The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement encompassing a diverse range of economies across the Pacific rim. For Malaysia, the CPTPP represents a significant opportunity to strengthen its economic position while addressing the challenges of globalisation. This article is a part of a series of articles that aim to discuss and and dissect several different aspects of the CPTPP.
Overview of the CPTPP
The CPTPP emerged as a successor of the Trans-Pacific Partnership (TPP) following the withdrawal of the United States in 2017. The remaining member countries of TPP, including Malaysia, renegotiated key provisions and elements to establish the CPTPP. The CPTPP was signed by 11 countries, including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It promotes the reduction of tariffs and provides greater market access for goods, services, and investments.
Malaysia’s Ratification of CPTPP
Malaysia has officially ratified the CPTPP on 30 September 2022. There are a total of 30 chapters in the CPTPP, the chapters include but are not limited to, investment, cross-border trade in services, environment and more.
The CPTPP provides Malaysia with numerous economic and strategic advantages:
- New Market Access: According to the Ministry of Investment, Trade and Industry, the CPTPP opens new market opportunities for Malaysia in countries such as Canada, Mexico, and Peru. It also provides access to a broader range of high-quality raw materials at competitive prices and boosts Malaysia’s attractiveness as an investment hub.
- Preferential Duty Rates: Malaysia benefits from the preferential duty rates on goods exported to and imported from the member countries of CPTPP.
- Investment Protection: The CPTPP enhances protection, predictability, and transparency for investments within its member countries.
Conclusion
The CPTPP represents a transformative opportunity for Malaysia to strengthen its ties with the global economy while fostering sustainable development. As Malaysia embarks on its CPTPP journey, it is crucial for stakeholders, including policymakers, businesses, and civil society to work collaboratively to maximise the benefits and mitigate the risks associated with the CPTPP.
For further information, please contact:
Kam Sue Herng, Richard Wee
sueherng@richardweechambers.com
