M'IA'S TEXTILE SECTOR IS NOT A "SUNSET INDUSTRY"

By Manik Mehta

FRANKFURT, Jan 19 (Bernama) -- Contrary to the widespread perception in
Malaysia's business circles, the country's textile sector, which is a shadow of
its past glory because of rising costs and incompetitiveness, is not a "sunset
industry".

Indeed, the textile industry should be promoted and encouraged to flourish,
experts say.

This is the verdict of a number of experts at the ongoing Heimtextil trade
fair of Frankfurt, the world's biggest event for the home-textile industry.

A single Malaysian company called Recron (Malaysia) Sdn Bhd of Kuala
Lumpur, is displaying its textile and textile-based products, even though there
are huge contingents of exhibitors from other -- even more expensive -- Asian
supplying countries such as Singapore, Taiwan, Hong Kong and South Korea.

"I don't think it is a sunset industry," Raja Badrulnizam Raja Kamalyam,
Malaysia's trade commissioner told Bernama when asked whether Malaysia's textile
industry was a "sunset industry".

"The problem, in my personal view, is that many Malaysian textile companies
are probably not aware of this fair or they are deterred by the high costs of
participation. But this is also the fair where you meet not only German but
also many foreign buyers. It's also one way to make yourself known to
international buyers, particularly at a time of recession. By participating in
a trade fair, you also strengthen your foothold within the market," he argued.

Recession has, of course, hit Asian exports. Some Asian exhibitors at the
Frankfurt trade fair appeared depressed by the market downturn which is having a
disastrous effect on their exports.

Raja Badrul described the Heimtextil as an "eye opener" for those wanting to
enter a sophisticated market. He said he would urge Malaysia's textile
association and other organisations to send a "fact-finding mission" to the
Heimtextil because of the inherent business potential in the event.

"Even though Germans are not spending as much as they used to as a result of
the economic uncertainties, you can find many foreign buyers at shows such as
the Heimtextil. While many experts expect the recession to continue for
sometime, you have to position yourself in the market when the recession is
over," he said.

Olaf Schmidt, vice president (textile fairs) of Messe Frankfurt GmbH, which
organises the Heimtextil show, was equally perplexed by Malaysia's low-key
presence at the show.

"After all, Heimtextil is the international platform for export contacts.
If Malaysia's textile industry wants to succeed, it cannot ignore the Heimtextil
event, despite the global economic crisis which is making companies resort to
austerity measures, including job cuts. But such austerity measures should not
exclude participation in trade fairs," Schmidt emphasized in an interview with
Bernama.

Even as many recession-plagued countries have had disastrous sales before
and during the Christmas season, when consumer buying is at peak, the Christmas
season in Germany had been "satisfactory", according to Schmidt.

Meanwhile, Raja Badrul released figures for German-Malaysian two-way trade
from January to October 2008. Malaysia's imports from Germany for the first 10
months of 2008 rose by 4.4 per cent to US$4.89 billion while Malaysian exports
to Germany during the same period went up by 3.9 per cent to US$3.98 billion.

Malaysia has been able to assert its position as ASEAN's number one exporter
to Germany and, on an overall basis, Germany's 37th biggest trading partner
worldwide during the January to October 2008 period, according to Malaysia's
trade commissioner.

Malaysia's main exports to Germany include electronic and electrical
products, electrical machines, printers, machinery parts and components, rubber
products and optical lenses.
-- BERNAMA