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405979
Fri, 05/06/2016 - 05:20
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TPP Will Boost Malaysian Automotive Parts & Components Industry - Malaysia Automotive Institute

CYBERJAYA (Malaysia), May 6 (Bernama) -- The Trans-Pacific Partnership (TPP) will benefit the local automotive parts and components industry, besides enhancing the National Automotive Policy (NAP), said Malaysia Automotive Institute (MAI) chief executive officer Madani Sahari. He said the export value of Malaysian automotive parts and components sector had grown from US$248.95 million (RM1 billion) in 2005 to US$2.98 billion (RM12 billion) last year, and the TPP was expected to boost the figure further. "New markets within the TPP countries would create export opportunities for vehicles and components to a population of 800 million people," he said at a TPP briefing and the way forward for the automotive industry at MAI here, Thursday. Madani said Malaysia's main exports of automotive parts and components were primarily to Japan and the United States (US). On the impact of the TPP on the local automotive industry, he said with the trade pact, Malaysian companies stood to benefit from technology, supply chain and capacity building development from the US. "Similar efforts conducted with Japan and Australia under the Malaysia-Japan Economic Partnership Agreement and Malaysia-Australia Free Trade Agreement have proven to be beneficial for the Malaysian automotive industry," Madani said. He said MAI was in collaboration with Rochester Institute of Technology to develop world class education and research programmes in the areas of remanufacturing for production and transportation. MAI had engaged with the American Automotive Policy Council for the development of international and domestic policies upon the signing the TPP Agreement, Madani said. TPP, a trade deal which will expand markets, reduce tariffs and promote freer trade, was signed by Malaysia, New Zealand, Australia, Chile, Mexico, Japan, Peru, Canada, Vietnam, the US, Singapore and Brunei on Feb 4, 2016. Currently, the pact is in the ratification phase with the 12-member nations undergoing respective domestic process in order to bring it into force, which need to be done within 24 months after the signing. --BERNAMA

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