Malaysia-China Trade Target Of US$160 Bln Can Be Achieved Only By 2020

By Azizul Ahmad KUALA LUMPUR, Aug 3 (Bernama) -- The Malaysia-China trade target of US$160 billion can only be achieved by 2020, instead of next year, Malaysia External Trade Development Corporation (MATRADE) said. MATRADE Director for China Unit, Market Access Section Ong Yew Chee said although the trade volume between both countries had been increasing for the past few years, the target could only be met in 2020 at a minimum average annual growth of five per cent. He said the trade target was affected by falling oil and gas, palm oil and rubber prices, as well as the depreciation of the ringgit against the greenback. Trade between the two countries rose 11.1 per cent last year to RM230.89 billion (US$1=RM4.06) from RM207.80 billion in 2014, he said, adding that in 2013, the two-way trade stood at RM203.31 billion. The total trade for the first six months of this year amounted to RM108.85 billion, up two per cent compared with RM106.70 billion in the same period a year ago. China remains Malaysia's largest trading partner for the seventh consecutive year, while Malaysia retains its position as China's largest trading partner in Southeast Asia. "Electrical and electronic products still hold the key in Malaysia's export to China, but the latest trend shows that processed food and fruits also potentially contribute to the future list. "Imported food products undergoing stringent test by China's authority and due to the perception of quality, demand emerged from the local people. "We also want to push for more fruits to their market as China now has allowed that to happen," Ong told Bernama after a press conference on the 120th China Import and Export Fair (Canton Fair), organised by the China Foreign Trade Centre (CFTC). The CFTC, a government-sponsored institution affiliated to China's Ministry of Commerce, has been organising the Canton Fair since 1957. Ong said MATRADE would lead 40 Malaysian companies to the 120th Canton Fair Autumn Session from Oct 31 to Nov 4, 2016 in Guangzhou, and they would mainly showcase food and beverages, pharmaceuticals and houseware products. "In an effort to boost export, MATRADE will also be involved in the China-ASEAN Expo from Sept 11-14 in Nanning and the Malaysia Promotion Programme in Shanghai from Nov 7-13," he said. In 2013, the leaders of the two countries had set the target of achieving a total trade volume of US$160 billion by 2017. -- BERNAMA