KUALA LUMPUR: Malaysia and Vietnam are expected to be among the major winners out of the Trans-Pacific Partnership Agreement (TPPA), especially in the textiles and manufacturing sectors.
An economist at RHB Research said export-oriented firms, particularly in the textiles sector would benefit from greater market access to TPPA countries.
“In addition, these two small countries both have a very good manufacturing base. Therefore, a lot of multinational companies would be interested to invest and set-up base in Malaysia and Vietnam,” he told Bernama.
Furthermore, as early TPPA participants, Malaysia and Vietnam managed to get the opportunity to shape the original TPPA text and annexes as well as secure extensive safeguards by participating in the negotiations.
When asked whether Malaysia’s total trade could exceed the RM2 trillion mark soon following the signing of the TPPA, he said: “This is a possibility. However, we are unsure of the timeline.”
Yesterday, Malaysia and 11 other countries inked the TPPA which is set to expand markets, reduce tariffs and promote freer trade.
The 12 countries in the TPPA are New Zealand, Australia, Chile, Mexico, Japan, Peru, Canada, Vietnam, the United States, Singapore, Brunei and Malaysia.
The signing of the TPPA, held in Auckland, New Zealand, will represent nearly 40 per cent of global gross domestic product worth USD30 trillion (RM126 trillion).
On Malaysia’s trade performance in 2015, the RHB Research economist said the achievement was below expectations, but expected, given the soft global economy.
“Exports in November (up 6.3 per cent to RM67.63 billion) and December (up 1.4 per cent to RM68.3 billion) were particularly below expectations considering exports in October grew by a double-digit at 16.7 per cent to RM75.81 billion,” he added.
Source from FMT NEWS