TPPA dan Industri Automotif

Ketahui impak Perjanjian Perkongsian Trans-Pasifik (TPPA) kepada #MyAutoIndustry!

Posted by Malaysia Automotive Institute on Thursday, 11 February 2016

The Malaysia Automotive Institute (MAI) has come out with a video explaining the benefits the Trans-Pacific Partnership (TPP) agreement will bring to the local automotive industry.

In the two-and-a-half minute clip, MAI CEO Datuk Madani Sahari says that the pact – which Malaysia and 11 other countries signed last week – will open up trade to a market of 800 million consumers, 26 times larger than that available locally.

It will open up avenues for the local automotive industry, which could see the possibility of higher levels of exports for locally-assembled vehicles. More importantly, locally-manufactured automotive components are set to benefit from participation in the pact.

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The institute says that the agreement will be especially beneficial to local component manufacturers. In 2005, exports of locally-manufactured components totaled RM1 billion, but this had climbed to RM12 billion in 2015, and the TPP is expected to significantly open up trade possibilities in this area.

Aside from the business aspect, the TPP is also set to provide more choices for the consumer in terms of vehicle models, and as it goes along, a more competitive pricing of cars brought about by more players as well as market forces.

What do you think? Will the TPP agreement be beneficial to the local automotive industry? Share your thoughts with us in the comments section below.