Image credit: Legal Advice Malaysia
Malaysian SMEs are expanding into the global market, leveraging Malaysia’s deepening diplomatic and trade ties with the Gulf Cooperation Council (GCC).
In a landmark move, three leading Malaysian franchises—Hainan Village Malayan Kopitiam Group, Pink Tower Childcare Group, and Uni Smart Pest Control Group—have signed a Memorandum of Understanding (MOU) with MGSG International Limited in Bahrain.
This agreement opens doors for Malaysian businesses to promote and market their products and services in Bahrain and the wider GCC region.
The MOU signing, held at the Malaysian Embassy in Bahrain and witnessed by His Excellency Shazryll Zahiran, the Malaysian Ambassador to Bahrain, is a significant step in Malaysia’s efforts to support SME internationalisation.
Coinciding with the 50th anniversary of Malaysia-Bahrain diplomatic relations, this partnership underscores the strengthening economic ties between Malaysia and Bahrain and the broader GCC bloc.
This initiative comes as Malaysia and the GCC are on the brink of finalising a historic Free Trade Agreement (FTA). Recent figures highlight the importance of this effort: bilateral trade between Malaysia and Bahrain grew by 5% in 2023, reaching RM639.1 million.
The FTA is expected to lower trade barriers, enhance market access, and simplify regulatory requirements, providing Malaysian SMEs with unparalleled opportunities to expand internationally.
“This MOU demonstrates how Malaysian SMEs are actively leveraging diplomatic and economic initiatives to access new markets,” said Dato’ Dr Denming Ho, Director of Hainan Village Malayan Kopitiam Group and leader of the franchise delegation. “Our entry into Bahrain opens the door to the larger GCC market, allowing us to introduce unique Malaysian products and services to a discerning and diverse audience.”
This MOU partnership empowers these Malaysian SMEs to:
– Access New Markets: Tap into the GCC’s growing consumer base of over 57 million people with substantial disposable incomes.
– Enhance Brand Recognition: Establish a presence in one of the world’s fastest-growing economic regions, boosting global competitiveness.
– Leverage Franchise Expertise: Benefit from structured franchise systems to navigate international expansion challenges effectively.
With a collective GDP of US$2 trillion (approximately RM8.9 trillion), the GCC offers vast opportunities for Malaysian SMEs. Bahrain’s position as a gateway to the GCC enables Malaysian franchises to access a 57-million-strong market, benefiting from streamlined trade logistics and reduced tariffs under the forthcoming FTA.
Malaysia’s leading role in the global halal economy further strengthens its value proposition. In 2023, Malaysia’s halal exports reached RM55 billion, with the food and beverage sector contributing RM29.37 billion.
With the global halal market projected to reach USD5 trillion by 2030, this presents a promising opportunity for Malaysian SMEs to expand their footprint internationally.
The MOU signing coincided with “Malaysia Fair 2024” at Oasis Mall, Juffair, on 15 and 16 November, where Malaysian SMEs showcased their offerings, including:
– Hainan Village Malayan Kopitiam Group: Known for its 3-in-1 white coffee, Royal Jelebu Hainanese curry puffs, and bottled Seri Kaya.
– Pink Tower Childcare Group: Innovators in holistic early childhood education.
– Uni Smart Pest Control Group: Providers of environmentally friendly pest management solutions.
The Malaysia Fair reflects the country’s commitment to empowering SMEs and fostering stronger economic ties with Bahrain and the GCC. Initiatives like this MOU and expo provide a strategic platform for Malaysian brands to forge partnerships, understand GCC consumer needs, and adapt their offerings to regional preferences.
Additionally, such efforts reinforce Malaysia’s reputation as a hub for high-quality franchise systems, essential for sustaining long-term competitiveness on the global stage.
Source: https://sme.asia/malaysian-smes-forge-new-path-to-global-markets-through-gcc-partnerships/