Trans-Pacific Partnership Agreement (TPPA) Impact Assessment Study in Malaysia: Survey Study undertaken by the Asian Strategy and Leadership Institute (ASLI) on behalf of the Taipei Economic and Cultural Office in Malaysia (TECO)

Methodology The study collected a total of 72 responses o 35 from Taiwanese companies o 37 from Malaysian companies The objective of the questionnaire: o Determine the potential economic impact of the TPPA o Identify possible sectors that will be impacted o Understand the competitive environment within the industry o Understand and forecast the economic impact on Malaysia from Taiwan’s participation of TPPA 2

Methodology cont’d Interviews conducted with person from managerial position and above Contact list provided by the Taipei Economic and Cultural Office in Malaysia o Taiwanese firms in Malaysia and Malaysian firms with business/trade with Taiwan o Also included interviews with industry stakeholders (trade associations, customs department, other government agencies), raw material producers, manufacturers, and service providers 3

Overall Industry Distribution Location of Office ContactedNumber of Companies Selangor29/40% Kuala Lumpur15/21% Penang13/18% Malacca5/7% Perak4 Johor3 (Others: Perlis, Kedah, Sabah)3 4

Company Information SectorNumber of Companies Primary Sector: Raw Material5/7% Secondary Sector: Manufacturing Industries 53/72% Tertiary Sector: Services16/21% 5

Company Scale & Head Office 6 Company ScaleNumber of Companies Large Company (more than 250 employees) 25/35% Medium Company ( employees)21/29% Small & Micro Company (less than 50 employees) 25/35% Head OfficeNumber of Companies Malaysia50/69% Taiwan18/25% Others4/6% *Others include Austria, Germany, Thailand, Sweden

2014 Company Turnover CategoriesNumber of Companies Less than RM 250,0001 RM250, 000-RM999, 9993 RM1mil - RM 4.9mil16 RM 5mil - RM 9.9 mil9 RM 10mil - RM 49.9mil14 RM 50 mil - RM 99.9 mil11 RM 100mil and above18 7

Should Taiwan/Malaysia participate in the TPPA? 8

Should Taiwan/Malaysia participate in the TPPA? cont’d All Automotive Industry companies support Taiwan and Malaysia’s participation in the TPPA Half of the E&E Industry companies support Taiwan and Malaysia’s participation in TPPA Most Petrochemical Industry companies support Taiwan and Malaysia’s participation in the TPPA Most companies in the Food & Beverage Industry support Taiwan and Malaysia’s participation in TPPA Half of the companies in Machine Tool Industry support Taiwan and Malaysia’s participation in TPPA More than half of the companies from other sectors support both Taiwan and Malaysia’s participation in TPPA 9

Primary Observations There is a serious lack of understanding of what the TPPA is about, additionally: o Discrepancies and inconsistencies provided in the responses o Lack of information from the latest developments pertaining to the TPPA as it applies to companies involved o Many companies held the view that they will not be affected, therefore didn’t track the developments of TPPA o Not much difference in opinions between the Malaysian and Taiwanese respondents o Knowledge of TPPA does not seem to be divided by the respondent’s various designations * At the time the survey was conducted the TPPA had not yet been finalised. 10

Familiarity with the TPPA Automotive Industry: most are not familiar with the TPPA (only one company express familiarity with TPPA) Electronic & Electrical Industry: more than half of the companies are somewhat familiar with the TPPA Petrochemical Industry: most are not familiar with the TPPA Food & Beverage Industry: most are not familiar with the TPPA For the other industries, most of the companies are somewhat familiar with TPPA, or not familiar with TPPA. Very few stated that they are familiar with the TPPA 11

12 Thank you For more information please Jordan Heng: or Yap Yee Chern: