Mongolia the next frontier
Many established brand names from Asean can be introduced to Mongolia, and Malaysia hopes to be in the forefront with property and infrastructure development, IT products and services and education.
DESPITE its historical differences with China, Mongolia has become one of China’s indispensable trading partners.
Last year, China accounted for 85% of its total exports of US$2.89bil (RM8.75bil) while its imports from China totalled US$1.18bil (RM3.57bil), a few millions behind Russia.
China has invested more money in Mongolia than any other country in the past 20 years, mainly in the mining, energy and construction sectors.
Because of the proximity – the landlocked country is only two hours flight away from Beijing – and close economic ties between the two nations, Mongolia is considered the next destination of Malaysian companies looking to expand their business beyond China.
MyKRIS Asia Sdn Bhd corporate and government affairs director Lawrence Chang described Mongolia as a country kind of like Malaysia, where the fibre optics infrastructure has already been laid, but with a problem in the last-mile connection to households.
“Our intelligent network has worked in China. We can copy this in Mongolia and it is the best place for us to be as its government and people are changing their mindset on IT,” he said.
The company had been providing information technology network solutions for Chinese clients such as the Beijing University of Posts and Telecommunications and Digital China for many years.
However, Mongolia’s small population – only about three million – and geographical barrier are some of the company’s concerns.
Last month, the Kuala Lumpur-based Asean Retail-Chains and Franchise Federation (ARFF) signed a memorandum of understanding with the Mongolian Franchisess-ociation to help bring more franchise names from Asean to Mongolia.
ARFF Malaysia chapter president Datuk Dr Chin See Keat, CEO of England Optical Group, said many established brand names from Mal-aysia and Asean nations could be introduced to Mongolia, and the federation could share its expertise with Mongolian retailers.
Dr Chin did not discount the possibility of England Optical setting up branches or franchise outlets in Mon-golia.
The Malaysian optician company already has outlets in Chinese cities like Beijing, Shanghai, Shenyang, Jinan and Kunming.
Sunzen Biotech Bhd, which has penetrated the animal feed market in China, Taiwan, Singapore, Iran and many more countries, is looking to supply its Orgacids products to horse and cattle farms in Mongolia.
Sunzen Lifesciences research and development director Dr P.C. Kok said he had met some Mongolian dealers and distributors who were interested in giving the anti-bacterial Orgacids a try.
Recently, Datuk Iskandar Sarudin, the Malaysian Ambassador to China, who is also accredited to Mongolia, led a delegation of about 20 businessmen from Malaysia to the Mongolian capital of Ulan Bator.
“There is good reason for Mal-aysian companies in China to expand to Mongolia as it is heavily dependent on China,” said Iskandar.
For the first time, a Malaysian mission in China has been assigned to strengthen economic and political ties with their Mongolian counterparts.
Although Iskandar does not have an office in Ulan Bator, he would travel to Mongolia from time to time to maintain a good rapport.
During their two-day trip, the delegation met Mongolian Prime Minister Sukhbaataryn Batbold and the Mongolian business fraternity.
They outlined the sectors in which Malaysian and Mongolian companies can cooperate, namely, prop-erty and utilities development, education, petro-chemicals and IT.
Mongolia may not be one of Malaysia’s top 10 trading nations but the surge in trade between the nations and Mongolia’s projected GDP growth of more than 20% in the next five years augurs well for growth prospects.
Last year, total trade rose 50% to about US$30mil (RM90.8mil) from 2009, in Malaysia’s favour.
Malaysia exported machinery, paper and paperboards, cocoa, sugar and fats and oils to Mongolia, and imported goods like optical and medical instruments and fish products.
In the last five years, Mongolia has drawn in foreign investments to its mining sector.
It is said every dollar in mining creates an additional demand of 1.84 dollars in other sectors.
Batbold said he was happy that the Mongolian business community had a fruitful meeting with their visiting Malaysian counterparts.
“We know that Malaysia has experience in property and infrastructure development, IT products, services and education that Mongolia needs very much.
What Mongolia has is rich abundance of natural resources,” he told the Malaysian businessmen.
DESPITE its historical differences with China, Mongolia has become one of China’s indispensable trading partners.
Last year, China accounted for 85% of its total exports of US$2.89bil (RM8.75bil) while its imports from China totalled US$1.18bil (RM3.57bil), a few millions behind Russia.
China has invested more money in Mongolia than any other country in the past 20 years, mainly in the mining, energy and construction sectors.
Because of the proximity – the landlocked country is only two hours flight away from Beijing – and close economic ties between the two nations, Mongolia is considered the next destination of Malaysian companies looking to expand their business beyond China.
MyKRIS Asia Sdn Bhd corporate and government affairs director Lawrence Chang described Mongolia as a country kind of like Malaysia, where the fibre optics infrastructure has already been laid, but with a problem in the last-mile connection to households.
“Our intelligent network has worked in China. We can copy this in Mongolia and it is the best place for us to be as its government and people are changing their mindset on IT,” he said.
The company had been providing information technology network solutions for Chinese clients such as the Beijing University of Posts and Telecommunications and Digital China for many years.
However, Mongolia’s small population – only about three million – and geographical barrier are some of the company’s concerns.
Last month, the Kuala Lumpur-based Asean Retail-Chains and Franchise Federation (ARFF) signed a memorandum of understanding with the Mongolian Franchisess-ociation to help bring more franchise names from Asean to Mongolia.
ARFF Malaysia chapter president Datuk Dr Chin See Keat, CEO of England Optical Group, said many established brand names from Mal-aysia and Asean nations could be introduced to Mongolia, and the federation could share its expertise with Mongolian retailers.
Dr Chin did not discount the possibility of England Optical setting up branches or franchise outlets in Mon-golia.
The Malaysian optician company already has outlets in Chinese cities like Beijing, Shanghai, Shenyang, Jinan and Kunming.
Sunzen Biotech Bhd, which has penetrated the animal feed market in China, Taiwan, Singapore, Iran and many more countries, is looking to supply its Orgacids products to horse and cattle farms in Mongolia.
Sunzen Lifesciences research and development director Dr P.C. Kok said he had met some Mongolian dealers and distributors who were interested in giving the anti-bacterial Orgacids a try.
Recently, Datuk Iskandar Sarudin, the Malaysian Ambassador to China, who is also accredited to Mongolia, led a delegation of about 20 businessmen from Malaysia to the Mongolian capital of Ulan Bator.
“There is good reason for Mal-aysian companies in China to expand to Mongolia as it is heavily dependent on China,” said Iskandar.
For the first time, a Malaysian mission in China has been assigned to strengthen economic and political ties with their Mongolian counterparts.
Although Iskandar does not have an office in Ulan Bator, he would travel to Mongolia from time to time to maintain a good rapport.
During their two-day trip, the delegation met Mongolian Prime Minister Sukhbaataryn Batbold and the Mongolian business fraternity.
They outlined the sectors in which Malaysian and Mongolian companies can cooperate, namely, prop-erty and utilities development, education, petro-chemicals and IT.
Mongolia may not be one of Malaysia’s top 10 trading nations but the surge in trade between the nations and Mongolia’s projected GDP growth of more than 20% in the next five years augurs well for growth prospects.
Last year, total trade rose 50% to about US$30mil (RM90.8mil) from 2009, in Malaysia’s favour.
Malaysia exported machinery, paper and paperboards, cocoa, sugar and fats and oils to Mongolia, and imported goods like optical and medical instruments and fish products.
In the last five years, Mongolia has drawn in foreign investments to its mining sector.
It is said every dollar in mining creates an additional demand of 1.84 dollars in other sectors.
Batbold said he was happy that the Mongolian business community had a fruitful meeting with their visiting Malaysian counterparts.
“We know that Malaysia has experience in property and infrastructure development, IT products, services and education that Mongolia needs very much.
What Mongolia has is rich abundance of natural resources,” he told the Malaysian businessmen.
Comments
Post a Comment