Excerpts from YB Minister’s speech during MITI Dialogue 2009 MITI continues to negotiate FTAs to open markets for businesses. Malaysia has signed and implemented bilateral FTAs with Japan and Pakistan and recently concluded negotiations with New Zealand. Malaysia is also a party to five regional FTAs namely ASEAN-China, ASEAN-Korea, ASEAN-Japan, ASEAN-Australia-New Zealand and ASEAN-India. Currently, Malaysia is negotiating bilateral FTAs with the US, India, Chile and Australia, and the regional ASEAN-EU FTA. Malaysian companies should capitalise on the regional and bilateral FTAs to gain an edge over their competitors, particularly under these trying times. It should be worth noting that the number of certificates of origin issued by MITI to our exporters, under the preferential schemes of the five regional ASEAN FTAs and the ASEAN CEPT increased 13.0 per cent to 222,476 in 2008. The number of companies exporting under the various FTAs has also increased from 4,160 in 2007 to...

ASEAN Economic Ministers at their meeting in Bangkok on 13-16 August 2009 announced that the establishment of ASEAN Economic Community (AEC), especially the creation of a single market, is on track. Y.B. Dato’ Mustapa Mohamed, Minister of International Trade and Industry, led the Malaysian delegation. The ASEAN Economic Ministers noted that initiatives to create a single market have contributed to the significant increase in intra-regional and extra-ASEAN trade. Intra-ASEAN trade in 2008 was US$453 billion or 26.7% of ASEAN’s external trade. Ten years ago, intra- ASEAN trade was only US$120 billion. In 2008, ASEAN’s global trade exceeded the trillion dollar mark at US$1.69 trillion. ASEAN has also remained an attractive destination for FDI despite global challenges. ASEAN as a region has attracted investments totaling US$184.6 billion over the period 2006-2008. Internally, ASEAN is close to full integration through AFTA. A favourable environment for cross-border investment...

The Bangkok Declaration on Traditional Medicine issued following the conference on Traditional Medicine in ASEAN Countries held from 31 August to 2 September 2009 in Bangkok, calls for collaboration in the generation and sharing of evidence-based information in traditional medicine and traditional knowledge; requirements for safety, efficacy and quality of traditional medicine, and the integration of traditional medicine / complementary and alternative medicine into the health care system services, including the promotion of the use of tradition medicine in primary health care.

Sales of motor vehicles for August grew a marginal 2.8% year-on-year but dropped 6.5% on a monthly basis. Up to August 2009, 351,550 units of motor vehicles have been sold compared with 379,184 units in the same period in 2008. In terms of production, 321,391 units of motor vehicles were produced, against 361,069 units in January-August 2008. In 2008, retrospectively, Japan contributed 16.2% of total world production followed by China, 13.1%, the USA, 12.2%, Germany, 8.5%, South Korea, 5.3% and Malaysia, 0.7%. In the ASEAN region, Malaysia contributed 21%. Total world production of motor vehicles for 2008 was 70.5 million units as compared to 74.2 million units in the previous year. This was a decrease of 3.7%.  

Malaysian businesses should capitalise on their competitive edge in the service sectors to tap preferential trade facilities under the China-Asean Free Trade Agreement (CAFTA), said International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir. “I see there is less competition in the services sector as it is totally different from other sectors..it very much depends on quality. “I think Malaysians have certain inherent advantages that we should make full use of,” he told Bernama on the sidelines of the “2010 FOCAFTA” seminar here on Thursday. Mukhriz said there was massive construction going on in many parts of China where Malaysian companies could provide architecture or design services to China. “China can look up to our capablities in this aspect. This is one area we can pursue further,” he said, adding that China was a huge market which also offered business opportunities in several other sectors for Malaysians. Mukhriz said if Malaysian businesses...

The ASEAN-India Free Trade Agreement (AIFTA) came into effect on 1 January 2010 for Malaysia and India. It is a remarkable milestone towards a freer market environment, and an important agreement for Malaysia as India is emerging as an important trading partner as well as a market for Malaysian exports. This FTA creates a market of 1.7 billion people with combined GDP of US$2.8 trillion and combined global trade of over US$2 trillion. Under the AIFTA, ASEAN Member States and India have agreed to progressively reduce and eliminate duties on substantial number of products over a period of 3-8 years beginning 1 January 2010. The Philippines, Cambodia, Lao PDR, Myanmar and Viet Nam are given an additional 2-3 years to reduce and eliminate their duties under this FTA. Dato’ Sri Mustapa Mohamed says that Malaysia is committed to eliminate import duties on 6,792 products or tariff lines by 31December 2013, while duties on another 1,266 tariff lines would be eliminated by 31 December...

Malaysia is hosting the 16th ASEAN Economic Ministers’ Retreat on 27-28 February 2010 in Putrajaya. The Retreat is held with the objective of allowing Ministers to exchange and deliberate on strategic issues in relation to ASEAN’s internal economic integration as well as external economic relationship with Dialogue Partners. This year’s Retreat is held at a very challenging time as economies embark on recovery measures from the global financial crisis. Ministers will be deliberating on a number of issues pertaining to:

The ASEAN Economic Ministers discussed a range of issues impacting on ASEAN’s competitiveness and the ability of the region to remain as favoured destination for investors. The Ministers reviewed the progress in implementation of the ASEAN Economic Community Blueprint measures.   

      ASEAN and the US underscored the importance of further strengthening economic ties during the recent visit of five economic ministers, deputy ministers and officials from ASEAN Member States to Seattle and Washington DC from 2-6 May 2010. Malaysia was represented by Dato Sri Mustapa Mohamed, Minister of International Trade and Industry. In the discussions with United States Trade Representatives, officials, congressmen, business leaders and think tanks in the US, South East Asian Economic Ministers stressed that ASEAN represents a significant market for products and services as well as an investment destination for US. Collectively, ASEAN accounts for 6 per cent of the total trade of US which is the same as the US trade with Japan, and more than US trade with Korea (3 per cent) and India (1 per cent).