Act To Protect Bumiputera Rights Under TPPA Being Formulated – Mustapa
KUALA LUMPUR, April 7 (Bernama) — The government will introduce a new legislation that will protect Bumiputera rights through government-linked companies (GLCs) once the Trans-Pacific Partnership Agreement (TPPA) is implemented.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said currently, several GLCs, including Khazanah Nasional Bhd and Petronas, were in discussions with the Attorney-General Chambers on the new legislation to be known as ‘State-Owned Enterprises Act’.
“It is, among others, to provide a level playing field for our GLCs, including Khazanah and Petronas, and related enterprises when competing against foreign companies while ensuring they are in compliance with TPPA,” he told reporters at a TPPA engagement high-tea function with diplomatic missions here today.
Mustapa said under the proposed legislation, the GLCs would be required to allocate 40 per cent of a project for Bumiputera small and medium enterprises (SMEs) while the remaining was open for all including international companies.
“This will allow Bumiputera SMEs, including that of Sabah and Sarawak, to compete with international companies,” he said.
On the legislation, Mustapa said, it would be enforced in four years’ time.
The trade deal, which will expand markets, reduce tariffs and promote freer trade, was signed by Malaysia, New Zealand, Australia, Chile, Mexico, Japan, Peru, Canada, Vietnam, US, Singapore and Brunei on Feb 4, 2016.
Currently, the pact is in ratification phase with the 12-member states undergoing respective domestic process in order to bring it into force, which need to be done within 24 months after the signing.
Today’s hi-tea function was organised by Malay Businessmen and Industrialists Association of Malaysia (Perdasama) in its effort to strengthen existing diplomatic relations with TPPA member states.
In a statement made available to the media, Perdasama said, it also planned to hold one-on-one session with all TPPA member states’ diplomatic missions on investment opportunities in their countries.