An article published on October 7th, 2015 in the New Straits Times Online, http://www.nst.com.my/news/2015/10/malaysia-no-2-beneficiary-tpp-after-vietnam-says-credit-suisse, states that Credit Suisse believes that Malaysia will be a close second to Vietnam in terms of the biggest long-term beneficiaries from the recently concluded Trans Pacific Partnership. They believe that Malaysia could see a 5 per cent boost in their GDP by 2025. Singapore based research economist Michael Wan expects that the manufacturing sector will be the largest beneficiary from the TPP in Malaysia. Also, based on a Peterson Institute Study, Malaysia’s electronics, apparel, and foot ware sectors are expected to gain the most. Although, according to Fitch Ratings, the TPP will be a significant contributor to economic integration over the long term, but it is unlikely to be a major game changer in the short term. The next significant step in the TPP will be to setup the rules and guidelines for the economic integration of the countries in the Pacific Rim. Either way, the countries involved in the TPP will benefit from it in various ways, but it is apparent that Malaysia may benefit more than others.
Why do you think Malaysia will benefit more than others from the TPP? How will the increase in Malaysia’s economy affect the non-TPP countries surrounding it? Do you think the projection of a 5% increase in GDP is accurate?