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Study on probable impact of

Trans-Pacific Partnership
Agreement (TPPA) on
Bumiputera businesses,
entrepreneurs and small and
medium enterprises (SMEs)
Questionnaire
Unit
Peneraju
Agenda
Bumiputera
(TERAJU)
December
2013

testing2

Introduction
Dear Sir/Madam,
This survey is designed to enable us to gauge the probable economic impact of the TPPA on Bumiputera
businesses (e.g. small and medium enterprises, SMEs).
The questionnaire is expected take approximately 10 - 15 minutes for you to complete. Your response is
important to us to help the Government to analyse the potential impact from the TPPA.
As some of the survey questions pertain to the financial and strategic position of your company, we
recommend that this survey is completed with input from the relevant departments in your company.
All information collected is strictly confidential and only aggregated information will be reported. Therefore,
no individual organisations can be identified and/or will be mentioned anywhere any report.
If you have any queries in relation to the content of this survey, please do not hesitate to contact:
Farid Hamid
Associate Director, PwC
T: +603 2173 0991
E: farid.hamid@my.pwc.com

Khairil Rezza Khair

Assistant Manager, PwC
T: +603 2173 0457
E: khairil.rezza.md.khair@my.pwc.com

Meanwhile, if you have any queries in relation to the objective of the study, you may contact the following
person:
Shahreel Affendi Mohd Salleh
Manager, Strategy & Project Management
Unit Peneraju Agenda Bumiputera (TERAJU)
T: +603 7839 8000
E: shahreel.affendi@teraju.gov.my

Farisyah Fahmi Ibrahim

Senior Executive, Strategy & Project Management
Unit Peneraju Agenda Bumiputera (TERAJU)
T: +603 7839 8000
E: farisyah@teraju.gov.my

Thank you in advance for your cooperation and assistance in completing this survey.

A.Objectives of Study
PwC has been appointed by Unit Peneraju Agenda Bumiputera (TERAJU) to assess the probable impact of
TPPA on Bumiputera businesses, entrepreneurs and SMEs. The main objectives of the study are to:

Determine the probable economic impact of TPPA on Bumiputera enterprises

Determine the sustainability of Bumiputera entrepreneurs programmes in line with the Bumiputera
Economic Transformation Roadmap (BETR")

Define readiness level of Bumiputera enterprises

Identify opportunities and challenges of promoting Bumiputera Agenda in tandem with TPPA

Validate findings of the probable economic impact of TPPA on Bumiputera business community based
on actual TPPA text

Provide recommendations to address the interests of Bumiputera enterprises vis--vis TPPA

implementation

The TPPA is a multilateral free trade agreement currently being negotiated among the following 12 countries:

Australia

Japan

Peru

Brunei

Malaysia

Singapore

Canada

Mexico

United States of America

Chile

New Zealand (NZ)

Vietnam

There are 29 chapters under the TPP covering the traditional and new areas of Free Trade Agreements. The
traditional areas are areas such as Market Access, Technical Barriers to Trade, Sanitary and Phytosanitary
Measures, Rules of Origin, Customs Cooperation, Investment, Services and Legal and Institutional.
Meanwhile, the new are the areas of Government Procurement, Competition, State-Owned Enterprises,
Intellectual Property Rights, Labour, Environment and Horizontal Issues in which most are the difficult areas
for Malaysia.

B.Company details
1.

Name of company

2. Address of company

3. Authorised capital (RM)

4. Paid up capital (RM)

5. Contact person and position

6. Please indicate which sector does your company operate in (Please tick )
Business sectors

Agriculture
Construction
Education
Healthcare
Manufacturing
Financial Services
Wholesale and Retail
Automotive
Professional and Technical
Property Development
Utilities
Arts and Entertainment
Information and Communication Technology
Accommodation and Food
Mining and Quarrying
Others (Please state sector):

Type of goods/services produced

7.

Please indicate the size of the Companys annual average total revenue for the last 3 years (in RM)
Less than 300,000

20.01 30 million

300,000 3 million

30.01 40 million

3.01 8 million

40.01 50 million

8.01 15 million
15.01 20 million

If more than 50 million indicate

the amount to the nearest million

___________

8. Based on the answer given in question 7, what is the Companys Average Profit Margin (PBIT) for the
last 3 years? (in %)
<(50)%, loss

>50%, profit

(50)% - (35.01)%, loss

35.01% 50%, profit

(35)% - (25.01)%, loss

25.01% - 35%, profit

(25)% -(10.01)%, loss

10.01% 25%, profit

(10)% - (0)%, loss

0% 10%, profit

9. Based on the answer given in question 7, what is the Companys annual average import for the past 3
years as a percentage to revenue? (in %)
0 5%

25.1 30%

5.01 10%

30.1 35%

10.1 15%

35.1 40%

15.1 20%
20.1 25%

If more than 40% please indicate

the percentage

___________

10. Please provide the annual average percentage breakdown of revenue by markets for the past 3
years (Domestic, foreign):
Domestic (Malaysia)

Foreign

Total

100

C.Domestic markets
11. From your domestic markets revenue, please provide the percentage breakdown by:
Contracts (Government of Malaysia)

Vendor programmes (GLCs)

Non GLCs and Government contracts

Total

100

Government Linked Companies (GLCs) are companies such as PETRONAS, UEM Group, Telekom
Malaysia, Tenaga Nasional, Axiata Group, Sime Darby and FGV Holdings.
Contracts from the Government of Malaysia (Government contracts) are contracts which were
procured from the government via any government Ministries and Agencies.

C.1

Government Contracts

12. What is the average number of contracts secured annually by the

Company over the past three years?

___________________

13. What is the average value of contracts secured annually by the

Company over the past three years? (RM million)

___________________

C.2

Vendor programmes (GLCs)

14. What is the average number of contracts secured annually by the

Company over the past three years?

___________________

15. What is the average value of contracts secured annually by the

Company over the past three years? (RM million)

___________________

C.3

Non GLC and Government Contracts Revenue

16. In your sector, are the competitors in the marketplace made up of domestic or foreign companies?
(Please tick all that apply)
Domestic
Foreign (non-TPP countries)
Foreign (TPP countries1)

Trans- Pacific Partnership Countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,
United States of America and Vietnam.

D. Export markets
If your company does not export, please proceed to questions 19.
17. If you export goods or services, please provide the percentage of revenue your company generates
from:
TPP countries2

Non-TPP countries

18. Of your revenue from export markets in the TPP countries, please provide the breakdown by:

Consumers

Businesses

Vendor programmes (government related)

Foreign government contracts

Trans- Pacific Partnership Countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,
United States of America and Vietnam.

19. How has the Companys exporting activity been affected by any of the FTAs mentioned below? Please
tick the relevant boxes and provide the corresponding reason(s).

Positive

Negative

N/A

Reason(s)

Malaysia-Pakistan
Malaysia-NZ
Malaysia-India
Malaysia-Japan
Malaysia-Chile
Malaysia-Australia
ASEAN-China
ASEAN-Japan
ASEAN-Korea
ASEAN-India
ASEAN-Australia and NZ

20. What challenges does your company face in penetrating the export markets?

Cost competitiveness (transportation, utilities etc.)

Quality of products
Trade barriers such as regulations, standards in target markets
Target markets are already monopolised by large foreign companies
Others

______________________________________

21. If your company is not an exporter, does it provide goods or services to other exporters? If yes, please
provide the percentage of revenue from goods or services sold to exporters.
Yes

No

22. How do you foresee the amount of goods and/or services your company will export to TPP3 countries
in the next 5 years? Please tick the relevant box below (eg. If the TPP helps increases export by 15%,
tick increase by <20%:box)
50100%

Decrease by
20-50%
10-20%

<10%

0%

<20%

Increase by
20-50%
50100%

>100%

Trans- Pacific Partnership Countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,
United States of America and Vietnam.

E. Import markets
If your company does not import, please proceed to questions 26.
23. If you import goods or services, what is the percentage of imports from:
TPP countries

Non-TPP countries

24. How have the companies import activities been affected by any of the FTAs mentioned below? Please
tick the relevant boxes and provide the corresponding reason(s).

Positive

Negative

N/A

Reason(s)

Malaysia-Pakistan
Malaysia-NZ
Malaysia-India
Malaysia-Japan
Malaysia-Chile
Malaysia-Australia
ASEAN-China
ASEAN-Japan
ASEAN-Korea
ASEAN-India
ASEAN-Australia and NZ

25. What are the challenges your company face when importing?
Cost competitiveness (transportation, utilities etc.)
Quality of products
Trade barriers such as regulations, standards in Malaysia
Quotas imposed by exporting country
Others

______________________________________

26. How do you foresee the amount of goods and/or services your company will import from TPP
countries4 in the next 5 years? Please tick the relevant box below (eg. If the TPP helps decreases
import by 15%, tick decrease by <20%:box)
50100%

Decrease by
20-50%
10-20%

<10%

0%

<20%

Increase by
20-50%
50100%

>100%

F. Challenges
27. What are the main growth challenges faced by the Company and the industry that you operate in?
Access to finance
Identifying new markets to expand
Increasing cost of doing business
Applying good quality practise (eg. ISO, GMP and etc)
Rising customer expectation
Shrinking market size
Increasing competition from foreign companies
Inability to cope with technical and technological advancement
Others

______________________________________

Trans- Pacific Partnership Countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,
United States of America and Vietnam.

G. Readiness
28. Please indicate to what extent you disagree or agree with the statements based on the following scales:
1
Strongly
Disagree

2
Disagree

3
Somewhat
disagree

4
Somewhat
agree

5
Agree

6
Strongly agree

a) We regularly reviews the changes in our business environment

b) Our monitoring of market conditions allow us to be adaptable

c) We invest in market research to understand our customer needs

d) We regularly attend industry association meetings to gain access to

market information

e) We use our sales people as a source of market

f) We invest in understanding market trends

g) Managers meet regularly to evaluate competitors' strategies

h) We regularly reviews shifts in technology usage within the industry

i) We frequently review the performance of our internal activities

j) We have strong technical capabilities and able to adapt to changes

k) We have ability to achieve technical complementarity

l) We have ability to avert potential risks

m) Management constantly seeks to develop new ideas

n) Our company invests in research and development

o) Innovative ideas are rewarded in our company

p) People are encouraged to perceive innovation as an opportunity

q) Management rewards individuals for innovative ideas

r) Our company is prepared to do things that are totally new in our industry

s) Our new product/service introductions have impacted the industry

t) We constantly modify our services to better serve our customer

u) We prefer to be the first in the market with new services

v) Where competitors beat us, we imitate very quickly

Thank you

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