A DAP parliamentarian has asked the International Trade and Industry Ministry (Miti) to do a cost-benefit analysis for the Trans-Pacific Partnership Agreement (TPPA) on all small and medium industries and not just for bumiputera SMIs.

 

At present, Miti plans to focus only on bumiputera entrepreneurship.  

 

Klang MP Charles Santiago said while it is important for the government to focus on the 37.4 percent bumiputera businesses in a TPPA environment, Miti’s study should not discriminate larger non-bumiputera SMIs which make up about 62.6 percent of all SMIs in the country.

 

Charles said that Miti’s study should encompass all SMIs because the enterprises represent at least 99 percent of total business involving 645,136 establishments in the country.

 

“And they employ 59 percent of all workers employed in largely labour-intensive businesses and constitute about 90 percent of the total labor force in the manufacturing sector alone.

 

“Clearly, SMIs are an important source of growth for the nation and generate employment opportunities and income for a significant population of the labor force,” he said.

 

As such, a national TPPA impact assessment that could throw light on advantages and disadvantages of joining the TPPA is needed, he said.

 

He also believes that a study involving the preparedness of SMIs to compete in a challenging TPPA environment will help local SMIs to equip themselves to face stiff competition among the other SMIs of the eleven countries, which are negotiating the TPPA.

 

“This is important given the contribution of Malaysian SMIs in the country’s Transformation Plan, which envisions transforming Malaysia from a middle-income to a high-income economy,” he said.

 

Charles said Prime Minister Najib Abdul Razak had indicated that the TPPA trade negotiations will be concluded early next year and Malaysia’s remaining concerns at the negotiations were the bumiputera agenda and government-owned companies.