Trans-Pacific Partnership Agreement (TPPA)

Impact Assessment Study in Malaysia: Survey

Study undertaken by the Asian Strategy and Leadership Institute (ASLI) on behalf of the Taipei Economic and Cultural Office in Malaysia (TECO)

Methodology

• The study collected a total of 72 responseso 35 from Taiwanese companies o 37 from Malaysian companies

• The objective of the questionnaire: o Determine the potential economic impact of the TPPAo Identify possible sectors that will be impactedo Understand the competitive environment within the

industryo Understand and forecast the economic impact on

Malaysia from Taiwan’s participation of TPPA

2

Methodology cont’d

• Interviews conducted with person from managerial position and above

• Contact list provided by the Taipei Economic and Cultural Office in Malaysiao Taiwanese firms in Malaysia and Malaysian firms with

business/trade with Taiwano Also included interviews with industry stakeholders

(trade associations, customs department, other government agencies), raw material producers, manufacturers, and service providers

3

Overall Industry Distribution

Location of Office Contacted Number of Companies

Selangor 29/40%

Kuala Lumpur 15/21%

Penang 13/18%

Malacca 5/7%

Perak 4

Johor 3

(Others: Perlis, Kedah, Sabah) 3

4

Company Information

Sector Number of Companies

Primary Sector: Raw Material 5/7%

Secondary Sector: Manufacturing Industries 53/72%

Tertiary Sector: Services 16/21%

5

Company Scale & Head Office

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Company Scale Number of Companies

Large Company (more than 250 employees) 25/35%

Medium Company (50-249 employees) 21/29%

Small & Micro Company (less than 50 employees) 25/35%

Head Office Number of Companies

Malaysia 50/69%

Taiwan 18/25%

Others 4/6%

*Others include Austria, Germany, Thailand, Sweden

2014 Company Turnover

Categories Number of Companies

Less than RM 250,000 1

RM250, 000-RM999, 999 3

RM1mil - RM 4.9mil 16

RM 5mil - RM 9.9 mil 9

RM 10mil - RM 49.9mil 14

RM 50 mil - RM 99.9 mil 11

RM 100mil and above 18

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Should Taiwan/Malaysia participate in the TPPA?

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Should Taiwan/Malaysia participate in the TPPA? cont’d

• All Automotive Industry companies support Taiwan and Malaysia’s participation in the TPPA

• Half of the E&E Industry companies support Taiwan and Malaysia’s participation in TPPA

• Most Petrochemical Industry companies support Taiwan and Malaysia’s participation in the TPPA

• Most companies in the Food & Beverage Industry support Taiwan and Malaysia’s participation in TPPA

• Half of the companies in Machine Tool Industry support Taiwan and Malaysia’s participation in TPPA

• More than half of the companies from other sectors support both Taiwan and Malaysia’s participation in TPPA

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Primary Observations

• There is a serious lack of understanding of what the TPPA is about, additionally:

o Discrepancies and inconsistencies provided in the responses o Lack of information from the latest developments pertaining to the

TPPA as it applies to companies involved o Many companies held the view that they will not be affected,

therefore didn’t track the developments of TPPAo Not much difference in opinions between the Malaysian and

Taiwanese respondents o Knowledge of TPPA does not seem to be divided by the respondent’s

various designations

*At the time the survey was conducted the TPPA had not yet been finalised.

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Familiarity with the TPPA

• Automotive Industry: most are not familiar with the TPPA (only one company express familiarity with TPPA)

• Electronic & Electrical Industry: more than half of the companies are somewhat familiar with the TPPA

• Petrochemical Industry: most are not familiar with the TPPA

• Food & Beverage Industry: most are not familiar with the TPPA

• For the other industries, most of the companies are somewhat familiar with TPPA, or not familiar with TPPA. Very few stated that they are familiar with the TPPA

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Thank you

For more information please email:

Jordan Heng: jordanhc@asli.com.my or

Yap Yee Chern: ycyap@asli.com.my