FMM: Implementation of CPTPP is timely for Malaysian businesses to recover
05 Oct 2022
The much-awaited implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is very timely, enabling Malaysian businesses to leverage it as another trade recovery tool, said the Federation of Malaysian Manufacturers (FMM).
FMM president Tan Sri Soh Thian Lai said the federation commends the Ministry of International Trade and Industry (MITI) on its strong efforts in completing the domestic procedures following the mandate received from the Cabinet to enable the submission of Malaysia’s instrument of ratification for the CPTPP with the depositary in New Zealand on Sept 30, 2022.
“It is imperative to stabilise manufacturing activities and rebuild supply chain connectivity in the region while securing new markets,” he said in a statement on Wednesday.
Soh said FMM believes that Malaysia’s participation by being the ninth country to implement the agreement, will certainly benefit Malaysian businesses in terms of preferential access to the growing CPTPP market.
“China, Ecuador, and Taiwan have submitted their applications to be members of the CPTPP last year, while the United Kingdom is currently in the process of the CPTPP accession negotiation.
“Malaysia’s gross domestic product (GDP) is expected to further expand by 4.2% in 2030 with the accession of China and the UK,” he added.
According to the findings of cost and benefit analysis published by MITI on July 25, 2022, Malaysia is expected to achieve higher GDP by US$56.5 billion over the 2021-2030 period.
For Malaysia, the CPTPP offers market access opportunities to three new markets, namely Canada, Mexico, and Peru, with which it has no free trade agreements.
“Based on the 2021 data from World Bank, these three new markets collectively represent a population of over 200 million, with a combined GDP of over US$3.5 trillion — 9.4 times bigger than our own economy,” said Soh.