Business leaders say SMEs in Malaysia will benefit from TPPA although changes to labour and environmental standards have to be made. – The Malaysian Insider pic by Najjua Zulkefli, January 20, 2016.Higher standards under the Trans-Pacific Partnership Agreement (TPPA) is bound to create a stronger and more competitive small and medium enterprises (SMEs) despite the risk of closure affecting 30% of the sector, say industry association leaders.
Federation of Malaysian Manufacturers (FMM) president Datuk Seri Saw Choo Boon said the risk of going under was part of business and SMEs needed to be more plucky to brave the challenges.
"We don't believe this is such a big problem that cannot be solved, it is not insurmountable to keep up to the TPPA standards. At the end of the day, I believe our SME sector will come out stronger," he said, adding that SMEs would be given sufficient support.
"Enough support is given to help our SMEs, but on the other hand we don't want to be too protective. That is not good."
"The work force will require better treatment, this is something that cannot be avoided and we must follow," Saw said at a press conference with six other giants of the business sector at Wisma FMM in Kuala Lumpur today.
Associated Chinese Chambers of Commerce and Industry Malaysia deputy secretary general II Michael Chai said SMEs going under was bound to happen even without TPPA.
"Every year, a certain percentage of SME will close down because of competition. If after TPPA, 30% are affected, that's a natural process and new SMEs that can compete will fill the void.
"SMEs in Malaysia are very resilient and still surviving after GST and able to compete with China even. Don't think they are weak," said Chai in the same press conference.
Both were responding to news reports citing worry that 30% of SMEs risked closure within two years of TPPA coming into force.
President of SME Association of Malaysia Michael Kang said many Malaysian SMEs would be hard pressed to adjust to new rules and laws in meeting higher labour and environmental standards under the agreement, and required full support from the government to make those changes. – January 20, 2016.
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