Posted on 22 Jan 2016
The business community was represented by seven organisations, including the Federation of Malaysian Manufacturers, Malaysian International Chambers of Commerce and Industry, Associated Chinese Chambers of Commerce and Industry of Malaysia, Malay Consultative Council, SME Association of Malaysia, Malay Businessmen and Industrialist Association of Malaysia and American Malaysian Chamber of Commerce.
FMM president Datuk Seri Saw Choo Boon yesterday announced its support at a joint industry press conference, calling it a “significant” agreement that will open foreign markets, boost exports and create more jobs.
“Our market is so small and if we only focus on the domestic market, there is no hope that we can ever progress. We need to play in the global arena to grow and prosper,” he said, noting that 62% of the country’s trade is already covered by the previous free trade agreements (FTAs).
“But if we are to continue to grow we need to expand our markets,” he added.
Saw said TPPA will make Malaysia more attractive to foreign direct investments (FDIs) as the agreement enhances transparency and corporate governance, and accord investors better protection.
He noted that it is important for Malaysia to continuously attract FDIs in high technology and knowledge activities to help the country achieve high-income status by 2020.
Saw said 773 manufacturing projects started production in 2014, of which were 34.7% foreign owned. “These created 35,130 jobs, of which 25% or 8,700 were jobs at executive level requiring tertiary education.”
Among the products that will benefit from duty-free access to the TPP countries are automotive, machinery and equipment, electrical and electronic goods, textiles and apparel and rubber products.
Under the TPPA, tariffs will be eliminated on 85% of Malaysia’s trade with the new FTA partners, namely Canada, Mexico, Peru and the US.
“This will ultimately represent US$1.2 billion (RM5.2 billion) of tariff savings a year for Malaysian industries,” Saw said.
In terms of national sovereignty, government procurement, state-owned enterprises and the bumiputra agenda, he said the government has managed to negotiate numerous exclusions and exemptions to safeguard the nation’s and stakeholders’ interests.
