JAPANESE IMPORTERS LOOKING TO M'SIA AS ATTRACTIVE IMPORT DESTINATION

By Christine Lim May Yu

KUALA LUMPUR, June 7 (Bernama) -- Malaysia is gaining prominence as an
attractive import destination for food, cosmetics and furniture products among
Japanese importers.

Noriyuki Kurita, President of Maruni Furnishing Inc, a furniture supplier,
says Maruni sees more interest in Malaysian furniture and wood-based products
this year.

"We have just ordered rubber wood sawn timber from Malaysia for a trial
shipment and expected to receive products in August or September," he told
Bernama in an interview.

Kurita said the company, which previously imported furniture and wood-based
products mainly from its factory in China, will now look at Malaysia as a source
for quality materials.

Maruni has been importing furniture and wood-based products from its factory
in the state of Melaka prior to 2001.

"However, the import volume from Malaysia has declined since 2001, as the
company shifted its focus to import more from China which is more competitive in
terms of price," Kurita said.

He said the Maruni factory in Melaka had since ceased operations and there
is no plan to open a factory in Malaysia.

He said Malaysia's furniture quality seemed to have improved over the years
based on his observation during his visit to Malaysia's International Furniture
Fair this year.

Based on trade statistics, Japan's furniture imports from Malaysia was
increasing. China, Vietnam and Thailand have been Japan's traditional furniture
importing nations.

"What Malaysia needs to improve is to enhance its quality-control process,"
he said.

Malaysia External Trade Development Corporation (Matrade) director
Yuslinawati Mohd Yusof said despite under severe economic condition, Malaysia
recorded 2.16 per cent positive growth in furniture exports from US$217.23
million in 2008 to US$221.93 million in 2009.

"Major competitors -- China, Thailand and Taiwan -- recorded significant
slide during the period," Yuslinawati told Bernama.

Hiroshi Tsukamoto, President of Goody Corporation, a subsidiary of Momose
Japan, one of the largest confectionary wholesalers, said while Chinese products
may be more price competitive, it lacks in quality and health safety.

"Malaysian exporters are willing to adjust to Japanese consumer taste
and suit the Japanese market," Tsukamoto told Bernama.

Manager of Shinpoh Foods Co Ltd Itaru Takahashi said the company recently
shifted importing mini-pizzas to Malaysia from its previous North American
supplier. Shinpoh Foods supplies food to hotels in Japan.

"Malaysian exporters are willing to modify their products," he told Bernama.

Fumika Kawakubo, President of BE MORE Co Ltd, importer of cosmetics
products, said Malaysia has good potential to provide quality products at
reasonable price.

"There are not many companies that can produce herbal cosmetics, and with
the growing consumer preference for natural non-chemcial based products,
Malaysia can take advantage to export more of its cosmetics products based on
natural ingredients," he told Bernama.

Shingo Iseto, sales division manager of Taishin Company Ltd, Japanese
importer of Malaysian tea and confectionery, said price competition was very
keen in Japan and import duty removal will provide more competitive prices.

"Pudding and confectionary, which has sugar content, has high import duty in
Japan," he told Bernama.

He said under Malaysia's Economic Partnership Agreement (EPA) with Japan,
tariff elimination provides better market access.

Iseto said import duty for pudding is 28 per cent but only 23.8 per cent
under the Japan Malaysia EPA.

Japan and Malaysia signed the EPA in December 2005. The EPA, which came into
effect on July 2006, provides for tariff elimination of nearly 97 per cent of
trade in goods between the two countries.

It will considerably promote trade in agriculture, forestry, fisheries and
industrial products between the two countries.

Under the EPA, palm oil products exported to Japan are free from tariff
charges.

Hideaki Sasaki, President of Yehna Corporation Ltd, Importer of Malaysian
palm oil, namely carotino oil, said Japanese used palm oil mainly for
industrial purposes.

"Neighbouring country Indonesia is also known as a palm oil producer but
Malaysia can produce red palm oil rich in natural corotenes and vitamin E-rich
oil which only Malaysia can produce," he told Bernama.
-- BERNAMA