The Machinery and Engineering Industries Federation (MEIF), a Federation of 7 machinery, engineering and related services industry associations, fully and strongly support the early ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The Cost Benefit Analysis (CBA) released on 25th July, 2022, reaffirms the general views and opinions of MEIF's member associations that CPTPP will only enhance the growth of the machinery and engineering industries in the aftermath of the COVID 19 pandemic. Malaysia's Machinery and Equipment (M&E) Industry exports are worth over RM40 billion annually (RM49.9 billion in 2021}, not including unspecified billions in engineering products, components and services. CPTPP countries currently account for about 31% of Malaysia's M&E exports. With tariffs being reduced in CPTPP countries and fully liberalized by 2034, Malaysia's M&E exports to these countries (many of whom are net importers), are only expected to grow immensely.
It is expected that the M&E industry and ecosystem will be able to access new markets such as Canada, Mexico and Peru and perhaps other countries such as China, South Korea and Thailand who have indicated interest to join CPTPP. The M&E industry supply chain mainly consisting of SMEs providing engineering supporting products and services is also expected to widen its markets into the global supply chain and enhance the overall productivity and capabilities of the players. In this MEIF hopes that the Government through MITI and its agencies will provide as much assistance as possible to empower SMEs. One of the main concerns of the Malaysia's M&E industry are the various non-tariff barriers imposed by countries on M&E imports which make it almost impossible to export to these countries. With the inclusion of dedicated provisions under the CPTPP to enhance transparency and information exchange regarding non-tariff barriers, the industry is of the view that such dedicated provision with MITI's help, will reduce unnecessary technical barriers for the M&E sector and increase competitiveness of Malaysian exports.
MEIF with its 7 member associations i.e. MEMA, MSTMA, MATA, TEEAM, MMCOA1987, SAMENTA and MAIA, is looking forward to working with MITI and other Government agencies and assisting in any way possible for the early ratification of the CPTPP to realize the benefits for Malaysia and the economy.
Thank you. Yours Sincerely, Mac Ngan Boon President Machinery & Engineering Industries Federation (MEIF)