Joining the Trans-Pacific Partnership (TPP) agreement will be a positive move for Malaysia’s automotive sector, according to consulting firm Frost & Sullivan. As Bernama reports, the company says that being part of the 12-nation trade pact will allow the country to have a competitive advantage as an export hub for auto parts in the ASEAN region.
Speaking to the news agency, Frost & Sullivan’s vice president of mobility Vivek Vaidya said that while Thailand was ahead of Malaysia on free trade agreements (FTAs), with several of these working well for it, the TPP is a ticket for Malaysia to gain back ground.
The TPP would help Malaysian companies gain market access, create opportunities for skills, transfer technology as well as promote transparency and clarity to the industry, he said. The trade pact will enable industry players to enter into countries under the TPP – which account for 40% of global gross domestic product (GDP) – without being subjected to tax or custom barriers.
“These players will find that they have an edge over Thailand,” he said, but added that a change in mindset was also needed. “Local players need to adapt to the ways in which other markets work. They need to be competitive. They cannot just carry on business as usual, they need to change,” Vivek explained.
He added that brands like Mercedes-Benz, Honda and other original equipment manufacturers (OEMs) and component manufacturers that have production or manufacturing plants in Malaysia will gain by operating from here. “When Malaysia is part of TPP, the strategic attractiveness of Malaysia actually enhances because of market access to TPP member states,” he said.
The results won’t be seen immediately though – Vivek said the agreement, which is expected to be signed in February, will not have any impact on the auto market this year or even the next. “It kicks in after 2018, but for the automotive sector, the tax reduction and excise duty elimination will only start from 2020,” he said.
He added that another regional player that has an advantage from the TPP’s automotive point of view is Vietnam. “Vietnam is likely to benefit the most because it is more competitive in terms of labour rates,” he stated.
Last November, it was reported that the TPP and other FTAs would bring about cheaper cars in the next few years, but some parties had cautioned against raising such high hopes, at least in the immediate future. In December, an economic study released by General Motors said that the removal of non-tariff measures in the automotive industry that prevent free trade within ASEAN would create up to 500,000 new jobs as well as increase economic output.
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since it wont reduce car price from usa, consumers is not the one who benefit from this
Qu beli qu beli barulah rugi! Kekekekkekk
Kicking out Suzuki for less competition.
You really want cars from the USA?
Really?
Why isn’t car prices going down? Very simple. It is because of Songlapping. Malaysia is actually a very rich country IF there is no songlapping. Malaysia is far richer than Singapore because we got oil, gas, tin, rubber, gold, bauxite, iron, kelapa, kurpum, copper etc. Singapore has ZERO. Why is Singapore richer than Malaysia? Again, very simple, it is because of Songlapping.
TPPA makes no difference. Infact, we Malaysians got conned by Malaysian Government for not following AFTA. If Malaysia adhered to AFTA regulations, our Camry and Accord will be about RM90k each.
In Malaysia, nearly all car companies are Government owned. Either directly or indirectly. And because of Songlapping, the Government needs to hantam the rakyat puas puas to get revenue.
One man can songlap RM2.6 billion is just one news we know. What about the other times he songlap that we don’t know about? I think it runs to hundreds of billions.
Taib songlap US$20 billion (RM84 billion) also nothing happen to him. Infact he was rewarded for his songlap and made Governor and given a Tunship. In Malaysia, you are rewarded for songlapping.
What about the songlaps by the other Menteri and Government officials?
It all runs to hundreds of billions per annum the Songlap.
This is why we get higher car prices, higher tolls and higher fuel prices every year. Our guardians are more interested in Songlapping than fighting for the rakyat to get lower car prices, lower petrol prices and low toll charges.
Anyway, I still enjoy my life.
Fly here and there
Isn’t this Frost & S also said that GST will not hinder investors interest in Malaysia last year? How many have exited since then?
If write anything gud about Malaysia, it is suspicious, so must bash.
If write anything bad about Malaysia it is the truth, so must suppork.
You statement is so stupid. How can you say anything like that?
Becoz u and ur ilk proved me right time and time again
John Ah Beng, how is Proton sales in Brunei and Singapore? Good? Big success?
Yes, indeed, how many? Do you have hard facts and figures, or are you just listening to rumors and one-sided reports? I’m running a company that manages investments in Singapore for R&D projects that are executed in Malaysia, and I can tell for a fact that so far, interest has not diminished, especially with the TPPA and Malaysia’s commitment to numerous other agreements. If you’re not in the industry or directly dealing with foreign investors, please do not spread your ignorance here.
Forgive him bro. LGE told him he has to earn his Sing dollars now. No easy free lunch anymore
Name a few examples that demonstrate those commitments and interest. Didn’t think so.
Why should I name them here? Do I owe you anything? Have you worked hard enough to set up your own multi-national company? Doesn’t look like it, and doesn’t look like you’ll be able to do that anytime soon. So, please shut up or else put your money where your mouth is and contribute something to the local economy and human capital instead of being just another ignorant-arrogant parasite
Like I said, didn’t think so.
You? Multinational company? Banglas flipping burgers for you dont count. On the internet everyone is a superman who can fly in real life i guess.
As expected, why should I? Even if I tell the truth, it’s not like you’ll believe it. If I bullshit, everyone can bullshit. So, what difference does it make?
NEP, Bumiputra policy, AP permits, poor ringgit, slow demand for new car sales… I don’t think so
Let’s not forget Vietnam is in TPP too, while Thailand is joining in a couple of years time.
What… nak compete dengan Thailand & Indonesia?
B4 the competition even begins, Malaysia automotive dah corot…
Sell as scrap metal, OK laku. But…
This is absurd. Why do we need TPP to get us back on track? Cant we do this ourselves by ensuring our own country’s automotive policies are attractive to autocar makers?
Any country that signs trade agreements is to ensure their export to the country increases. Not so much the other way around on imports! A country can control its import policies much more then its export policies.
We don’t need TPP to compete with Thailand and Indonesia. Just dismantle all the protectionist policies that ensure Proton’s and cronies survival, and car manufacturers will make a beeline for Malaysia.
Again… most of these are only benefiting the Bumis.. The rest of the rakyat surely will suffer.
Why the fuss over TPPA?
Wanan compete with Indo and Thailand? Heck throw in the entire South East Asia region, its simple
KILL OFF PROTON and the AP SYSTEM
-BigBalls-
Just like any trade agreement, members under TPP are not suppose to apply any form of discrimination and provide a level playing field for the overseas product and investments. They even have a section to talk about Government purchases should offer equal opportunities to the foreigners
This to me, is the ultimate insult as a Malaysian, for we continue to have distinction and different policies in treating non-bumi suppliers but are willing to grant foreigners equal rights.
In terms of cars, we have the AP system to continue giving a certain group the extra privilege and competitive edge, but at the same time openly talk about free trade with TPP partners.
We can’t even grant equal opportunities for all citizens… TPP still??
BERAPA KALI RAKYAT NAK KENA TIPU? GST, 1MDB, 30% CAR PRICE DROP, TOLL TAK NAIK?
TPPA = PUN KAT SAMA MACAM “TIPU”..MAU PERCAYA LAGI KA.
indonesia & thailand did not sign for TPPA also can be automotive major player. so, is it the case?
from your little brother in the north, Siam.
sorry for broken English
Thai will not join TPP, one of the reasons is Phamaceutical Patents. If we sign with the US, the patent will last longer. For example, we will pay more for Paracetamol. Billions of dollars has to pay to drug giant in the US. The company like Phillips Morris can dump our country with very cheap cigarette and then we have to pay very high health care cost.