KUALA LUMPUR, Sept 2 ― Malaysian businesses leveraging on the free trade agreements (FTAs) have experienced moderate to significant export growth, according to a HSBC survey.

The inaugural FTA survey, conducted by the Economist Intelligence Unit, also found that only less than a fifth of local companies were taking advantage of such trade agreements.

“Despite the low take-up among Malaysian businesses, those who are utilising them are seeing the benefits such as new investment opportunities, improved trade facilitation and widened their client base,” HSBC Bank Malaysia Bhd said in a statement.

The study, which surveyed 800 companies in the first quarter of 2014 across eight markets in Asia with annual revenues of between US$50 million and US$10 billion, also showed that Malaysian exporters were lagging behind their Asian counterparts when it came to taking advantage of FTAs.

Global Trade and Receivables Finance Head for HSBC in Malaysia, Vincent C. Sugianto, said the country was an active player in trade agreements, however, this effort would be wasted if businesses were not using them.

Meanwhile, Malaysian External Trade Development Corp deputy chief executive officer, Datuk Dzulkfili Mahmud, encouraged Malaysian exporters to leverage on these FTAs to enhance their global market presence.

“The FTAs also allow exporters to defray costs from the elimination or reduction of customs duties, trade facilitating customs procedures as well as the removal of trade barriers,” he said. ― Bernama