Implications of Trade Liberalisation to Malaysia’s Mining Industry

702001-100469-267-B
Author : Azimah Ali
Publication : Bulletin of the Geological Society of Malaysia
Page : 1-6
Volume Number : 55
Year : 2009
DOI : https://doi.org/10.7186/bgsm55200901

Bulletin of the Geological Society of Malaysia, Volume 55, November 2009, pp. 1 – 6

 

Implications of Trade Liberalisation to Malaysia’s Mining Industry

Azimah Ali

Mineral Economics Division, Minerals and Geoscience Department Malaysia, 22nd Floor, Tabung Haji Building, Jalan Tun Razak, 50658 Kuala Lumpur, Malaysia

 

Abstract— Mining operations are easily recognizable. By nature, the mining industry, just like oil and gas industries,leaves behind a ‘footprint’, an environmental, social and economic impact. As trade increases, the environmental impact is postulated as increasing. Each mining phases involves specific activities that have an effect on the environment. Trade and environment, as an issue, is by no means new. The link between trade and environmental protection, both the impact of environmental policies on trade and the impact of trade on the environment, was recognized as early as 1970. Under the current laws of Malaysia, the government allows a hundred percent equity participation from any foreign economy to undertake a mining operations in the country, subject to legislations under the relevant State Mineral Enactment. Current trade negotiations contain provisions in the environment and investment chapters which have serious implications for the domestic environmental policies and measures. The environmental rules and regulations taken by the Malaysian government to protect the environment may be challenged as ‘expropriation’, which is defined as leading to an obligation to compensate the foreign investors and/or change the Malaysian laws and regulations. On the other hand, Malaysia is bounded by our very own environmental rules and regulations. Should Malaysia failed to implement and enforce any of its legal environmental regulations, the country may be subjected to dispute as we are party and signatories to several Environnmental Laws and Treaties. This paper looks at the link between trade and the environment, outlined the environmental problems related to the mining industry and its implications to trade negotiations.

Keywords: trade liberisation, mining, environmental regulation

 

Implikasi Perdagangan Bebas Terhadap Industri Perlombongan Malaysia

Abstrak— Operasi perlombongan sangat mudah dikenali. Secara semulajadinya, industri perlombongan, seperti juga industri petroleum dan gas, meninggalkan sejenis ‘jejak’- impak alam sekitar, sosial dan ekonomi. Dengan peningkatan perdagangan, kesan terhadap alam sekitar diunjurkan akan bertambah. Setiap fasa perlombongan melibatkan aktiviti tertentu yang melibatkan alam sekitar. Perdagangan dan alam sekitar telah menjadi isu sejak sekian lama. Pertalian antara perdagangan dan perlindungan alam sekitar, baik dari segi impak polisi alam sekitar terhadap perdagangan mahupun dari segi impak perdagangan terhadap alam sekitar telah dimaklumi sejak tahun 1970. Dibawah Undang-undang Malaysia, kerajaan membenarkan ekuiti seratus peratus penyertaan ekonomi asing untuk mengambil bahagian didalam operasi perlombongan di dalam negara, tertakluk kepada Enakmen Mineral negeri berkaitan. Perbincangan kerjasama perdagangan meliputi beberapa dasar dibawah tajuk-tajuk Alam Sekitar dan Pelaburan yang mempunyai implikasi serius terhadap polisi dan undang-undang Alam Sekitar negara. Undang-undang dan Peraturan Alam Sekitar yang dikuatkuasakan oleh kerajaan untuk melindungi alam sekitar boleh digunakan sebagai ‘penghalang’ yang didefinasikan sebagai obligasi bagi membayar pampasan kepada pelabur asing dan/atau mengubah Undang-undang negara. Dari sudut yang lain pula, Malaysia terikat dengan Undang-undang dan peraturan Alam Sekitarnya sendiri. Sekiranya Malaysia gagal melaksanakan atau menguatkuasakan sebarang Peraturan Alam Sekitarnya, negara ini boleh dikenakan tindakan (dispute) memandangkan Malaysia telah menandatangani beberapa Perjanjian Alam Sekitar. Kertaskerja ini melihat kepada pertalian antara perdagangan dan alam sekitar, masalah alam sekitar yang melibatkan industri perlombongan dan implikasinya terhadap perbincangan perdagangan.

https://doi.org/10.7186/bgsm55200901