Opportunities in China’s 2nd tier cities
KUALA LUMPUR: The Malaysia External Trade Development
Corp (Matrade) is encouraging businesses to tap into opportunities in China's
second tier cities, which account for 51.3% of the republic's imports.
Matrade deputy chief executive officer Datuk Mohamad
Kamarudin Hassan said the first tier cities Beijing, Shanghai and
Guangzhou had not only become expensive but also captured only 24.1% of China's
total imports compared with the second tier cities.
China's second tier cities that are growing rapidly include Chengdu,
Chongqing, Xi'an, Zhengzhou and Shenyang.
Speaking
at a briefing on “China's Second Tier Cities Potential and Opportunities”,
Kamarudin said China's sustainable economic growth in the coming years would
rely on the development of inland cities that comprised second and third tier
cities.
“The
number of super-sized urban cities will rise from three in 2000 to 13 by 2020
and they will together represent one-third of the total urban population by end
of the decade,” he said.
An example of a Malaysian company that has penetrated into China's
second tier cities is the Lion Group's Parkson department store,
which has about 50 outlets across 23 provinces. The Chinese market contributes
some 70% of the retailer's revenue.
Other Malaysian brands also present in these cities are fast-food
chains Secret Recipe and MarryBrown, fashion apparels Bonia and confectionaries
Munchy Food, Mamee and Julie's.
Kamarudin
said Malaysia's total trade with China grew 13.9% to RM166.86bil in 2011
compared with 2010. Last year also marked Malaysia's highest trade surplus with
China of a record RM15.63bil.
He
added that during an official visit of Premier Wen Jia Bao to Kuala Lumpur in
April last year, leaders from China and Malaysia had agreed to double the trade
between the two countries in the next five years.
However,
he said the target could not be achieved without active participation of the
private sector.
So far, Matrade has gathered 300 Malaysian companies, mostly small
and medium enterprises (SMEs), to participate in the 9th China-Asean Expo, The
Western China Fair and Canton Fair Autumn Session. These events are set to be
held this year.
Besides second tier cities in China, Kamarudin said Sudan also
provided business opportunities for Malaysian businesses.
He
said total trade between Malaysia and Sudan amounted to US$94.4mil
(RM292.7mil), an increase of 5.9% from 2010.
Ambassador
of Sudan to Malaysia, Nadir Yousif Eltayeb, said the country welcomed Malaysian
banks to enter the nation, which had implemented Islamic banking for the past
40 years.
He also encouraged businesses from sectors like construction, oil
and gas, electrical and electronic, SMEs, halal products, agriculture, as well
as education and training to explore opportunities in Sudan.
He
expects trade between the two countries to triple in the next few years.
Source :
The Star
Date
: 10 August 2012
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