Mustapa leads SME team to Surabaya to boost networks

Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/tofa/Article/

Published: on 09 April 2012

KUALA LUMPUR: International Trade and Industry Minister Datuk Seri Mustapa Mohamed is leading a delegation made up largely of small and medium businesses (SMEs) to Surabaya, Indonesia.

The two-day visit began yesterday and is aimed at strengthening the business network between local SMEs and their counterparts in East Java.

The delegation comprises 26 local entrepreneurs under the SME Corp and the Halal Development Corp (HDC), as well as those from sectors such as food and beverage, logistics, cosmetics, pharmaceutical, construction and automotive.

Prior to this, Mustapa had made working visits to Jogjakarta, Balikpapan, Manado and Bali, besides Jakarta.

In a statement, the ministry said it is important to focus on regions beyond Jakarta as they are fast growing economically.

"Through such missions, economic and trade ties between Malaysia and Indonesia can be enhanced, besides strengthening business network, particularly among the two countries' SMEs," Mustapa said.

East Java is one of the fastest growing region in the republic and has a population of nearly three million people.

In 2010, Surabaya recorded 176.44 trillion rupiah (RM59.47 billion) in gross domestic product value for a growth of 7.3 per cent compared with Indonesia's 6.5 per cent GDP expansion that year.

Surabaya, a gateway to East Java, is one of the busiest ports in Indonesia.

Indonesia was Malaysia's third largest trading partner in Asean last year, with 4.7 per cent contribution to Malaysia's global trade.

This was a 17.6 per cent growth from RM47.5 billion in 2010 to RM55.9 billion in 2011.

Malaysia's exports to Indonesia rose 15.1 per cent from RM18.1 billion in 2010 to RM20.8 billion last year.

Our main exports are chemicals and related products, electrical and electronic goods, machinery and equipment, refined petroleum products and processed food.

In terms of imports, Malaysia saw a 19.4 per cent increase to RM35.1 billion in 2011 from RM29.4 billion previously.

Our main imports from Indonesia are palm oil, steel products, chemicals and related products, refined petroleum products and electrical and electronic items.