KUALA LUMPUR: Malaysia is expected to receive an additional investment of over US$100 billion (RM440 billion) by 2027 with the implementation of the Trans-Pacific Partnership Agreement (TPP), said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He said the projected investment figure is from a study by consultancy firm PricewaterhouseCoopers on the trade pact’s benefits for Malaysia.
“We asked PricewaterhouseCoopers to do a study. The findings show that in 2027, the additional investment could be over US$100 billion with the TPP in place,” he said at a media conference after a briefing on the TPP’s benefits here today.
Mustapa said many of the earlier allegations against the TPP have been found to be false and not based on facts.
“Some of the accusations against and concerns over the TPP made before the full text of the TPP was released on Nov 5 last year were based on hearsay. After the text came out, however, many quarters have begun to express satisfaction,” he said.
“Unfortunately, several of the criticisms made after the release of the text show that they did not read the text.
“Don’t make allegations based on emotions – that we are selling out the nation, that we are selling out to the US, selling Malaysian companies,” he said.
Mustapa said investment inflows and outflows are not new for Malaysia as the country has long been open about the matter.
“We were a small nation before, but now our investments abroad have hit RM600 billion compared to RM500 billion in foreign investment inflows (as of the third quarter of 2015).
“We have resilience, Malaysian companies are successful abroad, and we have the capability. But those making the allegations are implying that foreign investments are a new thing, and that we don’t have investments overseas,” he said.
The minister said critics of the TPP should be fair and refer to the facts in the text rather than basing their claims on incorrect information.
Mustapa said Malaysia benefits a lot from globalisation and the open economy but at the same time is prepared to address the problems brought about by the open economy.
“We are aware that there are several groups of marginalised Malaysians, and we will refer to the nation’s policies to address the problems of those excluded by this globalisation.
“We are aware that several challenges need to be overcome, and that is why there need to be national policies following our policy of openness,” he said.
Mustapa said while the government is aware of the costs of globalisation, it is globalisation that could make Malaysia a modern nation.
“China used to be poor, but with globalisation it has become a developed nation.
“China is also now open, having joined the World Trade Organization in 2001, and is benefiting from its openness, just as Malaysia has received many benefits from openness,” he added.
On the plan by some quarters to hold anti-TPP protests on Jan 23 at Dataran Merdeka here, Mustapa said although the country’s democracy allows them to do so, they will not have strong grounds for it as the government has been holding briefings and dialogues with various quarters, including the opposition.
Malaysia and 11 other countries – Australia, Brunei, Canada, Chile, Japan, Singapore, Mexico, New Zealand, Peru, the United States and Vietnam – concluded the TPP negotiations on Oct 5 last year.
A special three-day session on Malaysia’s participation in the TPP will be held at the Dewan Rakyat and Dewan Negara from Jan 26.
The contents of the TPP as well as findings of the two cost-benefit analyses will be tabled in Parliament. The TPP needs Parliament’s approval before it can be ratified.
A review may be carried out after three years if the TPP is found not to benefit the country, and Malaysia could pull out of the trade deal with a six-month written notice. --Bernama