By BERNAMA
Mustapa Mohamad
The government is convinced that the Trans-Pacific Partnership (TPP) agreement will have a long-term positive effect on the economic growth of the country, said International Trade and Industry Minister Mustapa Mohamed.
He said a detailed study showed that Malaysia stood to benefit from its participation in the TPPA and would miss out if it did not join the trade pact.
“Many may not see the benefits today, but I am worried that the economies of the neighbouring countries which join the TPP will become more steadfast than ours,” he said when tabling a motion for debate on and adoption of the TPP agreement at a special sitting of the Dewan Rakyat today.
Prime Minister Najib Abdul Razak and Deputy Prime Minister Ahmad Zahid Hamidi were also present in the house for the two-day sitting that began today.
The special sitting would allow members of parliament to debate and decide by voting, whether Malaysia should join the TPPA.
Malaysia is one of 12 ‘precursor’ countries which participated in the negotiations on TPP that commenced in 2010 and concluded in October last year.
The other countries are Brunei, Singapore, Vietnam, Japan, Australia, New Zealand, United States, Chile, Mexico, Peru and Canada. Mustapa said by joining the TPP, Malaysia had the advantage of negotiating and setting its conditions in the agreement.
He pointed out that Malaysia was also the only country to table a motion for ratification of the TPPA in parliament.
“If we choose to wait and join later, we might not be able to get the same exemption in issues such as bumiputera, Halal certification and other flexibilities that had been negotiated.
“This is what is called first-mover advantage,” he said, adding that if Malaysia were to join the TPPA later, the conditions that had been agreed upon might no longer be negotiable.
Mustapa said Malaysia had entered into the TPPA on its terms, and must be dauntless in facing it.
“The government must be bold in implementing measures that may not be popular in the short term.
“I hope all parties can evaluate the TPPA objectively, taking into consideration the long-term benefits and opportunities, which might be lost if we do not join,” he said.
He said Malaysia would regret not joining the TPPA because investors would see countries such as Vietnam as a more attractive investment destination.
Holding up a few local products such as an automotive component (coil), a pair of pants and a sarong in the Dewan Rakyat, Mustapa said the goods would enjoy exemption from import duty, which is among the benefits of free trade that countries under the TPPA would enjoy.
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