Enterprise
Dealing with challenges in export market
Najihah S | 09 Feb 2018 00:30
Lim believes that search engine optimisation or SEO helps to increase demand

Many small and medium enterprises (SMEs) opt for their products to be exported so as to diversify their revenue base and gain a strong foreign foothold. This is despite having to deal with various documentation processes relating to customs clearance.

That said, the export landscape has changed over the years especially with new regulations and requirements in various countries. In addition, most of the SMEs have to compete with cheaper China-made products.

dpstar Holdings Sdn Bhd, which manufactures thermo sensors and industrial heating instruments, has seen lower demand for its products as a result of the influx of Chinese products over the years. The company has been exporting its products for over two decades to Singapore, Indonesia and the Philippines. Its export business contributes about 15% ofits total revenue.

“It’s a known fact that the products from China are very cheap. We have been experiencing flat export growth for the past two years despite the weakening of the ringgit. There is very little loyalty for these types of products so what we rely on would be building good relationships with our clients,” says its business development manager Ken Lim.