Pacific trade pact’s market enlargement benefits Malaysian companies, says minister

According to an article published on October 26th, 2015 in the Malaysian Insider, http://www.themalaysianinsider.com/business/article/pacific-trade-pacts-market-enlargement-benefits-malaysian-companies-says-mi, Malaysian International Trade and Industry Minister Datuk Seri Mustapa Mohamed stated that Malaysian companies will benefit from market enlargement under the Trans-Pacific Partnership. He believes that the larger combined market will help local Malaysian companies explore new markets abroad. In 2014, the total investment of Malaysian companies abroad was RM520 billion, which was significantly higher than the total investment of foreign companies into Malaysia at RM470 billion. Half of the investment by local companies abroad was through Petronas, which included investment in fellow TPP country Canada. Mustapa believes that Malaysian companies will receive preferential treatment in terms of import and export duties from other TPP trading partners if they decide to join the pack, which would make the country an attractive trade investment destination.

Will Malaysia really benefit that much from the TPP? Will the TPP cause foreign investment into Malaysia to be larger than Malaysian companies abroad? Or will the TPP cause Malaysia to invest more in foreign countries?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s