Malaysia’s commitment to implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) shows the country continues to maintain a proactive, trade-friendly policy position, the American Malaysian Chamber of Commerce (AMCHAM) said.
It is set to increase Malaysia's competitiveness with the agreement’s ability to access new markets, along with sourcing high-quality inputs from an even wider range of countries, the chamber said in a statement on Thursday (Oct 6).
AMCHAM chief executive officer Siobhan Das said that by implementing CPTPP, Malaysia stands to benefit from vibrant economic opportunities, this being especially relevant for local micro, small and medium enterprises (MSMEs).
“With lowering of costs and trade barriers, along with capacity building mechanisms within the agreement, MSMEs will be able to drive their competitiveness, while being supported with modern features, especially around frameworks for the rapidly evolving digital economy.
“With CPTPP’s implementation effective in November, global companies, including AMCHAM members and other multinational companies looking to diversify their supply chains will be well served, as they incorporate Malaysia and its resilient ecosystem into their global trade networks,” she said.
On Wednesday (Oct 5), the International Trade and Industry Ministry (MITI) announced that the government submitted the instrument of ratification for the agreement to New Zealand, the CPTPP depositary, on Sept 30.
AMCHAM said the inclusion of Canada, Mexico and Peru will drive not only export opportunities but also establish potentially new critical links in global value chains, providing greater resilience for new and existing supply chains.
“The cost-benefit analysis projects that Malaysia’s total trade will increase to US$655.9 billion (US$1=RM4.63) in 2030, through participation in the agreement. Without doubt, the signatories will also be looking at new entrants, the first of which is anticipated to be the United Kingdom.
“The CPTPP will also complement the gains provided for by the Regional Comprehensive Economic Partnership (RCEP) and we look forward to more high quality trade agreements, especially within the digital space,” it said.