tag:blogger.com,1999:blog-82712394670929806662024-03-13T23:17:12.851-07:00International Business and TradingBENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.comBlogger44125tag:blogger.com,1999:blog-8271239467092980666.post-88729929667741916612017-01-01T16:30:00.000-08:002017-01-01T16:30:02.632-08:00Terdapat pelbagai agensi kerajaan yang boleh membantu usahawan usahawan tempatan untuk menyiapkan diri bagi perniagaan eksport. Agensi agensi ini menawarkan perkhidmatan dalam pelbagai aspek seperti program latihan asas asas menjalankan perniagaan, program pembangunan dan pemasaran produk, program pensijilan dan penglabelan dan program pemasaran ke pasaran antarabangsa. Ada juga agensi agensi yang menawarkan bantuan kewangan dalam bentuk geran atau pinjaman mudah bagi membantu usawan dalam aspek aspek tertentu termasuk pengeluaran, teknologi, pembangunan produk, persijilan dan penglabelan serta pemasaran.<br />
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Bantuan-bantuan yang ditawarkan ini akan dapat membantu usawahan untuk mengurangkan kos operasi walaubagaimanapun usahawan perlu mempunyai minda progresif untuk memanafaatkan bantuan ini dengan menumpukan usaha untuk memperkembangkan perniagaan ke pasaran antarabangsa. Segala bentuk bantuan ini tidak akan dapat membantu usahawan maju kedepan sekiranya bantuan seratus peratus diharapkan dari pihak agensi terbabit. Minda yang progresif dan pelabiran sendiri juga diperlukan agar usahawan dapat memberikan satu komitmen kukuh untuk mamajukan perniagaan ke peringkat yang lebih tinggi.<br />
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<br />BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-1671278709366545032016-12-31T17:42:00.002-08:002016-12-31T17:42:22.880-08:00Selamat Tahun Baru 2017<br />
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Untuk menerokai pasaran antarabangsa, langkah pertama adalah usahawan perlu ada azam dan minat untuk mengembangkan perniagaan ke luar negara serta mempunyai sikap yang positif untuk melalui proses persediaan untuk eksport. <br />
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Apa yang sudah tersedia adalah produk dan perkhidmatan yang usahawan sudah bangunkan untuk pasaran tempatan dan sudah sedia terjual. Walaupun begitu pasaran tempatan agak terhad dengan bilangan pengguna yang kecial dan bilangan pesaing yang tinggi. Terlalu ramai usahawan yang mengekuarkan produk dan perkhidmatan yang sama dan bersaing sesama sendiri untuk merebut pengguna tempatan yang hanya kecil seramai 30 juta. Mengapa tidak keuar dari kepompong dan merebut pasaran luar yang mempunyai 7 billion pengguna.<br />
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Produk sudah ada, perkhidmatan pun sudah ada. Apa yang perlu sekarang adalah bagaimana untuk menyediakan produk dan perkhidmatan ini untuk pasaran antarabangsa. Sebelum itu, bagi pasaran tempatan sudah ada keperluan dan specifikasi yang perlu diikuti untuk memperolehi piawaian dan standard bagi pasaran tempatan. Ini adalah penting kerana ini adalah langkah awal untuk menyediakan produk atau perkhidmatan ke luar negara.<br />
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Bersambung...BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-922182443127420362016-12-27T00:56:00.000-08:002016-12-27T00:56:15.602-08:00Lama tidak post atas sebab kesibukan tugas harian.<br />
Melihatkan keadaan ekonomi semasa dengan pelbagai isu yang melanda beberapa tahun kebelakangan ini seperti kejatuhan harga minyak, ketidak stabilan pergerakan matawang asing serta isu isu geo politik telah merubah trend pengguna global. Isu isu ini secara tidak langsung telah menyebabkan kos kehidupan yang semakin meningkat dan akibatnya juga telah menimbulkan masalah sosial. Begitu juga kos perniagaan juga semakin meningkat yang menyebabkan setengah perniagaan terpaksa ditutup atau mengalami pendapatan yang semakin betkurangan.<br />
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Walaupun begitu, peluang-peluang perniagaan masih ada dan perlu terus diterokai oleh syarikat-syarikat kecil dan sederhana. Pasaran domestik adalah terhad jadi pasaran luar yang lebih luas perlu ditinjau dan disasarkan untuk perkembangkan perniagaan.<br />
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Adalah mudah untuk menyatakan bahawa pasaran luar atau yang dikenali sebagai pasaran eksport adalah amat besar dan banyak potensinya. Tetapi proses atau langkah-langkah yang perlu dilakukan untuk membolehkan produk atau perkhidmatan dapat merentas sempadan adalah penuh dengan ranjau dan duri. Proses ini perlu untuk memastikan peniaga atau usahawan bersiap sedia untuk bersaing dengan pelbagai produk dan perkhidmatan dari lebih daripada 200 buah negara di seluruh dunia.<br />
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Bersambung..<br />
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<br />BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-48289179853397760622015-05-01T18:08:00.001-07:002015-05-01T18:08:22.734-07:00Global economy is showing slower growth and this will impact international trading. However, opportunities are still out there as demand continues to grow amid slower than five years ago.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-57587918964509270342012-06-09T22:59:00.000-07:002012-06-09T22:59:12.705-07:00World economy is not getting any better. China has shown some indications of slowdown in its economy, in particular exports as global demand struggling and trade protectionism measured increased. Regardless the dim global outlook, China's domestic economy remains resilient with private and consumer spending continues to increase and Government is putting more efforts to encourage its population to spend more. Spending on discretionary products and services is also on the rise at the back of improving living and income conditions.<br />
<br />BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-26788458013011974872012-04-20T17:42:00.000-07:002012-04-20T17:42:52.038-07:00Food security and safety is very critical in ensuring healthy society. Many economies are still struggling in enforcing laws to make sure food producers adhere to the safety standards, end up with many consumers died and suffered from the defect products. What happened in China recently prove the fatality of these food products that contain excessive level of chemical contents or subtances used that are beyond our imagination such as old shoes and paper.<br />
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Stern punishment needs to be imposed on those producers who have betrayed the public by contaminating their food production with all these 'unacceptable' substances. Public should not be victimised by the 'it's ok' attitude from the producers that are only thinking of making fast bucks through cheaper ways.<br />
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In case of China, for those who can afford, they can switch to imported food products that are supposed to be of high quality and possess strict quality control. But what happen to consumers that do not have such affordability and live in rural areas, they do not have much choice or they even are not aware of the food safety issues that becoming more serious in the country. Awareness programmes should be undertaken especially in rural areas folks so that they are more cautious of food items that have problem and avoid using them.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-20784232932877635082012-03-23T21:38:00.000-07:002012-03-23T21:38:41.235-07:00The current global economic uncertainties have made international business and trading more challenging. There are more and more trade protectionism measures imposed which make movement of goods and services more difficult. These measures are aimed at safeguarding the local industries and hopefully to sustain the competitiveness in the global market. Exports are affected hence more focus now is given to domestic market. Big markets like China, India and Indonesia may not need to rely solely on exports for their economic growth but rather increasing private consumption and spending but for some economies which have exports account for more than 100% of its GDP, like Malaysia and Singapore which are smaller markets,, slowing exports may lead to slower economic growth though it is also important to revive the domestic market to offset whatever slow in exports.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-46681498988569984162012-03-10T20:20:00.000-08:002012-03-10T20:20:58.994-08:00Even China is revising its economic growth downward to 7.5% in 2012, mainly due to Eurozone instability and US slow recovery. The country realizes that they cant rely heavily on exports and foreign direct investment but need to stimulate the domestic consumption to sustain its growth. China however is still hunger for energy and mineral resources due to its huge volume of infrastructure development as well as manufacturing so imports are expected to register more rapid pace as against exports.<br />
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The growth sector is in Asia, with not only China leading the way, but markets like ASEAN and india are also growing albeit as slower rate, as againt the developed economies. More investments are coming to Indonesia, Vietnam and Myanmar as well as India. Indonesia with 240 million population is opening its market to foreign investors, likewise Vietnam has been doing the same thing for the past decade.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-26630187686119200922012-03-03T17:02:00.000-08:002012-03-03T17:02:02.728-08:00China is leading the world's economic growth in 2012 albeit slowdown in its economy. Despite the economic growth is forecast at 7-8 percent in China, it will continue to offer multiple opportunities to foreign business community. The Government realises that they can no longer rely solely on exports and foreign direct investment for its sustainable growth due to global uncertainty especially in Euro Zone and the US, but acknowledge that domestic consumption will fuel the engine of growth for many years to come.<br />
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Chinese has been well known as a society that loves to save. In fact, China has one the highest saving rates in the world. That's the reason why Chinese consumers can purchase cars and houses in cash rather than depending on bank loans or mortgages, something that is used to be non-existence compared to today. The Government is putting up efforts how to stimulate domestic consumption through various programmes, including increasing the income level of the poor people and improving the social security. If these reforms successful, China will be able to continue to prosper.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-28816789283525378052012-02-25T02:46:00.000-08:002012-02-25T02:46:32.311-08:00The year 2012 is another challenging year, both politically and economically, and in which both are inter-dependence. Political stability is required for a nation to prosper economically and likewise economic stability is needed for a stability in politics. This year witnesseses Euro Zone struggles to manage sovereign debt crisis of several of its members and the economy in the US is still in its recovery mode amid positive indication of positive growth in domestic consumer spending and unemployment rate.<br />
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The Arab Spring, on the other hand, has impacted the Arab world in particular with crisis still persist despite efforts by various quarters to manage the situation. Situation gets worsen in some countries due to differences of different factions which are unable to find common solution. This unstability has affected the economy and people starts to feel the adverse effects of the conflicts.<br />
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Regardless of what has happened and what will be happening, international business continues though at slower rate. Asia is the focus of attention, amid the uncertainty in Euro Zone and the US. China leads the pack of Asian countries in sustaining the world's economic growth though it is expected that the 2nd biggest economy in the world is also expected to post slower growth this year, but at least its domestic growth is still relatively strong due to increasing demand from its 1.3 billion population and the increasing purchasing power. India is also expected to be registering steady growth this year, followed by ASEAN member economies that are increasingly contributing to the growth of world's economy.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-84452110419237015912012-01-07T21:43:00.000-08:002012-01-07T21:43:12.683-08:00Happy New Year 2012. Hope new year will bring more prosperity and good health to all of us.<br />
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The world enters new year with uncertainty in the global economy. The Euro Zone crisis persists despite various measures undertaken to cool off the heat. The US economy continues to slow down albeit some indications of recovery toward 2011 year end. Asia is also feeling the heat from both regions, though world economic growth in 2012 is expected to be very much compensated by the yet steady growth in Asia, in particular China, India and ASEAN member economies.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-88868355915423273052011-10-29T21:30:00.000-07:002011-10-29T21:30:25.718-07:00So many things are happening which would not help global economy to recover faster than expected. The uprising in the middle east and the abnormal climate changes which caused floods, earthquake and snow storm have affected the people daily life and at the same time has risen the cost of living esp food. There are many people who lost their jobs and struggling to earn a living.<br />
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Hope that economies all around the world unite to explore ways how to curb the rising of food prices which are a neccessity. Food security has increasingly becoming an important issue to address, taking into account the increasing number of people on the earth as well as the unstable weather that has caused destruction of agricultural farms and land. Need to act fast or otherwise one day more havoc to the social wellbeing.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-40520466483871416392011-09-01T19:53:00.000-07:002011-09-01T19:53:10.756-07:00It has been awhile since my last posting. Everybody is still in Hari Raya mood and the celebration will continue for the whole month of September. What I can see everytime Raya comes is that there are so many types of kuih Raya or cookies sold in the bazaar or market or even high end supermarkets and shopping malls. When I was small, I remember my parents will start making Raya cookies as early as the first week of Ramadhan or fasting month but nowadays that they have catch up with age, most of cookies are bought by the children that have grown up working and have less time to make their own Raya cookies.<br />
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My thought is that these Raya cookies shall not only target for Hari Raya but can also be promoted throughout the year as normal cookies that can be enjoyed by the locals as well as foreigners and tourists. These Raya cookies can also be exported overseas and I believe that with proper market research, Raya cookies can go beyond local borders. I have seen some of local entrepreneurs that able to export Raya cookies and this can also serve as another source of revenue for small and medium size entrepreneurs.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-46848462595290023332011-06-11T20:08:00.000-07:002011-06-11T20:08:15.765-07:00Recently, I attended a training on exporting business, specifically steps that a person needs to go through to be ready for export ventures. It was an interesting course with many new terminologies that I need to understand. All are related to exports, and one need to understand all the basic knowledge and terms before they can even think of venturing outside world.<br />
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Anyway, in international business and trading there are many challenges but at the same time there are also many opportunities. One needs to understand what actually outside market wants before they focus on particular products or services. Or the other way is that when one already has product(s) or services, where they should go.<br />
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There are more than 170 countries in the world, so they got to be some where that we can sell our products or services beside our own country. There got to be niche market out there where our products and services can be accepted. So, the internet world can help in gaining information about export market and which markets are regarded as potential for the products/services. Just google any info you require, there's a lot of information available. Use your own judgement and analyse the information before making up your mind of where to go.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-13006553957768985392011-05-07T20:45:00.000-07:002011-05-07T20:45:43.818-07:00The Ringgit recently is appreciating against US dollar. It is already hovers around RM3 per 1 US dollar and may be already reach lower then RM3 by now. What actually does it mean when Ringgit appreciates. Economists have made various analysis on the impact of Ringgit appreciation, both good and bad. Whatever the analysis, we should view it on long term basis and on the practicality and what authorities should do to mitigate the adverse effects of currency appreciation to the economy and the cost of living.<br />
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For those who know some basic economy, maybe can understand the what actually the effects of the Ringgit appreciation. For international business and trading, Ringgit appreciation can mean import cost become lower but exports become more expensive. In this regard, businesses that rely on imported raw materials, intermediate and capital goods can now sigh with relieve since the costs of importing now become cheaper and this could help them to achieve lower production cost and result with better profit margins. Some analysts say that cheaper imports should encourage SMEs to be more innovative by importing capital goods that can help to enhance productivity and quality. But still SMEs will only consider innovating their production and processes if they have enough financial backup to import capital goods or enough businesses to cater.<br />
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For exporters, they may feel the heat from the currency appreciation, especially those who rely mainly on local resources or raw materials. Since exports are quoted in US dollar and assume that the export price remain the same, the revenue that they earn when converting back to Ringgit will be lesser now. Hence, these exporters need to consider options which can include rising the export prices which may not be accepted by their customers and which can make them less competitive internationally, or by being more innovative and productive to reduce overhead costs and maintain the same price to retain the customers and remain competitive.<br />
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For those exporters who rely on imported raw materials and intermediate goods, they are less impacted and may adjust the production cost and remain competitive.<br />
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Some say that imports of food and agricultural products especially that of raw materials like onions, garlic, vegetables, fruits and dairy products may benefit the exporters, wholesalers and traders. It maybe true to exporters of processed food who rely on imported food raw materials where cheaper imports can directly mean lower production cost and they either can retain the same profit margin or better. But it may not applicable to local wholesalers or traders of these imported agricultural and dairy products. Cheaper imports do not mean the price of agricultural products like vegetables and fruits will become cheaper in the local market. In fact, the wholesalers and traders can enjoy better margin even if they retain the same price, but the likelihood of prices of these basic neccesities to increase more in future is imminent unless local authorities take serious measures to curb price increase. In this regard, the cheaper imports will not make much different to the local consumers who are facing with increasing cost of living with prices of basic neccessities especially food continue to increase.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-39326204991680706542011-05-01T20:26:00.000-07:002011-05-01T20:26:55.479-07:00There are many happenings around the world that will certainly deliver adverse effects to the world's economy and its sustainable development. Japan is facing the aftermath of earthquake, tsunami and nuclear radiation. These incidents will certainly affect the country's economic and social stability in the long run. The government is still find ways to minimise the impact but it is still not clear how they want to do it. At the same, time the world has shown its support to Japan in any possible methods. The nuclear radiation is not only affecting the wellbeing of its people but also impacting the most important neccessity in life; food. There is now concerns over the safety of food produced in Japan, not only for domestic consumption but also exports. Many foreign countries have taken precautionary measures on imported foodstuff from Japan; some countries have banned imports and some of them have stepped up inspection on incoming foodstuff from Japan for the fear of nuclear radiation effects on the farming as well as livestocks. Japan is taking every possible measures to mitigate the risk of having foodstuff contaminated with radiation.<br />
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Middle East and North African's crisis have also shaken the world by storms with the uprising of the people demanding for change. This has probably never happened in the past where the protests happened in many countries simultaneously. The instability in the countries and regions will certainly affect the ongoing development in the country and will take long time to recover.<br />
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Mother nature is making its calls to all parts of the world. Earthquakes, tsunamis, flood, hurricanes, storms and others are taking places in many countries and these will interrupt the present development. But probably this is the price that the world has to pay for all the development that probably go against the mother nature.<br />
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One thing for sure all these incidences will bring about social instability in the region, it is just a matter of the degree of seriousness. Food insecurity is a main issue to handle, as the prices of agricultural products have gone up drastically in tandem with the price increase of energy resources. Countries have started to invest in agricultural sector, not only back home but also in other countries to safeguard the long term supply of food. All of us need to ponder and act fast to rectify this problem, otherwise the future generation need to bear all the problems that the current generation has created.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-18525500242587308862011-04-30T20:02:00.000-07:002011-04-30T20:02:12.369-07:00Today is 1st May, a Labor Day all over the world. Labor is an important asset for the nation, without which development of a nation cannot be achieved. It is also important for nation to continue to generate new employment as the number of population keeps growing. It is a great challenge to offer employment and this requires more economic activities to be generated.<br />
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As for Malaysia, generating employment is an important agenda of the government under its Economic Transformation Programme (ETP) with New Economic Model and National Key Economic Areas (NKEAs) and Entry Point Projects (EPPs) and the main drivers. Under ETP, the investment is to be led by the private sector and every EPP identified it should be able to generate high income for the country and also high number of employment.<br />
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Malaysia continues to prosper with its 27 million population. The economy grows steadily and there are still rooms for improvement. International trade, especially exports, continue to assume an important role in the country's economic growth. Exports flourish with new and diversified markets and focus on high value exports.<br />
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The recent China's Premier Wen Jiabao visit to Malaysia signifies the importance and close relationship that both countries have had, way back from 1974 when Malaysia established diplomatic relation with China. Malaysia was the first among ASEAN countries who established diplomatic relation with China and this displayed the vision that Malaysian leaders had at that time on China, that's going to be an important partner many years to come, economically and politically.<br />
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Malaysia should continue to explore opportunities to increase and expand its current cooperation with China, especially in trade and investment. Malaysia can offer not only commodities but also many other high value added products and services. One of potential areas is in the information and communication technology (ICT) industy sector. Though China itself is quite advance in this sector, Malaysian ICT players are also competitive and creative in creating new and niche technology and solutions. Certainly they can work with other local players in China and target less competitive markets in second and third tier cities in China.<br />
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China is flourishing and consumers' purchasing power is increasing. Consumers are looking for imported products that they regard are of high quality and different from what the local can offer. This is another factor that Malaysian exporters should consider and put up efforts to penetrate the huge consumers market.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-48369011195041376352011-04-02T20:25:00.000-07:002011-04-02T20:25:22.273-07:00Malaysia is a small country with 28 million population but it is one of the world's top 20 trading nation. Exports have become one of the important revenues that contribute significantly to the country's Gross Domestic Product and directly benefit people that deal with export business. <br />
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There are a wide range of products and services that Malaysia can offer, from traditional products like food and beverage, rubber, palm and timber products to high tech products and services like oil and gas, electrical and electronics, green technology, professional services and many others.<br />
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I am keen in food and beverage industry as this sector is regarded as recession-proof and people still spend for basic necessities to live. Though I am not directly involved in the production, but having connections and interactions with producers enable me to understand the process and operations of the food and beverage sector.<br />
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One of the products that is quite special to Malaysia is white coffee. There are increasing number of producers that involve in this instant drink that has become a new trend in Malaysia, not only to local folks but also to expatriates and foreigners that visit Malaysia. White coffee is a special drink that made up from several types of coffee beans and add with other oil-palm based ingredients that give special taste and aroma. The increasing number of 'kopi tiam' style cafe in Malaysia are also influenced by the popularity of white coffee.<br />
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I am assisting several producers of white coffee to promote and market their instant white coffee not only to local market but more importantly to overseas market. As this white coffee is specially linked to Malaysia, many foreigners also spread their good experiences back at their home country and this is where gradually white coffee is accepted in overseas market.<br />
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Beside white coffee, other instant drink coffee like tongkat ali coffee is also gaining popularity and well accepted abroad. Tongkat ali is well known for its vitality and many people take it to maintain good health.<br />
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Anybody interested in white coffee or tongkat ali coffee can contact me for more discussion on ways how to promote these products back at your home country.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-88674053623313427402011-03-26T20:01:00.000-07:002011-03-26T20:01:16.899-07:00Lately, so many things happened around the world; the middle east crisis, flood in Australis, drought in China, earthquake and tsunami in Japan and Libyan crisis have brought uncertainties to the global economy. Due the crisis, commodities prices have gone up drastically and oil prices surpassed USD100 mark.<br />
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What's transpired from these calamities and global crisis is that we are going to see increasing inflation in the world due to price increase. Food security will become an issue to deal in near future and this is critical as food is a neccessity to all. Food security crisis can generate instability as people will be under tremendous pressure to keep their financial in good order.<br />
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China is always proactive in dealing with such pressure. Various initiatives are being undertaken by the Government to ensure that the nation continuous to move forward with sustained eocnomic growth. Due to its fast growing nature that required ample supply of raw materials, China has stocked up these commodities and at the same time establish strong relationship with producers of commodities around the world. This is to make sure that supply of commodities like oil and gas, coal, iron ore and other minerals is secured for long term period.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-35089787870807865732011-01-31T19:14:00.000-08:002011-01-31T19:14:08.183-08:00The future is with Asia. With China and India taking the lead, Asian countries are expected to increase their share of world's economy. According to the report from World Economic Outlook, fast growing emerging markets are expected to record a growth of 6.6 percent per annum for the next five years till 2015 while advances economies are facing economic slowdown and forecast to grow at much lower, at 2.4 percent per annum.<br />
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The figures display the growing importance of fast growing and emerging markets, where most of them are residing in Asian continent. One of the contributing factors is due to the fact that many of Asian economies have not reach their maturity and therefore offer plenty rooms for growth. China, for instance, is a vast country with 1.3 billion population and a size of over 1 million square km. Though some parts of China can be regarded as advanced markets like Shanghai, Beijing and Guangzhou, there are many more provinces or cities in China that requires further development and these actually help to boost the domestic China economy. Likewise, India is another huge market of 1.1 billion population and disparity between advanced and less developed areas is still wide, hence there's still a lot of development to be undertaken in the country which this will help to spur the domestic economy. Other economics such as Indonesia, Vietnam and Thailand also have big domestic market and the increasing purchasing power help to boost economic growth of these economies.<br />
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Leveraging on the sustained economic growth in Asia, many foreign investors from advanced countries and middle east are exploring investment opportunities. That areas of opportunities include consumer products, services as well as property/real estate.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com1tag:blogger.com,1999:blog-8271239467092980666.post-12609117608473046772011-01-24T05:18:00.000-08:002011-01-24T05:18:53.611-08:00It is foreseen that Asian countries will be the future growth of world's economy. These Asian economies, spearheaded by China, are expected to boost their spending in infrastructure development for the benefit of its people, which in turn helping the people to have better living and contribute to the stability.<br />
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Due to growing business opportunities in the Asian economies, the people continue to prosper and spending power getting stronger. Countries like China, India, Indonesia and Vietnam can rely on their domestic market to continue registering steady economic growth despite what happened in the global market these past few years.<br />
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Back to China, the Government has introduced several measures to sustain its economic growth. The stimulus policy has helped the country to continue investing in infrastructure development especially in the least developed parts of China, such as the western and central China which include such provinces as Xinjiang, Ningxia and Innner Mongolia.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-77616679984966881622011-01-22T18:11:00.000-08:002011-01-22T18:11:29.598-08:00It has been quite some time since my last posting. For the past 2 and half months I have been engaged with overseas business trips and just returned from my trips that covered different continents.<br />
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Still, many words around that China continues to post steady economic growth despite what happened in other economies like EU and USA. According to the World Bank's report on 5-year economic growth from 2008-2012, China is expected to post economic growth of more than 8% over these five years, and 2011 will see China growing around 8.5%, albeit a bit slower than previous year's growth of 9.5%.<br />
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China also continues to receive huge foreign domestic investment (FDI) from all over the world. Relatively speaking, the inflow of foreign investment is not only attributed to the fact that China offers abundance labor resources at competitive cost, but the more important reason for foreign investors to continue investing in China is the fact that China has a huge domestic market of 1.3 billion, the increasing number of middle income population (around 350-400 million) as well as continuous infrastructure development in China, in particular the second and third tier cities (western and northern part). These 2nd and 3rd tier cities offer huge market opportunities for foreign companies, both in products and services sector. The consumers' purchasing power is increasing which see them craving for imported goods and services, and the cities themselves are going through major evolvement to become more modern and developed cities in China.<br />
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If everyone can remember, during many global economic crisis that happened in 1998 and 2008/2009 as well as major epidemic like SARs in early 2003, China's economic growth still remain steady. This basically was supported by strong domestic investment as well as strong domestic consumer market and private consumption, despite China having one of the highest consumer saving rates in the world. This trend is expected to continue and China will continue to rely on its domestic investment and domestic consumer market for its steady economic growth, in addition to China's aggressive initiatives to undertake various forms of investment abroad and to maintain its current strong export performance.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-68449328179561747342010-10-23T22:26:00.000-07:002010-10-23T22:26:10.887-07:00China is not only for big players. Even you are small players, you can still take part in the economic development in the country, amid in much smaller ways. If you are small, then go for small share of the market, which can mean big to us. I remember there was a Malaysian ICT enterprise ventured into a small city in China of 200,000 population, offering a unique IT solutions that can benefit the whole city. In this case, though the market is small, but it is an achievement for this Malaysan enterprise gaining access into China market. It will take some time though but what is important is that you have a niche and special products/services and you have a reliable partner, which can be privately or state owned enterprises. The support from local partners is absolutely important in making sure that your business plan executes well.<br />
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A friend of mine recently asked my views on how to promote her 'special' tooth brush in China. This special item, with a special design, is claimed as a very effective tool to eliminate dirts and clean teeth. For a new product, a lot of work needs to be done in marketing and promotion. In this case, you also need a good backup from medical point of view and work with reputable partners. Pricing is another issue, where market segment you want to target, the price cannot be too high though there are many customers who can afford to buy expensive imported products. If you are nobody in terms of branding, the marketing and promotion task will be tougher. For internationally known brands, the brand itself can facilitate promotion of new products in the market, for these popular brands, consumers already associate any new products as reliable and high quality though prices may be expensive.<br />
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Competition is very stiff in China, regardless of what business you are in. It comes from local and foreign players and for marketing purpose, you need to have a deep pocket. It's better to ask ourselves whether our presence in China is crowding out the market or is giving us a competitive edge. If it is crowding out the market, the competition is very strong and may require deep pocket. If you have a competitive edge, then you may require less spending but what is required is how you position the product in the market. This is where your partner's cooperation in crucial since they normally understand the local market better, though we also need to do our own homework.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-57215318072327768122010-10-17T03:01:00.000-07:002010-10-17T03:01:08.257-07:00What products or services that China want? For so many years, China has been importing a lot of natural resources/raw materials and commodities and continues to do so. China imports timber, natural rubber, oil and gas and palm oil from Malaysia in a large quantity. It also imports huge volume of semi-conductor and integrated circuits from Malaysia. Generally speaking, imports of all these items constitute more than 60% of China's total imports from Malaysia. It implies that China still require these products for its industrial use and more or less we can say that there are already big players from Malaysia who consistently export these products to China and if you plan to join in, you need to compete with these big players and certainly it is a tough challenge.<br />
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So, what else we can offer for Chinese market? Products like processed food and beverage, like confectionery, snacks and bakery products, canned and ready made products, frozen food, seafood, juices, white coffee and cocoa products among those that have good potentials in China. As I mentioned several times earlier, the increase of purchasing power and the middle income population has to some degree shifted the customers perference for imported products. Buying imported products, though relatively expensive as compared to local ones, is perceived as having a high status in the society and imported products are regarded as high quality products.<br />
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The mushrooming big shopping malls and complexes in major and medium size cities in China has contributed to increasing inflows of imported products. Products with big brands like Channel, D & G, Dunhill, Ferragamo and Gucci are much sought after in the market and it goes on to so many other foreign brands that to us some of the brands maybe we have never heard before. All these brands and products have their own niche market and relatively doing well even though some of them did fail.<br />
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During my stay in China, some of Malaysian brands are already present in the market, among them like Royal Selangor (pewter), Bonia (leather products) and Ekowood (engineering wooden flooring). The brands are not only limited to products but also companies and services and these include companies like Maybank, Petronas, Malaysia Airlines, Air Asia, Parkson, Shangri-la Group, Sime Darby and UMW.<br />
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Beside food and beverage products, what else have good prospects in China? Some of Malaysian ICT companies have also made inroads into China with their unique services that can cater the need of ICT customers; like softwares, solutions, creative multimedia contents,etc. We read in the media that such companies as Green Packet, Cworks Berhad and Mobif Berhad have ventured into China market. If Malaysian enterprises can offer some special and unique ICT services that can fulfill the increasingly ICT savvy customers in China, then they have a good chance of success.<br />
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The above are just some instances of what products or services that Malaysian enterprises can offer for China customers.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0tag:blogger.com,1999:blog-8271239467092980666.post-59869558617806746802010-10-15T17:56:00.000-07:002010-10-15T17:56:03.559-07:00As I mentioned earlier, one of critical success factors of doing business in or with China is a credible partner in China. It is a challenge if you want to do everything by yourself but it would be more realistic if you work together with a reliable partner to achieve a success. How?<br />
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There are many ways to find a good partner. It may come from recommendations from other people that you know well, from government agencies that can advise you like Malaysia External Trade Development Corporation (MATRADE) or Malaysian overseas missions. Another common and relatively effective way to look for partners is through participations in international exhibitions overseas. In fact, though this is a traditional way of promoting your products and services internationally, these events are still much relevant to those who are especially new in international market. During participation in the exhibitions, you not only can introduce your products but also can establish contacts with potential partners who come and visit your booth.<br />
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You may receive hundreds or even thousands of visitors during the period of exhibition and many of them probably interested in your products/services and interested to become your partner; in the form of distributorship or importing. Then come another challenge; from all these interested potential partners, who will be the right partner(s). Let's see if you want only a sole distributor of your products for China market, how do you choose the 'right' partner from many. You then need to assess the credibility and reliability of this partner, via many ways, including via your already existing contacts in China, internet, local commercial authorities in China like Ministry of Commerce (MOFCOM), China Council for the Promotion of International Trade (CCPIT), municipal bureau of trade and investment as well as Malaysian representative offices in China like MATRADE, MIDA, and Malaysian overseas Embassies/Consulates. <br />
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This proper due diligence is essential to be conducted before a final selection of a partner is made. One thing for sure your partner should not show genuine interest in your products but also should be supportive to you to overcome regulatory hurdles for your product to enter China market and work closely together in marketing and promotion activities for your products to gain customers' acceptance. Sure you do not want parners that can give 1001 promise before they get the business but later end up failing in the market or you do not want partners who say everything 'no problem' but after the deal sealed, then you realise that there 'are many problems'.<br />
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So, finding the right partner is important. It is not easy but you have to if you want to succeed in business. This applies not only for China market but also elsewhere.<br />
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What else important beside finding a right partner? Next, do you have the right product or services for China market? This is from the perspective of selling products/services to China.BENhttp://www.blogger.com/profile/10953516592268575575noreply@blogger.com0