CPTPP will increase external trade and bolster medium to long-term FDI in Malaysia by reducing the costs of imports and exports, creating a more level playing field for Malaysian businesses in regional markets and increasing international market access for Malaysian firms. — AFP photo
KUALA LUMPUR: Early ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would assist Malaysian exporters to secure preferential market access within CPTPP countries to remain competitive over regional competitors.
The Malaysian Consortium of Mid-Tier Companies (MCMTC) president Callum Chen said two of Malaysia’s regional competitors, Singapore and Vietnam are already benefitting from CPTPP membership, adopting robust strategies aimed at strengthening their economic resilience and sustainability.
“CPTPP will increase external trade and bolster medium to long-term foreign direct investment (FDI) in Malaysia by reducing the costs of imports and exports, creating a more level playing field for Malaysian businesses in regional markets and increasing international market access for Malaysian firms,” he said in a statement.
CPTPP, a trade agreement that brings together 11 countries on both sides of the Pacific; Canada, Australia, Brunei, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam. Although Malaysia signed the agreement in 2018, the government has yet to ratify the CPTPP.
MCMTC said it hopes that the CPTPP would be ratified by the government by December 2021 as this is one of the best options to safeguard its economic position and recover from the COVID-19 pandemic.
“Finding new or expanded access to key export markets and attract more investments would mean more opportunities for businesses, including SMEs, to create more and better paid jobs for Malaysians,” he added.
MCMTC is an association formed by the CEOs and managing directors of mid-tier companies (MTCs) in Malaysia, generally with annual turnover of RM50 million-RM500 million for manufacturing and RM20 million-RM500 million for services.
There are about 15,000 MTCs in Malaysia, representing 1.7 per cent of total business establishments, but contributed 39.9 per cent of the GDP and employs 16 per cent of the total workforce. — Bernama