The American Chamber of Commerce in Malaysia firmly believes that TPP will support Malaysia’s continued economic growth. By bolstering exports, supporting innovation, and creating jobs, TPP membership will enable Malaysia to achieve its goal of more quickly becoming a high-income, advanced economy. TPP will give market access to U.S., Canada, Mexico and Peru- countries which do not have existing FTAs with Malaysia. With the removal of trade barriers, Malaysia GDP would rise by 5.6% and exports by 11.9% in 2025. The major sectors where Malaysia will benefit are textiles, apparel, commodities and electronics industry.
Additionally, participation in TPP will allow Malaysia to build on its Foreign Direct Investment (FDI) in ASEAN. AMCHAM notes that many companies are viewing Malaysia as a potential base for regional operations. Also, raising the bar in IP rights has enhanced protection for patents which will strengthen Malaysia’s destination for high-tech manufacturing, drive foreign investment, and create jobs.
Opponents argue that enhanced IPR (Intellectual Property rights) will cause demise of generic medicine, but they fail to acknowledge benefits of generic medicines are dependent of creation of innovative drugs. Strong IPR will support innovation. The manufacturing component of the biopharmaceutical industry in Mexico currently generates more than 78,000 direct jobs and 300,000 indirect jobs. So this gives an idea of how huge this sector is and its potential in terms of jobs and innovation.
The initial idea in 2003 was to promote trade liberalization within the Asia-Pacific. With a chance for a more globalized and competitive world, every nation is seeking to break down trade barriers and improve trade relations. Market liberalization is key to ensuring sustained private consumption in the current economic uncertainty and depressed consumer sentiment following devaluation of Malaysian Ringgit, drop in crude oil prices, and implementation of GST.
Enhancements in the form of tariff savings and regulatory simplification will help increase consumers’ purchasing power and expand the number of products available to them. As a progressive nation, Malaysia will gain access to further extend into international markets and spur the country’s economic growth to greater heights. It will put Malaysia in a more competitive position among ASEAN countries and ensure that Malaysia continues to foster new investments while expanding its current base. AMCHAM, as the voice of American businesses in Malaysia, supports the successful conclusion of TPP as a further enhancement to U.S.-Malaysia relations.
Read Full Report: http://www.nst.com.my/news/2015/10/banking-tpp-malaysia%E2%80%99s-progress