With a GDP of USD 15,503, Chile has been a model of economic and financial system within Latin America countries. Despite being a competitive market, there is high export potential for Malaysian exporters in the Chile market. Chile, along with Argentina, has been one of Malaysia’s key trading partners for several years. Chile was Malaysia’s fifth largest trading partner in 2021, and total trade from Malaysia to Chile for January and December 2022 is expected to exceed last year’s record.

Although Malaysia has mostly been exporting furniture and rubber-based products to Chile, there is a demand for food and beverage products, especially healthy and vegan products. Exporting to Chile would also enable Malaysia exporters to penetrate the Latin America market more easily, as Chile has strong business relations with Argentina, Peru, Uruguay, Columbia and Ecuador.

Besides that, Chile has very limited trade barriers, due to the trade agreements between Malaysia and Chile. In 2012, Malaysia and Chile established the Malaysia-Chile Free Trade Agreement (MCFTA) to facilitate trade between the two countries. Under this trade agreement, 95 percent of Malaysian products are able to enter Chile without import duties. Chile has also recently ratified the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP), which would further reduce trade barriers between Malaysia and Chile.

Chile also does not require certifications for most products. However, MATRADE has advised Malaysian exporters to acquire GMP or HACCP certification for their products to facilitate the exporting process. Although Chile does not require product certifications, certain food products are required to undergo product testing before it is approved for export to Chile.

MATRADE has highlighted several factors to consider before exporting to Chile. Firstly, Chile is a price sensitive market, with a 20 percent standard rate for value-added tax (VAT). Secondly, exporters should take the time to understand the culture and regulations of the country. Thirdly, exporters should be mindful of not rushing business negotiations, as Chileans prefer to conduct business slowly and deliberately. Finally, exporters should work directly with importers or via agents, such as Neotrade Chile.

Neotrade Chile is an organization that can assist Malaysian exporters in exporting to Chile and other countries in the region. Neotrade provides international business consulting, representations and commercial agencies, food and beverage trading, and operational outsourcing for import and exports. The organization focuses on assisting small and medium-sized enterprises (SMEs) for business growth and expansion.

The food consumption budget in Chile includes red and white meat, groceries and beverages, fruits and vegetables, dairy products and eggs, frozen products and seafood. Neotrade has also reported that Chilean consumers have been paying increasing attention to food health. More consumers are now checking their food labels, and they are also more interested in functional foods, and vegan and keto diets.

Sustainability and respect for the environment also plays a part in consumers’ purchasing decisions. Products that use less plastic and has smart and recyclable packaging are more likely to capture consumers’ attention. Besides that, consumers are more likely to purchase products with lower pricing, and would also consider other factors like product quality, product durability, customer service and customer experience. Consumers have also been increasing their digital consumption, resulting in an increase in digital e-commerce. The top e-commerce platforms in Chile are Falabella, Paris, Ripley, Lider and Easy.

Malaysian businesses who are interested in exporting to Chile may reach out to MATRADE or Neotrade through the contact details listed below.

For enquiries, please contact:

Europe & Americas Section, MATRADE
Mr. Zahiruddin Nordin
T: 603-6207 7667
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Ms. Wan Norhaniza   
T: 603-6207 7677  
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Embassy of Malaysia, Commercial Section (MATRADE)
Oficina 302, Edificio Malasia
187, Las Condes
Santiago, Chile
T: +52-55-5201 4540   

Ms. Amilatun Fazlina Zakaria, Trade Commissioner
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Ms. Raquel Saavedra, Marketing Officer
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Neotrade Chile
Mr. Jaime Hidalgo
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Website: www.neotrade.cl

Chilean-Malaysian Chamber of Commerce:
https://camchimal.com/

Sources:
MATRADE webinar (Export Opportunities to Chile with Chile-Malaysia Chamber of Commerce)
https://santandertrade.com/en/portal/analyse-markets/chile/reaching-the-consumers