The Lack Of Foreign Labor Brings Troubles To The Textile Industry In Malaysia.

As the Asia Pacific Strategic Economic Partnership (TPP) agreement came into force on 2012,

The United States, the largest importer of clothing and textile products in Malaysia, imported 35-40% clothing and textile items from Malaysia last year, with an import volume of 89 billion ringgit.

Malaysia's cotton and man-made fibers now attract 17% and 30% tariffs on exports to the US market. Therefore, Malaysia is now bargaining with the US authorities, demanding that the tariff be cut at least, to a minimum.

The negotiations are expected to resume in 2012 and be implemented in parallel with the Asia Pacific Economic Partnership Agreement.

Cancellation of these tariffs will allow Malaysia's exporters of clothing and textiles not only to increase exports to the US market, but also to increase exports to member economies of the Asia Pacific Economic Partnership.

Chile, Australia, New Zealand, Brunei, Singapore, Peru and Vietnam, as well as the United States and Malaysia, are members of the Asia Pacific Economic Partnership Agreement.

But then, the foreign labor force.

This year, the shortage of foreign workers hindered Malaysia's textile and garment manufacturers from getting extra orders.

This year, the export of Malaysia's textile and clothing sector still stands at 89 billion ringgit, which is basically the same as last year.

In the first 9 months of this year, Malaysia exported $6 billion 500 million of textile and clothing products.

In 2008, Malaysia's exports of textiles and clothing to the United States amounted to 24 billion ringgit, down to 18 billion ringgit in 2009, mostly due to the lack of foreign labor force.