malaysia

Taking part in TPPA will boost exports by 20%, GDP, says economist

March 09, 2016

The Malaysian economy will get a boost once the Trans-Pacific Partnership Agreement is implemented fully. – The Malaysian Insider pic by Nazir Sufari, March 9, 2016.Participating in the Trans-Pacific Partnership Agreement (TPPA) will increase Malaysia’s exports by 20% and gross domestic product (GDP) by 7% after it is fully implemented, says HSBC Global Research Economist.

Its senior trade economist, Douglas Lippoldt, said with TPPA, Malaysia would be able to diversify into a broader market as well as having room to diversify its goods and services value chain.

“In addition to TPPA, Malaysia’s participation in the proposed Regional Comprehensive Economic Partnership, combined with its dynamic resources like young population, good geographic position and abundant natural resources, would position it well in economic development moving forward,” he said.

Lippoldt said this at a media briefing on expanding international trade amid economic turbulence today.

He said 2015 was a difficult year for emerging markets which saw a contraction in overall trade in goods and services.

In 2015, Lippoldt said, with the weakness in global economy, goods and services trade growth was no longer outpacing GDP while emerging markets were a net drag on import growth because of slower consumer spending. 

For Malaysia’s goods and services in real terms, he said, HSBC was forecasting an expansion in export trade for this year by 2.2% and in 2017 by 3.5%.

Lippoldt said despite the recent weakness in trade, consumer spending globally would continue and potential investment catalysts still existed. – Bernama, March 9, 2016.