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THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
Southeast Asia e-Commerce Conference 2016
22 October 2016
“Expand Your Business Globally Through eTRADE”
By :
Raja Nor Zihan Raja Mohsin
Director of eBusiness & IT MATRADE
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
MATRADE CORE SERVICES
Exporters
Development
Trade &
Market
Information
Trade
Advisory
Export
Promotion
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
SUMMARY OF MATRADE
OFFICES BY REGION
North America 4
Latin America 4
Western Europe 5
Eastern Europe 6
Africa 3
Asia 21
West Asia 2
North East Asia 10
ASEAN 6
Australasia 1
South Asia 2
GLOBAL NETWORKMATRADE Global Network
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
Kota Kinabalu (Sabah)
Kuching (Sarawak)
Northern
Regional
Office
(Penang)
Southern Regional Office
(Johor)
Eastern Regional Office
(Kuala Terengganu)
MATRADE Regional Offices
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
MALAYSIA
MALAYSIA’s ranking (WTO) in World Merchandise Trade in 2015
Exports – 23rd Imports – 26th
Trade – 24th
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
Source by: DOSM
Tabulated by: MATRADE
MALAYSIA’S TOP 10 EXPORT DESTINATIONS, 2015
Malaysia exports to ASEAN RM 219.29 billion (28.1%) of
total exports
Singapore
RM108.39 bil
13.9%
China
RM101.54 bil
13.1%
USA
RM73.67 bil
9.5%
Japan
RM72.68 bil
9.4%
Thailand
RM44.39 bil
5.7%
Hong Kong
RM36.85 bil
4.7%
India
RM31.66 bil
4.1%
Indonesia
RM29.10 bil
3.7%
Australia
RM28.08 bil
3.6%
ROK
RM24.67 bil
3.2%
Other Countries
RM226.32 bil
29.1%
TOTAL EXPORTS: RM777.36 billion
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
ISSUES & CHALLENGES FOR CROSS BORDER eCOMMERCE
Source: Feedback from MATRADE eTRADE Participants
• Lack of Market knowledge/opportunities
• Conforming to overseas rules and regulation
• High cost of shipping / fulfillment support
• Competition in product pricing
• Financial/manpower constraints
• Trust/cybersecurity risk
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
Source: MDEC
Good and Affordable Infrastructure
Supportive Governance Framework
Doubling eCommerce growth
Accelerate
seller
adoption of
eCommerce
Increase
adoption of
eProcure-
ment by
businesses
Promote
national
brand to
boost cross-
border
eCommerce
Make
strategic
investments
in select
eCommerce
player(s)
Realign
existing
economic
incentives
1 2 3 4 5 6
NATIONAL eCOMMERCE STRATEGIC ROADMAP
Lift
non-tariff
barriers
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
A DIGITAL MALAYSIA INITIATIVE ……
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
CHINA
 Export RM101.53 bil
in 2015
 Matured e-commerce
ecosystem with well
established e-
commerce players
 High economic
growth
ASEAN
 Export RM219.29 bil in 2015
 AEC opportunities
 70% of ASEAN6 population
35 yrs & below
 Online users spend at least
14 hours online/week
JAPAN
 Export f RM73.81 bil in 2015
 Huge opportunity to tap into
the consumer products
segment
 Strong and consistent growth
of e-Commerce
TAPPING ON OPPORTUNITIES ….KEY MARKETS
FOR eTRADE
Among factors in selecting target markets: export opportunities , population, e-commerce ecosystem readiness
UNITED STATES OF
AMERICA
 Export f RM73.67 bil in 2015
 Opportunity to leverage on
the high consumer spending
power
 Well-established
ecommerce ecosystem
INDIA
 Export f RM31.67 bil in 2015
 Current trade to India is
relatively small but India is a
growing market with big
potential for Malaysian products
 Growing e-commerce adoption
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
JINBAOMEN (M)
SDN BHD
LEADING INTERNATIONAL e-MARKETPLACES THROUGH
eTRADE B2C
B2B
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
eTRADE ACTIVITIES
AWARENESS
Knowledge
sharing via
eTRADE outreach
programmes
ASSISTANCE
Special eTRADE
package for listing
in e-marketplaces
MONITORING
Feedback on
outcome from
participating
companies
ONBOARDING &
TRAINING
Activate SME on
e-commerce
platform
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
FREE PARTICIPATION IN
e-COMMERCE / eTRADE
SEMINARS & WORKSHOPS
FREE ACCESS TO MARKET
INTELLIGENCE (myExport Apps)
CONNECT WITH e-MARKETPLACE
& e-COMMERCE ENABLERS
ENJOY FINANCIAL INCENTIVE*
(FOR SMEs) / SPECIAL RATES
* Subject to availability of fund
BENEFITS OF eTRADE TO MALAYSIAN COMPANIES
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
CURRENT ELIGIBILITY CRITERIA FOR eTRADE FINANCIAL INCENTIVE
(will be revised from time to time)
Small and Medium
Enterprises (SMEs)
At least 60%
Malaysian Equity
Exporting ‘Made in
Malaysia’ Products
and/or Services
Incorporated under
the Companies
Act 1965
/ Registration of
Business 1956*/
Cooperative Act 1993
1 2
3
4
Annual sales
turnover NOT
exceeding RM50m
Full time
employees NOT
exceeding 200
Annual sales
turnover NOT
exceeding RM20m
Full time
employees NOT
exceeding 75
OR
MANUFACTURING
(including agro-
based)
TRADING & SERVICES
(excluding real estate, tourism,
financial & insurance industry)
OR
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
eTRADE ACCELERATOR
A special incentive package under
eTRADE Programme to hasten the
adoption of Cross-Border eCommerce
through the Business-to-Consumers
(B2C) e-marketplaces by providing
financial incentive, rewards and trainings.
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
eTRADE ACCELERATOR SPECIAL INCENTIVE PACKAGE*
(VALID FROM 1 SEPT 2016 – 31 DEC. 2016)
+ +RM2,500 RM5,000
1st
RM15,000
eTRADE Basic
Incentive for
approved
companies
RM5,000 upon reaching
RM20,000 sales from
1 Sep-Dec 2016 for
First 50 companies
Cash reward from MDEC
for the Top 3
companies with the
highest sales
exceeding RM20,000
from 1 Sep-Dec 2016
2nd
RM10,000
3rd
RM5,000
* T&C Applies
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
2. PEOPLE & GLOBAL
SDN BHD
Personal care
products
5. TYZO SDN BHD
6. KIT HIN CO SDN BHD
3. LAKU INDUSTRY SDN BHD
Building and
construction
machineries
1. TG POWER WRAP
SDN BHD
Plastic and
packaging products
4. MBM DAGANG
SDN BHD
Uniforms and garments
Herbal and
traditional
products
Coconut and
palm sugar
eTRADE ACHIEVEMENT AWARD 2015
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
CROSS-BORDER e-COMMERCE CONFERENCE (18 JANUARY 2016)
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
Briefing @ State level TradeTalk@MATRADE HQ
One-to-One Consultation Joint Awareness Programme with
e-Marketplaces
AWARENESS & OUTREACH PROGRAMME
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
FOR MALAYSIA COMPANIES REGISTERED WITH MATRADE
Increase your business opportunities through myExport mobile Apps
THE TIME
TO EXPORT
IS NOW
www.matrade.gov.my Malaysia External Trade Development Corporation
TO REGISTER FOR eTRADE
Website:www.matrade.gov.my/en/etrade
Email: etrade@matrade.gov.my

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Expand Your Business Through eCommerce

  • 1. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation Southeast Asia e-Commerce Conference 2016 22 October 2016 “Expand Your Business Globally Through eTRADE” By : Raja Nor Zihan Raja Mohsin Director of eBusiness & IT MATRADE
  • 2. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation MATRADE CORE SERVICES Exporters Development Trade & Market Information Trade Advisory Export Promotion
  • 3. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation SUMMARY OF MATRADE OFFICES BY REGION North America 4 Latin America 4 Western Europe 5 Eastern Europe 6 Africa 3 Asia 21 West Asia 2 North East Asia 10 ASEAN 6 Australasia 1 South Asia 2 GLOBAL NETWORKMATRADE Global Network
  • 4. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation Kota Kinabalu (Sabah) Kuching (Sarawak) Northern Regional Office (Penang) Southern Regional Office (Johor) Eastern Regional Office (Kuala Terengganu) MATRADE Regional Offices
  • 5. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation MALAYSIA MALAYSIA’s ranking (WTO) in World Merchandise Trade in 2015 Exports – 23rd Imports – 26th Trade – 24th
  • 6. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation Source by: DOSM Tabulated by: MATRADE MALAYSIA’S TOP 10 EXPORT DESTINATIONS, 2015 Malaysia exports to ASEAN RM 219.29 billion (28.1%) of total exports Singapore RM108.39 bil 13.9% China RM101.54 bil 13.1% USA RM73.67 bil 9.5% Japan RM72.68 bil 9.4% Thailand RM44.39 bil 5.7% Hong Kong RM36.85 bil 4.7% India RM31.66 bil 4.1% Indonesia RM29.10 bil 3.7% Australia RM28.08 bil 3.6% ROK RM24.67 bil 3.2% Other Countries RM226.32 bil 29.1% TOTAL EXPORTS: RM777.36 billion
  • 7. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation ISSUES & CHALLENGES FOR CROSS BORDER eCOMMERCE Source: Feedback from MATRADE eTRADE Participants • Lack of Market knowledge/opportunities • Conforming to overseas rules and regulation • High cost of shipping / fulfillment support • Competition in product pricing • Financial/manpower constraints • Trust/cybersecurity risk
  • 8. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation Source: MDEC Good and Affordable Infrastructure Supportive Governance Framework Doubling eCommerce growth Accelerate seller adoption of eCommerce Increase adoption of eProcure- ment by businesses Promote national brand to boost cross- border eCommerce Make strategic investments in select eCommerce player(s) Realign existing economic incentives 1 2 3 4 5 6 NATIONAL eCOMMERCE STRATEGIC ROADMAP Lift non-tariff barriers
  • 9. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation A DIGITAL MALAYSIA INITIATIVE ……
  • 10. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation CHINA  Export RM101.53 bil in 2015  Matured e-commerce ecosystem with well established e- commerce players  High economic growth ASEAN  Export RM219.29 bil in 2015  AEC opportunities  70% of ASEAN6 population 35 yrs & below  Online users spend at least 14 hours online/week JAPAN  Export f RM73.81 bil in 2015  Huge opportunity to tap into the consumer products segment  Strong and consistent growth of e-Commerce TAPPING ON OPPORTUNITIES ….KEY MARKETS FOR eTRADE Among factors in selecting target markets: export opportunities , population, e-commerce ecosystem readiness UNITED STATES OF AMERICA  Export f RM73.67 bil in 2015  Opportunity to leverage on the high consumer spending power  Well-established ecommerce ecosystem INDIA  Export f RM31.67 bil in 2015  Current trade to India is relatively small but India is a growing market with big potential for Malaysian products  Growing e-commerce adoption
  • 11. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation JINBAOMEN (M) SDN BHD LEADING INTERNATIONAL e-MARKETPLACES THROUGH eTRADE B2C B2B
  • 12. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation eTRADE ACTIVITIES AWARENESS Knowledge sharing via eTRADE outreach programmes ASSISTANCE Special eTRADE package for listing in e-marketplaces MONITORING Feedback on outcome from participating companies ONBOARDING & TRAINING Activate SME on e-commerce platform
  • 13. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation FREE PARTICIPATION IN e-COMMERCE / eTRADE SEMINARS & WORKSHOPS FREE ACCESS TO MARKET INTELLIGENCE (myExport Apps) CONNECT WITH e-MARKETPLACE & e-COMMERCE ENABLERS ENJOY FINANCIAL INCENTIVE* (FOR SMEs) / SPECIAL RATES * Subject to availability of fund BENEFITS OF eTRADE TO MALAYSIAN COMPANIES
  • 14. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation CURRENT ELIGIBILITY CRITERIA FOR eTRADE FINANCIAL INCENTIVE (will be revised from time to time) Small and Medium Enterprises (SMEs) At least 60% Malaysian Equity Exporting ‘Made in Malaysia’ Products and/or Services Incorporated under the Companies Act 1965 / Registration of Business 1956*/ Cooperative Act 1993 1 2 3 4 Annual sales turnover NOT exceeding RM50m Full time employees NOT exceeding 200 Annual sales turnover NOT exceeding RM20m Full time employees NOT exceeding 75 OR MANUFACTURING (including agro- based) TRADING & SERVICES (excluding real estate, tourism, financial & insurance industry) OR
  • 15. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation eTRADE ACCELERATOR A special incentive package under eTRADE Programme to hasten the adoption of Cross-Border eCommerce through the Business-to-Consumers (B2C) e-marketplaces by providing financial incentive, rewards and trainings.
  • 16. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation eTRADE ACCELERATOR SPECIAL INCENTIVE PACKAGE* (VALID FROM 1 SEPT 2016 – 31 DEC. 2016) + +RM2,500 RM5,000 1st RM15,000 eTRADE Basic Incentive for approved companies RM5,000 upon reaching RM20,000 sales from 1 Sep-Dec 2016 for First 50 companies Cash reward from MDEC for the Top 3 companies with the highest sales exceeding RM20,000 from 1 Sep-Dec 2016 2nd RM10,000 3rd RM5,000 * T&C Applies
  • 17. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation 2. PEOPLE & GLOBAL SDN BHD Personal care products 5. TYZO SDN BHD 6. KIT HIN CO SDN BHD 3. LAKU INDUSTRY SDN BHD Building and construction machineries 1. TG POWER WRAP SDN BHD Plastic and packaging products 4. MBM DAGANG SDN BHD Uniforms and garments Herbal and traditional products Coconut and palm sugar eTRADE ACHIEVEMENT AWARD 2015
  • 18. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation CROSS-BORDER e-COMMERCE CONFERENCE (18 JANUARY 2016)
  • 19. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation Briefing @ State level TradeTalk@MATRADE HQ One-to-One Consultation Joint Awareness Programme with e-Marketplaces AWARENESS & OUTREACH PROGRAMME
  • 20. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation FOR MALAYSIA COMPANIES REGISTERED WITH MATRADE Increase your business opportunities through myExport mobile Apps
  • 21. THE TIME TO EXPORT IS NOW www.matrade.gov.my Malaysia External Trade Development Corporation TO REGISTER FOR eTRADE Website:www.matrade.gov.my/en/etrade Email: etrade@matrade.gov.my