So far, Malaysian exporters may have withdrawn their markets from Europe and turned to developing countries and emerging economies, but some companies are still feeling the pain of the European debt crisis. They were negatively impacted by funding problems, a sharp drop in orders from Europe and a drop in demand.


Malaysia's largest trader of carbon steel fasteners - Chin Well Holdings Bhd, its exports in the first quarter ended September 30, 2012 were seriously affected by the ongoing European debt crisis. Europe, the company's largest export market, saw total exports to the euro zone fall to 48.3 million ringgit from 68.3 million ringgit in the same period in 2011, reflecting a less optimistic economic outlook.


The general decline in global demand for fasteners has also resulted in the company's revenue of only 115 million ringgit and a net profit of 4.2 million ringgit. The company earned 1.54 sen per share for the quarter, compared with 6.17 sen a share in the same period in 2011.


The euro zone economy has shrunk for two consecutive quarters, and economists also expect GDP to fall further in the final three months of 2012, forcing companies to lay off workers to cut costs.


The European Central Bank (ECB) expects the euro zone economy to shrink by 0.5% in 2012 and 0.3% in 2013. On January 1, 2013, Eurostat released data showing that the unemployment rate in the euro zone rose from 11.7% in October to 11.8% in November last year, hitting a new high and the highest since 1995.


Given the European market problems facing Malaysia's exports, Danny Chan Tzu Chang, analyst at OSK Research Sdn Bhd, said that even if the profits of some companies are not very dismal, if the European debt crisis does not arise, the profits of these companies will will be higher.


Between December 2007 and March 2009, KNM's share price fell nearly 80 percent in the two years as its fortunes were tied to the euro zone's debt crisis.


Analysts believe that KNM's revenue comes from its core business of manufacturing process equipment and successful projects in the UK, which will affect KNM's market insights.


"We think the outlook for KNM will be a mix of optimism and pessimism," said Mohd Faisal, an analyst at RHB Research Institute Sdn Bhd in Malaysia, in a recent research note.


About two years ago, after the company announced a 2.2 billion ringgit waste-to-energy project in the UK, it has yet to make an affirmative action on the project because the UK partner has still not received financing guarantees. solve.