Vietnam still triumphs thanks to its cheaper labour costs and advantages in some sectors. (Source: VNA)Kuala Lumpur (VNA) - Malaysiancompanies will be at a huge disadvantage and lose out to Vietnam in terms oftrade investment inflow if the country chooses not to participate in theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), saida local official.
The Asian Trade Centre (ATC) ExecutiveDirector Deborah K Elms said the CPTPP is especially beneficial for small- andmedium-sized enterprises, adding that the pact allows for a seamless flow ofgoods, services, and investment among member countries, as well as protection ofintellectual property.
Vietnam still triumphs thanks to its cheaperlabour costs and advantages in some sectors, she said.
However in a lot of aspects, Malaysia comesout on top. For example, Malaysia has a more educated population, with betterskills in many sectors, and its infrastructure and port systems are better, shenoted.
On July 11, Malaysian Minister of International Trade and Industry Ignatius Darell Leikingsaid the Malaysian Government’s stand on the CPTPP will soon be finalised bythe Cabinet.
Ignatius saidMalaysia has not opted out from the pact but that the new government would needsome time to ensure that it would benefit the nation, emphasising that PrimeMinister Mahathir Mohamad had been looking into the matter.
During a meeting alsoon July 11 between Japanese Foreign Minister Taro Kono and his Malaysian counterpartSaifudddin Abdullah, Taro affirmed that the head of the Japanese delegation forthe CPTPP will soon come to Malaysia to explain the agreement to the MalaysianGovernment.
The originalTrans-Pacific Partnership Agreement (TPP) was signed by 12 countries inFebruary 2016 but US President Donald Trump pulled his country from the dealupon his inauguration in January 2017.
The remaining 11countries – namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico,New Zealand, Peru, Singapore and Vietnam – signed the pact and renamed it theCPTPP in March 2018 in Chile.
The pact is expected to boost economic growth,create more jobs, reduce poverty, and improve the quality of life for people inthe member countries. It delivers a strong message against the rise in globalprotectionism.
The deal will create oneof the world’s largest free trade blocs with a combined market of 499 millionpeople and GDP of around 10.1 trillion USD, accounting for 13.5 percent of theglobal GDP.-VNA
VNA
