New govt must state stand on trade pacts: Ministry sec-gen
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, 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 here today.
The agreement will come into force after six of the 11 member countries ratify it.
The three-day exhibition and conference, which kicked off today is organised by Semiconductor Equipment and Materials International, with the participation of 300 exhibitors, while expected to draw more than 8,000 visitors.
On the Regional Comprehensive Economic Partnership, Jayasiri said negotiations between the countries are still ongoing, adding that he believes the government supports it, based on Pakatan Harapan’s manifesto for the recently concluded 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.
Commenting on the electrical and electronics (E&E) industry, Jayasiri said it contributed 36.7% to Malaysia’s export performance in 2017 and remains a main component of the manufacturing sector.
Manufacturing exports amounted to 44.7% of the country’s export performance for last year.
Malaysian Investment Development Authority CEO 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 is using the same incentive scheme under the Promotion and Investment Act.
“However, as the industry gears 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 (RM1.59 trillion) for the first time last year, in chalking up a 21% growth year on year.
The global semiconductor industry is expected to continue its upbeat momentum amid its cyclical nature, by surpassing US$450 billion in revenue. – Bernama