USE MIAMI AS GATEWAY, MATRADE TELLS M'SIAN FIRMS

By Manik Mehta

MIAMI (Florida), Aug 23 (Bernama) -- While Malaysian companies may
concentrate on the huge US market on the mainland, it would be a strategic
mistake to ignore the untapped markets in its proximity, particularly in the
Caribbean and Latin America, which are inherent with good business potential.

Indeed, Miami, in the southernmost part of Florida on the coast of the
Atlantic Ocean and close to the Bahama Island, has profiled itself as the
"gateway to the Caribbean and Latin America".

In an interview with Bernama, Jonathan Rao, Malaysia’s trade commissioner in
Miami, said: "Miami, which is home to a large-Spanish speaking population,
serves as an entrepot for trade and business with a number of Caribbean and
Latin American countries from where company representatives often visit Miami to
place import orders and attend trade shows and other commercial events that
serve as sourcing platforms for them.

"Malaysian companies need to do some proactive marketing because these
(Caribbean and Latin American) markets offer good business potential."

He pointed out that statistics provided by the US Customs District showed
that imports into Miami from Malaysia during the first half of 2011 posted a
robust growth of 59.1 percent to US$100.8 million compared to the year-earlier
period.

Malaysia's major exports included electrical and electronic products,
machinery, furniture, optical and scientific instruments, and rubber products.
Other Malaysian exports were processed foods and aircraft spare parts.

"We discern an increasing diversification in Malaysia’s exports to Miami.
For the current year, we hope to surpass the US$158 million import level
recorded by Miami in 2009.

"Based on our interactions with major importers in Miami, we find they are
increasingly looking at Malaysia as a preferred sourcing industry because of its
high quality and reliable suppliers," Rao said.

In 2010, the amount of total trade handled by Miami was US$95.4 billion, an
increase of 20.6 percent over 2009. A major part of these imported products were
re-exported to Latin America and the Caribbean region.

"Miami has strategically positioned itself as the distribution, financial
and logistic hub for the US and countries in Latin America and Caribbean," Rao
observed, adding that Miami would certainly offer the confluence for Malaysian
exporters to expand their market into the Americas.

"We will intensify our promotion efforts by riding on this platform to
expand Malaysia’s exports both in terms of markets and the range of products
traded.

"We want to join on this bandwagon along with others who are already here.
There is also growth potential for the services sector of Malaysia in this
region," he said.

Historically, consignments from Asia destined for the US market are shipped
across the North Pacific Ocean before being offloaded on the west coast.

However, in view of the expansion of the Panama Canal by 2014, this scenario
might undergo a change with Post-Panamax vessels taking the all-water route to
the east coast of the United States and the south corridor for a full container
load.

"This development would also mean a growing trade volume between the
Americas and Asia, including Malaysia.

"Consequently, given its geographic proximity, Malaysian exporters would
find South Florida a strategic entry point for the United States, east coast and
south seaboard," Roa explained.