MAEI urges govt to sign up TPPA

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KUALA LUMPUR: The Malaysian American Electronics Industry(MAEI) is strongly encouraging the Malaysian government to sign the Trans-Pacific Partnership Agreement (TPPA).

The MAEI is an industry sub-committee of the American Malaysian Chamber of Commerce.

In a statement yesterday, MAEI said its members viewed Malaysia’s participation in the TPPA as essential to the country’s electrical and electronics (E&E) industry to elevate competitiveness, increase export market share and create a more vibrant industry ecosystem.

“Malaysia’s participation is expected to increase E&E exports from the US government procurement market and reduction or removal of tariff lines in seven TPPA member countries, namely Australia, Canada, Mexico, New Zealand, Peru, the United States and Vietnam.

“Malaysia’s E&E exports to the US is expected to be the largest beneficiary of lower tariff lines.

“This is given that Malaysia is the US’ third largest E&E export destination,” it added.

MAEI noted that according to a PricewaterhouseCoopers analysis, this will result in tariff savings of RM158.2 million in 2014.

It also believed that adoption of the International Labour Organisation (ILO) rights following Malaysia’s participation in the TPPA would improve the public perception of labour rights in the local E&E industry.

MAEI chairman Datuk Wong Siew Hai said with the TPPA, trade secret protection will be strengthened, and higher standards of labour practices would be implemented by companies in Malaysia.

“This will enhance Malaysia’s position as the preferred location for investments, while attracting high-value high technology manufacturing operations and research and development.

“This will in turn translate into higher paying jobs and increase demand for a knowledge-driven workforce.

“If Malaysia does not participate in the TPPA, then there is a high risk that investments in Malaysia would be reduced and moved to Vietnam,” he added. — Bernama