TO increase the flow of trade with its neighbor, the Philippines is encouraged to export more products to Malaysia in a bid to expand trade relations between the two countries especially with the Asean economic integration coming in next year.

Har Man Ahmad, Trade Commissioner of Malaysia External Trade Development Corp. (MATRADE), said among the products with huge potentials in the Malaysian market are electrical and electronics items and agriculture-based products.

He said Philippine cosmetics and personal care products have also taken a substantial following in Malaysia.

"Filipino consumers may seek to find opportunities in providing raw materials to the strong manufacturing base of Malaysia," he noted.

Ahmad said MATRADE Manila is actively promoting Malaysian trade in the ASEAN region which includes the Philippines, as his country gears up towards a more proactive participation in the upcoming Asean integration.

"We hope to further increase our presence as we move progressively towards an integrated economic community where we are encouraged to trade freely and to take advantage of the opportunities offered in this huge market of 625 million people with a total trade of $2.37 trillion," he said.

In 2013, Malaysia's bilateral trade with the Philippines declined by 9.6 percent to $4.47 billion from $4.95 billion the previous year.

Ahmad attributed the reduced total trade mainly to the effects of global market forces, with a persistent decline in electronic products being sourced from both countries due to lower global demand from troubled economies.

Malaysia was the Philippines' 11th largest trading partner and export destination in 2013.

Within Asean, the Philippines was Malaysia's fifth largest trading partner, export destination and import source. (PHILEXPORT)