The Malaysian Consortium of Mid-Tier Companies (MCMTC) stands with the Federation of Malaysian Manufacturers (FMM) against the call from certain parties urging the Malaysian Government to withdraw from the long-awaited Comprehensive & Progressive Agreement for Trans-Pacific Partnership (CPTPP) which took effect from November 29th, 2022.
Malaysia CANNOT afford to withdraw from CPTPP. Unlike other trade agreements, the CPTTP does not only open up trade but also brings about technical assistance and technology / know-how transfer, which are critical for capacity building for our local businesses. Malaysia’s recovery from the pandemic is already lagging behind our ASEAN neighbours. The delay in ratification has already caused Malaysia to lose ground in terms of Foreign Direct Investment (FDI). Vietnam, which signed earlier in January 2019, has become the springboard for Canada into the ASEAN market via the CPTPP. It could have been Malaysia.
Much has already been said about the costs versus benefits of the CPTPP. Malaysia is a small country in terms of population and land area but in terms of trade, we are ranked 25th in the World. We have become an integral part of the global supply chain. This did not happen by chance or overnight, but through relentless efforts on the part of the industry.
Trade and industry are the life-blood of the nation. The capable teams at the Ministry of International Trade & Industry (MITI) and MATRADE have worked hard with the industry to ensure that Malaysia is not left behind in this highly competitive and unpredictably volatile global scenario. Simply put, any reversal will be disastrous.
Do we really want to reverse ourselves out from the global market of 508 million people (the combined population of the 11 countries as at 2019, representing 6.6% of the world population), and which generates a GDP of USD11.3 trillion (13% of the World GDP, 15% of total world trade)? With the UK, China, Chinese Taipei and Ecuador added in, the eventual combined population will be 2 billion (26% of world population), with a GDP estimated at USD29 trillion (33% of world GDP, accounting for 32.8% of total world trade).
The potential advantages of remaining in this market are clear.
Callum Chen President, MCMTC
The MCMTC (Malaysian Consortium of Mid-Tier Companies) comprises of MTCs (Mid-Tier Companies) from all industries. The MTCs form 1.7% of total companies in Malaysia, employ 16% of the total workforce but contribute 39.9% of Malaysia’s GDP. Get in touch with us here.