KHIND HOLDINGS BHD CONFIDENT OF DOUBLE-DIGIT EXPORT GROWTH

Khind Holdings Bhd., currently exports its electrical home consumer appliances marketed under the Khind and Mistral brand names to over 50 countries around the globe. The Middle East region, which is the the company's largest export market, contributed more than 50 per cent to the group's total export sales. Khind Group registered a 25.3 per cent increase in export sales to RM43.6 million for the year ended December 31, 2021.

In the statement, Khind Group chief executive officer Cheng Ping Keat said the company's longer term ambition is to drive its international trade division towards achieving a 50 per cent contribution to total annual turnover from the present 25-30 per cent. Currently about 60 per cent of the company's production is outsourced. "By adopting such a strategy, it provides more open market opportunities for the company to grow its export revenue and penetrate new markets that are not efficiently served by multinational brands," he said.

Adapted from NST.

1. Based on the theory of international trade explain two (2) reasons why Khind Holdings Bhd exports its products. (4 marks)

1. Referring to paragraph 3, explain how the increase in export sales contribute to national income. (4 marks)

1. Discuss three (3) actions that can be taken by the government to reduce the balance of payment deficit in the economy. (6 marks)

1. Explain three (3) tools of protectionism imposed by the home country against foreign competition. (6 marks)