MALACCA: Malaysia will gain competitive edge in the global market if the country signed the Trans-Pacific Partnership Agreement (TPPA), Prime Minister Datuk Seri Najib Razak said.
"Investors will look for access (to the local market for investment).
"Any nations that joins TPPA will gain advantage over countries that decides to opt out from the agreement," Najib, who is also the Finance Minister, said in his speech at the Human Resources Ministry's Labour Day Celebration 2014 here today.
Present were Human Resources Minister Datuk Seri Richard Riot Jaem, Malacca chief minister Datuk Seri Ir Idris Haron, Malaysian Trade Union Congress (MTUC) president Khalid Atan and Congress of Unions of Employees in the Public and Civil Services (Cuepacs) president Azih Muda.
Najib also revealed implications if the country rejected TPPA.
"Unlike countries like China and Indonesia, Malaysia does not have a big domestic market.
"The country depends on the global market to stimulate the nation's economic growth.
"I fear that investment into the country will experience a drop if Malaysia lost its competitive edge," he said.
Najib also corrected Khalid's view that the soon-to-be implemented Goods and Services Tax (GST) would be imposed on all goods and services.
"I am sorry but this view has to be corrected.
"I would like to stress that not all items are taxable under GST.
"And GST is not a new taxation system but it is a scheme which replaces the present Sales and Services Tax."