With combined exports over US$30 billion, Asean is undertaking vertical integration of the textiles and apparel sector within the region to expand the sector and protect the interest of 6 million workers involved in the industry. International Trade and Industry Minister Datuk Mustapa Mohamed said regional integration would offer opportunities for expanding intra-Asean trade as well as Asean's exports to the global market.

He said Malaysia, as the country coordinator for Asean in the textiles and apparel sector, agreed to facilitate the process towards the integration. We want to share expertise, boost market share and help the workers.

In Malaysia, the 662 licensed textiles and apparels companies that are in operation have invested a total of RM8.3 billion last year, domestic investments amounted to RM105.4 million while foreigners poured in RM302.95 million. The sector employs 57,000 workers.

Malaysia exported RM10.5 billion worth of textiles and apparels in 2008, an increase of 4.1% and 1.9% respectively, compared to 2007. In the first five months of 2009, the exports totalled RM3.5 billion, compared with RM4.1 billion in the corresponding period in 2008. The main export markets for Malaysia are the United States, Turkey, Japan, Singapore and Mexico.

Malaysia has undertaken progressive steps in liberalising the textiles and apparel products sectors. On August 29, 2008, import duty for 33 lines on textiles and accessories were reduced from a range of 20% to 30% to 10% to 20% while duties on 106 lines of textiles and apparel were abolished on November 14, 2008. These include man-made textile materials and fabrics and cotton yarn. Under the Common Effective Preferential Tariff, tariffs will be abolished by January 1, 2010.