Chamber News

The first British Business Centre in Malaysia (BBCiM) is now open for business dedicated to British companies seeking to establish a physical presence in Malaysia.

The BBCiM is a newly developed facility managed by the BMCC which offers incubation services and 24 hours secure access to co-working space for British companies seeking to launch physical operations in Malaysia. The business centre has fully furnished private offices, open desk units rented out on an hourly, daily, weekly, monthly or annual basis. Virtual office services are also available for UK companies who require a registered address in Malaysia.

The BBCiM is located on the same floor as the BMCC Executive Office at Wisma Selangor Dredging along Jalan Ampang, strategically across from the world famous Petronas Twin Towers in the heart of Kuala Lumpur.

Tenants of the business centre will be granted membership privileges of the BMCC business community with unique access to Chamber business support services, preferential introductions and networking opportunities. For more info, visit www.bmcc.org.my or email to info@bmcc.org.my

On Tuesday 28th February, over 35 delegates joined us to learn about business opportunities in Saudi Arabia at Holiday Inn Norwich. The venue provided a spacious setting where delegates were able to network over tea & coffee, followed by 3 presentations from expert speakers discussing the key areas of trade in Saudi Arabia. Norfolk Chamber’s International Trade Manager, Julie Austin welcomed delegates to the event, introducing our first speaker Chris Innes-Hopkins, UK Executive Director, Saudi British Joint Business Council.    Next up we had Eisa S Alothman, Managing Director, Project Facilitators & Services Company Ltd who covered cultural awareness for Saudi Arabia. Eisa gave an enlightening talk, reviewing the difference between gender culture.    We then took a short break and treated delegates to tea and cake to help them process the information just received.   The second half of the event resumed with a presentation from Phil Ball, Director of Trade Sales, Barclays Trade and Working Capital, Corporate Banking Origination. Phil covered the financial aspects to trading in Saudi Arabia.    Our International Trade Manager Julie also gave a short presentation on how we can help your business to expand overseas. If you would like any more information on how we can help, please visit our International Page or contact the team: T: 01603 729715 E: export@norfolkchamber.co.uk   We closed the event with a Q&A session, after which, many delegates took this opportunity to talk further with the speakers and get in some final networking to make those all-important contacts.     View the presentation from the event below:    

Doing Business in Saudi Arabia from Samantha Brown

A new guide aims to help businesses understand the UK’s trade prospects in a post-Brexit world.

Produced by Clifford Chance and the CBI, The Future of Trade for the UK – a Guide for Businesses (available here) claims to provide firms with tools they can use to analyse the impact of Brexit.

The guide assesses a number of scenarios for the UK leaving the EU and their potential impact on businesses, including negotiations on a long-term UK-EU agreement, World Trade Organization (WTO) and third country free trade agreements (FTAs), and interim arrangements.

Around 85% of the UK’s trade is either with EU Member States or with countries which benefit from preferential trade arrangements with the EU, the report highlights.

With many companies likely to be facing unfamiliar and complex trade rules after Brexit, the guide offers advice to help them identify and prepare for the challenges and opportunities ahead.

One of the main issues identified is the impact of Brexit on supply chains.

Jessica Gladstone of Clifford Chance warned that the changes to come will not just affect big UK businesses that export to the EU or through the EU’s current trade links.

For example, she explained, any UK or EU-27 manufacturer that is part of a complex EU supply chain could be at risk because of the way FTAs work.

There are two important steps that firms can take to address such challenges, Ms Gladstone has suggested. The first is to understand the issues and how they could affect a particular business and sector; the second is to lobby the Government, to ensure that it understands what businesses need from the forthcoming negotiations.

In the words of the report: “Business and Government must communicate effectively and work together to ensure the UK’s future trading arrangements promote business, jobs and growth.”

An influential Parliamentary Committee has launched an inquiry into support for exports and investment, building on an investigation last year into “Exports and the role of UKTI”.

Chairman of the International Trade Committee, Angus MacNeil, explained: “Before the Department for International Trade (DIT) was created, our colleagues on what was then the Business, Innovation and Skills (BIS) Committee did some excellent work scrutinising the role of UK Trade and Investment (UKTI).”

As UKTI has now been absorbed into the DIT, he went on, the Committee wants to find out how these new arrangements have affected its performance given that evidence was found of significant flaws in UKTI’s previous operating model.

Interested organisations or individuals are being invited to submit written evidence to the Committee by 5pm on 8 March 2017.

In particular, it will examine whether International Trade and Investment (ITI, formerly UKTI) and UK Export Finance (UKEF) have improved on their performance since the BIS Committee inquiry in 2016.

In the light of the Secretary of State’s admission that the £1 trillion export target will not be met, the Committee also wants to know if the Department’s export and investment targets are transparent, appropriate and achievable.

Evidence can be submitted through the inquiry page at www.parliament.uk.

“This is a time of great uncertainty for UK exporters of all sizes,” Mr MacNeil concluded. “It is vital that they get the right support.”

As the Chamber Network gathers in Westminster for the BCC Annual Conference, the British Chambers of Commerce has today (Tuesday) published a business blueprint for the UK government ahead of the upcoming Brexit negotiations.

Titled Business Brexit Priorities, the report synthesizes feedback from over 400 businesses at 16 Chamber-hosted focus groups, along with nearly 20,000 responses to Chamber surveys. It puts forward priorities for action across seven key areas where business communities want practical solutions and certainty.

BCC evidence confirms that Europe will remain a key market for UK exporters and importers well into the future. As a consequence, it is imperative that the government achieves a pragmatic UK-EU deal that facilitates continued trade.

The key recommendations in the report are:

• On the Labour Market, the government should provide certainty for businesses on the residence rights of their existing EU workers, provide clarity on hiring from EU countries during the negotiation period, and avoid expensive and bureaucratic processes for post-Brexit hires from the EU
• On Trade, the government should aim to minimise tariffs, seek to avoid costly non-tariff barriers, grandfather existing EU free trade agreements with third countries, and expand the trade mission programme
• On Customs, the government should develop future customs procedures at the UK border in partnership with business, seek to maintain the UK’s position as an entry point for global businesses to Europe
• On Tax, the government should guarantee that HMRC is appropriately resourced to help businesses through the transition process, and provide clarity on whether VAT legislation will continue to mirror current core VAT principles
• On Regulation, the government should ensure stability by incorporating existing EU regulations into UK law and maintaining these for a minimum period following Brexit, and ensure that product standards are aligned with, and recognised by, the EU to keep UK products competitive
• On EU funding, the government should maintain UK access to the European Investment Bank, and ensure there is no funding ‘cliff-edge’ for areas in receipt of EU funding
• On Northern Ireland, the government must avoid any return to a hard border, so that businesses can move people and goods as freely as possible.

Commenting on the report, Julie Austin, International Trade Manager for Norfolk Chamber, said:

 “Business communities across Norfolk and the UK want practical considerations, not ideology or politics, at the heart of the government’s approach to Brexit negotiations.

“What’s debated in Westminster often isn’t what matters for most businesses. Most firms care little about the exact process for triggering Article 50, but they care a lot about an unexpected VAT hit to their cash flow, sudden changes to regulation, the inability to recruit the right people for the job, or if their products are stopped by customs authorities at the border. The everyday nitty-gritty of doing business across borders must be front and centre in the negotiation process.”

Also commenting on the report, Adam Marshall, BCC Director General, said:

“What’s also clear is that the eventual Brexit deal is far from the only thing on the minds of the UK’s business communities. An ambitious domestic agenda for business and the economy is also essential so that business can drive our post-Brexit success. Firms across the UK want a clear assurance that Brexit isn’t going to be the only thing on the government’s economic agenda for the next few years.” 

Marcus Mason, Head of Business at the BCC, and author of the report, added:

“Since the historic vote on June 23, we have worked with Chamber business communities all across the UK to determine their key priorities for the Brexit transition.

“This report brings those practical priorities together and urges the government to adopt them in the forthcoming negotiations. Chambers of Commerce stand ready to help the government shape a pragmatic and practical approach to the coming transition, so that firms can continue to trade successfully with customers and suppliers across Europe and around the world.”

A Chamber survey last year identified that 67% of education leaders recognise the need for better careers information.   Norfolk Chamber is continuing its work to help bridge the gap between young people and business and is working with several Norfolk schools to deliver careers events in the coming weeks.

We need support from the Norfolk business community to make these careers events a success and help the student become more ‘work ready’.    If you can spare a few of hours of your time to attend and support the careers event – you could potentially be helping your future workforce.

Please click on the links below to find out how you can get involved and to register your interest/attendance at our careers events:

Tues, 14 Mar 2017       Attleborough Academy: 8.30am – 1pm    

Wed, 22 Mar 2017        Flegg High School: 8.30am – 1.30pm        

Thurs, 11 May 2017      Thetford Academy: 12.30pm – 15.45pm             

Mon, 03 July 2017         Wymondham Academy: 9.30am – 1.30pm              

Temporary traffic lights will be in use on the A140 Cromer Road north of the B1149 Holt Road roundabout for up to one week from Monday 27 February to allow National Grid to continue gas main diversions that will enable construction of the major junction between the A140 and Norwich Northern Distributor Road.

Where possible, the lights will be suspended during peak hours. If this is not possible, they will be manually controlled to minimise the impact on traffic. Norfolk County Council apologises for any inconvenience.

The Ministry of Supply in Egypt is planning to import some food products and is seeking quotations from British companies who could export such products to Egypt. 

The request includes the following items :

• Broad Beans ( dried beans -Fava beans-shipped in sacks) : amount of  490, 000 tonnes per annum
• Lentils : amount of 300,000  tonnes per annum
• Frozen Halal Meat : amount of 48,000 tonnes per annum
• Frozen Halal Poultry : amount of 60,000 tonnes per annum

If you are interested in providing a quotation for this amazing opportunity, please email us and we will pass your details on.

The British Chambers of Commerce (BCC), in partnership with DHL, today (Thursday) publishes its latest Quarterly International Trade Outlook, which shows that confidence among exporters that their turnover will improve jumped in Q4 2016, ahead of further moves towards Brexit.

Although the number of businesses reporting that their export sales and orders would improve remained largely constant in the last quarter of 2016, businesses in both manufacturing and services are increasingly confident that they will continue to improve turnover, and that profitability will increase or remain steady in the coming 12 months.

The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce, fell by 1.42% on the quarter – but remains nearly 5% up on the last quarter of 2015.

The results serve as a reminder that businesses are continuing to trade in spite of the uncertainty around Brexit. But to maintain this positivity, the government must focus on the fundamentals of the economy – helping exporters recruit to close a growing skills gap, and provide support for those seeking to navigate currency fluctuations.

Key findings from the report:

·         The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, fell by 1.42% on the quarter. The Index now stands at 119.96 – and is up 4.81% on Q4 2015

·         The balance of manufacturers reporting improved export sales fell slightly to +16, down one point from the previous quarter. Looking at services, the balance of firms reporting improved export sales remained constant at +8

·         The balance of manufacturers reporting improved export orders rose to +13 from +12 in Q3, while in services this rose one point to +6

·         Looking at expectations of turnover over the next 12 months, the balance of manufacturers confident of an increase rose nine points to +43 – in services this rose seven points to +35

·         Confidence that profitability would improve rose to +21 for services companies – up from the four-year low of +15 seen in Q3 2016. The balance of manufacturers remained constant at +22

Commenting on the findings, Julie Austin, International Trade Manager said:

“Many Norfolk exporters remain confident, in spite of uncertainty over our relationship with the EU. The BCC findings serve as a reminder that it is businesses that trade with other businesses, not governments – but they need support if they are to continue to be positive.”

Dr Adam Marshall, BCC Director General, said:

“Our economic forecast suggests that inflation is going to rise above the 2% target this year, which will create pressure on many firms. In addition, the fluctuating currency markets are affecting our exporters and importers – so there are warning signs on the horizon.

“The government cannot give businesses much certainty around either Brexit or currency markets, but it can act closer to home. The Chancellor’s Budget must focus on cutting the up-front costs that government imposes on every business, and promote investment and exports.”

Ian Wilson, CEO DHL Express UK and Ireland, said:

“UK exporters continue to be undeterred in their ambition to take their products and services overseas, despite turbulent economic times.

“Whilst this confidence might come as a surprise during these uncertain times, the rapid evolution of e-commerce and technology means that more businesses than ever are realising the opportunity that exporting presents.

“With online technology in overseas markets advancing, UK exporters should remain confident that their products are now more accessible than ever.”

Following a sharp widening of the trade deficit in the third quarter (Q3) of 2016, an increase in exports of goods to non-EU countries saw the deficit on goods and services narrow to £8.6 billion in the fourth quarter (Q4) (October to December).

This is the main finding of the latest trade bulletin produced by the Office for National Statistics (ONS).

It shows that, while exports of goods to both EU and non-EU countries increased through most of 2016, there was a much higher quarter-on-quarter growth in exports to non-EU countries in Q4.

The British Chambers of Commerce (BCC) welcomed the signs of improvement with Director of Economics Mike Spicer describing the figures as an important reminder that UK companies take advantage of trading opportunities in every part of the world.

“This performance comes despite the mixed reaction of exporters to the depreciation in Sterling – which our research has found is hurting as many as it is helping,” he went on.

With Brexit continuing to dominate the headlines, Mr Spicer suggested that the continued weakness of the pound and the expected slowdown in economic growth is likely to dampen future demand for consumer imports.

More direct support from the Government, including more investment in trade show access, is needed “to keep UK businesses trading with the world”, he argued.

The BCC wants to see action in the Budget to reduce the upfront costs of doing business, particularly business rates in order that businesses have the resources to invest in people and product development.

“This is absolutely necessary to take full advantage of the growth opportunities in overseas markets,” Mr Spicer concluded.

Addressing a recent meeting of the Indian aviation community, UK Aviation Minister Lord Ahmad called for even greater trade links between the two countries.

He highlighted that Prime Ministers May and Modi had already committed to building the closest possible commercial and economic relationship, while Secretary of State for International Trade, Liam Fox, has agreed to set up a joint working group with the Indian Minister for Trade, Nirmala Sitharaman.

During Lord Ahmad’s visit to India, a deal was signed to ease restrictions on the number of scheduled flights between the two countries.

Limits on flights from key Indian cities including Chennai and Kolkata have been scrapped allowing, the Aviation Minister explained, for a greater range of flights for passengers while providing a boost to trade and tourism for both countries.

With about 2.5 million passengers flying direct between the UK and India each year, and 88 scheduled services per week in each direction between the two countries, the new agreement should open up even more routes and opportunities.

“Building new links with important trading partners is a key part of the Government’s plans for a Global Britain,” Lord Ahmad said, “opening up new export markets and creating jobs and economic growth. India is one of our closest allies and key trading partners and this new agreement will only serve to strengthen this crucial relationship.”

The European Commission has published details of its current trade negotiations with Indonesia.

Bilateral trade talks between the EU and the South East Asian country were launched in July 2016, with the aim of concluding a Comprehensive Economic Partnership Agreement (CEPA) between the two.

Issues covered include: customs duties and other barriers to trade; services and investment; access to public procurement markets; competition rules and the protection of intellectual property rights.

When the talks were launched, Trade Commissioner Cecilia Malmström said that an agreement would offer great opportunities for businesses and people in both the EU and Indonesia.

With a population of over 250 million people, Indonesia is the largest market in South East Asia. Figures for 2015 show that bilateral trade in goods between the prospective partners had already reached more than €25 billion that year.

The EU is Indonesia’s fourth largest trading partner, while Indonesia is the Union’s fifth largest partner in the Association of Southeast Asian Nations (ASEAN).

Details of the negotiations just released by the Commission show that the talks have addressed the opening of public procurement markets, the need to reduce unnecessary overlapping regulatory barriers to trade and how to increase trade benefits for small businesses.

They have also considered increased co-operation on the import requirements related to food safety, and to plant and animal health.

In addition to trade issues, the CEPA is also intended to uphold current levels of protection for consumers, workers and the environment, and to promote sustainable development.

Further information about trade between the EU and Indonesia can be found at the European Commission website.