This article first appeared in The Edge Financial Daily, on January 22, 2016.

KUALA LUMPUR: Malaysian automotive makers are unlikely to benefit from the Trans-Pacific Partnership (TPP) agreement, said the Malaysian Automotive Association (MAA).

Contrary to other trade organisations like those for textile, apparel and medical devices, which have voiced their support for the TPP recently, MAA does not think the trade pact will bring its members any benefit.

“If you look at us, how many of our members are actually sourcing vehicles from North America, Mexico and Canada? [So] I don’t think we will benefit from that sense.

“There will be certain clauses that will affect the auto industry [in the trade pact] but we have yet to be officially informed by Miti (Ministry of International Trade and Industry),” MAA president Datuk Aishah Ahmad told a news conference yesterday.

She highlighted that original equipment manufacturers face a lot of restrictions, as they are not allowed to export their products.

“At the same time, we are not sourcing from TPP countries. I don’t see that [happening]. We are sourcing materials from South Korea and Europe. Hence the TPP won’t affect us,” she added.

Aishah also doesn’t expect the imposition of the TPP to affect the number of vehicles sold. As to whether car prices will come down after the TPP is enforced, that is still up in the air, she said.

Nevertheless, she believes the TPP will be good for Malaysia as a whole as the country will have a bigger market, especially for those who export their goods.