Introduction

The Institute of Developing Economies - Japan External Trade Organization (IDE-JETRO) carried out a survey on the Impact of Product-related Environmental Regulations (PRERs) on firms in Penang in 2013. Its purpose is to assess the impact of PRERs imposed by importing countries on the performance of exporting firms, particularly Small and Medium Enterprises (SME's) that are connected through the global supply chain. InvestPenang, FREPENCA and FMM Northern Branch were the local supporting agencies. The Penang State Government gave their support to this study.

• This survey is to assess the impact of importing countries' PRERs on export-linked firms in Penang.
• Info from the survey will contribute to policy recommendations (to the Penang State Government, Federal Government and ASEAN Countries) to assist industries and firms comply with regulations.
• Research results will help improve the competitiveness of firms.
• To find out:

• Do the PRERs hamper exports?
• What is the cost of the regulations on the region?
• What strategies do firms employ if they are unable to cope with the regulation?
• How do firms cope with the PRERs? What are the challenges?
• What are the successful ways to adopt the PRER?
• What are the macro-policy options at national and state-level?

• These regulations have affected the growth of exports from developing countries as manufacturers and exporters now need to comply with new standards
• PRERs would impact on local suppliers either by raising their cost of production, or even acting as new trade barriers.
• To meet RoHS/ REACH chemical regulations, firms need to have changed product composition and/ or, production methods.
• Supply chains are extensive beyond national borders and the absence of an international standard for chemical information throughout the supply chain makes it difficult to comply with various regulations.
• If different countries/industries impose different requirements to meet the regulations, firms may face a very complicated situation