‘CPTPP to open up new markets for Malaysia and benefit SMEs’
KUALA LUMPUR: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will greatly benefit Malaysia, especially small and medium enterprises, said economists.
The deal would enable Malaysia to enter new markets, ensuring future growth, jobs and higher living standards, they said.
Malaysia, Singapore, Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru and Vietnam signed the CPTPP last Thursday.
Economists said Malaysia stood to gain as the agreement would provide access to new markets such as Canada, Peru and Mexico, with palm oil, rubber and electronics exporters benefiting the most.
Socio Economic Research Centre executive director Lee Heng Guie said Malaysia had long practised an open economy.
“What the CPTPP will do is it will enable Malaysia to enter new markets, namely Canada, Peru and Mexico. This is definitely great for the export segment. However, I must stress that Malaysia has long practised an open economy and has been thriving on that.
“The CPTPP will open new markets for Malaysia but in the grand scheme of things, it is yet another trade agreement in the series of trade agreements that Malaysia has, and I am sure there will also be more trade agreements in the future.”
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid is optimistic about SME segment.
“The CPTPP should pave the way for further trade integration among the member countries. In particular, the trade agreement should be beneficial to SMEs as they would be able to sell their products across borders.
“This, in turn, would promote job creation, especially for Technical and Vocational Education and Training graduates, and more high value-added activities such as automation and mechanised production processes. Hopefully, this will gradually reduce our reliance on low-skilled foreign labour.”
CPTPP countries accounted for 13.5 per cent of the world’s gross domestic product.