Trans-Pacific Partnership Agreement (TPPA) is a cross-continental agreements involving 11 countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States (US), and this is still Vietnam. The scope has been expanded to include new issues with the goal to develop a comprehensive and high standard agreement. The world is changing and we do not can prevent the changes from directly occur. The change also does not await us prepare to deal with them. A responsible government should always equip people and countries to face constant change. This can viewed through a joint development brought by the previous government.For example highway construction South America, Putrajaya and KLIA is among efforts towards confronting the changes. In the , of 8 chapters out of 29 are being finalized involving the Competitiveness and facilitate business, Small and Medium Enterprises (SME), cooperation and capacity building as well as clear rules.This agreement aims to establish a win-win situation with the member in countries and develop the economic in Malaysia. TPPA is different with other agreements such as the agreement on ASEAN platform and others. TPPA agreement is binding and countries that signed it must abide by the contents. If any member state does not comply with this agreement, it can be brought to justice.This article will discuss the TPP in terms of risks and benefits to the country as a whole.
Small and medium industry (SMI) is divided into 3 small-scale industries, small and medium industries and large-scale industry. Small and Medium Enterprises (SME) are very important for the government to make Malaysia an industrialized nation. However, there are problems also occurred in the development of Small and Medium Enterprises (SME) and the government should try to solve them. SMI is a rounding to large industrial because its supplying semi-finished materials required by the industry. For example, a company Proton. They import car parts from foreign national can be reduced and the foreign exchange can be saved which is also the least dependent on the developed countries. Other than that, heavy industry production costs are minimized and the profits also can be guaranteed and developing countries to move towards industrialization.
The Trans-Pacific Partnership Agreement (TPP) has taken a conscious decision to address all SME issues in all areas under negotiations. These concerns such as increased the competition are addressed through longer transition periods for liberalization. It is also addressed in the form of carve-outs of GP procurement activities and through thresholds. Other than that, the Trans-Pacific Partnership Agreement (TPP) aims also to develop uniform rules which will have a significant positive impact on Small and Medium Enterprises (SME) where different standards or rules and regulations used for trade can have a debilitating effect on their over call cost of doing business. In addition, the Trans-Pacific Partnership Agreement (TPP) has developed a chapter that touches on SME-specific issues such as lack of information and through the chapter hopes to look into ways how the Trans-Pacific Partnership Agreement (TPP) can facilitate the development of Small and Medium Enterprises (SME) and promote the Small and Medium Enterprises (SME) into the international market.
Many parties are concerned SME industry can not compete under the Trans-Pacific Partnership Agreement (TPPA), but in the fact it is under existing FTAs. Other than that, our market is already open and the import duty on more than 90% of products into the country has been abolished. Small and Medium Enterprises (SME) prevail in the Trans-Pacific Partnership Agreement (TPPA). A special chapter established that the joint efforts of all members of the Trans-Pacific Partnership Agreement (TPP) will be held to build capacity of Small and Medium Enterprises (SME).
In addition the government has already had a variety of capacity building programs to help Small and Medium Enterprises (SME) to take the opportunities that exist under the TPPA. Small and Medium Enterprises (SME) in Malaysia have been engaged in the export market at 18% while the 51% of Small and Medium Enterprises (SME) are in the services sector and 48% of the manufacturing sector. Trans-Pacific Partnership Agreement (TPPA) will open greater opportunities to Small and Medium Enterprises (SME). For example Oldtown White Coffee, Hup Seng, Mamee, Marrybrown, Julie's, Brahim, Bangi Kopitiam and Ramly has long take advantage of market opening through the FTA and to expand their business in abroad.
Moreover, for goods contained in List Excise Customs (Customs Duties Order) no longer subject to any import duty. Through the agreement under the Economic Cooperation ASEAN FTA and 13, most import tax has been repealed and Malaysian companies including Small and Medium Enterprises (SME) already to compete with foreign companies in locally, regionally and globally.
Currently, Malaysia has a number of 645,000 Small and Medium Enterprises (SME) and approximately 18 percent of This amount has been exporting and join global supply chain (global supply chain) including in the field of electrical and electronic (Including LED), food processing and beverages and medical equipment. Small and Medium Enterprises (SME) also have a benefit under the Trans-Pacific Partnership Agreement (TPPA). Its can help to increase exports through vast new market access among Trans-Pacific Partnership Agreement (TPP) members, especially new members markets, namely Mexico, Canada, Peru and the United States. Other than that its also help to reduce operating costs as the cost of raw material imports were lower due to reduced import duties. From the government procurement aspect the priority give to Bumiputera companies and Small and Medium Enterprises (SME) is maintained. While a Malaysia Small and Medium Enterprises (SME) suppliers also have the opportunity to enter foreign government procurement market such as food products, edible oil products, clothing, rubber gloves, automotive components and so on.
Therefore the open market has benefited to Malaysian companies to increase the value of exports in traditional markets and explore the new markets and provide new jobs for local people. However, the Government is aware of the challenges faced by Small and Medium Enterprises (SME). Beside that, the various incentives and assistance for enhance the capacity and competitiveness of Small and Medium Enterprises (SME) to compete in the global market.
