Malaysia's trade mission to Türkiye generates trade worth RM1.1 bil for SMEs

Malaysia’s trade mission to Türkiye involving 10 local small and medium enterprises (SMEs) has generated total trade worth RM1.1 billion, amid the post-pandemic and global challenges.

The mission to Istanbul and Sakarya, which was held from 26th Feb to 6th March, 2023, was led by SME Corp Malaysia and the Malaysian International Islamic Chamber of Commerce and Industry (MIICCI).

“During the nine-day mission, a total of 97 business discussions on sourcing of products and services were held, involving 72 prominent Turkiye companies and 10 Malaysian companies in the food and beverage, pharmaceutical, personal and healthcare, oil and gas, as well as solar system sectors,” SME Corp said in a statement on 3rd April.

It said the initiative is a testament to Malaysia’s continuous efforts in enhancing the participation of local companies in the high-value global supply chain by creating market access opportunities for local entrepreneurs to explore the Türkiye market.

The strong interest shown by Türkiye companies garnered during the mission serves as a major catalyst in boosting the internationalisation of SMEs for both nations.

The Malaysian delegation was also given exposure to the country’s import rules and regulations, business requirements as well as characteristics of the local markets through briefings, site visits, business matching sessions, and networking opportunities.

Stakeholders from Turkiye included the Small and Medium Enterprise Development Organisation of Türkiye  (KOSGEB), Türkiye Halal Certification Body (GIMDES), Independent Industrialist and Businessmen’s Association (MUSIAD), GEBZE Chamber of Commerce, KOCAELI Chamber of Commerce and SAKARYA Chamber of Commerce.

The mission also saw several joint ventures sealed involving PS Polypack Sdn Bhd with Pimtas Plastik, Agym Nutrition Sdn Bhd with Yeni Elif, and Avecena Glove Sdn Bhd with Gebze Guzeller, as well as the signing of a Memorandum of Understanding between Petro Teguh (M) Sdn Bhd and Asas Corporation of Turkiye.

SME Corp chief executive officer Rizal Nainy said the mission was part of the agency’s effort to enhance the pre-export capabilities of SMEs and increase the number of export-ready SMEs, as well as create more opportunities for Malaysian business communities to venture into the global market.

SME Corp also offers several other initiatives to support the internationalisation of SMEs under its SMEs Export Enhancement Programme which is now open for application since 15th March, 2023.

“This programme promotes the transformation of SMEs into the global market by creating a clear market-based framework through the provision of financial assistance in the form of matching grants for various export-related activities.

“To enhance branding on the global stage, we also implement the National Mark of Malaysian Brand, a certification scheme that symbolises the quality, excellence and distinction of Malaysian SMEs’ products and services that are on par with international standards,” he said.

Malaysia and Türkiye signed a Free Trade Agreement (MTFTA), which came into effect on 1st August, 2015.

As of December 2022, the average annual growth rate of bilateral trade between Malaysia and Türkiye was 34%, indicating that there is still a lot of room for the business sectors to leverage MTFTA.

In 2022, Malaysia was Turkiye’s largest trading partner in Asean while Türkiye was Malaysia’s third- largest trading partner, largest export destination and sixth-largest source of import among West Asian countries. Malaysia’s total exports to Türkiye stood at RM17.39 billion in 2022.