Category: Trading Guide

We offer not only the automated system for your business to list and find new customers. In fact, we offer our expertise in providing value-added services that include advice and tips on how to be more effective and visible on the internet.

As we have been engaged by thousands of multinational companies, manufacturers, sellers and retailers from around Malaysia and other countries in the region, we have cultivated the technical and business know-how on what sells best and traded online.

Based on our findings, the top products that are being traded online (through Trade.my) include:

LED – This refers to both the finished LED products and components used in this type of revolutionary lighting. Manufacturers of LED products like bulbs and lamps use our trading platform to market their products to the Malaysian market while manufacturers of parts like LED strips, rigid bars and others too have sourced for partners and collaborated with other players around the region.

Raw materials – top raw material makers and suppliers of items used for manufacturing are among the top 3 products being traded online ad more so through expo.advertising.com.my. This include the supply of items like rubber material, steel and aluminum parts, components used for lighting and electricity and many others, all of which have established new collaboration and partnerships through us.

Signage materials – Manufacturers of materials used in signage is currently in high demand mainly due to the rising popularity of outdoor advertising in the Malaysian market and the surrounding region. This includes printing materials, printing equipment, design and building of structures used for signage. Traders are using expo.advertising.com.my to find suppliers who offer value-for-money and cost-effective materials that offer the best return-on-investment in the construction of items like digital advertising boards, LED lighting sources, printing of large format posters and many more.

We function not only as a trading space for the buying and selling of products and services but we help in the matching of these transactions as well. As we have been in this industry for many years, we have cultivated rich experience in the valuation of old machines. As such, we will ensure that when you sell through us, you are actually engaging the experts in this market.

Through us, you can now enjoy a one-stop service platform where selling your old machines has never been this easy and convenient. All you need to do is to tell us what you want to sell and we will take care of the rest. Old machines like laser machines, old printers or plotters, die-cut machines are others can all be recycled and reused by many companies in the market who are looking for more affordable alternatives.

As experts in this field, we have the technical know-how to evaluate and value your old machines. We will carry out a full inspection on the machines that you no longer need and would like to sell and subsequently provide you with all the proper documentation on what you need to do and the next course of action like transportation, payment terms and others.

From there, we will advise you accordingly on the most suitable price to sell based on the market rate and if that is agreeable, then we will proceed to the next phase which is the actual transaction. Using our automated and very effective trading system, we will source for the buyers who are interested in your old machines and match them to you. As the seller, you will have to provide a minimum of 1-month guarantee once the old machine is sold or traded while we will impose a nominal fee of 10% commission from the agreed price sold.

A Quotation is a standard legal document which is used as a procedural process of most business transactions today. In the public sector, quotations are very important as they are used as the document which will determine if a project is awarded to a specific company.

The Quotation document is very important as the details imprinted would be used for future transactions. This document is usually issued when requested either verbally or officially through the RFQ (Request for Quotation) process. In many cases, Quotations are used for comparison purposes where there are organizations which require at least 3 Quotations for any type of purchase or procurement with the supplier with the lowest price (meeting the requirements) will be awarded the contract.

This document is issued by the seller of a product or service and would usually include important information like contact details, unit price, quantity price, discounts, terms of payment as well as validity of pricing which states the duration which the price stated in the Quotation is being offered. Once this period is over, the price is no longer legally binding which means that if the buyer wants to engage the service of the seller, they will need to request for a new quotation (which will come with a new price).

MATRADE stands for the Malaysia External Trade Development Corporation which plays a pivotal role as the National Trade Promotion Agency of Malaysia. Its main mission is to promote Malaysia’s export of goods that are ‘Made In Malaysia’ so that the world is able to know about what the local entrepreneurs can produce.

MATRADE is the main agency which can help you in every way if you are in the trading business. Whether you are a local exporter of Malaysian goods and services or planning to import from other countries into the Malaysian market, MATRADE is your best reference point.

Through the years, MATRADE has brought many local companies and expanded them into the global markets. This has been carried out through programmes like trade fairs both within and outside the country, trade missions organized by MATRADE together with the relevant ministries and many others.

Focus

The main focus of MATRADE is to help in the export of manufactured and semi-manufactured products from Malaysia to the world. Meanwhile, a selective range of imports are involved as well. This means that if you are planning to be involved in any form of export or import of products with Malaysian companies, you would appreciate the assistance of MATRADE in many ways.

Besides that, MATRADE is involved in providing training for local exporters in improving their international marketing strategies while offering relevant advice and resources on market and commercial intelligence on specific sectors.

Roles and Responsibilities

MATRADE is responsible in raising the profile of Malaysian exporters in the global market. Where necessary, it helps in providing relevant market intelligence resources for Malaysian companies to help them to become more competitive globally.

MATRADE operates many initiatives to introduce Malaysian companies in a global scale and helpt o promote Malaysian products and services abroad.

Core Areas

There are several core areas that MATRADE is involved in which help to equip Malaysian companies with the needed information and resources to compete in their respective markets.

This includes:

Exporters Development – Malaysian companies that are looking to export overseas must be aware of the competition in overseas markets. They must be aware of the high quality of products in terms of packaging, branding, health and safety standards and others before they can carry out such initiatives. As such, MATRADE helps to educate these companies on these areas through training, incentives and other areas.

Export Promotion – This is one of the main roles of MATRADE which helps in raising the profiles of Malaysian companies overseas. Through trade missions, trade fairs and specialized marketing missions, MATRADE propels Malaysian companies into the global arena while holding business matching programmes between local and foreign companies.

In fact, MATRADE is the first and initial reference point for any foreign importers by virtue of being the national trade promotion agency of Malaysia as it can offer the best and most legitimate information.

Trade & Market Information – MATRADE acquire and disseminate all kinds of market intelligence and information to Malaysian companies to help them in their businesses. It has up-to-date and relevant collection of resources which can be used by the respective parties for trade and other purposes through initiatives like the Business Information Centre, MATRADE’s Portal, MyExport and MySMS, among others.

Trade Advisory & Support – This is an important Core Area that MATRADE offers which is provided through the Client Relationship Management Unit that helps entrepreneurs and exporters through consultation and advice using all types of communication channels available.

Trading in Malaysia is very straightforward. Whether you are a foreign or local company involved in any form of trading, you will need to follow a similar set of regulations enforced by the government of Malaysia.

Like many other countries around the region, Malaysia has a strong trading network due to its strategic location between the sea pathways. This has been the case for centuries dating back to the Malacca Sultanate when merchants and traders from China, India and the Middle East ported here. Today, Malaysia continues to trade with countries around the world with the United States being one of the main partners.

Malaysia is a member of the major trade organizations like APEC, ASEAN and WTO and is one of the founding members of the ASEAN Free Trade Zone in which Free Trade Agreements have already been signed between Malaysia with the likes of China, Japan and Pakistan, among others.

For decades now, Malaysia has been the largest producer of rubber and palm oil in the world.

Exports

The main products exported by Malaysia include petroleum and liquefied natural gas, wood-related products, electronic equipment and components, textiles, chemicals, rubber and palm oil. Its main export partners are Singapore, China, the United States, Japan, Thailand and Hong Kong.

Malaysia exported a total of RM719.81 billion in 2013. This was a 2.4% increase from the year before that saw Malaysia exporting a total of RM702.64 billion. Of the total, Malaysia exports Electrical and Electronic Products the most with a total of RM236.76 billion or 32.9% of the total.

• Export of Refined Petroleum products in 2013 was at RM65.36 billion which increased from RM51.49 billion the year before. This makes up 9.1% of the total exports.
• LNG made up 8.2% of total exports at RM59.19 billion while 6.6% of total exports came from Chemicals and Chemical Products which recorded a total of RM47.72 billion.
• As the largest palm oil producer in the world, Malaysia exported RM45.94 billion of palm oil in 2013 which is 6.4% of the total exports.
• A total of RM31.64 billion worth of Crude Petroleum was exported that year that made up 4.4% of the total.
• Manufactures of Metal constituted 3.9% of the total exports that recorded a total of RM28.17 billion while 3.8% of total exports came from Machinery, Appliances and Parts.
• Optical and Scientific Equipment constituted 2.9% of total exports with Rubber Products recording a total of RM18.94 billion or 2.6% of the total.
• 04 billion or the remaining 19.2% of exports came from other products.

Imports

The main commodities that Malaysia imports include electronics, machinery, plastic-related products, chemicals, iron and steel-related products and vehicles. It has a strong working relationship with importers from China in particular, Japan, the United States, Singapore, South Korea, Thailand and Taiwan, among others.

The total imports for the year ending 2013 was at RM649.19 billion which increased by 7% from 2012 which ended with RM606.68 billion. 2013 saw the highest import of products coming in from Electrical and Electronic Products which recorded at RM179.62 billion which constituted 27.7%.

• Refined Petroleum Products constituted 11.1% that recorded RM71.82 billion while 8.6% of total imports came from Chemicals and Chemical Products (RM55.86 billion)
• Machinery, Appliances and Parts constituted 8.4% of total imports which was at RM54.57 billion
• 5% of total imports came from Transport Equipment while Manufactures of Metal clocked in RM40.96 billion or 6.3%
• Import of Iron and Steel Products were 6.3% of the total bringing in RM40.96 billion in 2013
• A total of RM21.87 billion worth of Crude Petroleum were imported while RM17.96 billion of Optical and Scientific Equipment were imported
• 4% of the total import worth RM15.58 billion came from processed food

Authority

The agency responsible for the administration of indirect taxes is the Royal Customs Malaysia which is responsible to collect the duties and taxes through imports based on the regulations and legislation set by the government of Malaysia. This is under the purview of the Ministry of Finance of Malaysia.

Import of Goods

Regulations must be followed if you want to import anything into Malaysia. Generally, all illegal items are absolutely prohibited from importation into Malaysia.

Below are some of the products that are not allowed to be imported into Malaysia although it is not limited to this list. This includes any reproduction of currency notes, coins and such as well as indecent items like paintings, printings, books, artwork and any other related media.

Any item which can threaten the harmony and peace of Malaysia cannot be imported.

• Turtle Eggs, all types of piranha fish
• Certain types of liquor
• Weapons of any kind
• Sodium arsenate
• Poisonous chemical
• Certain fruits like longan, pulasan from Indonesia and the Philippines.

Meanwhile, there are certain types of products that can be imported through an import license or permit from the authorities concerned.

This includes:

• Any type of meat and parts
• Egg in the shells
• Live animals
• Fireworks (usually used for celebrations and festivals)
• Fake or imitation weapon like guns and knives
• Security items
• Batik sarong
• Live fish
• Pharmaceutical products

The list above does not cover all the products and you must check with the relevant authorities before trying to import anything.

Drug Trafficking It is an extremely serious offence and is a crime punishable with death by hanging.

Duties and Taxes

To import anything into Malaysia, there is import duty and taxes involved using the CIF or Cost, Insurance and Freight method. This is regardless if you are a private individual or a company and the duty and taxes will be applicable after taking into consideration the cost of freight, cost of insurance and the cost of the goods imported.

Rates

Generally, the rates for importing anything into Malaysia can be between 0 and 50% of the total. However, the average duty rate is usually not more than 6%. There are some types of goods like laptops and electronic products which are not subjected to duty.

Value-Added Tax

VAT is standard with 10% of the total CIF value, duty and any excise involved. There are some products which are lower that can be between 0 and 5%.

Submitting of inward manifest

The inward manifest is the document required for imports.

• If your products arrived by vessel, the Master or Agent of the Vessel will be responsible to submit this and must be done within 24 hours after the cargo arrived.
• If your products arrived by plane, the pilot or the agent of the aircraft will be responsible. They must be cleared upon arrival or when required by the officer of the customs.
• If your products arrive by rail, the station master will be responsible and must be cleared upon arrival.
• Goods arrival on vehicles will be the responsibility of the person in control of the goods and must be cleared on arrival.

The change in gold price will determines whether you earn a profit or incur a loss. Gold comes in many shapes and sizes. Governments keep gold to store the wealth and used as its international currency exchange. For individuals, gold is kept as an ornament, accessory for beauty as well as in the safe deposit boxes. In the trading market, gold comes in physical forms (like nuggets or bullions) while it is traded in paper gold, gold futures and such. In order to carry out a trade in gold, you must understand the concept of buying and selling. Like every other form of investments, gold trading uses the standard dollars and cents and is determined through the weight, usually in ounce.

Where this is concerned, you will usually not own the physical gold anytime but you will need to determine the price you want to buy the gold at. There are several grades of gold in the market. If the gold is currently traded at US$400 per ounce, then you will be looking at the contract value of US$40,000. This is calculated based on the minimum value allowed in certain markets of 100 ounces (US$400 x 100). It must be noted that the most common months where gold is traded are February, April, June, August, October and December. Although most investors will tell you that the price of gold will usually increase, it would be best to be cautious and sell when it reaches the point you expected. In most cases, when prices of gold increases, the price of the US Dollar is expected to drop which will then drive investors to leverage their investments in both markets.