KUALA LUMPUR, Jan 16 – The Federation of Malaysian Manufacturers (FMM) has asked the government to ratify the Trans-Pacific Partnership Agreement (TPPA), as it provides access to a huge duty free market. Under the TPPA, tariffs will be removed on 85 per cent of Malaysia’s trade with its new FTA partners, namely Canada, Mexico, Peru and the United States, and save US$$1.2 billion in tariffs for Malaysian industry.
The federation’s President Datuk Seri Saw Choo Boon said automotive, machinery and equipment, electrical and electronics (E&E) products, textile and apparel and rubber products are among products to benefit from duty free access. In the meantime, Malaysia will eliminate import duties for several sensitive product like electrical and electronics, petroleum and chemicals that open up more opportunities for manufacturers to procure better quality raw materials.
“We call on all parties, especially the government to take the important step in becoming part of the TPPA. With the uncertainties in the global trading environment, especially in traditional export markets, can Malaysia afford not to sign important FTAs like the TPPA and later, other FTAs in the pipeline like the European Union – Malaysia FTA or the Regional Comprehensive Economic Partnership?” Saw said
“If we fail to conclude the TPPA, our ASEAN neighbours, Vietnam, Singapore and Brunei will move ahead strongly. Malaysia has benefited from the FTAs signed thus far and there is ample evidence that liberalising economies like Chile, China and South Korea have performed better than more inward-looking ones at comparable stages of development,” he said.
“The private sector, in particular manufacturers, service providers, investors and others who run businesses, employ workers and sell products and services, strongly advocate for FTAs, including the TPPA. Trade and investment are Malaysia’s lifeline and play an important role in economic growth and transformation,” he added.
Sae said this is evident in the fact that Malaysia is the fourth most trade-dependent nation after Hong Kong, Singapore and Vietnam with total trade accounting for 1.5 times of the gross domestic product. He said that they recognise the limits of the domestic market.
In the meantime, Saw also said that the know that we can only generate new and additional sources of growth and investment by expanding our boundaries to the rest of the world, a promise that the TPP and other FTAs hold. As at Dec 1,2015, the World Trade Organisation reported that 619 FTAs had been signed worldwide and 413 had come into force.
