Bangladesh yet to reap duty-free access benefits from Malaysia

FE Team | Published: May 21, 2013 00:00:00 | Updated: February 01, 2018 00:00:00

Monira Munni Bangladeshi entrepreneurs have failed to reap the benefit of duty-free access to the Malaysian market due to lack of initiatives from both private and government levels. This has resulted in a growing trade imbalance between the two countries, industry insiders said Sunday. Businessmen said though trade deficit between the two countries had significantly risen in just five years, with the increase in trade between the two countries, the deficit is also widening manifold in favour of Malaysia. They stressed the need for taking steps to reduce the trade gap by encouraging more Bangladesh exports especially apparel products to Malaysia and sending remittances through legal channels. In a bid to strengthen business ties with Malaysia, the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) organised fairs both in the two countries annually. But this is not enough, said business circles. "We have large trade gap between the two countries but in recent times our apparel export is increasing gradually following duty-free access to Malaysia," Syed Nurul Islam, President of the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) told the FE. To reduce the gap, we need to promote our products as we have the capacity in terms of quality, quantity and price, he said adding at this moment our readymade garment (RMG) is the right product to focus. "Besides RMG, leather goods also have potentiality," he noted. The three-day Showcase Malaysia 2013 will begin in Dhaka from May 23 and a large number of Malaysian businessmen will come to the capital to be aware of trade potentials in Bangladesh, he said. Some of the businessmen will be keen on Bangladesh's apparels, he added. There is a market worth $3.5 billion in Malaysia for the country's apparel products which is yet to be explored, he said adding our exporters are unaware of this vast opportunity. The Bangladesh Tourism Board too can tag with that of Malaysia to give a boost to the country's tourism industry, Mr Islam said. Officials from the Malaysian Tourism Board are also expected to come to Dhaka during the showcase. Malaysia has no seasonal problem like the western ones. Its weather is similar to Bangladesh, an exporter said adding initially Bangladeshi exporters make mistake by exporting stock lot products. "But it is time to show our strength of manufactured quality products," he said. There is potentiality to double apparel export to Malaysia within a year. Malaysia could be a good destination for Bangladesh-made products to reduce dependence on the traditional markets like the European Union, the US and Canada, he said calling for more fairs, exchange of delegations of both the countries and business-to-business talks to grab the opportunities. The total volume of the two-way trade between Bangladesh and Malaysiawas worth nearly US$1,462 million while Bangladesh's export fetched only US$ 56.12 million against Malaysia's US$1.406 billion export to Bangladesh for the year 2011-2012. Bangladesh's export was only US$ 43.87 million against Malaysia's US$1,759.60 million in the year 2010-2011. Bangladesh exported products worth $76.33 million to Malaysia in July-April period of the fiscal year 2012-13, according to Export Promotion Bureau data. "Malaysia is a potential emerging market for our products, thanks to quality and competitive price we offer," said Mohammad Hatem, owner of MB Knit Fashion. He said the government should continue the 5.0 per cent incentive for new market exploration for apparels in the next three years.