N.Z. Exporters Must “Chase” Share Of Malayan Market

Press, Volume CI, Issue 29760, 1 March 1962, Page 7

N.Z. Exporters Must “Chase” Share Of Malayan Market

Although New Zealand manufacturing organisations were showing a strong interest in exports, the attitude of individual firms too often was “we have a very nice market in New Zealand and are not really interested," said the New Zealand trade commissioner in Malaya (Mr W. L. Middlemass) speaking to members of the Canterbury Manufacturers’ Association in Christchurch yesterday.

“There is a big potential market in Malaya, but you must take a realistic view and really chase it if you want to share in the market,’’ Mr Middlemass told the manufacturers in an informal address.

There were no import or currency restrictions in Malaya but the market was strongly competitive from a price point of view. The Malayans could trade with the world and took toe article with the lowest price.

“Generally speaking, the importers are more interested in price than in quality. I have heard no complaints about the quality of New Zealand goods. However, in the last 18 months I have made inquiries concerning 150 separate items which New Zealand firms are interested in exporting to Malaya. It

is unfortunate but true that only two of these items “came within cooee” of the cost-insurance-freight prices of the same articles already being imported from other countries.

“Generally speaking the C.I.F. prices named by New Zealand firms interested in exporting to Malaya have been from 30 to 50 per cent, higher than their competitors’ prices. “But Malaya is a potential market, and I am going to be pretty blunt about it. A large number of New Zealand business men go overseas every year to the United Kingdom and toe Continent. It seems they all go to see what they can buy. “Well, Malaya is on their way and it would cost only hotel expenses for them to stop and see for themselves what the Malayan market has to offer to exporters. It would not cost them more in air tares.

“New Zealand firms can get a share in this market against the Japanese, toe Americans, British, Swedish and Continental countries but only if they chase it,” Mr Middlemass said.

He said Malaya last year

had an export income of 320 m Malayan dollars against imports of 370 m. It was this favourable trade balance that enabled the country to trade with the world without restrictions. Law Cost Market . In 1059, New Zealand had exports to Malaya of 4m dollars and at October 31 last year had exported 7.2 m dollars worth for 1961. The exports were mainly primary produce. New Zealand imported about 8m dollars worth of Malayan goods in toe same period. Even in primary produce, the New Zealand attitude seemed to be that it was not particularly interested in the low-cost Malayan market while it had a high-price, premium market, the United Kingdom, in which to sell its produce. Most of the butter in Malaya was sold through coffee houses in slices on plates. The Australian butter was exported in square, halfpound packs, which lent themselves to slicing and a slice appeared to contain more than that from the New Zealand oblong pound pack Consequently, the Australians were selling much more butter than New Zealand. Again, New Zealand would not get into the meat market until it adopted the Moslem slaughtering methods. Most of the importing in Malaya was in the hands of merchant-banking firms which each had from 150 to 200

agencies. These firms gave the retailers credit term* and consequently wanted credit period from the exporting Anna. New Zealand firms who wanted to get into the Malayan market should send representatives there, eost their product* on a marginal basis and enter into arrangement* to give the importers credit terms while they collected money from the shopkeepers in Malaya, said Mr Middlemass Mr Middlemass is on two months' leave in New Zealand and will visit Australia before returning to Malaya He addressed members of the Canterbury Chamber of Commerce yesterday afternoon and will visit at least 15 industrial firms, the Industrial Development Department of Canterbury University and Lincoln College during his week's stay in Christchurch.