KUALA LUMPUR: The Trans-Pacific Partnership (TPP) Agreement is the best platform to spur the growth of the small and medium enterprise (SME) sector as it provides a healthy competition in local and international markets.
Hence, local SMEs need to be more proactive in preparing their strategies in the face of the imminent trade pact, including stiff competition in the open market, analysts said.
Assoc Prof Dr Amran Awang, Head of Malaysian Academy of SME & Entrepreneurship Development, UiTM (Perlis), said the TPP could spur the growth of the SME sector devoid of monopoly.
“The trade deal constitutes antimonopoly legislations like the Anti-Trust Law, practiced in the US since 1890, to protect small companies from large ones that conspire to dominate the markets,” he told Bernama, here yesterday.
Hence, Amran urged local SMEs to deepen their understanding of the legislations, maximise the benefits derived from goods that are not subjected to tariffs and be innovative before planning to enter the global market.
Prof Datuk Dr Amir Hussin Baharuddin, economic analyst at the School of Economics, Finance and Banking, Universiti Utara Malaysia, said SMEs needed to get ready in order not to be left behind when the market is open under the TPP.
“They have to work hard so as not to miss the huge opportunity awaiting them in the local and global markets.
The TPP will widen the markets and opportunities, while restrictions in the form of tariffs will be dismantled,” he said.
The TPP negotiations was concluded in Atlanta, Georgia on Oct 5, 2015 after five-and-a-half years of negotiations.
Malaysia is one the 12 signatories.
The others were namely, Australia, Brunei, Canada, Chile, Japan, Singapore, Mexico, New Zealand, Peru, the US, and Vietnam.
The TPP Agreement will be tabled in Parliament next month for debate and approval to pave the way for its ratification next year. — Bernama