Mission Statement

Southeast Asia Environmental Technologies Trade Mission

April 24, 2006-May 3, 2006

Mission Description

The Commerce Department’s International Trade Administration (ITA) and the U.S. Commercial Service (USCS) posts in Malaysia, Thailand, and the Philippines will organize a Southeast Asia Environmental Technologies Trade Mission, April 24-May 3, 2006, offering a timely way for U.S. firms to explore these three fast-growing markets for U.S. environmental equipment and technology.   Solid (medical and hazardous) waste treatment, wastewater treatment (municipal and industrial), air pollution control equipment, industrial waste recycling, and contaminated land remediation offer some of the best export opportunities for U.S. companies in Malaysia, Thailand, and the Philippines.   At each stop, trade mission participants will benefit from country briefings and individual business meetings with prospective agents, distributors, partners, and end-users.   In Bangkok, mission members will also meet with representatives from the United States-Asia Environmental Partnership (US-AEP) and the U.S. Trade Development Agency (USTDA).   In Manila, the trade mission schedule includes a briefing by the Asian Development Bank (ADB) on commercial opportunities created by the ADB’s $6 billion in annual lending operations.

Commercial Setting

Malaysia

Malaysia’s environmental market is estimated at US$800 million, with imported equipment accounting for approximately US$270 million.   The services and resource sector predominates at an estimated US$530 million.   The United States is Malaysia's leading foreign supplier of environmental equipment, especially water and wastewater equipment. Sectors offering the most attractive potential for environmental exports to Malaysia are public water supply, sewage treatment, and industrial wastewater treatment.   These sectors account for more than 60 percent of the equipment market and more than 50 percent of all imported equipment.   An emerging sector is the remediation of contaminated land and brownfield clean-up.  

Malaysia was among the first Southeast Asian nations to incorporate environmental concerns into long-range economic plans.   The Environmental Quality Act (EQA) of 1974 resulted in 20 sets of regulations addressing pollution control issues such as water supply and wastewater treatment, air pollution control, and hazardous waste management.   In 1996, amendments to the EQA called for clarification and strengthening of existing provisions and introduced new requirements relating to hazardous substances.   The most sweeping change to the act was the adoption of higher penalties for pollution offenses.

Thailand

Thailand will need to invest approximately US$1.2-1.5 billion to attain universal coverage for safe water and sanitation by 2020.   Investments required for improving air quality are estimated at US$350-500 million and US$300-400 million for solid waste management over the next decade.   Infrastructure demands for water treatment processors, wastewater treatment systems, solid waste and medical waste treatment disposal facilities, and air pollution monitoring stations are major governmental concerns.   Top-end Thai and international manufacturers attempting to meet international environmental and production standards remain important end-users for U.S. environmental equipment and services.

Thailand’s US$1.4 billion environmental market is expected to keep increasing over the next year, with regulatory enforcement heavily implemented by the Royal Thai Pollution Control Department.  The environmental policies promoted by the Thai government emphasize the rehabilitation of natural resources and the environment by strengthening environmental management, and increasing local and community participation.

The Philippines

The US$700 million Philippine market for environmental products, technologies and services is expected to grow 5-8 percent per year over the next three years, due in large part to government and private-sector programs and projects to address pressing environmental problems such as urban air quality, water supply and distribution, water usage monitoring, sanitation and sewerage, solid waste disposal, and industrial and hazardous waste.

The environmental requirements of the Philippines include:

• Air pollution equipment such as air emission control equipment for industry, clean energy and technology associated with energy substitution;
• Water resources equipment, including products and equipment for treating, sterilizing, filtering and purifying; constructing/developing additional raw water sources, expanding/developing water treatment facilities, augmenting distribution networks, reducing non-revenue water/system-wide leak detection;
• Products and equipment for industrial wastewater treatment.

The major players in the environmental sector are the Philippines’ national and local governments, with funding assistance from multilateral agencies such as the World Bank, the Asian Development Bank (ADB), and industrial sectors, especially multinational companies and a few big Philippine firms.

Mission Goals

The goal of the Southeast Asia Environmental Technologies Trade Mission is to provide an opportunity for U.S. environmental companies to gain first-hand market exposure, access to government regulators, meetings with officials of agencies that provide funding to environmental projects, and one-on-one appointments with potential partners and distributors.

Mission Scenario

The Southeast Asia Environmental Technologies Trade Mission will include three stops: Kuala Lumpur, Malaysia; Bangkok, Thailand; and Manila, Philippines.   In each city, trade mission members will benefit from country briefings; customized, pre-arranged appointments with prospective partners, distributors, and end-users; high-level meetings with appropriate host government agencies; and networking events with local officials and company representatives.   The focus of the delegation will be to match participating U.S. companies with qualified agents, distributors, representatives, licensees, and joint venture partners in these markets, which all have a strong affinity for, and trading relationship with, the United States.

In Thailand, representatives from United States-Asia Environmental Partnership (US-AEP) will brief mission members on initiatives to help Thai government agencies increase capacity building.   The U.S. Trade Development Agency (USTDA) presentation will focus on programs that provide funding for feasibility studies, orientation visits and grants to government agencies that are looking to implement environmental projects.  

In Manila the trade mission schedule will include a briefing by the Commercial Service's Liaison Office for the Asian Development Bank (ADB) on the significant commercial opportunities generated by ADB’s $6 billion annual lending operations.   ADB is headquartered in Manila, Philippines, and is Asia’s premier non-profit financial institution.   The bank lends to both the public and the private sectors in its 37 active borrowing member countries.   About 80% of ADB loans are used for the procurement of goods, equipment and services.   The current lending pipeline covering 2005-2007 includes some $7 billion in loans and technical assistance for the environmental sector.   The Liaison Office for ADB is a unit of the U.S. Commercial Service and operates by Congressional mandate to help U.S. companies access ADB business opportunities.

Mission Timetable

Criteria for Participation and Selection

• Relevance of a company’s business line to mission goals.
• Timeliness of a company’s signed application and participation agreement (including a participation fee of $2,950).  
• Potential for business in Southeast Asia for the company.
• Provision of adequate information on company’s products/services, and company’s primary market objectives, in order to facilitate appropriate matching with potential business partners.
• Certification that the company meets Departmental guidelines for participation.   A company’s product or service should be either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least 51% U.S. content of the value of the finished product or service.

Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.

Recruitment will begin on or about September 15, 2005 and will close March 15, 2006, approximately five weeks prior to the start of the mission.   The participation fee for the event will be $2,950 per company.   The participation fee does not include travel, meals, or lodging costs.   The mission will target 8-10 companies.   Applications received after the closing date will be considered only if space and scheduling constraints permit.  

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade mission calendar – www.ita.doc.gov/doctm/tmcal.html – and other Internet web sites, press releases to the general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and announcements at industry meetings, symposia, conferences, and trade shows.  

Domestic Contact Information:

Bradley Harker
Commercial Officer
Environmental Technology Team
Nashville Export Assistance Center
211 Commerce Street, Ste. 100
Nashville, TN 37201
Tel: (615) 259-6062 / Fax: (615) 259-6064
E-mail:   Bradley.Harker@mail.doc.gov

Yvonne Jackson
International Trade Specialist
Global Trade Programs
U.S. Commercial Service
U.S. Department of Commerce, Room 2119
Washington, D.C. 20230
Tel: (202) 482-2675 / Fax: (202) 482-2718
E-mail: Yvonne.jackson@mail.doc.gov