The Malaysia External Trade Development Corporation (MATRADE) will lead a specialised marketing mission for automotive parts and food products, to the Russian cities of Moscow and Kazan from October 3-7.
As one of the BRIC (Brazil, Russia, India and China) countries, which are the world’s fastest growing economies, Russia’s 143 million consumers represent a significant trading opportunity for Malaysian exporters in these sectors, said its Chief Executive Officer Datuk Noharuddin Nordin.
“As such, it is imperative that this mission aims at achieving a breakthrough in terms of expanding access to the Russian market,” he said in a statement here Tuesday.
The Malaysian delegation will be able to leverage on the one-on-one business meetings arranged by MATRADE with key Russian importers and distributors such as NAPAK, RenAvtoTsentr, Tri Solnca LLC and FABUS LLC.
NAPAK is an established distributor of automotive parts and components with RenAvtoTsentr being the largest dealer of Russian KAMAZ trucks while Tri Solnca and FABUS LLC are distributors and wholesalers of food products and ingredients.
Noharuddin said there were no specific protective measures against Malaysian automotive and food products entering the Russian market.
However, trade between Malaysia and Russia can be expanded further should lower duties be imposed for major products traded between both countries, he added.
Meanwhile, the Russian market for car parts, accessories, tools and service equipment is expected to grow significantly over the next few years with products such as filters, ignition starters, fuel injection systems, oil and additives and wheels at the forefront.
By 2012, Russia’s car market is expected to be the third largest in the world, after the US and China.
In the meantime, the rapidly growing food and beverage industry in Russia also offers significant trading opportunities for Malaysian companies in the areas of canned fruits and vegetables, cocoa-based products, frozen food, fruit juices, halal products, and snacks and chips.
Noharuddin said establishing a joint venture with a Russian entity was one of the alternatives for Malaysian companies to penetrate the Russian market
“However, logistical limitations, disparities in wealth distribution and lack of credit facilities are among the issues that need to be tackled.
“The prospects for Malaysian exporters to this market, nonetheless, remain promising,” he added. (PNA/BERNAMA)