Government must address Malaysia’s stance on trade pacts

KUALA LUMPUR: The new government has to decide Malaysia’s stance on international trade agreements, particularly the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), said Ministry of International Trade and Industry secretary-general, Datuk Seri J Jayasiri.

“The agreement is still in the ratification phase, and so far, only Mexico has signed it,” he told reporters after the opening of the Semicon Southeast Asia 2018 exhibition and conference yesterday.

The agreement will come into force after six of the 11-member countries ratify it.

The three-day exhibition and conference is organised by Semiconductor Equipment and Materials International (SEMI), with the participation of 300 exhibitors, while expected to draw more than 8,000 visitors.

On the Regional Comprehensive Economic Partnership (RCEP), Jayasiri said negotiations between the countries was still ongoing, adding, he believed the government supports it, based on the Pakatan Harapan manifesto for the 14th General Election.

“These matters will only be decided after the new minister takes over and we have no information yet on the ministry,” he added. Meanwhile, commenting on the electrical and electronics (E&E) industry, Jayasiri said the industry contributed 36.7 per cent to export performance in 2017 and remained a main component of the manufacturing sector.

Manufacturing exports stood at 44.7 per cent of the country’s exports performance for 2017.

Malaysian Investment Development Authority (MIDA) Chief Executive Officer Datuk Azman Mahmud said in the first quarter of the year, Malaysia recorded RM485 million in approved investments for the semiconductor industry from local and foreign investors.

On the potential review of incentives given to investors by the government, he said Malaysia was using the same incentive scheme under the Promotion and Investment Act.

“However, as the industry geared up for higher technology, there will be efforts at improving the incentive to attract more companies,” he added.

Globally, the semiconductor industry’s revenue surpassed US$400 billion for the first time last year, in chalking up a 21 per cent growth year-on-year.

The global semiconductor industry is also expected to continue its upbeat momentum amid its cyclical nature, by surpassing US$450 billion in revenue.

The three-day exhibition and conference is organised by Semiconductor Equipment and Materials International (SEMI), with the participation of 300 exhibitors, while expected to draw more than 8,000 visitors.