Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
Their concerns regarding textiles and garments have been adequately addressed by the Malaysian Textile Manufacturers Association’s (MTMA) reply that was published on March 23. There are two other matters that should be highlighted.
<P><B>Trade
Surplus </B></P><P>It is true that Singapore’s trade deficit with the US
widened post FTA by US$1.4bil (RM4.8bil) in 2006. However, we should not look
only at the size of surplus or deficit without looking at the overall increase
in trade – in this case Singapore exports to US increased by 18% and imports from
the US in-creased by 20% resulting in a total trade increase of US$6.8bil (RM23.5nil)
together with its attendant economic benefits. </P><P>While we are not anticipating
a decline in the trade surplus given our expectations about increase in exports
of textiles, rubber products, furniture, etc; we are of the view that with increased
trade even a lower trade surplus can still have a positive impact on the economy.
</P><P>We wish to point out that trade surplus and deficit merely reflect the
net position of trade flows; but speaks nothing about the level of economic activity
that can be generated. </P><P>Of greater significance is the volume and value
of trade and the generation of economic activities. With a FTA, Malaysia and the
US can anticipate a higher volume of trade, generating greater economic activities,
employment and income. </P><P><B>Investment</B> </P><P>The rights that will be
accorded to the US under the FTA are not “overwhelming” rights that
will be given only to the US. </P><P>Currently, all investors in the manufacturing
sector, for example, can own up to 100% shares in their companies. It has just
been announced that investors in the Iskandar Development Region are free to own
100% of their companies; an indication in the opening up of our investment climate.
</P><P>It is a negotiating point as to what time frame and percentages can be
arrived at for the services sector, following our Financial Sector Master Plan
etc. </P><P>Furthermore, since 1966 Malaysia has signed Investment Guarantee Agreements
with 66 countries, including the US, which guarantees: </P><P>• Protection
against nationalisation and expropriation; </P><P>• Free Transfers of Profit,
Capital and Other Fees; and </P><P>• Dispute settlement under the Convention
of Investment Dispute headquartered in Washington. </P><P>We do not give up anything
in agreeing to put in an FTA from what we have already signed earlier in our separate
Invest-ment Guarantee Agreements. </P><P>On the contrary, we help to reinforce
confidence in the investors’ boardroom when they are deciding on competing
countries to locate their operations i.e., Malaysia is a country that respects
property rights. Something which every consumer or investor will cherish. </P><P>There
is also the branding advantage of an FTA. For the businessmen and man in the street,
an FTA partner country exemplifies the following: a safe place for investment,
tourism, and business. </P><P>With protection and certainty, this can only mean
greater trade and investment and lower prices of goods and services for both businesses
and consumers. </P><P>The MITI Minister in her television interview addressed
the other issues on March 20. </P><P><B>DATUK YONG POH KON, </B></P><P><B>President,
</B></P><P><B>Federation of Malaysian Manufacturers.</B></P><P><B>Source: http://thestar.com.my/news/story.asp?file=/2007/3/25/focus/17241373&sec=focus</B>
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com