Malaysia’s prime minister in favour of TPPA

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obama_najibMalaysian Prime Minister Najib Razak has reassured Malaysians that the country stands to gain from an expanded market base by joining the Trans-Pacific Partnership Agreement (TPPA) as the current 12 countries negotiating the pact will potentially increase to 20 in time to come.

The Prime Minister said if Malaysia stayed out of the TPPA, it would have a lot to lose, given that it is an export-oriented country, forming an integral part of the global free trade regime, Bernama reported.

He also said the TPPA had the potential of offering a wider market access, not just for companies operating in Malaysia, but also attract global investors to set up business in the country.

As such, the TPPA can make Malaysia an attractive investment destination and, at the same time, enhance foreign direct investments, he added.

“Malaysia is a significant trading nation. Our total trade is 167% of our gross domestic product (GDP), placing us among the biggest trading nations of the world,” Najib said, adding that “companies can export from Malaysia without being subject to tariffs or low tariffs. So, we have an added advantage for investors.”

Malaysia’s trade last year expanded by 4.6 per cent to $418 billion over 2012, boosted by a better export performance. The country is set to achieve total trade growth of between 5-6 per cent this year, amid broad recovery in electrical and electronics exports.

Approved investments in Malaysia hit another record high of $67 billion last year, up from $52 billion in 2012.

A 21st century free trade agreement, the TPPA is currently being negotiated among 12 countries in the Pacific Rim, involving Malaysia, Singapore, Japan, Vietnam, Brunei, Australia, New Zealand, Peru, Mexico, Chile, the United States and Canada. These countries account for up to 40 per cent of the world’s GDP. Taiwan and South Korea had expressed interest in TPP membership last year.

Najib urged all Malaysians to evaluate the country’s involvement in the ongoing TPPA negotiations on a broader perspective.

“What are the implications if Malaysia were to stay out of the TPPA? There is definitely a cost. We will not see the cost today, which is why we have to evaluate our overall preparations pertaining to the TPPA,” he said.

“Besides, we must also ensure that we do not sign anything that can undermine our interests. I am not saying that we can gain in all areas. So long as our benefits outweigh the sacrifices that we may have to make, it will be good for us,” he added.

At a joint press conference in conjunction with the United States President Barack Obama’s visit last month, Najib, who is also the Finance Minister, said Malaysia was committed to the process of gaining acceptance of the people before signing the TPPA and presenting it to Parliament.

Obama had said the TPPA would benefit Malaysia in achieving high-income nation status by 2020. He believed that the TPPA was the right thing as it created jobs and businesses which would benefit countries such as Malaysia that are transitioning from labour-intensive orientation to high-skilled-labour driven.

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Reading Time: 2 minutes

Malaysian Prime Minister Najib Razak has reassured Malaysians that the country stands to gain from an expanded market base by joining the Trans-Pacific Partnership Agreement (TPPA) as the current 12 countries negotiating the pact will potentially increase to 20 in time to come.

Reading Time: 2 minutes

obama_najibMalaysian Prime Minister Najib Razak has reassured Malaysians that the country stands to gain from an expanded market base by joining the Trans-Pacific Partnership Agreement (TPPA) as the current 12 countries negotiating the pact will potentially increase to 20 in time to come.

The Prime Minister said if Malaysia stayed out of the TPPA, it would have a lot to lose, given that it is an export-oriented country, forming an integral part of the global free trade regime, Bernama reported.

He also said the TPPA had the potential of offering a wider market access, not just for companies operating in Malaysia, but also attract global investors to set up business in the country.

As such, the TPPA can make Malaysia an attractive investment destination and, at the same time, enhance foreign direct investments, he added.

“Malaysia is a significant trading nation. Our total trade is 167% of our gross domestic product (GDP), placing us among the biggest trading nations of the world,” Najib said, adding that “companies can export from Malaysia without being subject to tariffs or low tariffs. So, we have an added advantage for investors.”

Malaysia’s trade last year expanded by 4.6 per cent to $418 billion over 2012, boosted by a better export performance. The country is set to achieve total trade growth of between 5-6 per cent this year, amid broad recovery in electrical and electronics exports.

Approved investments in Malaysia hit another record high of $67 billion last year, up from $52 billion in 2012.

A 21st century free trade agreement, the TPPA is currently being negotiated among 12 countries in the Pacific Rim, involving Malaysia, Singapore, Japan, Vietnam, Brunei, Australia, New Zealand, Peru, Mexico, Chile, the United States and Canada. These countries account for up to 40 per cent of the world’s GDP. Taiwan and South Korea had expressed interest in TPP membership last year.

Najib urged all Malaysians to evaluate the country’s involvement in the ongoing TPPA negotiations on a broader perspective.

“What are the implications if Malaysia were to stay out of the TPPA? There is definitely a cost. We will not see the cost today, which is why we have to evaluate our overall preparations pertaining to the TPPA,” he said.

“Besides, we must also ensure that we do not sign anything that can undermine our interests. I am not saying that we can gain in all areas. So long as our benefits outweigh the sacrifices that we may have to make, it will be good for us,” he added.

At a joint press conference in conjunction with the United States President Barack Obama’s visit last month, Najib, who is also the Finance Minister, said Malaysia was committed to the process of gaining acceptance of the people before signing the TPPA and presenting it to Parliament.

Obama had said the TPPA would benefit Malaysia in achieving high-income nation status by 2020. He believed that the TPPA was the right thing as it created jobs and businesses which would benefit countries such as Malaysia that are transitioning from labour-intensive orientation to high-skilled-labour driven.

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