MTMA Urges Malaysia, China Textile Industries To Join Forces, Gain Bigger Market Within RCEP

KUALA LUMPUR, May 25 (Bernama) -- The textile industries of Malaysia and China should collaborate to gain a bigger market within the context of the Regional Comprehensive Economic Partnership (RCEP), said the Malaysian Textile Manufacturers Association (MTMA).

To that effect, MTMA president Tan Thian Poh has appealed to China’s Keqiao textile and apparel businesses to invest in Malaysia, particularly in the downstream sector, while benefitting from Malaysia’s skilled labour force.

"Malaysia, with its skilled labour force, is a strategic gateway to the RCEP bloc and the Southeast Asian markets of over 650 million people through the ASEAN Free Trade Area preferential trade agreements and the Asean Economic Corridor,” he said in his speech during the China Textile City Overseas Mini Fair here Wednesday.

The fair, jointly organised by the Shaoxing Keqiao Textile City Overseas Market Promotion Association, was held to bridge the gap in the supply chain of the textile and apparel industry in Malaysia.

The whole-day event was attended by over 100 buyers in Malaysia ranging from apparel manufacturers, fashion designers and retailers, among others.

Tan also said that Malaysia imported more than US$3.9 billion (RM18 billion) worth of textile and apparel products in 2022.

"I believe, if we join forces, business joint ventures will offer a huge opportunity for both parties to capture the domestic market in China and Malaysia,” he said.

Tan lamented that the country’s textile industry has been facing challenges post-COVID-19, such as high labour costs, limited economies of scale, and competition from other countries.

"In addition to these challenges, the weak upstream sector of the industry in the country also led to some manufacturers sourcing options overseas, particularly in China,” he said.

China is one of the leading textile producers in the world and the largest production area of fabrics in China is Keqiao, which is also known as Textile City.

Keqiao had played host to various textile trade fairs and exhibitions over the years, including Keqiao International, one of the notable textile exhibitions in the region.

-- BERNAMA