TANGKAK, Aug 15 — Malaysia will now sign free trade agreements with countries which offer attractive export incentives, said Deputy International Trade and Industry Minister Datuk Hamim Samuri.
He said this approach would be adopted following the withdrawal of special treatment under the Generalised Scheme of Preferences (GSP) by developed countries and when Malaysia is elevated from developing country status next year.
“Under the GSP, Malaysian exporters enjoyed various incentives such as tax exemption of between five and 20 per cent.
“Beginning next year, this exemption will be withdrawn,” he said at a Universiti Kebangsaan Malaysia (UKM) student programme and Sagil Homestay Festival Parit 3 near here today.
Other countries have withdrawn incentives to Malaysia under the GSP except European Union countries and Canada which would withdraw such incentives next year.
So far, Hamim said Malaysia has signed FTAs with Japan, Australia and Turkey.
“Via FTAs with these countries, Malaysian exporters have benefited from reduced customs tariffs,” he added. — Bernama