The Malaysian Rubber Products Manufacturers’ Association (MRPMA) welcomes Malaysia’s impending membership in the Trans-Pacific Partnership Agreement (TPPA) as it will greatly benefit the Malaysian rubber products industry in terms of market access.

The trade deal is timely given that the industry is very much dependent on export, due to the limited size of the domestic market.

Looking at the statistics provided by the International Trade and Industry Ministry (Miti), the 12 TPPA members accounted for 40 percent of the global economy, a cumulative gross domestic product (GDP) of US$30 trillion (RM131 trillion) and a consumer base of 800 million in 2014.

With a minimal tariff and barrier market access clause, Malaysian rubber products exporters will be able to gain new export opportunities and save millions of ringgit in tariff fees.

This is more so given that Malaysia has no free-trade agreement with four members under the TPPA - particularly the US and Canada that account for 74 percent of the TPPA market, along with Mexico and Peru.

Malaysia has more than 300 rubber products manufacturers with a workforce of more than 70,000 in 2014. Despite its small number, the total export of rubber products amounted to about RM15 billion in 2014. Available statistics indicate that export value would surpass RM16 billion in 2016.

With the elimination of import tariff and non-tariff barriers, export of rubber products to the US, Mexico, Canada and Japan - that are part of our main markets - will see further growth in export beyond 2016. This will create positive sentiments in the rubber product industry, and thus attract more investment into the sector.

Additionally, it will create stimulus in the ancillary industry and job opportunities for our Malaysian workforce.

With greater access to advanced technologies, Malaysian rubber manufacturers will also be able to generate further innovation and productivity in the country.

Hence, MRPMA looks forward for Malaysia to conclude the signing of the TPPA.

ONG ENG LONG is president of the Malaysian Rubber Products Manufacturers’ Association (MRPMA).