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FTAs: Lessons from Malaysia Adul Chotinisakorn Ministry of Commerce 2 October, 2008
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Malaysian Export Structure, Jan-July 2008
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Malaysian Self-Sufficiency Level in Food Commodities, 2000-2010 (%) *Ninth Malaysian Plan
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*Harvard Business Review, July-August 2007
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BMI Short-term Political Risk Rating Quarter 4, 2008 Source: Business Monitor International
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BMI Long-term Political Risk Rating Quarter 4, 2008 Source: Business Monitor International
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BMI Short-term Economic Risk Rating Quarter 4, 2008 SourSour Source: Business Monitor International
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BMI Long-term Economic Risk Rating Quarter 4, 2008 Source: Business Monitor International
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BMI Business Environment Risk Rating Quarter 4, 2008
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Potential Information Age approach Vision 2020 requirement Current Industrial approach Source : EPU; IMF; World Bank; Mckinsey analysis TOWARDS ACHIEVING VISION 2020 Potential per capita GDP in real 1992 US$ thousand
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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 1 MP 2 MP 3 MP 4 MP 5 MP 6 MP 7 MP 8 MP 9
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MSC MASTER PLAN MALAYSIA
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Multimedia Super Corridor Phase 1
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MSC Next Leap (2004-2010)
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Urban Transportation RM 12 bn/us$3.2bn Water treatment Telecommunications/m ultimedia 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 Privatization
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Generating New Sources of Growth
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Biotechnology Action Plan
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Palm Oil Industrial Cluster (POIC)
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Halal Hub Development of halal product industry cluster to capture the growing share of the world halal market potential Credibility and worldwide recognition of JAKIM’s halal certification system and logo Availability of needed resources and strong government support Establish Halal Industry Corporation Provision of various incentives International Malaysia Halal Showcase (MIHAS)
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Vision 2020 Toward FTAs PURPOSES LAOS CAMBODIA BURMA VIETNAM PHILLIPINES BRUNEI INDONESIA SINGAPORE THAILAND MALAYSIA 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
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FTA Series MALAYSIA & ASEAN Malaysia - Japan Malaysia - Korea Malaysia’s Bilateral Agreements Malaysia – New Zealand Malaysia – U.S. TIFA Malaysia - Pakistan Malaysia - Chile Malaysia - Australia Malaysia – U.S. FTA Malaysia – India ASEAN - Japan ASEAN – Australia and New Zealand ASEAN - China ASEAN - EU Trade Preferential System - OIC D-8 Preferential Tariff Agreement ASEAN - Korea ASEAN - India Malaysia’s Multilateral Agreements Done O/P Done
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FTA STRATEGIC MOVE MALAYSIA Malaysia - Japan Malaysia - Korea Malaysia’s Bilateral Agreements Malaysia – New Zealand Malaysia – U.S. TIFA Malaysia - Pakistan Malaysia - Chile Malaysia - Australia Malaysia – U.S. FTA Malaysia – 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
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FTA STRATEGIC MOVE ASEAN Multilateral Agreements Goods Services Investment Benefits ASEAN - Japan ASEAN - Australia and New Zealand ASEAN - China ASEAN - EU ASEAN - Korea ASEAN - India
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FTA STRATEGIC MOVE Technology ASEAN - Japan ASEAN - Korea ASEAN - India Malaysia - Japan Malaysia - Korea Malaysia - New Zealand Malaysia - Australia Malaysia - 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 1 st Step Strategy2 nd Step Strategy Econ and Tech Cooperation
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FTA STRATEGIC MOVE Halal Hub Offer the allowance of Food and Agricultural Product 1 st Step Strategy Distribute food products to Muslim countries (Halal Food) 2 nd Step Strategy Malaysia - Chile Malaysia - Pakistan Malaysia - New Zealand Malaysia - Australia Malaysia - India Trade Preferential System - OIC D-8 Preferential Tariff Agreement
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Vision 2020 Malaysian Plans Agro & Biotech Food SMEs Development Technology FTA Negotiation K-economy Conclusion
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THANK YOU TERIMA KASIH
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