FTAs POSE OPPORTUNITIES RATHER THAN THREATS

By Santhia Panjanadan

KUALA LUMPUR, March 17 (Bernama) -- Local companies should look at free trade agreements (FTAs) as an avenue for opportunities to access new markets rather than see them as threats or disruption to their businesses.
Senior Director of Asean Economic Cooperation Division, Ministry of
International Trade and Industry, P.Ravindran gave assurance that there were aspects in FTAs that safeguarded the interest of domestic players.
"Among the aspects are the rules of origin and provisions in the agreements for safeguard mechanisms.
"For instance, the import duty can be reinstated if any matters arise upon negotiations, and products must have 40 per cent local content," he told Bernama on the sideline of the FTA Clinics in conjunction with the Asean Economic Community and Malaysia's FTA Initiatives Seminar Thursday.
The FTA Clinics provide a platform for businesses to gain better insight on the benefits and opportunities for them.
Besides the benefit of import duty exemption for businesses, FTAs also attract foreign direct investments and create employment in the country.
"Local players must not blame FTAs for disrupting the business environment here. Instead (they) should erase the fears and wrong perceptions and look into creating an integrated regional market," he added.
Ravindran also called on local businessmen to look into increasing
productivity levels saying that the cost of doing business must match the level of productivity.
Besides the regional Asean Free Trade Area (Afta), Malaysia is also implementing Asean FTAs with China, Japan, Korea, India, Australia and New Zealand. Malaysia also has bilateral FTAs with Japan, Pakistan and New Zealand.
Its bilateral FTA with Chile and India will be implemented soon.