KULLA LUMPUR (New Straits Times) -- Despite the challenges of doing business with Iran, the Malaysia External Trade Development Corporation (Matrade) views the Islamic Republic as a fertile ground for Malaysian exports.

Matrade's senior trade commissioner based in Dubai, Dzulkifli Mahmud, said Malaysian exports to the Islamic Republic of Iran were valued at RM1.19 billion (US$350 million) in the first seven months of 2009.
In a further sign of Iranian importers and buyers' growing confidence in high-quality Malaysian products, a Matrade-led Malaysian business delegation succeeded in securing export orders worth RM13.39 million at the just-concluded Ninth Tehran International Industry Fair.
“Most of the Malaysian companies which participated in the fair are new to this market and they're very pleased with the export sales and orders received from Iranian buyers,” Dzulkifli told Bernama on the outcome of the Oct. 6-9 trade fair organized in the Iranian capital.
Malaysia exported RM2.45 billion worth of products to Iran last year.
A total of 28 Malaysian companies took part in the exhibition which also marked the fifth participation by Matrade since 2005.
Among Malaysian products which had been well-received by Iranian buyers included building materials, vacuum cleaners, wooden items, industrial rubber products, agriculture pumps, chemicals for oil and gas sector, brake pads and rubber autoparts, solar water heater and car accessories.
“Matrade sees the prospect of exporting more products from Malaysia to the Iranian market as very bright. Iranian buyers now look at Malaysia as a country to source high quality products and services,” Dzulkifli said.
He said the Matrade office would continue to assist Malaysian companies in penetrating the Iranian market comprising around 70 million people, 2.6 times the size of Malaysia's population.
“The Iranian market is a growing market and there's good demand locally for consumer products imported from overseas,” he said, adding that Iranian buyers preferred high-quality and value-for-money products.
The trade commissioner reckoned that Iranian buyers and consumers have high regard for Malaysian products, thanks to their quality and competitive prices.
He acknowledged that doing business with Iran, Malaysia's third largest trading partner in the Middle East, could be a bit tricky, no thanks to a slew of international sanctions which, among others, cause problems in raising letters of credit for payment purposes.
But Malaysian companies are finding alternative ways to resolve such issues, he said.
Dzulkifli said Matrade expected more Iranian buyers to visit Malaysia to continue discussions with their partners and seek new products that Malaysian companies could offer.
“Malaysian companies must continue to serve this market through regular market visits and participation in trade events in Iran,” he said.
And Matrade, he added, would continue to engage more Malaysian companies in efforts to explore new overseas markets.
Making its debut at the Iranian trade show, Johor-based Myvac Technology (M) Sdn Bhd was happy with the quality of trade buyers who visited the fair.
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Its chief executive Michael Tan said his company was now in the process of shortlisting potential distributors for Myvac which he described as the world's first floating vacuum cleaner invented in Malaysia.
“Myvac will make its debut in this market in the next three months after all necessary arrangements with local distributors are completed,” he said.
Tan said the Iranian market offered ample opportunities for his company's products given that carpets were a regular feature in most Iranian households.
Meanwhile, Malcorp Sdn Bhd's chief executive Serajudin Ismail said Malaysian rubber extrusions and industrial rubber hoses have bright prospects in the Iranian market.
“Iranian buyers and consumers have high regard for Malaysian rubber products due to the fact that Malaysia is well known as a leader in rubber research and its high-quality rubber and rubber products,” he said.
Serajudin said Malaysian companies should consider developing more industrial rubber products, particularly those that would fulfill the requirements of the Iranian automotive industry.-
($1=3.39 Malaysian Ringgit)
Photo:
A large number of Iranian and foreign industrialists, businessmen, traders, importers, exporters, experts and local people attended the Ninth Tehran International Industry Fair held from October 6 to 9 in Tehran. (Fars photo)