“Export Compass” event hosted by TİM, turned its route to Malaysia regarding to the Free Trade Agreement signed back in 2014 and entered in force in 2015.
Secretary General of Turkish Exporters Assembly H. Bader Arslan, Ph.D., emphasized that the “Export Compass now has become a stimulating event for our exporters to understand new markets and new regulations on trade.” He added: “We are actually getting perfect feedbacks from both our participants and keynote speakers since we started this event chain. Now this is our 12th panel which I am glad to announce. Normally, Export Compass is organized to give market information prior to the trade delegations of TİM. However the case is different with Malaysia. This time there is a free trade agreement (FTA) and it offers many new opportunities for our exporters in Malaysian market which we have a large trade deficit for years. We believe this deficit will decrease in upcoming years and also boost our total exports.”
The FTA abolished tariffs in many products and diminished the taxes on the other goods between two countries. “Malaysia FTA is one of the most important trade agreements which carries many advantages for Turkey” said Ms. Yıldız Onur; foreign trade expert from Ministry of Economy, Turkey. The agreement is not just abolishing the customs duties with Malaysia, but also it's a big opportunity for our products in entering the ASEAN market.
The Aim is to Reach $5 Billion Trade Volume
So far, the FTA boosted the trade volume to $3.4 billion in 2017 from $2.3 billion in 2016. The goal is to reach $5 billion in short term. Today there is a trade deficit on the Turkish side which was around $3 billion. Our main exports are gold, motor vehicles and parts, and metals.
Risks and Opportunities for Turkish Exporters in Malaysia
Panel was moderated by the TİM R&D Director Nevsal Alhas and hosted panelists as Yıldız Onur from Ministry of Economy; Former Trade Adviser to Kuala Lumpur Esat Durak; Deputy General Manager of Coface Ali Gençtürk; Foreign Trade Director of Kibar Foreign Trade Nezih Kırımlı and Deputy General Manager of LC Waikiki İlker Hacıoğlu.
Ms Onur was actually in the negotiation team representing the Turkish Government in the FTA and shared her opinions about the agreement. Moreover she mentioned about the potential opportunities in different sectors and the updated customs duties and tariffs on specific goods. On the other hand former trade advisor of Turkey to Kuala Lumpur Esat Durak gave brief information about entering the Malaysian market and the incentives in the market. Since insurance for receivables was one of the main risks in developing markets, Ali Gençtürk answered the questions of exporters about how they can cover the risks for receivables and other possible obstacles. As a live example and two biggest companies exporting to Malaysia, Nezih Kırımlı and İlker Hacıoğlu shared their experiences and cases regarding Malaysia during the panel.