Tan Sri Soh Thian Lai said FMM commended the Ministry of International Trade and Industry on its strong commitment to complete domestic procedures for the ratification of the CPTPP by mid-2022 after the government finalises the cost-benefit analysis undertaken by Miti. — Picture by Firdaus Latif
KUALA LUMPUR, Nov 12 — Early ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is imperative to boost Malaysia’s trade recovery, said the Federation of Malaysian Manufacturers (FMM).
President Tan Sri Soh Thian Lai said FMM commended the Ministry of International Trade and Industry (Miti) on its strong commitment to complete domestic procedures for the ratification of the CPTPP by mid-2022 after the government finalises the cost-benefit analysis (CBA) undertaken by Miti.
“The CPTPP is an important free trade agreement (FTA) for Malaysian manufacturers.
“Once ratified, the CPTPP, which consists of 11 countries spanning the Pacific Rim, will provide market access to 495 million consumers while contributing 13.5 per cent to the global gross domestic product,” he said in a statement today.
Soh said more than 90 per cent of Malaysia’s export interest, which includes electrical and electronics, rubber products, palm oil, transport equipment, and wood products, will benefit from duty-free treatment in the CPTPP countries once the agreement enters into force.
He believes that concluding the CPTPP is central to Malaysia’s aspirations to enjoy sustainable growth and to ramp up economic recovery.
“The opportunity cost of not aligning ourselves now with the global economy would only be higher for Malaysia over time.
“Malaysia signed the agreement in March 2018, and we cannot afford to further delay the ratification of the CPTPP.
“Otherwise, we run the risk of being relegated to the sidelines and our Asean neighbours will move ahead strongly,” he said. — Bernama