Malaysia seems to slowly be turning into a warzone for exporters, where western economies are battling the blooming, yet chep China. For many Danish exporters, the Chinese competition is already felt on the bottom line. Consequently, Denmark now imports more products from Malaysia than it exports to the Malaysian market, leaving Denmark with a deficit of 744 million DKK in the trading balance between the two countries. That deficit, however, looks to become even bigger in the coming years, experts predict.
In an interview with Danish business daily Borsen, the Danish Chamber of Commerce (HTSI), which is the network for trade, IT, industry and service in Denmark, says that the future does not look too bright for Danish export to Malaysia.
“Denmark’s import from Malaysia will continue to increase, and we expect that the Danish export will be reduced at the same time. This is primarily because of the pressure from the Chinese exporters, who are forcing us out of the Malaysian market,” says chief economist Jens Brendstrup from HTSI.
HTSI especially points out the Danish agricultural industry as the primary loser in the current market development, since Chinese farmers are claiming a bigger and bigger bite of the Malaysian food market.
Successful Few to Wave the Danish Flag
Not all Danish industries, however, are on the retreat in Malaysia. According to HTSI, there are several business areas, which can somewhat redeem Denmark’s overall export figures in the country, which was a British colony until 1957. This applies especially to the medical- and pharmaceutical industry, where the Danish export to Malaysia has gone up to 109 million DKK – a growth of 41 pct. since 2003, reports Borsen.
The industry for advanced mashines also experienced an increased export to Malaysia last year of 84 mil-lion DKK after several years of backsliding.
Malaysia is currently going through a rapid development, and the nation’s government has vowed to make the country a fully developed country before 2020. Thus, the government has set several goals for key industries that might benefit Danish exporters – including the industries dealing with energy effeciency and waste treatment. To wave the Danish flag more effectively, the Danish Embassy in Kuala Lumpur has already scheduled a visit from Denmark’s minister of environment Connie Hedegaard as well as the Danish foreign minister Per Stig Moller, who will visit Malaysia in early January.
Malaysia is the 50th biggest receiver of Danish exported goods with a share of 0,15 pct. of the overall Danish export.
