Newsletter: April 2003
UNPREDICTABLE
Many
happenings in this world are unpredictable and beyond our control. For
instance, the Iraq war, is it a curse or blessing to Iraq itself and to the
whole world? Time will clear
our doubts.
SARS is another bomb. Because of SARS, we postponed our China
investment trip. Another group of textile students who plan to visit
factories are also put to a
halt. A seminar has to defer because the lecturer from UK dare not come to
Malaysia. The Malaysia Garment and Textile Exhibition 2003 (GateMa) are
still uncertain because overseas exhibitors and visitors may have difficulty
to enter Malaysia. When will the disaster end ? It is beyond our
imagination.
Just because there are so many unpredictable happenings, we should be
well prepared and equipped for the predictable things. Recently, trade
officers frequently asked our view on the impact of China’s entry into
ASEAN. We predict that China is aggressive to be a member of ASEAN. We
should adopt strategies to confront the great
challenges ahead. The textile strategy columns of the Newsletter may
provide some hints and ideas for us.
We are in the midst of preparing for the publication of new
Membership Directory. We hope that members will be co-operative to furnish
all necessary particulars and figures. It is easy to obtain textile and
apparel statistical figures of other countries but not Malaysia. Our
statistic department has very little information on this industry. National
Productivity Centre (NPC) once complained that our manufacturers are
reluctant to provide figures. Many a times, the trade department has to
source figures from the association. We normally only furnish a lump sum
figure without disclosing figures of individual companies. Internationally,
Malaysian textile and apparel news seldom appear. Few days ago, a supplier
from UK asked me “in which continent is Malaysia situated?” I suppose it
is because of the low profile attitude of Malaysian manufacturers.
Besides, we will be having a meeting with the Vice Treasurer YB Dato’
Chan Kong Choy together with the Federation of Malaysian Textile and Garment
Merchants Association. Memorandum focusing on sales tax has been submitted.
On 21st May 2003, the 1st Customs-Private
Panel meeting will be held. Members are welcomed to submit your problems
relating to Customs department to our secretariat or committee members
latest by 20 April 2003.
On page 32 of this issue, we noted that Indonesia is keen to
establish Free Trade Agreements with other non-ASEAN countries. Singapore
has successfully achieved such an agreement with New Zealand, Australia,
Japan and particularly USA. They are in the process of negotiating such a
pact with Canada, Mexico, China, Korea and India.
On 27 January 2003, President Seow Hon Cheong represented MKMA to a
meeting with MITI on FTAs. After the meeting, he spent efforts making
research and analysis for the department. We are honoured to have a very
knowledgeable president. He will continue to pursuit on this matter. Once
the pact is achieved with USA, it will be beneficial to the textile and
apparel industry. Our imports to USA will not be subject to tariff and thus
improve our competitiveness especially over China apparels. The current duty
is between 8-32.3%. However, when will the agreement be reached? As the
country’s relationship with USA is not constant, it is difficulty to
predict the outcome.
As many factories are re-locating to China, please take note that USA
may extend the textile and apparel quota on China imports to 2008. According
to our correspondence with the American Textile Manufacturers Institute (ATMI),
the association has filed their appeal to the government and is under review
by the US government. This issue of Newsletter focuses mainly on China and
USA as one is our main competitor and the other country is our main export
destination.
On Valentine Day, our representatives had a meeting with Customs Valuation department to discuss on imported goods. On 10 March 2003 , Mr. Cheong Kwok Wah represent the association to the Tenaga National and Industry Dialogue. On the same day, Vice President Mr. Liew Peng Tong and Mr. Tang Chong Ching were invited to the 1st ASEM Customs Enforcement Meeting held in Penang.
The 2003 AGM will be held on 28 June 2003. We hope members will make it a point to attend. Election for new executive committees will be held. We look forward to a team of committee members who are knowledgeable, talented, humble, friendly, with a commitment to serve and equip with a worldwide perspective to lead the industry towards an international direction.
