Manama Bahrain, 18 November 2024 – Malaysian Small and Medium Enterprises (SMEs) are making significant strides into the global market through strategic partnerships facilitated by Malaysia’s strengthening 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 initiative paves the way 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, Malaysian Ambassador to Bahrain, marks a milestone in Malaysia’s efforts to empower its SMEs through internationalisation. Coinciding with the 50th anniversary of Malaysia-Bahrain diplomatic relations, the initiative highlights the deepening economic partnership between the two nations and the broader GCC bloc.
Leveraging Malaysia-GCC Trade Momentum
This initiative comes at a pivotal time as Malaysia and the GCC move closer to finalising a historic Free Trade Agreement (FTA). Recent data underscores the importance of these efforts: bilateral trade between Malaysia and Bahrain grew by 5% in 2023, reaching RM639.1 million. The FTA is expected to reduce trade barriers, enhance market access, and simplify regulatory requirements, providing Malaysian SMEs unparalleled opportunities to expand their global footprint.
“This MOU exemplifies how Malaysian SMEs are proactively leveraging diplomatic and economic initiatives to access new markets,” said Dato’ Dr Denming Ho, Director of Hainan Village Malayan Kopitiam Group and franchise delegation leader. “By entering Bahrain, we are opening doors to the larger GCC market, bringing our unique Malaysian products and services to a discerning and diverse audience.”
Empowering SMEs for Global Success
This MoU partnership empowers these Malaysian SMEs to:
GCC Market Potential and Halal Leadership
The GCC, with its collective GDP of USD2 trillion (approximately RM8.9 trillion) and strategic importance as a global trading hub, offers immense opportunities for Malaysian SMEs. Bahrain’s position as a gateway to the GCC allows Malaysian franchises to tap into a market of 57 million people while benefiting from streamlined trade logistics and reduced tariffs under the anticipated FTA.
Additionally, Malaysia’s global leadership in the halal economy strengthens its value proposition. In 2023, Malaysia’s halal exports reached RM55 billion, with the food and beverage sector contributing RM29.37 billion. The global halal market, projected to grow to USD 5 trillion by 2030, presents a lucrative opportunity for Malaysian SMEs to expand their presence.
Showcasing Malaysia at Malaysia Fair 2024
The MOU signing coincides with the “Malaysia Fair 2024” at Oasis Mall, Juffair, on November 15 and 16, where Malaysian SMEs showcased their offerings, including:
This Malaysia Fair initiative reflects the country’s commitment to empowering SMEs and fostering deeper economic ties with Bahrain and the GCC, which aligns with efforts to strengthen diplomatic and economic partnerships that create real opportunities for Malaysian businesses to thrive on the global stage.
Together, the MOU and expo provide a strategic platform for Malaysian brands to build meaningful partnerships, understand consumer needs in the GCC, and adapt their offerings to meet regional tastes. Additionally, initiatives like this strengthen Malaysia’s reputation as a hub for high-quality franchise systems, which are critical to ensuring long-term competitiveness in the global marketplace.
