Strong rubber demand to spur Malaysia-Latin America trade

rubbershipROBUST demand for local rubber and other products including timber, and electric and electronic (E&E) products, are expected to further propel trade between Malaysia and Latin American countries, and which is expected to grow to 10% this year.

At the onset of the current year, trade value climbed 17.6% to RM5.34 billion, increasing slightly compared to RM4.54 billion last year over the same period.

Dzulkifli Mahmud, Senior Director of the Malaysia External Trade Development Corp (Matrade) said during an international business seminar’s press conference held recently in Malaysia, that the region [Latin America] has surpassed the perils of the global financial crisis owing to its stable macroeconomic policies and prudent fiscal measure.

Last year, total trade between Malaysia and Chile reached RM1.07 billion and in 2012, exports to Chile of the top five products – Rubber, E&E, timber, machinery, appliances and parts, and chemical – amounted to RM421.29 million.

Meanwhile, the value of the Malaysia-Brazil bilateral trade declined 6.4% to RM11.12 billion in 2012 from RM11.85 billion a year earlier; whilst imports from Brazil also fell 2.8% to RM4.8 billion last year from RM4.92 billion in 2011.

According to Brazil’s Ministry of Development, Industry, and Foreign Trade (MDIC), Malaysia exported mainly industrialised high-tech products such as rubber gloves, integrated circuits, and hard disks valued at RM6.33 billion (US$2.08 billion) last year, whilst Brazil exported commodities such as iron-ore, sugar, and corn to Malaysia valued at US$1.57 billion over the same period.