Local demand for machinery still largely met by imports

Malaysia still a vital market for German machinery, equipment

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Malaysia still a vital market for German machinery & equipment

Extract from The Star Publication 3 June 1999

Malaysia remains an important market for German machinery and equipment in the Asean region, said Dr Rainer Herret, executive director of Malaysian-German Chamber of Commerce and Industry (MGCC).

He said German sales of machinery to Malaysia remained at a high level. “The percentage of machinery and equipment within the total German exports to Malaysia increased to 33% in 1998 compared wit 27% the previous year.”

“We are also interested in bilateral trade, which means bringing Malaysian products to Germany,” Herret said, adding that Malaysia had broad resources particularly for the manufacturing and rubber-based industries.

He said that apart from the export business, MGCC also expected to penetrate the still untapped opportunity in subcontracting in Malaysia on behalf of German businessmen.

Herret said the chamber had complied a comprehensive database on Malaysian companies that were “quality certified” by ISO9000 and interested in having close co-operation with partners from Germany. 

First Secretary (Economic and Commercial Affairs) from the German Embassy, Dr. Marion Weber, said that with the economy recovering more German companies, particularly small and medium enterprises (SMEs), had expressed interest in entering the Malaysian market.

“SMEs are also encouraged to look at Malaysia as a market base in the Asian region. They can complete their products in Malaysia and distribute them to other countries,” she said.

Hermann D. Steib, the representative of German Machinery and Plant Manufacturers’ Association, said that German machinery exports to Malaysia in 1998 went to a wide range of sectors and reflected the diversity of the local industry. Among the main sectors were iron, steel and rolling-mill equipment, printing and paper machines, prime movers, rubber and plastics machines and mechanical handling.

More than 200 German companies are operating in Malaysia, of which about 90 are production entities. Over 10 companies from Germany participated in the five-day trade fair which started yesterday. The firms included Internormen-filter, Mathematisch Techn. Software, Diatest and RS Consult. – Bernama.

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Local demand for machinery still largely met by imports

Extract from The Star Publication 4 June 1999

Domestic demand for machinery and equipment is still largely met by imports although there is a significant percentage in local production of certain types of machinery and equipment, Deputy International Trade and Industry Minister Datuk Kerk Choo Ting said in Kuala Lumpur yesterday.

Kerk said the total imports of all types of machinery and equipment, excluding electrical machinery, into Malaysia amounted to RM32.2bil in 1998. To reduce the level of imports for machinery and equipment, Kerk said, the government was promoting a further development of the machinery and equipment industry.

“We will continue to promote the growth and development of the manufacturing sector as one of the leading sectors within the Malaysian economy.

Kerk stressed that it would be critical to develop a competitive machinery and equipment industry in order to attain a greater foundation for the further development of the manufacturing sector. To achieve that, the government had lined up various incentives such as relaxed equity and export return for manufacturers who set up business from the middle of 1998 to the end of 2000 and incentives for research and development.

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Kerk said the industrial sector remained the leading segment in the economy, contributing 34.4% to gross domestic product (GDO), 82.9% to total exports and 27% to total employment in 1998. For the first quarter this year, 145 projects were approved with capital investments amounting to RM1.8bil, of which foreign investments came to RM1.3bil or 72.8%.

Kerk identified the US, Japan, Taiwan Singapore and the Netherlands as the nations that where among the major sources of foreign investments.

The major types of machinery and equipment produced locally include industrial boilers, pressure vessels, cryogenic tanks, mechanical and hydraulic presses, shearing and bending machines, air-conditioning and refrigeration equipment.

The other were handling equipment such as conveyors, elevators and escalators, tower cranes and port cranes, rubber and palm oil processing/refining machinery, factory automation equipment s well as automatic/semi-automatic equipment for the electrical and electronics industry.

Of the exhibition, Kerk regarded the event as timely and useful for the benefit of both local and foreign business in exploring business opportunities, tie-ups or even collaboration for mutual benefits. – Bernama.