The Sparkling Italian 20’s , an Aperitivo party by Italcham Malaysia

They should leverage this advantage to establish Malaysia as a hub for their regional or global operations.

“By actively engaging with the abundant local suppliers, manufacturers, and service providers, MNCs have the opportunity to create a robust ecosystem to support their endeavour,” he said.

Sulaiman highlighted the Industry Linkage Programme as one such initiative which encourages partnerships between larger companies and small and medium-sized enterprises.

The one-day programme, held in Penang last month, connected 11 MNCs and 52 SMEs through more than 150 business-to-business sessions.

“Collaborating with local partners can help MNCs and SMEs navigate the local business landscape, gain market insights, and access local expertise.

“We have seen the shift towards some SMEs playing a bigger role in the global supply chain. These companies are differentiating themselves by providing value-added services, customised, high quality and lower cost products with faster speed to markets,” he said.

Sulaiman explained that by setting up their supply hub in Malaysia and linking with local SMEs, MNCs could take advantage of the country’s extensive trade links and lower cost of doing business environment.

He referred to the Mida-Xinyi Supply Chain Programme as a successful partnership between local enterprises and MNCs.

China’s leading integrated glass manufacturer Xinyi manufactures high-quality float glass, automobile glass and energy-saving architectural glass, and has a sales network covering over 130 countries and regions around the world.

Sulaiman said Xinyi Malaysia is operating in Jasin, Malacca, as the first overseas division outside China and the company is now looking to expand its supplier base as part of its localisation plan.

“Up to 98% of products have zero import duties under Malaysia’s free trade agreements (FTA) with Asean, leading to lower costs of doing business.

“This grants companies operating in Malaysia preferential access to capture growth opportunities and immediate markets within one of the world’s largest trading blocs,” he said.

Malaysia has established a robust network of trade links through multiple FTAs such as with Japan, Pakistan, India, New Zealand, Chile, Australia and Turkiye.

At the Southeast Asian level, Malaysia is part of the Asean Free Trade Agreement, which includes regional FTAs with China, South Korea, Japan, Australia, New Zealand and India.

“Malaysia will continue to strengthen its logistics and transportation networks to enhance connectivity with global markets to facilitate the seamless flow of goods, services, and information, thus ensuring the country’s position as an ideal Asian supply hub,” Sulaiman said.

Source: The Sun Daily