Malaysian Textile Firms to Benefit from TPP

The yarn-forward rule of origin under the Trans Pacific Partnership (TPP), which requires TPP countries to use yarn produced from a TPP country in textiles to qualify for duty-free access, is expected to increase the export competitiveness of Malaysia's textile industry.

Higher demand for yarn produced in TPP countries also is expected to spur textile companies to expand their upstream yarn operations in Malaysia, which are higher value-added than downstream garment production, according to a PricewaterhouseCoopers analysis on the potential impact of the TPP on firms in the textiles sector.