Ministry of Trade and Industry’s examination: Diamonds and high-tech are more exposed to the Far Eastern crisis, which also offers business opportunities.
The sectors most exposed to the crisis in the Far East are diamonds, machinery, appliances, electronic equipment, optical and medical instruments, and quarried products. This comes from the examination recently made by the Ministry of Trade and Industry. An investigation, by the State Income Commissioner Zippi Gal-Yam shows that the Far Eastern crisis will reduce growth by 0.5% in 1998 in relation to the previous forecast of the Ministry of Finance.
"The distribution of the various industrial sectors’ exports to Asia compared to the rest of the world shows that 33% of diamond production goes to the East, followed by machinery, appliances, and electronic equipment with 21.5% of their production; quarried products are next with 20% of their output, followed by optical and medical instruments with 19%". Ministry of Trade and Industry foreign trade deputy director general for foreign trade Zohar Perry told to "Globes"
Perry said that the crisis meant new niches are opening up to exporters to the Far East, including Israeli ones, that had previously been held by companies that collapsed in the crisis. "One mustn’t flee in panic. Consideration should even be given to participating in exhibitions, such as the air display in Singapore at the start of the new year".
Israeli exports to Korea and Thailand are 31% of total Israeli exports to Asia (excluding diamonds), of this, exports to Korea comprise 20% of exports to Asia, and exports to Thailand 11%.