Mustapa (second right) launches the SME Bank XCESS 2016 yesterday. Also present are SME Bank chairman Tan Sri Faizah Mohd Tahir (right), chief executive officer Datuk Radzif Mohd Yunus (second left) and Matrade chairperson Datuk Noraini Ahmad (left). — Bernama photo
KUALA LUMPUR: The Trans-Pacific Partnership Agreement (TPPA) will widen opportunities for Malaysia’s small and medium enterprises (SMEs) in international markets, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He said with the TPPA, market access to TPPA member countries like Japan will be made easier.
“There are SMEs that feel it’s hard to penetrate Japan.
“The government is committed to assisting both our big companies and SMEs with exports, and with the TPPA, we believe access would be made easier.
“On March 15, an investment group from Japan is coming here to promote Malaysian investments in Japan, and we will gather our SMEs to partake in the TPPA’s opportunities,” he told reporters after attending SME Bank’s “Xcess 2016” event yesterday.
Mustapa earlier launched Xcess 2016, the bank’s outreach programme that gives SME entrepreneurs one-to-one consultation sessions on their working capital needs.
At the launch, Mustapa said the strengthening and nurturing of SMEs is vital if they are to to tap the opportunities in the TPPA, which will come into effect in two years, as well as the Asean Economic Community (AEC), which seeks to establish a single market and production base in the region.
“The TPPA will enhance opportunities for Malaysian exporters in countries with which we currently do not have a Free Trade Agreement, such as Canada, Mexico, Peru and the United States.
“These four countries alone represent approximately 74 per cent of the total market of the 12 TPPA signatories, and the value of their combined Gross Domestic Product (GDP) totals US$21 trillion,” he said.
The AEC, he said, will create a seamless, cross-border trading and investment regime among ASEAN’s 10 member states.
“As a single entity, Asean currently is the seventh largest economy in the world.
The region is home to a consumer market of more than 620 million people with a combined GDP estimated at US$2.5 trillion.
“By 2020, Asean aims to become the fifth largest economy in the world and its GDP is forecast to nearly double, to US$4.7 trillion.
“All of us at MITI stand ready to help our SMEs fully reap the benefits offered by the TPPA and the AEC,” he added. —Bernama