JAPAN NEEDS AUTOMOTIVE COMPONENTS, TIMBER AND E&E PRODUCTS, SAYS MATRADE

From Amer Hamzah Md Sap

YOKOHAMA, March 20 (Bernama) -- Japan is in dire need of three main
materials now following the March 11 earthquake, tsunami and the subsequent
radiation leakage threat that followed at its nuclear plant in Fukushima.

Director of Malaysia External Trade and Development Corporation (Matrade),
Yuslinawati Mohd Yusof, who is based in Japan, said the country needed the spare
parts and accessories for its automotive industry, electrical and electronics as
well as for its wood industry.

"The earthquake and tsunami in Tohoku region had destroyed the industries
which had its plants widely located in the area," she told Bernama at the
sidelines of the Malaysian Automotive Industry Exhibition (MAIE) being held in
conjunction with the Automotive Engineering Exposition (AEE) here.

The event had greatly affected other industries as well, as the area had
housed many centres that produced spare parts and components and they have not
been able to supply the needed parts and components from other areas as well.

Japan also requires a lot of timber products required to rebuild the
infrastructures in the area, especially houses that have been destroyed.

"The destruction in Kashima Petrochemical Complex in Ibaraki also brought on
a shortage in raw plastic materials required for the production of food
packaging materials," she said.

A steel factory destroyed in the event had also disrupted the supply of
steel materials, she added.

Yuslinawati nevertheless called on Malaysian suppliers keen to trade with
their friends in Japan to showcase well the quality of their respective products
and if they are better than products from the United States or Europe.

"The testimonials on their products must be well founded and backed by real
data," she said, adding that in terms of pricing, Malaysian producers would have
difficulty competing.

Although the prices of Malaysian products are more competitive, they are
still more expensive than those produced by China or Taiwan, she said.

Apart from that, Malaysian suppliers would also have to be very patient and
be regularly in touch with their potential clients in Japan to show that they
are serious.

"Once they (buyers in Japan) decide to buy from us, they would become loyal
customers," she said.

Yuslinawati who has been serving in Japan four years, is expected to return
to Malaysia this July.

She said trade between Malaysia and Japan is expected to rise this year
despite the disaster that had struck the country.

About 45 per cent of Japan's imports from Malaysia in the past consisted of
liquefied natural gas (LNG) and petroleum based products. This demand is
expected to continue in line with its need for electric power, she said.

Trade between the two countries for the January to March period this year
amounted to US$11.47 billion with Japan's imports coming to US$6.92 billion and
its exports to Malaysia US$4.55 billion.

The figure was also a 26.04 per cent rise from the total trade seen during
the same period last year.

Yuslinawati added that the impact of the earthquake, tsunami and the
radiation leak would be seen only from the second quarter this year.