On Wednesday, the Dewan Rakyat voted in favour of the Trans-Pacific Partnership (TPP) by 127 to 84, and finally the dust has settled on the controversial trade agreement.
This also signifies that Malaysia will be accessible to vast business opportunities in a new economic pact with a significantly enlarged market.
TPP is an trade body dominated by the US and includes various economies on both sides of the Pacific. If eventually ratified by the legislatures of these 12 participating countries, the enormous economic network will involve a market size of more than 800 million people and US$28 trillion in combined GDP or about 40% of the total global economy.
At a time when global competition intensifies and many countries are suffering from sluggish growth, it is imperative that Malaysia grab hold of this unique opportunity to boost its export competitiveness. Signing the Trans-Pacific Partnership Agreement (TPPA) seems to be the only way to do that.
The TPP encompasses very broad aspects, including investment, services, electronic commerce, government procurement, intellectual property rights, labour, environment, competitive policies, etc. And as such, once we have signed the agreement, we will be able to expand not only our trade and business sectors but must also compete on a fairer ground with the international community.
Every agreement is a double-edged sword and we must weigh the pros and cons. To Malaysians, whether TPP is good or evil depends on how prepared an individual is in facing future challenges.
TPP has previously triggered tremendous backlash from the society mainly because people lack adequate understanding of its actual content. That said, opposition to TPP also shows that many Malaysians have become so complacent with the existing environment that they are not ready or are afraid to face any external challenges or change.
Take the most controversial Investor-State Dispute Settlement (ISDS) for example, this has been designed to protect the interest of the investors and it is totally unnecessary for Malaysians to see it as something unfavourable to the Malaysian government.
On the contrary, ISDS would ensure that the government provide a conducive environment for investors. As a matter of fact, Malaysians investing overseas will also benefit from such a mechanism.
This aside, TPP is poised to lure more investors to Malaysia, creating more job opportunities for our people.
According to the World Bank's report last October, Malaysia and Vietnam will be the biggest beneficiaries if TPP were to go into effect, with a gain in GDP growth of 8% and 10% respectively through 2030.
Compared with countries yet to join TPP, such as Thailand, the Philippines and Indonesia, our exporters will enjoy improved competitive advantages especially in view of the fact that 18% of Malaysian SMEs are involved in the export sector.
Indeed, TPP offers an excellent platform for fair competition, but for us to exploit new international markets, a prerequisite is that we must first strengthen our own competitiveness while the government must strive to be more transparent and gradually review the existing bumi-patronising policies in order to enjoy the biggest benefits of joining TPP. – mysinchew.com, January 30, 2016.
* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.
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