PETALING JAYA: Malaysia should try to become the secretariat for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in order to expand its influence in regional trade pacts, said former MP Ong Kian Ming.
“Advocating for Malaysia to become the secretariat for the CPTPP demonstrates the country’s commitment and willingness to elevate its role within the agreement,” said Ong, who is currently a programme director at Taylor’s University.
He made that suggestion during a public forum organised by the Institute for Democracy and Economic Affairs (Ideas) on the CPTPP today in Kuala Lumpur.
Malaysia, he said, needs to take a proactive approach in international trade or risk witnessing neighbouring countries gain regional influence at its expense.
At the same time, Ong urged the investment, trade and industry ministry (Miti) to hold a strategic conversation to effectively communicate its priorities.
“This is not just concerning the CPTPP, but also Miti’s engagement in various other free trade agreements (FTAs),” he said.
Without addressing these challenges, Malaysia may face significant hurdles in pursuing its ambitions, including vying for the CPTPP secretariat role or seeking to broaden its portfolio of FTAs.
Ong highlighted the longstanding European Union (EU)-Malaysia trade agreement talks as an example.
“I don’t see the EU-Malaysia (agreement happening) anytime soon. However, the EU has already looked at Thailand and Philippines as its negotiating partner,” he pointed out.
“So, if Malaysia does not step up, we will be at the losing end and see some of our regional competitors getting ahead,” warned Ong.
Meanwhile, academic Evelyn Devadason said the prospects of more intense competition at the regional level has left small and medium enterprises (SMEs) in fear of being pushed out of business.
The Universiti Malaya expert on business and economics pointed out that SMEs, which make up 97% of all businesses in Malaysia, must henceforth compete with firms from other CPTPP member countries in a market already dominated by government-linked companies (GLCs).
On the bright side, however, she said that e-commerce and the internationalisation of operations could be perfect channels for local SMEs to tap into global market advantages and remain competitive.
World Trade Organization senior deputy executive director Yen Huai-Shing said Malaysia could borrow a leaf from the Taiwan experience to protect its SMEs from being overwhelmed.
“In our (Taiwan) case, most of the SME protection and regulation are incorporated in the bilateral trade agreements with partner countries.
“However, end-to-end communication is key to form a common base requirement to protect each country’s small businesses,” she said.
The CPTPP is a multilateral trade agreement between 12 signatories – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam. Its formal signing ceremony was held on March 8, 2018.
Malaysia joined the multilateral trade agreement on Nov 29 last year.
Source: https://www.freemalaysiatoday.com/category/business/2023/08/29/malaysia-should-bid-to-be-cptpp-secretariat-says-kian-ming/