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Taiwan's entry into the TPPA may have potential positive and/or negative effects on Malaysian companies in various goods and services industries. If goods and services produced by Taiwanese companies are used by Malaysian companies as inputs in the production chain, Taiwan's entry can bring benefits to Malaysian industry. This is because Malaysian companies can benefit not only from easier access to such goods and services, but also from lower costs due to the removal of tariff and other barriers.

Conversely, it is also possible for Malaysian firms to experience negative impacts if goods and services produced by Taiwanese firms are in competition with Malaysian ones. To assess the potential effects of Taiwan's entry into the TPPA on those Malaysian goods and services industries, ASLI adopts two approaches: The first approach is a general equilibrium approach that allows us to analyze and understand the potential impacts on sectors/industries different.

Malaysia

• Geography
• Population
• Economy
• Inflation
• Ease of Doing Business

The country has a land mass of 328,657 square km, and in terms of land surface comparison it is 67th in the world. It is strategically located between one of the busiest sea lanes in the world, The Straits of Malacca. The 2009 global financial crisis (GFC) affected the manufacturing sector due to a decline in the global.

However, the country's economy has since recovered, driven by growth in the manufacturing sector, as global demand picked up its pace again by the second half of 2014. However, Malaysia may still be exposed to a fall in prices. of goods due to the general slowdown in global economic activity, because goods exports are still a major component of the country's GDP.

Taiwan

• Geography
• Population
• Economy
• Inflation
• Ease of Doing Business

Exports are led by electronics, machinery and petrochemicals, which contribute greatly to the country's economic development. The country's heavy dependence on exports exposes the economy to fluctuations in global demand, which became especially evident during the global economic crisis. The country's export sector is expected to remain the main driver of economic growth in the country.

The largest contribution to Taiwan's GDP comes from the services sector, with a total contribution of approximately 69% in 2014. The ease of doing business in Taiwan is slightly lower than that of Malaysia, attributed to difficulties in cross-border trade and protection of investors.

• Malaysia
• Trade Balance
• Key Import & Export Products
• Taiwan
• Trade Balance
• Key Import & Export Products
• Revealed Comparative Advantage (RCA) Analysis on Malaysia and
• The Index Formulated by Balassa is as Follows
• Summary

In this subsection, the objective is to determine the level of Malaysia and Taiwan's export competitiveness of selected services in the world. On the contrary, data shows that Taiwan does not have a comparative advantage in travel services in the world. For insurance and pension services, both Malaysia and Taiwan lack comparative advantage in the world. v) Financial services - covers financial intermediary and auxiliary services, except insurance and pension fund services, provided by banks and other financial corporations.

For telecommunication, computer and information services, both Malaysia and Taiwan lack comparative advantage in the world. For other business services, both Malaysia and Taiwan lack comparative advantage in the world.

Malaysia

• Free Trade Agreement

Goods, tariffs, rules of origin, sanitary and phytosanitary measures, customs procedures and technical barriers to trade, legal issues, trade remedies, economic cooperation. Trade in industrial and agricultural goods, trade in services, investment, rules of origin, customs procedures, standards and compliance, intellectual property, competition policy,. April 2014 Market access, rules of origin, customs cooperation, technical barrier to trade, sanitary and phytosanitary, trade remedy, economic and technical cooperation, legal institution.

December 2011) Trade in goods, services, government procurement, competition policy, intellectual, industrial and commercial property rights, sustainable. Trade in goods, services, investment, rules of origin, sanitary and phytosanitary, technical trade barriers, dispute settlement mechanism, economic cooperation.

Taiwan

• Free Trade Agreement

Source: Ministry of International Trade and Industry Malaysia, Organization of American States Foreign Trade Information System. National Reduction of Treatment, Tariff Schedule, Tariff Schedules, Rules of Origin, Specific Rules of Origin, Customs Procedures, Protection Unfair Trade Practices, SPS Standardization Measures, Investments, Dispute Settlement, Border Trade in Services, Temporary Entry of Persons, Treaty administration, Dispute settlement, Exceptions, Cooperation, Final provisions. National treatment and market access for goods, Tariff reduction schedule, Rules of origin, Specific rules of origin, Customs procedures related to the origin of goods, safeguard measures, unfair trade practices, sanitary and phytosanitary measures, measures on standards, investments, Cross-Border Trade in Services, Temporary Entry of Business Persons, Transparency, Administration of the agreement, Exceptions for Dispute Settlement, Cooperation, Final provisions.

July 2013 Liberalized trade in goods, Rules governing trade, Liberalized trade in services, Movement of people, Enhanced facilitation and protection of investments, Measures to improve business flows, Government procurement, Trade and labor, Trade and environment.

Current Malaysia-Taiwan Trade Relations

In 2015, Taiwan's China Steel invested US$328.8 in a joint venture in Sarawak to build factories for Sakura Ferroalloys Sdn. Over 75% of Taiwan's exports to Malaysia are semi-finished products, which mainly consist of electrical components and mechanical parts. Taiwan's participation in the TPPA and the Regional Comprehensive Economic Partnership (RCEP) will either completely remove or reduce tariffs on components and stimulate more Taiwanese companies to invest in Malaysia as their manufacturing base for the ASEAN region.

Given that both countries have open economies, Taiwan's participation in the TPPA and RCEP will strengthen the two economies' current efforts to liberalize trade in goods, services and investment while furthering regulatory cooperation and consistency. Taiwan's participation in the TPPA and RCEP will facilitate business for both economies and strengthen cooperation in Malaysia's National Key Economic Areas (NKEAs), exclusively in departments such as energy, financial services, electrical products and electronics, as well as medicine and healthcare.

Summary of TPPA objectives

The TPPA countries also agreed on the importance of close cooperation between authorities to ensure the effective implementation and operation of the agreement and other customs matters. However, the P-4 partners committed to concluding a financial services (and investment) chapter within two years – a commitment that was made with the introduction of the TPPA. TPPA countries have agreed to strengthen and develop existing World Trade Organization rights and obligations on trade-related aspects of intellectual property (TRIPS) to ensure an effective and balanced approach to intellectual property rights among TPPA countries.

TPPA countries have agreed to reflect in the text a joint commitment to the Doha Declaration on TRIPS and Public Health. Cooperation and Capacity Building TPPA countries agree that capacity building and other forms of cooperation are critical both during negotiations and after conclusion to support the ability of TPPA countries to implement and benefit from the agreement.

Overview of Key focus Areas

• Government procurement
• Intellectual property rights
• Market Access

Pharmaceutical IP provisions that promote innovation and the development of new, life-saving medicines, create opportunities for robust competition in generic medicines, and ensure affordable access to medicines, taking into account the development levels of TPPA countries and their existing laws and international obligations; New rules promoting transparency and due process regarding trademarks and geographical indications; Therefore, as part of the TPPA, these tariffs aim to be phased out in schemes that will cover more than 11,000 commodity categories in partner countries.

Some tariff schemes will be phased out immediately after the entry into force of the TPPA, while others, perhaps more sensitive, will be phased out over a longer period of time. All TPPA countries, however, currently experience some level of tariff reduction through their own bilateral free trade agreements with one or more other TPPA partners.

Summary of TPPA Official Documents

47 Chapter 3 - Rules of Origin and Procedures of Origin: Creates rules of origin that define what it means for a product to originate in TPPA partner countries and therefore be eligible for TPPA benefits. To ensure that the benefits of the TPPA accrue to TPPA workers and companies, the TPPA requires a "yarn forward" rule of origin, meaning that in order to receive the lower tariff offered by the TPPA, goods must be manufactured within the free trade area using the countries' yarn TPPA. and fabrics. The chapter also includes customs cooperation to combat duty evasion and fraud, safeguard measures for textiles and clothing, and an adapted short stock list to allow flexibility to meet standards.

GTAP Analysis on the Likely Impacts of Taiwan’s Entry into TPPA on

Methodology

• The Model and Data
• Adding Tariff Equivalent of Services Trade Barriers Into the Database
• Sectors and Regions Aggregation
• Simulation Strategy

Simulation Results

• Likely Impacts on Country’s Overall Welfare and GDP
• Likely Impacts on Output Levels
• Likely Impacts on Exports
• Likely impacts on imports

A note on interpreting GTAP simulation results

Summary remarks

Research Methodology

Study on “Whether Taiwan should join the TPPA?”

Overall Industry Distribution and Company General Information

• Distribution of Companies Contacted in Malaysia
• Main industries
• Companies Scale Distribution
• Company Head Office / Regional Office Locations

Primary observations arising from the survey

Primary Sector: Raw Materials

• Market Access / Malaysia Trade Landscape
• Turnover, Sources of Revenue and Inputs
• Perception on Trans Pacific Partnership Agreement
• Focus Areas

Secondary Sector: Manufacturing Industries

• Market Access
• Turnover, Sources of Revenue and Inputs

Awareness of Trans Pacific Partnership Agreement (overview)

• Familiarity with TPPA
• Positive or Neutral Perception on TPPA
• Negative Perceptions on TPPA
• Perception on Taiwan participation in TPPA and its impact
• Participation Opinions
• Intellectual Property Rights
• Government Procurement / State-owned Enterprises

Tertiary Sector: Services

• Market Access
• Tariff or Non-Tariff Barriers
• Incentives, waivers, grants, facilities and provider
• Trade Patterns
• Familiarity with TPPA
• Positive or Neutral Perception on TPPA
• Negative Perception on TPPA
• Perception on Taiwan participation in TPPA and its impact
• Participation Opinions
• Intellectual Property Rights
• Government Procurement / State-owned Enterprises

Selected analysis of the survey

• Should Taiwan/Malaysia participate in the TPPA?

Ratings of importance of sub-categories to the businesses

Companies that are “not familiar” with TPPA

Companies that are “somewhat familiar” with TPPA

Characteristics of companies that claimed to be “familiar” with TPPA. 114

Qualitative analysis of the survey

Most companies in the primary sectors have trade secrets and technical or commercial information related to business activities that is considered important for their competitiveness. Half of companies generate more than 70% to 100% of their total turnover from the domestic market. Half of the companies have more than 50% of their total turnover coming from the domestic market.

Most companies from other industries have at least (1-24%) or none of their goods supplied in Malaysia as a whole come from Taiwan. Only a few companies within the company have about 50 to 100% of their goods in Malaysia as a whole coming from Taiwan. For the other sectors, most companies are somewhat familiar with TPPA, or not familiar with TPPA.

Most companies in the automotive industry express uncertainty about the positive impact of the TPPA. Most of the companies in the Petrochemical industry have a neutral view on the benefit that the TPPA brings. In the food and beverage industry, "Market access in goods" and "customs cooperation" are considered important and very important by most of the companies.

Most of the companies express interest in developing potential new business in government procurement market. Almost half of the companies in the industry have business dealings with government or state-owned enterprises, while minimal or no products are sold in Malaysia's public procurement market sourced from Taiwan. All the companies that do business with the government or state-owned enterprises deal indirectly through intermediaries.

Half of the companies in the sector have business relationships with public or state-owned companies. 58% of the 72 companies that participated in the survey believed that Taiwan/Malaysia should join the TPPA. The companies' views on the impact of the TPPA on their respective intellectual property rights are more reserved.

Three (2 Malaysian firms and 1 Taiwanese firm) of the total firms surveyed operate in the banking/finance/insurance industry.