. Tel: +603 6207 7077 Fax: +603 6203 7037 Email: info@matrade.gov.my Web: www.matrade.gov.my Facebook: MATRADE HQ LinkedIn: MATRADE Twitter: @matrade Youtube: MATRADE Instagram: @matrade_hq ISSN 2462-1412 October 2021 © Malaysia External Trade Development Corporation (MATRADE)
MATRADE’s main focus in 2020 was to sustain exports by assisting companies to continue their export-related activities during the COVID-19 pandemic which impacted the whole world. In this context, MATRADE carried out its mandate of making Malaysia a competitive international trading nation by leveraging on digitalisation efforts and utilising alternative methods in organising programmes. SPURRING EXPORTS IN THE NEW NORM ANNUAL REPORT 2020 MATRADE programmes were centered on four main thrusts, namely developing exporters’ potential, export promotions, dissemination of trade information as well as providing advisory and support services. Amid the challenging global trade and economic environment, MATRADE will continue to explore new opportunities and methods particularly in digital transformation, focusing on sustainability and longterm growth.
MATRADE OVERVIEW MATRADE Annual Report 2020 About MATRADE Malaysia External Trade Development Corporation (MATRADE) is a national trade promotion agency under the purview of the Ministry of International Trade and Industry (MITI), responsible for positioning Malaysia as a globally competitive trading nation. MATRADE was established under the Akta Perbadanan Pembangunan Perdagangan Luar Malaysia 1992, where its main mission is to promote Malaysian enterprises to the interntional market. Function MATRADE is tasked to develop external trade with focus towards the export of products and services. This ensures that Malaysian companies competing at an international level remain resilient and uphold with pride the Made in Malaysia for the World slogan. Towards this, MATRADE outlines and plans marketing strategies through training, coaching and advisory services to Malaysian companies. Through its vast international network, MATRADE provides market intelligence and current information to assist companies in exploring the global market. MATRADE enhances its export promotional activities for Malaysian products and services while carrying out business matching sessions between Malaysian and foreign buyers. This in turn contributes towards the prosperity and well-being of the Malaysian economy. Global Reach MATRADE continues to find new and innovative avenues to guide and support exporters on the global frontier with the operation of 46 trade offices located in commercial cities globally alongside its regional branches in Pulau Pinang, Terengganu, Johor, Sabah and Sarawak. Internal Resources MATRADE believes its employees are the backbone of the organisation and is committed towards improving organisational performance through accelerating intellectual development and strengthening leadership qualities. MATRADE focuses on providing training and developing mentorship programmes as well as cultivating workplaceoriented learning. Through a strong corporate culture, MATRADE is committed towards providing opportunities for every employee to excel in their performance.
MATRADE’S Focus MATRADE focuses on the implementation and delivery of four core services, namely: Exporters Development MATRADE assists and enhances the capabilities of Malaysian companies in expanding their businesses internationally. It provides training to Malaysian companies, especially small and medium enterprises (SMEs) by organising seminars and workshops as well as implements exporters development programmes to prepare companies in exploring export opportunities. This involves business training, upskilling, networking, international exposure, leadership and entrepreneurship, which enable companies to become more resilient and sustainable at international level. Driving Export MATRADE facilitates Malaysian companies to penetrate the international market through participation in international trade fairs (ITF), export acceleration missions (EAM), international sourcing programmes (INSP) and trade and investment missions (TIM). As the national trade promotion agency, MATRADE undertakes the role of being the reference centre for enquiries and visits from foreign buyers, besides organising business matching sessions with Malaysian companies. Trade and Market Information MATRADE provides market intelligence that includes up-to-date information on changing market trends, customer expectations, disruption to global supply chain and non-tariff barriers. The market intelligence in the form of various reports and international trade publications such as Market Alert (MA), Product Market Study (PMS), Trade Lead, MATRADE Insight (MI) and Exclusive from Malaysia (EFM) magazine are disseminated and easily accessible by companies. In addition, MATRADE provides online access to information via its Business Information Centre (BIC). Advice & Support Services MATRADE offers trade advisory and support required by Malaysian companies to explore foreign markets. This includes information related to export procedures and market information as well as products and services which are high in demand abroad. These trade advisory and support services are also provided during outreach programmes through information counters at international conferences and exhibitions in Malaysia. Our Purpose The eight main purposes of MATRADE as the national trade agency are summarised as follows: 1. Facilitating market access through various trade promotion programmes such as ITF, EAM, INSP and business matching sessions. 2. Digitalising exports to encourage the use of eCommerce platforms to expand the country's exports through online trade. 3. Providing market intelligence for Malaysian companies to monitor and explore export markets. 4. Enhancing the national export plan with MATRADE's role as catalyst to increase the country's exports. 5. Building export readiness to prepare Malaysian companies to explore the export market through exporters development programmes. 6. Expanding the exporters community by offering trade advisory and support services. 7. Providing specific support to strengthen the competitiveness of Malaysian companies and increase export promotion activities. 8. Empowering brand Malaysia through various initiatives and channels, enabling exporters to benefit from it. Spurring Exports In The New Norm MATRADE Overview
MATRADE Annual Report 2020 Our Customers MATRADE has a database of over 25,000 Malaysian companies which covers large and mid-tier companies, SMEs, manufacturers and service providers. Export Promotion Activities 8 International Trade Fairs 3 International Sourcing Programmes 1 Export Acceleration Mission 1 Information Counter 1,365 eBizMatch 1,686 participating Malaysian companies Reference Centre The Business Information Centre (BIC) has a collection of 112,049 physical, electronic and digital materials encompassing trade statistics, country and company profiles, trade news, market intelligence reports, import duty schedules and others. Exporter Capacity Development Programmes MATRADE's exporter capacity building programmes have collectively benefited 16,130 exporters throughout 2020. Trade Enquiries In 2020, MATRADE received 38,535 enquiries Total Trade Total trade amounted to RM1.784 trillion, a decline of 3.3% Export - Import - Trade Surplus Exports totaled RM983.83 billion, declined by 1.1% Imports stood at RM800.48 billion, deline by 5.8% Trade surplus increased by 25.9% to RM183.35 billion, recording Malaysia's highest trade surplus to date. 2020 AT A GLANCE
04 Administration, Integrity, Internal Audit and Strategic Planning Corporate Administration Human Resource Management Budget Management Safety And Wellbeing Integrity, Internal Audit and Legal Compliance Strategic Planning Driving Information Technology 05 Financial Review Financial Performance Audit Report MATRADE Offices Abbreviations and Acronyms CONTENTS Spurring Exports In The New Norm Preface MATRADE Overview 2020 at Glance 01 MATRADE Organisation Background 2020 Achievements Chairman’s Message Message of Chief Executive Officer Message of Incoming Chief Executive Officer Board of Directors Senior Management Organisation Structure MATRADE Network 02 Trade Performance Report Malaysia’s Trade Performance 2020 Summary of Market Performance FTA & Emerging Markets Performance of Major Sectors Import Performance Performance of Services Sectors 10 11 12 14 17 18 20 22 24 118 121 123 124 125 128 133 28 30 46 48 50 52 140 141 182 184 58 78 83 89 93 100 102 106 03 MATRADE Core Purpose Purpose 1 Facilitating Market Access Purpose 2 Digitalising Exports Purpose 3 Providing Market Intelligence Purpose 4 Enhancing The National Export Plan Purpose 5 Building Export Readiness Purpose 6 Expanding The Exporters Community Purpose 7 Providing Specific Support Purpose 8 Empowering Brand Malaysia
MATRADE ORGANISATION 01 BACKGROUND 2020 ACHIEVEMENTS CHAIRMAN’S MESSAGE MESSAGE OF CHIEF EXECUTIVE OFFICER MESSAGE OF INCOMING CHIEF EXECUTIVE OFFICER BOARD OF DIRECTORS SENIOR MANAGEMENT ORGANISATION STRUCTURE MATRADE NETWORK
MATRADE Annual Report 2020 10 MATRADE assists Malaysian companies develop and expand their reach in the international market. This is achieved by initiating outreach programmes which include training and advisory services. Additionally, MATRADE disseminates market information and intelligence as well as organises export promotion activities for Malaysian companies. Through these efforts, MATRADE helps expand market access and raises the profile of Malaysian companies internationally. Following the COVID-19 pandemic, MATRADE took the initiative to continue promoting exports by transforming ongoing programmes with the use of digital platforms. Existing programmes were adapted towards digital technology to overcome the constraints of travel restrictions and border closures. These efforts enabled MATRADE to fulfill its mandate to drive exports and make Malaysia a competitive trading nation on the international stage in the new normal. Global (Thinking & Approach) • Global mindset; • Prioritising stakeholders; • Creating extensive global networks; • Global inclusiveness in trade; • Global strategic thinking; and • Embracing diversity. Respect (People, Proses and Planet) • Love for the nation and planet; • Ability to listen, understand and without prejudice; • Celebrate success, shared responsibilities; • Value teamwork; and • Prioritising customer. Agile (Skilled & Adaptable) • Lifelong learning; • Innovate for growth; • Leading change with vigor; • Possess agile thinking and attitude; • Anticipate and respond well to uncertainties; • Acknowledge and adopt continuous improvement; • Competent and knowledgeable; • Skills to articulate ideas; and • Ability to multitask. BACKGROUND CORE CORPORATE VALUES - G.R.A.C.E Creative (Innovative & Original Thinking) • Dare to be different; • Proactive and progressive thinking; • Unlock game-changing innovation; • Open to new ideas and suggestions; and • Interests to explore new things. Ethical (Strong Moral Values) • Fair, trustworthy and transparent; • Authentic and consistent in words and deeds; • Professional, committed and disciplined in execution; • Lead by example and accountable in all actions; • Courteous, cooperative, tolerant and firm; and • Honest and humble. Mission Promoting Malaysia’s enterprises to the international market. Vision Positioning Malaysia as a globally competitive trade nation.
Spurring Exports In The New Norm MATRADE Organisation 11 01 02 03 04 05 The COVID-19 pandemic which resulted in travel restrictions impacted MATRADE’s approach in implementing exporter development and export promotion initiatives. MATRADE took advantage of digitalisation efforts and employed alternative methods in all its programmes such as hybrid exhibitions, virtual business matching between Malaysian companies and foreign buyers through eBizMatch and webinars. This effort enabled companies to continue export promotional activities during the pandemic. In tandem with the unfavourable external environment due to the impact of COVID-19 pandemic, exports decreased marginally by 1.1% to RM983.83 billion, from the preceding year. Imports declined by 5.8% to RM800.48 billion while total trade contracted by 3.3% to RM1.784 trillion. Despite this unprecedented scenario, Malaysia’s external trade performed fairly well with exports rebranding by 5.2% in the second half of 2020 as compared to the negative growth of 7.7% recorded in the first half of the year. This could be attributed to the progressive opening of the economy and gradual recovery of external demand. 2020 ACHIEVEMENTS MATRADE implemented various efforts to achieve its founding objectives which encompass exporters development and export promotions. These efforts involve exporter capacity building programmes, dissemination of trade information and the provision of advisory and support services. MATRADE possesses a database of over 25,000 Malaysian companies conducting export-oriented businesses. These companies are assisted in to ensure export growth of Malaysian products and services. MATRADE also continues to offer a new strategic direction to Malaysian companies with emphasis on sustainability and long-term growth. MATRADE will remain committed towards strengthening the country's economy as well as act as the leading organisation in steering and advancing the country's export activities in the future. Malaysia’s trade surplus continued to register double-digit growth for four consecutive years, widening by 25.9% to RM183.35 billion compared to RM145.66 billion in 2019. This was the largest trade surplus ever recorded, representing Malaysia’s achievement in sustaining trade surplus for 23 consecutive years, since 1998. Malaysia’s trade grew with China, the United States (US), the Republic of Korea (ROK), Bahrain and Hong Kong SAR. However, lower trade was recorded with Thailand, Singapore, Australia, India and Viet Nam. Malaysia’s trade recorded an average annual trade growth of 6% for the period between 2000 to 2020.
MATRADE Annual Report 2020 12 CHAIRMAN’S MESSAGE Overcoming barriers with solutions To this, MATRADE responded with a slew of dynamic countermeasures. We explored and set in place an adaptive stance which utilised alternative methods in organising programmes and keeping trade activities ongoing. Our spirits were not dampened nor were our pursuits hindered. Instead we steered local exporters and instilled new norms of trade activity through online channels, thanks to our earlier efforts in setting up a robust and functional digital infrastructure within MATRADE. Throughout 2020, our thrust has been anchored in close collaboration. At MATRADE, it has always been imperative that relationships between public and private sectors remain strong and sustained in supporting businesses move forward. By charting new ground through digital channels, we were able to continue such efforts through a host of “new normal” activities which quickly gained traction and kept trade activities in motion. Every so often, our resolve is tested in the most intense and prolonged manner. When such instances do present themselves, we will not be appraised for what we endured, but instead, for how we react. The year 2020 was for all intents and purposes a year of such persuasion. It was when our determination and perseverance was not only stretched, but our calibre to welcome the hurdles with reactive measures as the sole agency tasked with developing Malaysia’s external trade. Our immediate priority was to sustain exports and assist local companies in continuing export-related activities in sustaining our position as a competitive international trading nation. The times dictated that we realign our priorities to correspond with the Government’s initiatives to keep businesses afloat while ensuring our exports receive continuous interest from foreign buyers.
Spurring Exports In The New Norm MATRADE Organisation 13 01 02 03 04 05 Alternate routes to a common destination #MyAPEC2020 Exhibition was a clear illustration of MATRADE’s quest to be in tandem with the prevailing situation. By conducting the first ever virtual event in collaboration with a local technology partner, Fusionex, in conjunction with Malaysia being the host for APEC 2020, we not only proved our capabilities to respond effectively with rapid digitalisation adaptations, but also offered an immersive and engaging experience to participants from almost every part of the world. Another initiative in the same direction was MATRADE’s organisation of Malaysia’s first Digital Kuala Lumpur International Aerospace Business Convention (KLIABC 2020), done in collaboration with Advanced Business Events France and Malaysia Aerospace Industry Association (MAIA). KLIABC 2020 provided a nexus for decision makers and world aerospace players to source for regional expertise in the aerospace industry. It also presented Malaysian companies with an effective branding platform for which they may have missed due to the current scenario. Another significant collaboration was with the Islamic Development Bank (IsDB) and Ministry of Finance Malaysia to achieve wider outreach for the promotion of Malaysian service providers in various areas, particularly to OIC member countries, towards exploring mutually beneficial trade arrangements. This collaboration is through the publication of “Mapping Malaysia’s Resource Centres (MMRC)”, an e-directory highlighting capabilities and expertise of Malaysian service providers. Advancing into 2021, it is anticipated to be a better year based on international organisations’ forecasts. I believe the business environment will improve with global roll-out of vaccination efforts and gradual relaxation on containment measures. Whatever the future has in store, I am sure the digital pathway of conducting trade will remain a mainstay alongside physical activities. In conclusion, I am grateful to the government for entrusting me with my second appointment as Chairman of MATRADE. I remain committed to bring positive changes into the organisation. I also wish to express my appreciation to all stakeholders, especially the Ministry of International Trade and Industry, Board of Directors and all MATRADE staff for your efforts and cooperation throughout 2020. Thank you, TAN SRI DR. HALIM MOHAMMAD Chairman MATRADE
MATRADE Annual Report 2020 14 Trade Performance History will remember 2020 as a year unlike any other. In the space of a couple of months, COVID-19 brought the world to its knees, impacting global trade and economic wellbeing. Almost instantly, industry confidence was hit. By March 2020, the pandemic began to bear down on lifestyle, public health and economic status in countries worldwide. Social distancing, personal protective equipment and movement control quickly became the norm. With the progressive opening of the economy and gradual recovery of external demand, Malaysia’s exports rebounded in the second half of 2020 compared to the negative growth in the first half. In 2020, the World Trade Organization ranked Malaysia as the world’s top 25th trading nation, 24th largest exporter and 26th leading importer. What We Did in 2020 MATRADE conducted a survey in April 2020 with responses received from over 1,200 businesses comprising mainly SMEs. The survey revealed that businesses were badly affected due to loss of contracts and orders, resulting in potential loss of revenue. MATRADE’s response to this, and capitalising on its early head start in digital transformation, provided concrete organisational and technical capabilities to immediately support businesses to manage their export promotion efforts. Before the pandemic, MATRADE already had an initiative called International Sourcing Programme (INSP), a signature B2B meeting programme that matches buyers from all over the world with Malaysian exporters. We have since converted the physical B2B meeting platform into a virtual format, called eBizMatch that has been successfully and effectively adopted by suppliers and buyers alike to continue their business meetings in light of travel restrictions. MESSAGE OF CHIEF EXECUTIVE OFFICER Despite the pandemic, Malaysia’s exports declined only marginally by 1.1% to RM983.83 bilion compared to the preceding year, while imports contracted by 5.8% to RM800.48 bilion. Total trade in 2020 was valued at RM1.784 trilion, lower by 3.3%. Trade surplus recorded the highest thus far, at RM183.35 bilion, maintaining 23 consecutive years of surplus since 1998. Malaysia’s trade performance was in tandem with countries in the region notably Indonesia, Singapore, Thailand, the Republic of Korea, Japan and India.
Spurring Exports In The New Norm MATRADE Organisation 15 01 02 03 04 05 MATRADE’s eTRADE programme that was launched in 2004, further assisted Malaysian exporters affected by the movement control orders, to tap into the global market via listings on international and local eCommerce platforms. To continuously provide export opportunities to Malaysian companies during the time when physical trade events were not feasible, MATRADE held its first comprehensive virtual exhibition called the #MyAPEC2020 Exhibition from 1st September to 31st December. The exhibition was organised in conjunction with Malaysia being host for the Asia Pacific Economic Cooperation (APEC) 2020. In addition to virtual exhibits, the event featured an immersive business platform that included online business pitching, B2B meetings and webinars. Through this initiative, Malaysian exporters were connected to international buyers arranged by MATRADE’s 46 overseas offices located all over the world. Subsequent to that, the Kuala Lumpur International Aerospace Business Convention (KLIABC) went fully digital in November, complete with livestreaming sessions, interactive panel discussions and seamless expert-led content on-demand. KLIABC 2020 provided a total nexus for world players sourcing for regional expertise in the aerospace industry. MATRADE’s exporters development programmes also leveraged on digital platforms where webinars were organised in place of conventional seminars. Throughout 2020, webinars were organised in collaboration with our overseas offices and partners including Asian Development Bank (ADB), Islamic Centre for Development of Trade (ICDT), The Star, eBay and McKinsey & Co. Among topics covered were market updates, trade promotion strategies, supply chain management and the impact of COVID-19 on business continuity. MATRADE’s National Export Day, a core trade event for exporters was similarly shifted to a virtual format called eNED2020. The three day online programme encompassing high-level discussions, knowledge sharing and trade dialogues brought together more than 2,000 participants from around the world. The strong interest in eNED was an indication that companies were eager to continue their export business despite the ongoing border closures. Market intelligence reports compiled by our overseas offices were disseminated via MyExport, an online application for Malaysian companies registered with MATRADE. MyExport was introduced prior to the onset of the pandemic as digital platforms formed the backbone of the organisation in discharging its services to clients. The reports disseminated via MyExport ensure that companies are updated with the latest market developments, export opportunities and trade policies. MyExport was awarded 2nd runner-up for Best Use of Information Technology at the 2020 World Trade Promotion Awards in Geneva organised by the International Trade Centre (ITC). This award was a testimony to MATRADE’s efforts in utilising digital platforms to keep companies updated with market information more so during the pandemic. In addition, market intelligence reports were also shared with various chambers of commerce, trade associations and agencies for dissemination to their members.
MATRADE Annual Report 2020 16 To continuously bridge the network with foreign clients, MATRADE published quarterly e-magazines, Exclusive from Malaysia (EFM), to showcase world-class Malaysian products and services that are innovative, unique or in high demand in overseas markets. The sectors featured in the 2020 issues include construction, business services and building materials, food and beverage, medical devices and pharmaceuticals, as well as machinery, equipment and parts. Recognising the need to reduce the financial burden faced by SMEs, MATRADE expanded the scope of the Market Development Grant (MDG) to cover costs related to participation in virtual trade events as well as cancellations or postponements of trade promotion events caused by travel restrictions. In addition to that, MDG also provided support in the area of logistic costs which rose tremendously due to the pandemic. In 2020, MATRADE continued its customised development programmes to strengthen companies’ competitiveness to penetrate the international market. These initiatives include Mid-Tier Companies Development Programme (MTCDP) as well as Bumiputra, Women and Youth Exporters Development (BWYEDP). MATRADE has also continued with the sustainability agenda under the Sustainability Action Values for Exporters (S.A.V.E.) programme, engaging and sharing with companies sustainable values and practices in business. This programme was in line with the United Nations’ Sustainable Development Goals (SDGs) and was aimed at ensuring Malaysian exporters remain relevant in the evolving global supply chain. S.A.V.E. focused on capacity building initiatives to enhance sustainability awareness in business among exporters. Given the importance of export to the Malaysian economy, in 2020, MATRADE embarked on a study to develop the first National Trade Blueprint, outlining strategic priorities for the nation to grow its export competitiveness for 2021-2025. The implementation of the Blueprint will involve collaborative efforts and strong commitment from various stakeholders in the export ecosystem including Ministries, agencies and private sector. Specifically, it addresses areas of concern namely R&D and innovation, technology, human resource, financing, regulation, certification, promotion and branding. The Blueprint is envisioned to elevate the nation’s trade competitiveness and strengthen Malaysia's position as a leading exporting country. Overall, the main purpose of MATRADE in 2020 was to ensure that the Malaysian export community remained connected with overseas clients, updated with the current global trade trends as well as able to sustain the export business despite escalating costs of doing business. Last but not least, I would like to express my appreciation and gratitude to all stakeholders, especially the Ministry of International Trade and Industry for their cooperation throughout 2020. I would also like to extend special thanks to the Board of Directors and all MATRADE colleagues. Thank you. DATO’ WAN LATIFF WAN MUSA Chief Executive Officer MATRADE
Spurring Exports In The New Norm MATRADE Organisation 17 01 02 03 04 05 Continuity of Service Excellence As economies around the world begin to thread carefully forward, the inclination towards inventive measures and discovering new streamlines for business and trade are quickly gaining ground. As this trend begins to gain more momentum, trade activities are beginning to build on a new framework. MATRADE’s adaptive stance towards change to technology and digital processes in conducting our operations conforms to this new norm. It has pushed local businesses into becoming more effective and to stay connected to the global marketplace. The business community has benefited from this and thus it will remain our mainstay for years to come. In 2021, the COVID-19 pandemic is expected to continue shaping global trade, and at the same time influence Malaysia's external trade performance. Nevertheless, MATRADE will continue to carry out our mandate by enhancing various initiatives in consideration of travel restrictions enforced by governments around the world. MATRADE will leverage on its network of 46 overseas offices in connecting Malaysian companies with importers through digital channels. Programmes such as eBizMatch, virtual exhibitions, webinars and eTrade will continue to be at the forefront of trade promotions, in addition to on-going initiatives relating to the dissemination of market intelligence through MyExport, EFM and MATRADE’s Insight. MESSAGE OF INCOMING CHIEF EXECUTIVE OFFICER Moving forward, the sustainability agenda is another initiative that MATRADE will continue to champion. Sustainability is a trending topic that continues making headlines across the globe, particularly among exporters as other countries are starting to prioritise this agenda in trade regulations and compliance. At MATRADE, we have long recognised the importance of sustainability, because it will preserve the environment as well as enhance exporters competitiveness to ensure continuity of their businesses. MATRADE has always remained poised in addressing challenges as the tides change. We have proven time and again our ability to navigate aptly in demanding conditions. The experience to treasure in 2020 is our propensity to adapt promptly and focus our efforts in paving our way forward. We will continue delivering the expectations of the nation particularly that of the local trade community. Rain or shine, the show must go on. MOHD MUSTAFA ABDUL AZIZ Chief Executive Officer MATRADE (from 25 December 2020)
MATRADE Annual Report 2020 18 BOARD OF DIRECTORS Tan Sri Dr. Halim Mohammad Chairman Executive Director & Managing Director Halim Mazmin Group Dato’ Lokman Hakim Ali Secretary General Ministry of International Trade and Industry (MITI) Datuk Ravi Muthayah Secretary General Ministry of Plantation Industries & Commodities (MPIC) Mr. Mohd Sakeri Abdul Kadir Division Secretary Statutory Body Strategic Management Division Ministry of Finance (MOF) Dato’ Mohammad Medan Abdullah Chief Executive Officer Bintulu Port Holdings Berhad Datuk Kamal Khalid Former Managing Director Media Prima Berhad Group Dato’ Hazimah Zainuddin Managing Director Hyrax Oil Group Sdn Bhd
Spurring Exports In The New Norm MATRADE Organisation 19 01 02 03 04 05 Ms. Rina Neoh Siew Lian Co - founder & Investor Ficus Venture Capital Sdn Bhd Datuk Dr. Ibrahim Ahmad Former Director General Majlis Amanah Rakyat (MARA) Dato’ Shahrul Nazri Dato’ Abdul Rahim President & Chief Executive Officer Export - Import Bank of Malaysia Berhad Dato’ Mahmud Abbas Chairman Halal Development Corporation Berhad Dato’ Sri Dr. Irmohizam Ibrahim JP Executive Director World Trade Centre Kuala Lumpur Dato’ Wan Latiff Wan Musa Chief Executive Officer Malaysia External Trade Development Corporation (MATRADE) > until 24 December 2020 Mr. Mohd Mustafa Abdul Aziz Chief Executive Officer Malaysia External Trade Development Corporation (MATRADE) > from 25 December 2020
MATRADE Annual Report 2020 20 SENIOR MANAGEMENT Dato’ Wan Latiff Wan Musa Chief Executive Officer > until 24 December 2020 Mohd Mustafa Abdul Aziz Chief Executive Officer > from 25 December 2020 Sharimahton Mat Saleh Deputy Chief Executive Officer Exporter Development > until 24 December 2020 Abu Bakar Yusof Deputy Chief Executive Officer Exporter Development > from 25 December 2020 Mohd Mustafa Abdul Aziz Deputy Chief Executive Officer Export Acceleration > until 24 December 2020 Sharimahton Mat Saleh Deputy Chief Executive Officer Export Acceleration > from 25 December 2020 Abu Bakar Yusof Senior Director Management Services Division > until 24 December 2020 Khairul Annuar Abdul Halim Senior Director Management Services Division > from 25 December 2020 Datuk Aureen Jean Nonis Senior Director Strategic Planning Division YM Raja Nor Zihan Raja Mohsin Senior Director Information Technology Section > until 31 October 2020 Jamaluddin Abdullah Senior Director Information Technology Section > from 1 November 2020 Amran Yem Senior Director Transformation and Digital Trade Division Abu Bakar K.V. Koyakutty Senior Director Export Promotion and Market Access Division
Spurring Exports In The New Norm MATRADE Organisation 21 01 02 03 04 05 Remee Yaakub Director Halal, Food and Beverage & Agro Section Naim Abdul Rahman Director Lifestyle & Life Sciences Section (Medical Equipment & Pharmaceuticals) Jai Shankar Suppayah Director Oil & Gas, Chemical & Energy Section Yuslinawati Mohd Yusof Director Transportation and Logistics Section Rusiah Mohamed Director Construction & Business Services Section Jamaliah Jamaludin Director Electrical & Electronics, ICT, Machinery & Equipment Section Mohammad Aminuddin Sham Tajudin Director Europe and Americas Section YM Raja Badrulnizam Raja Kamalzaman Director ASEAN & Oceania Section Norzihan Mohd Zain Director Finance Management Section Mansor Shah Wahid Director Central Asia, West, South & Africa Section Khairul Annuar Abdul Halim Director China and East Asia Section > until 24 December 2020 Noraslan Hadi Abdul Kadir Director Customised Programme & Digital Trade Section
MATRADE Annual Report 2020 22 The main function of MATRADE is to promote the export of Malaysian products and services as well as develop exporter activities which form the core purpose of its organisational structure. With a workforce of 604 staff, MATRADE assists Malaysian exporters penetrate the international market through its five regional and 46 overseas offices. Deputy Ceo Office (Export Acceleration) Export Promotion and Market Access Division Management Services Division Board of Directors Chief Excutive Officer Internal Audit Unit Integrity Unit Strategic Planning Division Deputy Ceo Office (Exporters Development) Transformation and E-Commerce Division ORGANISATION STRUCTURE
Spurring Exports In The New Norm MATRADE Organisation 23 01 02 03 04 05 Central, West and South Asia & Africa Trade Offices European & American Section Trade Offices Electrical & Electronics, ICT, Machinery and Equipment Section Transportation & Logistics Section Oil & Gas, Chemical and Energy Section Halal, Food & Beverage and Agro Section Lifestyle & Life Sciences Section Construction & Business Services Section ASEAN & Oceania Section Trade Offices China & East Asia Section Trade Offices • Almaty • Chennai • Doha • Dubai • Jeddah • Johannesburg • Cairo • Lagos • Mumbai • Nairobi • Tashkent • Budapest • Buenos Aires • Frankfurt • Istanbul • Kiev • London • Los Angeles • Mexico city • Miami • Milan • Moscow • New York • Paris • Rotterdam • Santiago • Sao Paulo • Warsaw • Bangkok • Hanoi • Ho Chi Minh City • Jakarta • Manila • Medan • Melbourne • Phnom Penh • Yangon • Beijing • Chengdu • Guangzhou • Hong Kong SAR • Osaka • Seoul • Shanghai • Taipei • Tokyo Financial Management Section • Financial Unit • Accounting Unit • Procurement Unit • Revenue Generation Unit Corporate Management Section • Administration Unit • Legal Unit Human Resources Section • Organisational Planning & Transformation Unit • Human Resource Management Unit • Competency & Talent Development Unit Facilities Management Section • Facility Management Unit • Asset Management Unit Research Section • Trade Analysis Unit • Trade Statistics Unit Strategic Development Section • Strategic Development Unit • International Collaboration Unit Coordination and Monitoring Section • Strategic Coordination Unit • Performance Monitoring Unit Strategic Communication Section • Corporate Communication Unit • Trade Publication Unit Development Assistance Section • Market Development Unit • Services Development Unit Special Programme Section • Mid-tier Company Unit • x-SEED Unit (Formerly Go-Ex Unit) • Bumiputera, Women & Youth Exporters’ Development Unit Digital Trade Section • eCommerce Ecosystem Unit • eTRADE Programme Unit Advisory Services & Exporters Training Section • Exporter Advisory Services Unit • Exporter Training Unit • Export Exhibition Centre Malaysia • Business Information Centre Regional Offices • Penang • Johor • Terengganu • Sabah • Sarawak Information Technology Section • Industrial Database & eServices Unit • Application Development Unit • IT Operations & Security Unit • Network Unit • Planning & IT Administration Unit
MATRADE Annual Report 2020 24 MATRADE BRANCH OFFICES • Penang • Johor • Terengganu MATRADE HEADQUARTERS • Kuala Lumpur MATRADE NETWORK 40 41 42 43 44 45 46 36 Countries 46 Trade Offices • Sabah • Sarawak
Spurring Exports In The New Norm MATRADE Organisation 25 01 02 03 04 05 37. Paris 38. The Hague 39. London 40. Sao Paulo 41. Buenos Aires 42. Santiago 43. Miami 44. New York 45. Mexico City 46. Los Angeles 1 2 3 6 14 15 16 17 18 11 10 12 13 4 5 8 9 7 19 20 21 22 23 24 25 26 27 30 32 33 34 35 36 37 38 39 31 28 29 1. Jakarta 2. Medan 3. Bangkok 4. Ho Chi Minh City 5. Hanoi 6. Manila 7. Yangon 8. Phnom Penh 9. Melbourne 10. Chennai 11. Mumbai 12. Hong Kong SAR 13. Guangzhou 14. Taipei 15. Shanghai 16. Chengdu 17. Beijing 18. Seoul 19. Osaka 20. Tokyo 21. Dubai 22. Doha 23. Jeddah 24. Almaty 25. Tashkent 26. Cairo 27. Nairobi 28. Johannesburg 29. Lagos 30. Istanbul 31. Budapest 32. Kiev 33. Frankfurt 34. Moscow 35. Warsaw 36. Milan
TRADE PERFORMANCE REPORT 02 MALAYSIA’S TRADE PERFORMANCE 2020 SUMMARY OF MARKET PERFORMANCE FTA & EMERGING MARKETS PERFORMANCE OF MAJOR SECTORS IMPORT PERFORMANCE PERFORMANCE OF SERVICES SECTORS
28 MATRADE Annual Report 2020 MALAYSIA’S TRADE PERFORMANCE 2020 In 2020, Malaysia’s trade surplus continued to register double-digit growth for the fourth consecutive year, widening by 25.9% to RM183.35 billion compared to RM145.66 billion in 2019. This was the largest trade surplus ever recorded, representing Malaysia’s achievement in sustaining trade surplus for 23 consecutive years, since 1998. In tandem with the unfavourable external environment due to the impact of COVID-19 pandemic, total trade contracted by 3.3% to RM1.784 trillion. Exports decreased marginally by 1.1% to RM983.83 billion, from the preceding year while imports declined by 5.8% to RM800.48 billion. Lower trade was recorded with Thailand, Singapore, Australia, India and Viet Nam. However, Malaysia’s trade grew with China, the United States (US), the Republic of Korea (ROK), Bahrain and Hong Kong SAR. China, Singapore, the US, Japan and Taiwan were Malaysia’s top five trading partners in 2020. Collectively, these five countries accounted for 52.8% or RM942.1 billion of Malaysia’s total trade. China was Malaysia’s largest 52.8% of TRADE China, Singapore, US, Japan and Taiwan accounted for RM942.1 billion of total trade export market, followed by Singapore, the US, Hong Kong SAR and Japan. These five countries accounted for 55% or RM541.18 billion of Malaysia’s total exports in 2020. Meanwhile, five main import sources were China, Singapore, the US, Japan and Taiwan, which collectively represented 54.4% or RM435.21 billion of total imports. * Share Singapore 12.1% China 18.6%* Japan 7% US 10% Taiwan 5.2%
29 Spurring Exports In The New Norm Trade Performance Report 01 02 03 04 05 In 2020, exports of manufactured goods with a value of RM849.5 billion, accounted for a larger share of total exports at 86.3%, an increase of 1.1%. Electrical & electronic (E&E) products were the biggest contributor to manufactured exports, with a 39.3% share or RM386.29 billion, a growth of 3.5%. Manufactured products that recorded significant export growth for 2020 were rubber products, E&E products, other manufactures mainly solid-state storage devices (SSD), optical and scientific equipment as well as iron and steel products. Major trade highlights of 2020: Recorded average monthly export value of RM81.99 billion Largest trade surplus ever registered RM183.35 billion (↑25.9%) E&E products remained as the largest export products, valued at RM386.29 billion or 39.3% share of Malaysia’s total exports China remained as Malaysia’s largest export market, with exports expanding by 13% to RM159.22 billion, the highest value thus far Third highest export value recorded, RM983.83 billion (the highest was in 2018: RM1.004 trillion, followed by 2019: RM995.07 billion) Exports of rubber products recorded strong growth of 71.4% to RM44.3 billion, in tandem with rising global demand for personal protective equipment (PPE) Exports grew to the emerging markets such as Costa Rica, Kenya, Nigeria, Ghana, Cote d’Ivoire and Kazakhstan Exports to the US registered a doubledigit growth of 13% to RM109.08 billion, the highest export value in the last decade 55% of EXPORTS 54.4% of IMPORTS Singapore 14.4% Singapore 9.2% US 11.1% US 8.7% Hong Kong SAR 6.9% Japan 7.7% Japan 6.4% Taiwan 7.2% China 16.2%* China 21.5%* * Share Exports of Manufactured Goods 1.1% RM849.5 billion Exports of E&E Products 3.5% RM386.29 billion
30 MATRADE Annual Report 2020 ASEAN In 2020, trade with ASEAN contracted by 8.9% to RM447.84 billion, accounting for 25.1% of Malaysia’s total trade. Five of Malaysia's top 20 trading partners were ASEAN countries namely Singapore (second), Thailand (eighth), Indonesia (ninth), Viet Nam (11th) and the Philippines (15th). Exports to ASEAN recorded a decrease of 4.7% to RM272.98 billion and contributed 27.7% to Malaysia’s total exports. The decline was due to lower exports to Thailand, Viet Nam, Indonesia, Cambodia and the Philippines. However, exports to Singapore, Brunei, Myanmar and Lao PDR registered increases. Products that recorded higher exports to ASEAN were E&E products, transport equipment and other manufactures (mainly SSD). Meanwhile, main exports were E&E products with 38% share, petroleum products (12%) as well as chemicals and chemical products (7.2%). Imports from ASEAN decreased by 14.7% to RM174.86 billion. Main imports were E&E products, petroleum products as well as chemicals and chemical products. Singapore was the major export market and accounted for 52.1% of total exports to the region. This was followed by Thailand (16.6%), Viet Nam (11.3%), Indonesia (10.8%), the Philippines (6.4%), Myanmar (1.1%), Brunei (1%), Cambodia (0.5%) and Lao PDR (0.02%). Major export products to Singapore were E&E products with 49.1% share, petroleum products (13.9%) as well as machinery, equipment and parts (6.3%). Exports to Singapore expanded by 3.7% to RM142.15 billion due to higher exports of E&E products, other manufactures (mainly SSD) and petroleum products. Imports from Singapore declined by 17.7% to RM73.68 billion. Main imports were E&E products, petroleum products as well as chemicals and chemical products. Major Export Market Singapore 52.1%* Thailand 16.6% Viet Nam 11.3% Indonesia 10.8% Philippines 6.4% Myanmar 1.1% Brunei 1% Cambodia 0.5% Lao PDR 0.02% Imports RM174.86 billion 14.7% Total Trade RM447.84 billion 8.9% Exports RM272.98 billion 4.7% Main Exports E&E Products Chemicals & Chemical Products Petroleum Products * Share to the region's total exports SUMMARY OF MARKET PERFORMANCE
31 Spurring Exports In The New Norm Trade Performance Report 01 02 03 04 05 China In 2020, trade with China increased by 4.7% to RM331.44 billion, constituting 18.6% of Malaysia’s total trade. China continued to be Malaysia’s largest trading partner for 12 consecutive years. China maintained its position as the largest export market, accounting for 16.2% of Malaysia’s total exports. Exports to China increased by 13% to RM159.22 billion underpinned by higher exports of iron and steel products, other manufactures (mainly SSD) as well as E&E products. Main exports were E&E products with 33.9% share, chemicals and chemical products (9%) as well as manufactures of metal (7.3%). China also remained as Malaysia’s largest import source, accounting for 21.5% share of total imports in 2020. Imports from China decreased by 2% to RM172.22 billion. Main imports were E&E products, machinery, equipment and parts as well as chemicals and chemical products. Imports RM172.22 billion 2% Total Trade RM331.44 billion 4.7% Exports RM159.22 billion 13% Main Exports E&E Products Chemicals & Chemical Products Manufactures of Metal
32 MATRADE Annual Report 2020 Northeast Asia In 2020, total trade with Northeast Asia (excluding China) was valued at RM379.5 billion, a marginal increase of 0.5% compared to the previous year. Exports to this region recorded a decline of 2.3% to RM199.53 billion, while imports rose by 3.7% to RM179.97 billion. Malaysia's major trading partners in Northeast Asia (excluding China) were Japan, Taiwan, Hong Kong SAR and the ROK. These countries collectively contributed 53.4% to Malaysia's total trade to this region. Japan remained as Malaysia’s fourth largest trading partner, with a total trade value of RM124.14 billion, which declined by 4.2% in 2020. Trade with this country accounted for 7% of Malaysia's total trade. Japan remained as Malaysia’s fifth largest export market in 2020. Exports to Japan decreased by 5.2% to RM62.56 billion mainly due to lower exports of liquefied natural gas (LNG), wood products and manufactures of metal. Main exports were E&E products with 31.3% share, LNG (22.5%) as well as optical and scientific equipment (4.3%). Imports from Japan decreased by 3.2% to RM61.58 billion. Main imports were E&E products, machinery, equipment and parts as well as chemicals and chemical products. Major Trading Partners Japan Taiwan Hong Kong SAR ROK Exports to Japan RM62.56 billion 5.2% Major Exports to Japan E&E Products LNG Optical & Scientific Equipment Imports RM179.97 billion 3.7% Total Trade RM379.5 billion 0.5% Exports RM199.53 billion 2.3% (excluding China)
33 Spurring Exports In The New Norm Trade Performance Report 01 02 03 04 05 Hong Kong SAR, which was Malaysia's sixth largest trading partner, with a total trade value of RM82.36 billion, increased by 2.1%. Trade with this country accounted for 4.6% of Malaysia's total trade. Hong Kong SAR remained as Malaysia’s fourth largest export market with a value of RM68.17 billion, expanded by 2.3% compared to 2019. This increase was mainly attributed to higher exports of E&E products, processed food as well as optical and scientific equipment. Main exports to Hong Kong SAR were E&E products with 84.4% share, other manufactures (mainly SSD) (4.6%) and petroleum products (1.8%). Imports from Hong Kong SAR rose marginally by 0.9% to RM14.2 billion. Main imports were E&E products, optical and scientific equipment as well as machinery, equipment and parts. Meanwhile, the ROK was Malaysia's seventh largest trading partner with a total trade of RM80.83 billion (4.5% share), grew by 10.6% compared to last year. Exports to the ROK recorded a growth of 1.4% to RM34.71 billion and was Malaysia’s seventh largest export market. This was due to higher exports of E&E products, crude petroleum and petroleum products. Main exports were E&E products with 39.2% share, LNG (17.9%) and manufactures of metal (5.5%). Imports from the ROK increased by 18.8% to RM46.11 billion. Main imports were E&E products, transport equipment as well as petroleum products. Taiwan was Malaysia's fifth largest trading partner and accounted for 5.2% of Malaysia's total trade. Total trade with Taiwan amounted to RM91.91 billion, 2.3% lower than the previous year. Taiwan also remained as Malaysia’s eighth largest export market in 2020. Exports to Taiwan slipped by 8.5% to RM33.87 billion due to the decline in exports of LNG, iron and steel products as well as chemicals and chemical products. Main exports were E&E products with 56.9% share, optical and scientific equipment (12.1%) as well as manufactures of metal (3.9%). Imports from Taiwan increased by 1.7% to RM58.03 billion. Main imports were E&E products, chemicals and chemical products as well as iron and steel products. Exports to Taiwan RM33.87 billion 8.5% Major Exports to Taiwan E&E Products Manufactures of Metal Optical & Scientific Equipment Exports to ROK RM34.71 billion 1.4% Major Exports to ROK E&E Products Manufactures of Metal LNG Exports to Hong Kong SAR RM68.17 billion 2.3% Major Exports to Hong Kong SAR E&E Products Petroleum Products Other Manufactures
34 MATRADE Annual Report 2020 Trade with West Asia decreased by 8.2% to RM66.42 billion in 2020 compared to RM72.36 billion recorded in the previous year. The United Arab Emirates (UAE) and Saudi Arabia remained as the major trading partners in West Asia in 2020, each valued at RM20.65 billion (31.1% share) and RM20.3 billion (30.6%). Exports to West Asia also contracted by 8.8% to RM26.44 billion compared to RM29 billion in 2019 due to the decline in exports of jewellery, E&E products as well as chemicals and chemical products. Major export products to the region were palm oil and palm oil-based agriculture products, valued at RM5.43 billion and accounted for 20.5% of Malaysia's total exports to West Asia, followed by E&E products (13.7%) and processed food (6.8%). Imports from this region dropped by 7.8% to RM39.98 billion in 2020 from RM43.36 billion in 2019. Main imports were crude petroleum, petroleum products as well as chemicals and chemical products. The UAE was the major export market and accounted for 32.1% of total exports to the region. It was followed by Turkey (29.3%) and Saudi Arabia (15.7%). Major export products to the UAE were E&E products with 26.8% share, jewellery (15.2%) as well as machinery, equipment and parts (6.2%). However, exports to the UAE recorded a decrease of 24.1% to RM8.49 billion due to lower exports of jewellery, E&E products as well as machinery, equipment and parts. Imports from the UAE declined by 21.2% to RM12.16 billion. Main imports were petroleum products, manufactures of metal and crude petroleum. West Asia UAE Saudi Arabia Imports RM39.98 billion 7.8% Total Trade RM66.42 billion 8.2% Exports RM26.44 billion 8.8% Main Exports E&E Products Processed Food Palm Oil (Agriculture) Major Trading Partners
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