FTAs: Lessons from FTAs: Lessons from Malaysia Malaysia Adul Chotinisakorn Ministry of Commerce 2 October, 2008
Dec 18, 2015
FTAs: Lessons from FTAs: Lessons from MalaysiaMalaysia
Adul ChotinisakornMinistry of Commerce
2 October, 2008
E&E Products38%
Chemical Products6%
Others36%
Refined Petro5% Palm Oil
8%Crude Petroleum
7%
Malaysian Export Structure, Jan-July 2008
Malaysian Self-Sufficiency Level in Food Commodities, 2000-2010 (%)Malaysian Self-Sufficiency Level in Food Commodities, 2000-2010 (%)
*Ninth Malaysian Plan
Potential
Information
Age approach
Vision 2020
requirement
Current
Industrial
approach
Source : EPU; IMF; World Bank; Mckinsey analysis
TOWARDS ACHIEVING VISION 2020Potential per capita GDP in real 1992 US$ thousand
Post-independence
1957-70
•Laissez-faire/ export-oriented•Economic and rural development Growth
Growth with Equity, 1971-90
Balanced Development,1991-2000
Performance & Impact Oriented Development to achieve the goals of Vision 2020
ECONOMIC MASTER PLAN
MALAYSIA
MP 1MP 2MP 3MP 4MP 5MP 6MP 7MP 8MP 9
Urban Transportation RM 12 bn/us$3.2bn
Water treatment
Telecommunications/multimedia RM 6.6 bn/ us$1.7bn
Ports RM 7.8 bn / us$2.1bn
Power RM 42.3 bn / us$11.1bn
Airports RM 10.0 bn / us$2.9bn
Roads/highways RM 31.6 bn / us$2.9bn
Scope of Scope of PrivatizationPrivatization
Halal HubHalal HubDevelopment of halal product industry Development of halal product industry cluster to capture the growing share of cluster to capture the growing share of the world halal market potentialthe world halal market potentialCredibility and worldwide recognition of Credibility and worldwide recognition of JAKIM’s halal certification system and JAKIM’s halal certification system and logologoAvailability of needed resources and Availability of needed resources and strong government supportstrong government supportEstablish Halal Industry CorporationEstablish Halal Industry CorporationProvision of various incentivesProvision of various incentivesInternational Malaysia Halal Showcase International Malaysia Halal Showcase (MIHAS)(MIHAS)
Vision 2020
Toward FTAsPURPOSE
S
LAOSLAOS
CAMBODIACAMBODIA
BURMABURMA
VIETNAMVIETNAM
PHILLIPINESPHILLIPINES
BRUNEIBRUNEI
INDONESIAINDONESIA
SINGAPORESINGAPORE
THAILANDTHAILAND
MALAYSIAMALAYSIA
ASEAN MEMBERS
Political issues
Export Goods(Agricultural Product and Labor-intensive
Products)
Services & Investment
Technology /Industry
NAM: National Auto-Mobil
MSC: Multimedia Super Corridor
Agro and Biotech Industry
Halal Hub
SMEs
Construction and Engineering
Human Development
FTA SeriesMALAYSIA &
ASEANMalaysia - JapanMalaysia - Korea
Malaysia’s Bilateral Agreements
Malaysia – New ZealandMalaysia – U.S. TIFA
Malaysia - PakistanMalaysia - Chile
Malaysia - Australia
Malaysia – U.S. FTA
Malaysia – India
ASEAN - JapanASEAN – Australia and New Zealand
ASEAN - ChinaASEAN - EU
Trade Preferential System - OIC
D-8 Preferential Tariff Agreement
ASEAN - KoreaASEAN - India
Malaysia’s Multilateral AgreementsDone
Done
Done
Done
Done
Done
Done
O/P
O/P
O/P
O/P
Don
e
FTA STRATEGIC MOVE
MALAYSIA
Malaysia - JapanMalaysia - Korea
Malaysia’s Bilateral Agreements
Malaysia – New Zealand
Malaysia – U.S. TIFA
Malaysia - PakistanMalaysia - Chile
Malaysia - Australia
Malaysia – U.S. FTAMalaysia – India
•J-M Economic Partnership Agreement•FDI and SMEs development•Agriculture and Agro-based Industry•Trade and Investment Cooperation
•Telecom and Springboard to South Asia
•Two-Way Investment flow
•Biotechnology
•FDI and Economic Cooperation•Comprehensive Economic Cooperation
Benefits
FTA STRATEGIC MOVE
ASEAN
Multilateral Agreements
•Goods•Services
•Investment
Benefits
ASEAN - JapanASEAN - Australia and New Zealand
ASEAN - ChinaASEAN - EUASEAN - KoreaASEAN - India
FTA STRATEGIC MOVE
Technology
ASEAN - JapanASEAN - Korea
ASEAN - India
Malaysia - JapanMalaysia - KoreaMalaysia - New ZealandMalaysia - AustraliaMalaysia - India
ASEAN – Australia & NZ
• MSC:Multimedia Super Corridor• Agro and Biotech Industry• SMEs• Construction and Engineering• Human Development
• Seek more Econ and Tech Coop• Offer more Market Access in Agricultural and Food Products
1st Step Strategy 2nd Step Strategy
Econ and Tech Cooperation
FTA STRATEGIC MOVE
Halal Hub
Offer the allowance of Food and Agricultural Product
1st Step Strategy
Distribute food products to Muslim countries (Halal Food)
2nd Step Strategy
Malaysia - ChileMalaysia - Pakistan
Malaysia - New ZealandMalaysia - Australia
Malaysia - India
Trade Preferential System - OIC
D-8 Preferential Tariff Agreement
Vision 2020 Malaysian Plans
Agro & Biotech
Food
SMEs Development
TechnologyFT
A N
eg
otia
tion
K-economy
Conclusion