CPTPP enables wider sourcing channels for raw materials at competitive prices, says MPA
17 Aug 2022
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enable wider sourcing channels for raw materials at competitive prices for the country’s petrochemical players, according to the Malaysian Petrochemicals Association (MPA).
In a statement on Wednesday (Aug 17), its president Akbar Md Thayoob said this directly improves Malaysia’s competitiveness and attractiveness as an investment destination. He said the association is confident that Malaysian producers’ interests would be safeguarded extensively through the necessary provisions in the trade agreement to add advantages in protecting domestic interests.
Hence, he said he believes that delaying the ratification of the CPTPP would expose risks of being relegated to the sidelines, as a few of the Asean neighbours have moved ahead strongly.
He said the cost and benefit analysis identified that the CPTPP offered market access opportunities to countries in which Malaysia has no free trade agreements before.
“As more countries are planning to join the group, it would enhance [and] widen market penetration opportunities for Malaysian petrochemical producers in future,’’ he said.
He said by 2023, the Malaysian petrochemicals industry would see a capacity addition of 5.5 million metric tonnes per annum, an increase of 30% from 18.1 million metric tonnes per annum, with the anticipated full running operations of the Pengerang Petrochemicals and Refining Complex.
He added that the new and other existing petrochemical plants would be able to attract foreign direct investments within the downstream sectors of the polymers, plastics, chemicals and derivatives sectors for both local and export markets in the near future.