KUALA LUMPUR, Aug 18 (Bernama) -- Malaysia needs to pursue bilateral and regional trading arrangements, including the Trans-Pacific Partnership (TPP) to gain market access internationally and remains an attractive location for foreign investments.

Malaysian International Chamber of Commerce and Industry (MICCI) President Datuk Jalilah Baba said free trade agreements (FTAs) played a key role in regional integration.

"This is one of the critical reasons why the government is actively pursuing the TPP," she said in a statement today.

Jalilah said the TPP was expected to allow Malaysia to serve as a base of operations for foreign companies in non-TPP countries.

As a member of TPP, Malaysia will also be able to become an important link in the regional supply chain.

"In the long-run, the TPP is anticipated to bring the benefits of lower cost of goods and more efficient production by taking advantage of the competition and economies of scale.

"With the TPP, Malaysia will be able to go on the offensive and take advantage of new international markets.

"For local companies that export to our FTAs partner countries, the TPP offers a greater advantage to Malaysians as it covers nearly 40 per cent of the global economy as well as the 12 countries (participating in the TPP negotiations).

"This will allow local products better access to countries Malaysia does not have FTAs with such as the US, Canada, Mexico and Peru," she said.

For example, she said Malaysia enjoyed duty-free access into the Australian market with the signing of the FTA between the two countries.

Jalilah said the TPP offered opportunities for seamless markets while opening up regional and global investment opportunities.

The successful conclusion of the TPP is anticipated to open an unprecedented market of 793 million people, with a combined gross domestic product (GDP) of US$27.7 trillion - far surpassing the limited domestic market of 29.5 million people and a GDP of US$300 billion in Malaysia.

"A satisfactory conclusion of the TPPA could pave the way for similar FTAs in future, such as the EU-Malaysia FTA," she added.

Source: Bernama

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