“This year, we project around 5.9 per cent growth in trade. Based on the first-quarter results, we are on the right track.”

DATUK SERI J. JAYASIRI, International Trade and Industry Ministry secretary-general

THE government may review several trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP), to see if they are viable.

“The new government will have to decide whether Malaysia wants to be in the trade pacts or not. As we don’t have a trade minister yet, this will be reviewed by the incoming minister,” said International Trade and Industry Ministry secretary-general Datuk Seri J. Jayasiri at the launch of SEMICON Southeast Asia 2018, here, yesterday.

“Ratifying (the trade pacts) will also require some legislations to be amended.”

Jayasiri said the negotiations were ongoing but added that believed that the new government would be supportive of CPTPP and RCEP.

CPTPP’s 11 members are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

RCEP is a proposed free trade agreement between 10 Asean countries and Australia, China, India, Japan, South Korea and New Zealand.

Meanwhile, Jayasiri said Malaysia’s trade performance over the last two years was better thane expected.

“This year, we project an around 5.9 per cent trade growth. Based on the first quarter results, we are on the right track.

“Our trade performance is also conditional on the external environment. But it seems to show positive signs and augurs well for Malaysia’s exports,” he said.

Jayasiri said the electrical and electronics (E&E) sector remained the main player in Malaysia’s manufacturing sector, contributing 36.7 per cent of total exports.

“We are optimistic that the E&E sector will contribute a large portion to our exports.”

He said Malaysia should cultivate a business-friendly environment and supportive ecosystem to attract investors.

Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud said the agency saw about RM485 million approved investments in the first quarter of the year.

“The investments are largely in Penang, from both local and foreign investors,” he said.

Azman said the agency intended to use the same incentive scheme under the Promotion of Investment Act.

“As the industry gears for higher technology, certainly we will improve incentives to attract more high technology projects.”

SEMICON is the region’s premier gathering of members of the global electronics manufacturing supply chain.

More than 400 booths and 300 exhibitors are participating in the three-day event, which is expected to attract around 8,000 visitors, and ends tomorrow.

SEMI Southeast Asia president Ng Kai Fai said the global growth was expected to grow significantly for the next few years.

Last year, the sector’s revenue surpassed US$400 billion, a 21 per cent increase year-on-year.

“We believe the sector to hit US$450 billion this year and US$500 billion next year.”