To reduce import tax under the Trans-Pacific Partnership Agreement (TPPA), Malaysia’s plywood exports to Japan are expected to increase.
According to Deputy Minister of Plantation Industries and Commodities, Datuk Datu Nasrun Datu Mansur, the tax cut was a positive development as this was never done before for other countries prior to this.
“The TPPA is one of the 13 trade pacts which Malaysia has signed in efforts to strengthen economic cooperation with other countries,” the minister said at the Dewan Rakyat here Monday.
This was in reply to a supplementary question from Ahmad Nazlan Idris (BN-Jerantut) on the benefits to the country’s wood industry from the participation in TPPA.
Under the TPPA, Japan has agreed to reduce the tax on plywood only to Malaysia and is not registered for other countries.
“With this, plywood export is expected to surge,” Nasrun said.
The TPPA is a trade agreement involving 12 countries – Malaysia, US, Vietnam, Japan, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Peru and Chile. It is now in ratification process.
Meanwhile, according to Nasrun, the country’s timber exports has rose by 6.5% to RM22.14 billion in 2015 from RM20.79 billion in 2014.
“For the January-July period this year, the value of the exports was RM12.52 billion, up 1.6% compared to the same period last year,” he said.
The government is still expecting the value of timber exports to increase to RM25.77 billion within five years, he said.
Source: Daily Express