FMM welcomes further strengthening of investment ties with US through IPEF
25 May 2022
The Federation of Malaysian Manufacturers (FMM) has welcomed the launch of the United States (US)-led Indo-Pacific Economic Framework for Prosperity (IPEF) which includes Malaysia, saying it marks a good start for a formal economic engagement with the US.
FMM president Tan Sri Soh Thian Lai said the federation welcomed the US government’s May 23 announcement on the IPEF, which will involve 13 member countries.
“Although it was unfortunate that the US withdrew from the Trans-Pacific Partnership Agreement (TPPA) in 2017, we believe the IPEF is good beginning for a formal economic engagement with the US,” he said in a statement today.
Soh said Malaysian manufacturers could optimise on the strategic and economic benefits from this framework to make Malaysia a preferred supply chain hub and investment destination.
This, he said, was despite the IPEF not being envisaged as a trade agreement to promote greater market access to the US market but would focus on negotiating common regional standards relating to supply chain resiliency, clean energy and decarbonisation, digital economy, labour standards, transparency and regulatory practices.
The federation also congratulated the Malaysian government for chalking up major strides towards strengthening the bilateral linkages with the US during the recent trade and investment promotion mission to the US led by the Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali.
FMM noted that through the strong efforts by the International Trade and Industry Ministry, Malaysia had attracted RM16.52 billion worth of new investments from the US.
“The new high-quality investments namely in the manufacturing sector, including electrical and electronics and medical devices, will not only generate jobs but also help to develop Malaysian manufacturers to become part of their supply chain through technology transfers in production and distribution and industrial upgrading,” Soh said.