Tap Huge Market Potential In Bulgaria, Malaysian Firms Urged

By Nurunnasihah Ahmad Rashid KUALA LUMPUR, April 1 (Bernama) -- Malaysian companies should tap the huge market potential in Bulgaria especially in the technology, pharmaceutical, machinery and electronic equipment segments, says the Malaysia External Trade Development Corporation (Matrade). "With a population of 7.26 million, Bulgaria's market cannot be ignored by Malaysian companies. The economic reforms there are proving to be a real engine of growth," Matrade Deputy Chief Executive Officer Susila Devi told Bernama. Speaking on the sidelines of Bulgarian Foreign Minister Daniel Mitov's presentation on the Eastern European country's business and trade opportunities here recently, Susila noted that trade between Malaysia and Bulgaria grew at 20 per cent per annum from US$30.9 million in 2006 to US$92.2 million in 2015. Of the total, exports were valued at US$57.4 million and imports at US$34.8 million, she said. "This trade value is small, and in order to increase it, both Malaysia and Bulgaria need to identify areas in trade that will benefit both countries particularly in sectors where we have strength such as electrical and electronics products, palm oil products, healthcare services, infrastructure development, oil & gas services and professional services," she added. Malaysia's major exports to Bulgaria include electrical and electronics (E&E) products; palm oil and palm-based products; optical and scientific equipment; machinery; appliances and parts; and transport equipment. Malaysia imports from Bulgaria mainly E&E products; machinery; appliances and parts; chemicals and chemical products; paper and pulp products; and manufactures of metal. She said Bulgaria also provides access to other growing European countries such as Romania, Belarus, Czech Republic and Hungary. "Malaysian companies should see this as an opportunity to expand their market, and partnering with Bulgarian companies could help them explore other Eastern European markets where labour and production costs are low. "Our total exports to Eastern European countries are very small at only eight per cent compared with Singapore (14.6 per cent), China (10.5 per cent) and the US (10.2 per cent)," she added. Meanwhile, Mitov said Bulgaria offers a wide variety of incentives for foreign investors, pointing out that it has one of the most favourable tax regimes and the lowest corporate income tax of 10 per cent in Europe, besides a streamlined and easy-to-navigate tax administration system. "We not only encourage foreign investments but have structures in place to facilitate the entire investment process, improve transparency and ensure equality of treatment with local investors. "The currency risk is low and we have one of the lowest budget deficit levels in the entire European Union, making sure that investors can enter the market with a long-term perspective and predictability," he said. Mitov said Bulgaria's information technology, tourism, agriculture and pharmaceutical sectors are quite robust. "I think if we continue with those areas for investment between Malaysia and Bulgaria, that would be helpful to boost our economic relationship. "Being a gateway to the EU, we offer the lowest-cost access to its market of over 500 million consumers," he added. Mitov said the current economic situation actually creates an opportunity for both countries. "We should not be overly influenced by such circumstances, we need to have a strategy such as a focus on certain areas where cooperation could flourish even without taking into account the fluctuations in oil and gas prices. "The target would depend on entrepreneurs from both sides -- they should estimate what kind of investment to make and the costs -- but we will have a legal business framework for them, so they can feel safe when investing in either country," Mitov said. --BERNAMA