Lampiran C -TPPA Questionnaire v1 1.PDF - EDITED

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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

DRAFT

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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: [email protected]

Khairil Rezza Khair Assistant Manager, PwC T: +603 2173 0457 E: [email protected]

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: [email protected]

Farisyah Fahmi Ibrahim Senior Executive, Strategy & Project Management Unit Peneraju Agenda Bumiputera (TERAJU) T: +603 7839 8000 E: [email protected]

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

mailto:farid.

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-à-vis TPPA implementation

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

• Australia

• Brunei

• Canada • Chile

• Japan

• Malaysia

• Mexico

• New Zealand (“NZ”)

• Peru

• Singapore

• United States of America

• 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 Type of goods/services produced

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):

7. Please indicate the size of the Company’s 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 If more than 50 million indicate the amount to the nearest million ___________ 15.01 – 20 million

8. Based on the answer given in question 7, what is the Company’s 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 Company’s 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% If more than 40% please indicate the percentage ___________ 20.1 – 25%

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)

1 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 %



19. How has the Company’s 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)

Decrease by Increase by 50-

100% 20-50% 10-20% <10% 0% <20% 20-50% 50-

100% >100%



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)

Decrease by Increase by 50-

100% 20-50% 10-20% <10% 0% <20% 20-50% 50-

100% >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 ______________________________________



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

1 2 3 4 5 6

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

1 2 3 4 5 6

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

1 2 3 4 5 6

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

1 2 3 4 5 6

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

1 2 3 4 5 6

f) We invest in understanding market trends

1 2 3 4 5 6

g) Managers meet regularly to evaluate competitors' strategies

1 2 3 4 5 6

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

1 2 3 4 5 6

i) We frequently review the performance of our internal activities

1 2 3 4 5 6

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

1 2 3 4 5 6

k) We have ability to achieve technical complementarity

1 2 3 4 5 6

l) We have ability to avert potential risks

1 2 3 4 5 6

m) Management constantly seeks to develop new ideas

1 2 3 4 5 6

n) Our company invests in research and development

1 2 3 4 5 6

o) Innovative ideas are rewarded in our company

1 2 3 4 5 6

p) People are encouraged to perceive innovation as an opportunity

1 2 3 4 5 6

q) Management rewards individuals for innovative ideas

1 2 3 4 5 6

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

1 2 3 4 5 6

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

1 2 3 4 5 6

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

1 2 3 4 5 6

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

1 2 3 4 5 6

v) Where competitors beat us, we imitate very quickly

1 2 3 4 5 6

© 2013 PricewaterhouseCoopers Advisory Services Sdn Bhd. All rights reserved. “PricewaterhouseCoopers” and/or “PwC” refers to the individual members of the PricewaterhouseCoopers organisation in Malaysia, each of which is a separate and independent legal entity. Please see www.pwc.com/structure for further details.

Thank you

Documents

Lampiran C -TPPA Questionnaire v1 1.PDF - EDITED