Friday, August 2, 2013

'Bumiputera rights to remain sacrosanct in TPP'

KUALA LUMPUR: Bumiputera rights will remain sacrosanct in the ongoing Trans-Pacific Partnership (TPP) negotiations, said one of the Malaysian negotiators to a crowd eager to hear what the government is doing to safeguard Bumiputera special privileges in the corporate sector.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/TPPPPA/Article/
Published: August 02, 2013

"The government is aware that the Bumiputera issue is a very sensitive one for the nation and we will ensure that whatever policy is in place, it remains when TPP comes into effect," said Azah Ahmad of the government procurement division of the Finance Ministry.

"All negotiators are consulting with the relevant groups. The TPP is not a one-sided issuance of intructions from the United States. In the dynamics of negotiations, we have room to discuss and negotiate.

"We are protecting Bumiputera rights and we are studying seriously the Bumiputera privileges. In the TPP, what needs to be protected will be protected," she said.

Azah is the negotiator looking into areas of government procurement in the TPP negotiations.

She said Bumiputera privileges are part of the non-covered procurement, explaining that it is not covered by the agreement.

"In the construction market, if there are 1,000 projects and 30 per cent are carved out for Bumiputeras, that is how it will be implemented," Azah said yesterday during the break-out session titled "Bumiputera rights and state-owned enterprises", held in conjunction with the "Trans-Pacific Partnership Open Day" at the International Trade and Industry Ministry.

The event was held to mitigate the loud disapproval voiced by segments of Malaysian society and industry lobbyists against Malaysia entering the TPP.

She also addressed the issue of the Ali Baba syndrome - where foreigners may exploit the Bumiputera privileges in order to profit from easy gains by partnering with unscrupulous parties - saying that this is also an issue that's discussed at TPP negotiations.

On the matter of the lowest tenders bagging contracts under the terms of TPP, which concerned many in attendance, it was also allayed when Azah said there will always be an evaluation process.

"If the lowest tender is the best evaluated, it will get the contract. But if it is the lowest and does not meet the requirements, it won't get the contract," she said.

At times, she looked frustrated that the crowd kept ignoring her remarks about how TPP will actually help introduce higher standards through competition and greater market access to local players.

"There are Bumiputeras who want to branch out and smaller players are given the opportunity to enter level playing fields. The industry can go further than where we are now - go to a higher level," she said when asked what guarantees are there to ensure that Bumiputeras will not be left out of the economic game.

She reminded that changes will not take place overnight should the TPP kick in, transition measures will be in place and these, in turn, could range from five to 10 years.

"We will prepare the country so that it meets and complies with all the requirements. But we must also fulfill our obligations. We need to improve on good governance and competitiveness," she said.

"Indeed, just as the critics have said, the US has a big part in establishing the format of the TPP framework, adding the crucial point to note is the format that is recognised by the other parties in the 12-nation TPP pact," she added.

No comments: