PUTRAJAYA must provide a holistic action plan for the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to realise its aim of increasing economic activity in the country, a research institute said today.

The Institute for Democracy and Economic Affairs (IDEAS) said this was necessary, especially when more trader partners are set to participate and embrace the CPTPP.

“With the UK’s accession to the CPTPP, member countries like Malaysia are able to expand their market beyond their borders. 

“The CPTPP will provide our local businesses with opportunities. Furthermore, we consider it a significant achievement that Malaysia was able to effectively negotiate the removal of tariffs on Malaysian palm oil of 12% in its first year of entry with the UK,” IDEAS research director Dr Juita Mohamad said in a statement today.

She added that the UK’s accession to the trade deal was a significant step towards strengthening trade ties. 

She also said as part of the deal, Malaysia stands to benefit significantly from increased trade flows and investment. 

“The recent addition of the UK as the latest signatory to the CPTPP is a clear indication of the growing importance of this trade pact on the global stage,” said Juita. 

She said with the UK onboard, trade relations can be strengthened over time and best practices from the UK and other member countries can serve as a guide for Malaysia as it completes its implementation process and translates the agreement into clear laws and guidelines in the next few years to come.

She said a cost-benefit analysis report produced last year indicated that Malaysia’s ratification will see a projected GDP and investment increase by US$56.5 billion (RM257.22 billion) and US$112.3 billion, respectively, from 2021 to 2030.

“Malaysia would (also) enjoy a continued trade surplus of US$53.5 billion in 2030. 

“Importantly, this translates into significant welfare gains for Malaysia, which is projected to increase by US$15.1 billion in 2030,” she said. 

The CPTPP has been named a landmark trade agreement with significant implications for the Asia-Pacific region and beyond, representing a mega free trade agreement with 11 signatories, all of which are Asia-Pacific countries that collectively account for 13% of the global GDP. 

By lowering barriers to trade in goods and services among member countries, the CPTPP aims to create a more seamless and integrated trading environment in the region. 

The deal also sets common obligations on a range of issues, including environmental policies, labour standards, digital economy, investment, and food regulations, among others. – July 28