Report on MEXPA’s visit to Embassy of Nepal

The Malaysian Exporters Association led by President Mr Kabur Ibrahim paid courtesy call to H.E. Ambassador Dr Rishi Adhikari on 9th January 2012. The Nepal Embassy is housed at Wisma MCA, Kuala Lumpur. Our Trade delegation comprised of 7 members. The Exco members being Encik Kabur, Mr Koh, Madam Sevaran, Puan Azizah, Mr Gopal (Press correspondence), Mr Rama and Mr Hafiz.

H.E. Excellency briefed committee present on Nepal. Nepal, he said is the 14th trading partner and had steadily increased its imports into Malaysia. Malaysia has also done well in exporting goods, items and services.

H.E. also mentioned that most exports from Malaysia consi
sted of palm oil, soya, raw material, computers, electrical and furniture.. With a population of 28.2 million, this nation offers snow capped mountains, a blend of ancient history, vibrant cultures and scenic grandeur for the world to see.

Nepal is located between China and India. Nepal’s main geographical features include peaks, lower mountains, mid hills and fertile plants of tropical jungles. Newly 1/3 of the total length of the Himalaya’s and 8 of the world’s 4 highest peaks are in Nepal. It is a country for one to invest in, especially in the tourism area. Nepal is from 70 meters to highest 8848 meters above sea level peaks. Some noted activities range from tracking mountain and has become world’s tourist destination. Malaysia can now look at Nepal more seriously.

There are protected regions along Himalayas, and some of the noted national park areas are Shey Phoksundo, Annapurna conservation area, Manaslu Eco-tourism area, Lantang Park and Makalu Park (one of the best parks in the world) which provide excellence tracking activities. There are small lodges and tea houses dot the main trials. Boating from glacier fed lakes up north down to where rivers flow.

Kathmandu is the capital and Pokhara is excellent for boating. Other activities are mountain flight, paragliding, ultralight air craft service, fishing and angling. Nepal has much to offer e.g. rock climbing, Bungy jumping, jungle safari and mountain biking, hunting, honey hunting and rafting, kayaking and canonying are also some to be named. (Malaysia business people-Why not look at it as an opportunity and be a supplier for the tool, materials and other necessitation needed for the above activities?). To Nepal, their highlights are Mount Everest, natural Kathmandu and birthplace of Lord Buddha being Lubini. This birthplace brings in devotes from all over the world.

Now we will look at the main experts from Nepal for the Malaysia businessman to consider investing. Nepal has hydropower, woolen and textiles to offer, shawls, herbs, spices, green food to technology and highly potential blood purifier herb which Nepal is promoting for the medical industry. In areas of construction, building of roads highways, the government seek seeks investment, as possible as projects are available. The transport area with spare parts needed is one more offer. Nepal does depend on other countries for raw material and consumer products.

Nepalese import is dominated by petroleum products, machinery and equipment include vehicle and raw material. What more does Nepal offer for export they are the best in garments which are ready made, e.g. cardigans and pashmina shawls. Because the high value of import and low value of export, Nepal is normally faced with a deficit in foreign Trade.

Malaysia should explore all offers available areas in the Nepali market. As we know India is one major trading partner of Nepal it actually occupies 60% of the present share in the total trade. Nepal too offer to Malaysians, Pulses (lentils) hides a goat skin, cardamoms, tea and coffee, handicrafts, silverware jewelry, paper products, cotton bags and sacks veg. ghee, and medicanal herbs.

Current trade with Malaysia

Malaysia is one the important trade palmers in Nepal.But due to the law expert and high import there is a huge deficit. Malaysia businessmen are encouraged to export product and call it a trade opportunity. For statistic records, Nepal imported various goods from Malaysia 2006/ 2007 amounting to 139.8 million while export to Malaysia in the same year amounted to 2.4 million). The exports and imports are rather insignificant. Some statistics what went from Malaysia (record 2006/2007)

Palm oil, soybeans, coconut oil (crude and refined) 24%, industry raw material (24%), computers and accessories (99%), metal, metal product / copper aluminum (6.62%), bottle nuts (4%), coding heating equipment appliance (2.5%), construction material (2.5%), air cond appliance (3%), audio video equipment (2.5%),audio video (1.93%), motor vehicles, spare parts (1.68%), medicine & related products (1.5%), paper and printed products (1.15%), Juices and soft drinks (1.01%), tires, chocolates, tv parts, metal, home appliance, biscuits, wafers, electric lamps, toothbrushes, doors, frames, pocket lights, to name a few. Malaysia also occupies 9th place among countries and timber base products are some exports too. His excellency expressed that more trade delegations should be encouraged.


The Malaysian Exporters association should now start working closely with Nepal Malaysia chamber, in consultation with Minister of Commerce FNCCI, NCC, TPC. Long term base Trade Exhibition should be held, Malaysia business people should be encouraged to become joint partners and work with government and private sector.

A market study should be carried out and our niche products for export to Nepal should be concentrated on. Cultural programs should be encouraged. Malaysia business people should seek orders from big establishment e.g. Giant supermarkets, have more partnership with locals too.

With good existing entry barriers, removed and offers of attractive incentives and assurance from Nepal government with eased admin process and political stability, Malaysia business people will not hesitate but invest in Nepal. Nepal’s economy will grow and much as a benefit to Malaysians investing and trading.

MEXPA’s Plan and Action
• Malaysian Exporters Association should now do a market study
• Malaysian Exporters Association should sent out questionnaire on all benefits of doing business in Nepal.
• Malaysian Exporters Association should now organize a Luncheon talk and invite Malaysians, government officials, Matrade, MITI, Malaysia-Nepal chambers and Nepal officials.
• Malaysian Exporters Association should visit to Nepal with trade business people be organized in year 2012.
• Malaysian Exporters Association should exchange program – delegates visiting us (vice versa).
• Malaysian Exporters Association should provide and receive constant updates from chambers and Nepal Embassy.

Tip of the day

As labor is cheap and affordable and resources available, Malaysia should open up chain and franchise business in the fast growing tourism industry. Set up registered restaurant (fast food) this is a growing industry.

More information on Nepal. We could also trade in organic medicine for its value as known. Nepal was a monarchy rule-republic, a ready constitution where trade Unions got involved in government policies. Malaysians should take note there is less electricity, roads are not much developed, it is terrain country. What Nepal lacks is resources, Malaysians can at their first visit look at future trade. Bring along Malaysia expertise, Banking, Medical, Education program, skilled people, trainers, consultants, experts in special fields to visit and held meetings.

Malaysia has much to offer. MOU’s should be signed and implemented. SME’s should join in the trade delegations.
Please note, a visit/ trade delegation will be organized by MEXPA in 2012

Report prepared by;
Puan Sevaran Kaur JP
State rep. (NS)/ Liaison officer of MEXPA