TPPA To Boost Nation's Economy In The Long Term, Says Expert

By Erda Khursyiah Basir KUALA LUMPUR, Jan 29 (Bernama) -- Malaysia stands to benefit from the Trans-Pacific Partnership Agreement (TPPA) in the long term as it is expected to experience higher inflows of foreign direct investments from member-nations, according to an economic expert. Universiti Utara Malaysia senior lecturer Dr Nurhaizal Azam Arif said besides the prospect of attracting investments from technologically-developed countries, the TPPA would also lead to a more level playing field as far as market access for Malaysian goods and services was concerned. Nurhaizal Azam, who is attached to the university's School of International Studies, opined that it would be a loss for Malaysia if it did not join the trade pact because almost every country dreamed of penetrating the US market, which was worth some US$27.5 trillion. "Under the TPPA's special provisions, Malaysia will have access to 40 per cent of the global trading market, including the US. Malaysia would certainly lose out if it did not join. "And, to ensure that we derive optimum postive impact from the TPPA, efforts must be made to boost the people's knowledge, job skills and soft skills to enhance the nation's competitiveness," he told Bernama. IMPROVE ECONOMIC STATUS The motion to decide on Malaysia's participation in the TPPA was passed in the Dewan Rakyat (Malaysian Parliament) Wednesday following a two-day debate. A total of 127 Members of Parliament supported the motion while 84 opposed it. The motion was tabled at the Dewan Negara (Wednesday) for debate Thursday morning and passed later in the day. Malaysia was among the 12 countries - the rest being Australia, Brunei, Canada, Chile, Japan, Peru, United States, Singapore, New Zealand, Singapore and Vietnam - that concluded negotiations on the TPPA on Oct 5, 2015. The agreement is scheduled to be signed by the participating countries on Feb 4 in Auckland. Nurhaizal Azam said trade liberalisation would see prices of goods coming down as they have to remain competitive. Specialisation, better production efficiency and the abolishment of import duties would contribute to cheaper goods, he said. "If Malaysia is able to offer quality products that fit a niche in the market, it stands to reap big gains. The open market concept compels corporations and businesses to become more competitive in offering the best products and services to consumers. "Hence, we have to be astute enough to quickly take advantage of the opportunities TPPA offers. We also have to devise strategies and proactive measures to ensure that our nation continuously benefits from the agreement," he added. BARGAINING POWER Nurhaizal Azam, who lectures in international trade, also said that Malaysia's participation in the TPPA would also create more job opportunities, and lead to the sharing of technology, knowledge, skills and management techniques. He opined that Malaysia should welcome investments by multinational companies to avoid being accused of practising trade protectionism. There are concerns, however, that trade pacts like the TPPA which, in general, make global markets more accessible, can eventually lead to big powers like the US "controlling" Malaysia's economy. Commenting on this, Nurhaizal Azam said while the US economy was certainly bigger than Malaysia's, the latter's bargaining power was comparable to the superpower's due to the strategic location of its market in Southeast Asia. "The US badly needs access to the ASEAN market... so this is an advantage for us (Malaysia) during negotiations," he said. He also welcomed the International Trade and Industry Ministry's readiness to set up a special body to monitor the implementation of the TPPA, saying that it was essential to ensure that the nation derived optimum benefits from the trade agreement. The monitoring body should also study its negative effects so that they can be rectified, he added. "Among the matters it should address are issues related to workers' protection, environmental concerns and Bumiputera interests. "Besides that, disputes between the government and investors, as well as the TPPA's impact on local companies and the people's socio-economic status should also be monitored," he said, adding that the monitoring body should comprise representatives from all the stakeholders involved. -- BERNAMA