KUALA LUMPUR, March 17 (Bernama) -- Malaysian companies, especially small and medium enterprises (SMEs), must adopt new business strategies as the liberalisation initiatives under Asean Economic Community (AEC) and free trade agreement (FTA) pose challenges and benefits.
Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, said companies could no longer look towards operating in a protected environment as in the past.
"As an export-dependent country, Malaysia needs to sustain and increase exports by taking full advantage of the various FTAs," he said in his keynote address at the 'Seminar on AEC and Malaysia's FTA Initiatives' here today.
The text of his speech was read by his deputy, Datuk Mukhriz Mahathir.
Mustapa said the new business environment required companies to form strategic partnerships with their peers in Association of South-East Asian Nations (Asean), which accounted for 25 per cent of Malaysia's total trade.
"Asean, with a population of close to 600 million and growth domestic product of over US$1.5 trillion (US$1=RM3.03) offers a large market for Malaysian companies, especially SMEs," he said.
Currently, the liberalisation initiatives had encouraged local companies involved in healthcare, banking, manufacturing and construction sectors to rationalise their production network within the region, he said.
He said the FTAs allowed firms to import inputs, parts and components at competitive prices.
Mustapa said the liberalisation of air services within Asean has made it easier for people to travel, and thereby increasing connectivity.
-- BERNAMA
