MARKET DEVELOPMENT
Terengganu SMEs Urged To Grab Opportunities From TPPA
Terengganu SMEs Urged To Grab Opportunities From TPPA
21/03/2016 (Bernama) - Terengganu Bumiputera small and medium enterprises (SMEs) have been urged to grab the opportunities made available by the Trans-Pacific Partnership Agreement (TPPA).
Persatuan Tunas Usahawan Bumiputera Terengganu (PATUT) Vice President Norfuzilawati Yusoff said local producers of natural rubber gloves, oil palm-based products and high-quality wood handicrafts would enjoy an advantage over such competitors as Indonesia, India, Thailand and Sri Lanka, which are not TPPA members.
"Without the TPPA, it would be difficult for products from Terengganu SMEs to penetrate the world market as Malaysia has no free trade agreement with Mexico, Peru and the US.
"About 85 per cent of rubber products are expected to enjoy zero tariff under the TPPA, while the tariffs on other commodity-based products will be eliminated in stages after the TPPA comes into force in 2018," he told Bernama here Saturday.
He said the opening of new markets by the TPPA such as Mexico widens opportunities for local products which otherwise would face heavy competition in ASEAN markets.
Citing Malaysian Rubber Export Promotion Council (MREPC) figures for 2014, he said imports of rubber-based products like tyres, gloves and shoes by the 12 TPPA member countries are estimated to be worth US$96 billion, with global imports at US$269 billion.
Although Malaysia is one of the top 10 exporters of rubber-based products to TPPA countries, local SMEs should more aggressively grab the opportunities made available and adhere to standards in the TTPA countries such as on corporate governance and transparency, he said.
Local SMEs should also explore the halal market opportunities in India, whose economy has been growing at 7.0 to 7.5 per cent annually, he added.
Persatuan Tunas Usahawan Bumiputera Terengganu (PATUT) Vice President Norfuzilawati Yusoff said local producers of natural rubber gloves, oil palm-based products and high-quality wood handicrafts would enjoy an advantage over such competitors as Indonesia, India, Thailand and Sri Lanka, which are not TPPA members.
"Without the TPPA, it would be difficult for products from Terengganu SMEs to penetrate the world market as Malaysia has no free trade agreement with Mexico, Peru and the US.
"About 85 per cent of rubber products are expected to enjoy zero tariff under the TPPA, while the tariffs on other commodity-based products will be eliminated in stages after the TPPA comes into force in 2018," he told Bernama here Saturday.
He said the opening of new markets by the TPPA such as Mexico widens opportunities for local products which otherwise would face heavy competition in ASEAN markets.
Citing Malaysian Rubber Export Promotion Council (MREPC) figures for 2014, he said imports of rubber-based products like tyres, gloves and shoes by the 12 TPPA member countries are estimated to be worth US$96 billion, with global imports at US$269 billion.
Although Malaysia is one of the top 10 exporters of rubber-based products to TPPA countries, local SMEs should more aggressively grab the opportunities made available and adhere to standards in the TTPA countries such as on corporate governance and transparency, he said.
Local SMEs should also explore the halal market opportunities in India, whose economy has been growing at 7.0 to 7.5 per cent annually, he added.