The Association of Water and Energy Research Malaysia (Awer) wishes to respond to the press statement issued by the International Trade and Industry Ministry (Miti) on Jan 4, concerning Trans-Pacific Partnership Agreement (TPPA) issues raised by Awer in a Dec 28, 2015 The Sun article, titled: ‘Environment issues and TPPA’.

First and foremost, we would like to thank Miti for their quick response and explanation - compared to the "pekak badak" behaviour of some agencies we deal with, and the Energy Commission in particular. It was interesting to read the response from Miti on a number of issues raised by Awer.

We would like to highlight some blunders by our agencies that may not assist Malaysia in achieving the "highest environmental protection". These blunders may cause the upgrading of our environmental standards to be a challenging process.

A challenge from TPPA parties via Investor-State Dispute Settlement (ISDS) towards Malaysia's step to upgrade its environmental standard will give ample of time to said TPPA parties to complete some of the dumping of non-environmentally friendly and less-environmentally friendly goods.

Blunder 1: Being proud of low environmental standards

When Country A increases its environmental standards for a particular type of product, products that do not pass the new standard cannot be sold in Country A after the new standard takes effect. Unfortunately, this does not stop the businesses in Country A to 'dump' such products to other countries that do not have environmental standards that are on par or higher than Country A.

For example, when the European Union announced the phase out of incandescent bulbs, a sharp increase of inflow of incandescent bulbs to Malaysia happened in 2008 based on statistics provided by the Statistics Department. This proves that the dumping of non-environmentally friendly and less-environmentally friendly goods to other countries actually happens.

In addition to that, products with the lowest rating (1 tick) of Singapore's energy efficiency labelling can reach ‘four stars’ energy efficiency rating in Malaysia (highest 5 stars). We can see quite a number of those double labelled products being sold here in Malaysia.

Can the TPPA help Malaysia to stop such inflow of non-environmentally friendly and less-environmentally friendly goods?

The TPPA makes trade easier and if our local agencies are slower than a sloth in upgrading environmental standards, we will effectively be a ‘dumping ground’ of non-environmentally friendly and less-environmentally friendly goods.

When Awer confronted the Energy Commission in a meeting chaired by the Energy, Green Technology and Water Ministry, the officer responded that our standards are internationally benchmarked - where our Minimum Energy Performance Standard (Meps) is set at the same level as Vietnam and slightly lower than Thailand.

Meanwhile, another officer said there is nothing wrong to bring in such products (non-environmentally friendly and less-environmentally friendly goods) as long as they pass our standards. Is this the "highest environmental protection" Miti is talking about?

Blunder 2: Supporting ‘green washing’

‘Green washing’ can also happen by using data to prove a product is green with a lot of footnotes. In reality, it may not be a greener product as subscribed by sustainable development objectives.

Electric vehicles may prove to be green in countries with higher renewable energy generation mix. But this is not the case in Malaysia, as our coal mix in electricity generation is high.

Furthermore, there is a world of difference when in-situ emission is compared with total environmental impact based on the Life Cycle Assessment (LCA).

Electric vehicles will not contribute to environmental protection if all environmental parameters are taken into consideration. Unfortunately, the agency that promotes the use of electric vehicles defies the truth and gets more budget to push for electric vehicles.

When trade is increased via the TPPA and we have agencies that promote wrong technologies as green products, who will stop ‘green washing’?

No environmental standards for some

In Malaysia, there are no environmental standards set for some sectors and the TPPA will allow many goods to pass our border easily. While we are glad that the government had implemented a ‘EURO 4M and above’ fuel standard for vehicles as suggested by Awer, there is no efficiency rating standard for vehicles in Malaysia. When there is nothing to compare, will we again become a dumping ground?

If there happens to be such noble technology owners who are willing to share the knowledge and Intellectual Properties to small players like Malaysia, we would give them a standing ovation. Will Malaysian companies one day become owners of environmentally friendly technology?

Based on our study in the electrical and electronic product sector back in 2011, multinational companies bring their own core technology Small-Medium Industries (SMIs) along with them. Local SMIs are involved in non-core technology parts; this will not strengthen our industries to develop and own new technologies.

Cooperation and capacity building has been happening for many years now. Is there a real result that can enable us to excel in Chapter 20 of the TPPA? Laying a platform does not necessarily mean that there is a definite outcome.

We are concerned over Miti's high regards to the agencies that will safeguard our environment. Promoting the highest environmental protection via the TPPA is different from having a real high environmental protection.

The issues we raised are only a small percentage of the tip of the iceberg. We hope Miti could ensure Malaysia is prepared to face the risks posed via Chapter 20 of the TPPA.

If our agencies are not even prepared to ensure that improved environmental standards can be implemented, then the environment may not be the winner under the TPPA.

PIARAPAKARAN S is president, Association of Water and Energy Research Malaysia (Awer).