What is TPPA?
It is a comprehensive free trade agreement covering a wide
scope such as government procurement, labor, environment and state-owned
companies.
4 February 2016, Malaysia and 11 other countries signed the
Trans-Pacific Partnership in Aukland, New Zealand. 12 countries involved
represent 40 percent of the world economy and broad market access to Malaysian
businesses.
The 10 main benefits of the TPPA to Malaysia that you need to know:
1. Increase salaries for unskilled workers is projected to
increase by 0.45-0.91 percent and 0.38-0.78 percent of skilled workers.
2. Policy and Bumiputera SMEs remain at status quo.
3. More than 90 percent of economic improvement contributed
by step instead of the lower rate.
4. Exports are expected to increase outpaced the growth of
imports, thus the trade surplus is expected to narrow to 4.3-5.2 per cent of
GDP in 2027.
5. The sectors that contributed to 20 per cent of Malaysia's
GDP in 2014 is expected to record higher growth in output, particularly the
manufacturing sector.
6. The export-oriented companies will get benefit from
access to a wider market.
7. States will benefit through access to government
procurement, liberalization of the digital wider than the enforcement of the
protection of trade secrets.
8. Malaysia's gross domestic product is projected to
increase by US $ 107 billon to US $ 211 billion between 2018-2027.
9. Investment is projected to increase to US $ 239 billion
between 2018-2027 - contributed to higher investment in the textile industry,
construction and trade distribution.
10. Settlement of disputes investor (ISDS) may increase the
cost to the government, but the protections already provided to handle the suit
and protect the base, especially in the areas of health, safety and the
environment.
