KUALA LUMPUR: Exports of rubber gloves and furniture are expected to be the main product beneficiaries of expanding trade relations between Malaysia and Latin America, said Malaysia External Trade Development Corp (Matrade) senior director of exporters development division Datuk Dzulkifli Mahmud.
He said exports of rubber gloves in particular are pointing to further growth due to the rise of the middle class and emerging health threats with the latest being the H7N9 strain of the bird flu.
“Exports of rubber gloves increase due to the increased health awareness among the people in Latin America. These are used in hospitals and households because of health concerns. We are seeing an increase in the middle income population,” Dzulkifli said.
“They are very concerned about their healthcare and personal protection, that’s why they use rubber gloves. Moreover, we are known as the largest manufacturer of quality rubber gloves (in the world) and our gloves are well accepted by Latin American countries. Latex gloves are one of our largest exports,” he added.
He said this trend was also noticed in the exports of furniture to Latin America as the continent had been moving away from importing these products from Italy and Spain.
“Once we are in the US market, it becomes easier to enter Latin America. Distance and language is not really a barrier. Other exports expected to record positive growth are in the electrical and electronic sector,” he said at a press conference after the “Doing business in Chile, Mexico and Brazil” seminar.
Matrade, meanwhile, expects total trade with the southern American continent to grow 5%-10% this year from 10.8% last year.
“Trade can be quite difficult to forecast forward but in January-February 2013, our trade with Latin America had increased 17.6% to RM5.3bil in the first two months,” Dzulkifli said.
Meanwhile, the International Trade and Industry Ministry senior director for free trade agreements policy and negotiations coordination Tay Lee Looi told StarBiz that the Trans-Pacific Partnership (TPP) may be finalised by the end of this year.
“We are working hard to conclude the TPP but are facing some challenges as in any negotiation,” she said.
Source: thestar.com.my
