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Eu-Malaysia Business EU-MALAYSIA BUSINESS EUMCCI TRADE ISSUES & RECOMMENDATIONS 2019 Published by: EU-Malaysia Chamber of Commerce and Industry (EUMCCI) Address: Suite 10.01, Level 10, Menara Atlan, 161B Jalan Ampang, 50450 Kuala Lumpur, Malaysia. Tel: +603 2162 6298 Fax: +603 2162 6198 E-mail: [email protected] Website: www.eumcci.com Publication Date: APRIL 2019 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transported in any form by any means, without the prior written permission of EUMCCI. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication. DISCLAIMER: This publication has been produced with partial assistance of the European Union. The contents of this publication are the sole responsibility of the EUMCCI and under no PLATINUM PARTNERS CRM PARTNER SEBSEAM-M PARTNERS : SUPPORTING PARTNER CONTENTSCONTENTS FOREWORD Alexandra Herbel, Deputy Chairperson, of EUMCCI.........................................................................005 Roberto Benetello, CEO of EUMCCI................................................................................................006 INTRODUCTION EU-Malaysia Chamber of Commerce and Industry...........................................................................007 COMMITEE LISTING..............................................................................................................008 ECONOMIC OUTLOOKS Malaysia Economic Outlook............................................................................................................011 EU-Malaysia Business Outlook......................................................................................................014 ASEAN Economic Outlook..............................................................................................................015 EU-ASEAN Business Outlook........................................................................................................019 POSITION PAPERS BY SECTORS Aerospace......................................................................................................................................022 Energy Sustainability & Electric Power Grids Transformation............................................................026 Green Building................................................................................................................................028 Healthcare......................................................................................................................................030 Human Resources..........................................................................................................................038 Intellectual Property Rights..............................................................................................................042 Logistics.........................................................................................................................................045 Transparency & Integrity..................................................................................................................048 Wine & Spirits..................................................................................................................................050 SEBSEAM-M MARKET REPORTS Service Liberalisation in Malaysia : A Political Analysis...........................................................................................................................055 Public Procurement in Malaysia, 2018.........................................................................................078 Empowering Women in the Malaysian Corporate Sector : Executive Summary.........................................................................................................................116 APPENDIX....................................................................................................................................119 FOREWORDS Alexandra Herbel Deputy Chairperson, EU-Malaysia Chamber of Commerce and Industry The European Union (EU), as a regional bloc, has always endeavoured to expand external trade and investment opportunities as a means of strengthening international economic cooperation with countries around the world. EU member states are committed to establishing healthy relations with countries possessing high economic potential, premised on diplomacy and trade. Furthermore, the EU member states encourage the beneficial exchange of goods, services, technology, as well as knowledge and other factors that influence national development of its member states and other countries it engages with. With that in mind, Malaysia is no exception. Strategically located within the centre of the ASEAN region, Malaysia is inspirited by a blend of rich cultural and historical heritages with a touch of modernity whilst maintaining diverse eco-systems amid an abundance of natural and industrial resources. This is complemented by Malaysia’s ambition to become an even more economically and politically effective nation within Asia and the world. The pro-activeness of its national economy speaks volumes about Malaysia’s commitment to economic excellence. The country recorded a trade surplus of MYR 120 billion, stemming from its exports totalling up to MYR 998 billion, and imports worth MYR 878 billion in the year 2018, signifying an increase of 6.7% and 4.8% respectively from the preceding year. A substantial portion of that is derived from Malaysia’s trade performance with the EU, as its largest trading partner outside Asia. In 2018, exports totalled MYR 99 billion as compared to 2017 which was MYR 95 billion while imports in 2018 grew to MYR 85 billion from MYR 80 billion in the previous year. This accounted for a percentage growth of 3.5% for exports and 6.5% for imports, with hopes that this momentum can be maintained in the long run. Our efforts to promote and expand trade relations between Malaysia and the European Union are strengthened through the crafting of our Trade Issues & Recommendations Booklet 2019. Expressed within this booklet are vital insights, outlooks and recommendations by our esteemed sector committees revolving around development of the business climate in their respective industries. EUMCCI Trade Issues & Recommendations 2019 | 5 Roberto Benetello Chief Executive Officer, EU-Malaysia Chamber of Commerce and Industry Advocacy is the main mission of EUMCCI and all endeavours made by the Chamber could not have come to life without the immense contributions from our sector committees made up of European and local companies, derived from various sectors that represent key industrial fields in Malaysia. Our committees have shown dedication in creating a progressive playing field for business through expressing their concerns, policy recommendations as well as engaging with EUMCCI on extended collaborative efforts such as organising forums, trade missions as well as various other platforms for business facilitation. Advocacy is the core service provided by EUMCCI to its stakeholders. In the wake of growing international trade and investment, it is our commitment to ensure that organisations in Malaysia, both European and local entities enjoy a business-effective environment. The key purpose of EUMCCI is to help businesses to grow by identifying common issues and challenges faced by the various industries that make up our twelve- sector committees; and to strategically raise solutions and recommendations for these challenges to the relevant ministries or government agencies for their further action, which would then be reflected through policy change, dialogue facilitation, trade incentives or other forms of resolution. It gives me great honour to present to you the EUMCCI Trade Issues and Recommendations Booklet 2019! Our aims for this year’s booklet publication are to assist stakeholders in understanding the climate of commerce and trade in Malaysia while identifying upcoming business trends and prospects for further effective strategy-craft. 6 | EUMCCI Trade Issues & Recommendations 2019 INTRODUCTION About Us In order to fulfil its mission, EUMCCI carries out activities that catalyse and stimulate networking of European companies in Malaysia with the Malaysian business community, business associations, relevant ministries, official representations and other Chambers in Asia. The EUMCCI makes it a commitment to promote, support and develop EU business interests in Malaysia as well as facilitate trade, commerce and investments between EU and Malaysia. Objectives t To develop and enhance EU position and image in Malaysia. t High profile advocacy/dialogue with Institutions and Government. t Speed up decisions and actions within the ministries and authorities. t Promote and market EU technologies, SMEs products and services in Malaysia. t Facilitate the dialogue between the European private sector and the Malaysian government. EUMCCI Committees The EUMCCI Committees are advocacy platforms for EUMCCI’s direct, bilateral or indirect members of various sectors, where they discuss relevant issues that are affecting their businesses while operating in Malaysia. The committee members are encouraged to invite key stakeholders (known as “guest members”) to the meetings in order to drive advocacy or any committee's flagship programme, activity or project. Advocacy Committees are pivotal
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