TPPA An Edge For Selia--Tek To Enter Lating America

By Zairina Zainudin KUALA LUMPUR, Jan 16 (Bernama) -- Plastic injection moulding products manufacturer, Selia-Tek Holdings Sdn Bhd eyes wider overseas market penetration, riding on the Trans-Pacific Partnership Agreement (TPPA). "We have not penetrated any country in Latin America. Countries like Peru and Mexico (which are members of the TPPA) will be an interesting market for us to expand," its Group Marketing Manager Akmar Kasim said. There is a huge potential for medical disposal products in these countries and Selia-Tek has already established a name for quality. "(Hence), I believe we are competitive (enough) and can provide more options in the markets (Peru and Mexico)," he told Bernama. Currently, Selia-Tek exports to the United States, Japan, Hong Kong, Singapore, Australia and Cambodia and churned a revenue of RM49 million (about US$11 million) last year. Akmar said with the potential that came with the TPPA, the company also aimed to carve out a larger percentage of revenue contribution from exports from 20 per cent now to 35-40 per cent this year. "We (eventually) hope to balance the ratio to 50:50," said Akmar, who's family-owned Selia-Tek also has interest in the power and railway industry. Malaysia's export of medical devices to Peru increased to RM31.62 million in the January-November 2015 period from RM22.45 million in the same period in 2014. The uptrend was also recorded for export value to Mexico, where it rose to RM54.36 million in the period under review from RM31.86 million previously. Akmar believes that Malaysia stands to benefit a lot from the TPPA and emerges as the world's favourite investment destination, while local companies, including Selia-Tek, will benefit from the spillover effects. Countries that are non-TPPA members have also identified Malaysia as a lucrative destination for setting up their bases in the region, he said. Besides Malaysia, Peru and Mexico, the other TPPA members are Singapore, Brunei, New Zealand, Chile, the United States, Australia, Vietnam, Canada and Japan. "Foreign companies have already approached us for startegic partnerships and I can see there are huge business opportunities especially in the original equipment manufacturer activity," said Akmar. He also pointed out that the TPPA was the only trade agreement involving Malaysia that had specific focus on the Small and Medium Entreprises (SMEs). Besides harmonising the standard of regulations and enhance the level of competitiveness, the TPPA could also help SMEs to save more on their logistics expenditure given the proposed zero custom tax mechanism or free-trade, he said. In Chapter 24 of the TPPA, members have also express commitments to create a user-friendly website targeted at SMEs to provide easily accessible information on the partnership and the ways small firms can take advantage of it. An SME committee will be set up whereby they will meet regularly to review how well the TPPA is serving the SMEs, consider ways to enhance benefits, and oversee cooperation or capacity-building through export counselling, information sharing, trade finance, and assistance and training programmes. "More than half of our local SMEs are not exporting," Akmar said, adding that the TPPA offered the SMEs an edge they need to venture abroad. Hence, he said:"It's either we change and prepare ourselves to compete, or be left behind." -- BERNAMA