MATRADE Miami's coverage area includes Florida and Georgia, the Caribbean, Colombia and Venezuela.

"MATRADE Miami's objective is to develop non-traditional markets, such as the Caribbean and Latin America, including Colombia," said Mr. Ahmad Shanizam Ab Ghani, Director of MATRADE Miami.

Trade between Malaysia and Colombia increased in 2023 against the previous year, reaching a record US$434.41 million. However, Malaysia's exports to Colombia decreased by 21.4%, reporting US$ 116.18 million during the same period.f the International Chamber of Commerce of Paris; III. Definitions; IV. Parties; V. Main Obligations).

Despite the decline in exports, the significant overall increase in trade volume highlights the strengthening economic ties between the two nations. Colombia's imports from Malaysia increased by 109.1% to US$318.23 million, resulting in a trade balance in Colombia's favor of US$202.05 million.

Manufactured Goods Sector Leads the Way

The manufactured goods sector continued to be the main driver of Malaysia's exports to Colombia, accounting for a staggering 97.4% of the total value in 2023. However, this sector also experienced the most significant drop, falling 21% compared to 2022.

Within the Manufactured Goods sector, several subsectors experienced notable declines:

• Rubber Products: decreasing 56.4%.

• Metal Fabrications: decreasing 63.0%.

• Machinery, Equipment and Parts: decreasing 36.1%.

• Electrical and Electronic Products: down 36.2%.

• Textiles, Apparel and Footwear: down 26.7%.

The agricultural goods sector also decreased by 31.4% in 2023 compared to 2022.

The Positive Side of the Balance:

Despite the overall decline in Malaysia's exports to Colombia, some subsectors within the manufactured goods sector performed well:

• Chemicals: US$21.20 million (18.2% of total exports).

• Palm Oil and Palm Oil-based Manufactured Products: US$ 15.28 million (13.1% of total exports)

• Machinery, Equipment and Parts: US$ 15.12 million (13.0% of total exports)

• Electrical and Electronic Products: US$ 12.23 million (10.5% of total exports)

• Rubber Products: US$ 11.94 million (10.3% of total exports).

Regarding Colombia's imports from Malaysia, the most relevant sub-sectors were:

• Mining Goods: US$255.90 million (80.4% of total imports).

• Crude Oil: US$233.91 million (73.5% of total imports).

• Metal Manufactures: US$27.96 million (8.8% of total imports).

Analysis of the Decrease in Exports

Several factors may have contributed to the decline in Malaysia's exports to Colombia in 2023:

• Economic slowdown in Colombia

• Fluctuations in the Colombian Peso exchange rate

• Global trade disruptions

• Increased tariffs or other trade barriers

• Trade agreements with other countries

Future Outlook

Despite the current decline in exports, the future outlook for trade between Malaysia and Colombia remains positive, including the following:

• Colombia's growing middle class and consumer spending.

• Diversification of exports into higher value-added goods and services.

• Focus on new sectors such as renewable energy, infrastructure development and agribusiness.

Conclusion

The significant increase in overall trade volume between Malaysia and Colombia in 2023 demonstrates the strong economic ties between the two nations. While the decline in Malaysia's exports presents a challenge, the positive future outlook indicates promising opportunities for growth in the coming years. By addressing the potential causes of the export decline and taking advantage of identified opportunities, Malaysia can further strengthen its trade relationship with Colombia.

Contact:

Susana Garcia-Prendes

Marketing Officer

Malaysia External Trade Development Corporation

Miami, Florida

USA

miami.susana@matrade.gov.my

miami@matrade.gov.my

www.matrade.gov.my