MALAYSIANS EYEING BREXIT CLOSELY
Business will be affected but only for a short period, says company head
PETALING JAYA: As British MPs grapple with a vote on Brexit, Malaysian businesses with links to Britain are following the developments with added fervour.
PA Food Sdn Bhd managing director Ding Hong Sing said his Semenyih-based company had begun looking for new customers in Europe since 2016 when the Brexit referendum was held.
New markets were being looked at in Eastern Europe and the Middle East, he said.
“If it is a no-deal Brexit, my counterpart in the UK said business could suffer by between 20% and 30%,” Ding said adding that, “Our business will be affected for sure but we think it will only be for a short period.
“Things should be fine in a year or two.”
Ding said his frozen food supply firm could raise prices if the pound sterling depreciated by more than 10% to 20%.
Besides Britain, the company also exports frozen food to Singapore, Hong Kong, Russia and the Middle East.
Top Glove Corp Bhd, the world’s largest glove maker, said it did not foresee substantial differences in doing business with Britain due to Brexit.
“Gloves are essential items in the healthcare industry. As such, demand is generally not impacted by political or economic uncertainty,” said executive chairman Tan Sri Dr Lim Wee Chai.
He said the company would however continue to monitor the situation and remain vigilant of developments that could indirectly affect business.
Lim said Top Glove’s approach is within its control “rather than external factors which are temporary”.
“We are continuing to pursue internal improvements in terms of quality and cost efficiency to ensure we are healthy and agile enough to respond to changes in the business environment,” he said.
Lee Choong San, director of soy sauce company Yuen Chun Industries Sdn Bhd, said sales were still growing in the British market which it entered four years ago.
“We are the original equipment manufacturer for one of the biggest supermarkets in the UK.
“Every year, sales growth is about 15%. I think Brexit has minimal impact on our businesses there,” he said.
Lee said orders from Britain remained steady.
“We get our proceeds in US dollars, so the risks involving the pound does not affect us too much,” he said.
The Financial Times reported earlier that the British and European central banks had activated a special currency arrangement to ensure that the continent’s money markets did not seize up if Britain’s departure from the European Union (EU) at the end of the month leads to heightened turmoil.
The elaborate and time-consuming way British lawmakers make decisions in Parliament has been thrust to the fore by Brexit, with the outcome of a series of votes next week set to determine how and when the country leaves the EU.
Over three days, more than 600 lawmakers must decide whether to accept Prime Minister Theresa May’s deal to leave the EU, leave without a deal or delay Brexit altogether.