The Parliament has called for a session to debate on the much concerned Trans-Pacific Partnership Agreement (TPPA) in the last two days. In midst of strong objection from the public on joining TPPA, we think this is a right move and it will certainly allow the public to be more aware of the possible impact of TPPA on Malaysia economy.

As an association that represents the SME community in Malaysia, we take a positive view that TPPA would serve as a wake-up call to SMEs – it is time to take initiative and transform ourselves into a competitive and innovative enterprise, both at local as well as global.

While acknowledge the opportunities brought by TPPA, e.g. greater market access and higher standards of business operations, we must also address the possible adverse impact of TPPA as a result of increased competition.

Recognising that majority of Malaysia SMEs are not ready to face increased competition under TPPA, we stress the necessary of government support in order to minimize the possible adverse impact on SMEs. Support can be in the form of measures that assist Malaysia SMEs in moving up global supply chain and in capacity building.

Malaysia SMEs must embrace changes that are taking place in business world. There is strong urgency for a change in mindset of Malaysia SMEs. We can no longer satisfy with what we have achieved in domestic market. As the local market is shrinking, SMEs have to expand into global market.

The Association is ready to take up the challenges of TPPA and work closely with the Government and relevant authorities to assist Malaysia SMEs to transform into world-class enterprises. Malaysia would not be able to maximize the potential gains brought by TPPA should the SMEs be lagged behind.

With these measures in place, the concern that 30% SMEs would be wiped out with the implementation of TPPA will no longer be applicable. On the contrary, Malaysia SMEs would be able to thrive and reap the full benefits of TPPA.

27 January, 2016
Michael Kang Hua Keong
National President