World Bank confident Malaysia’s GDP to grow additional 8% by 2030

KUALA LUMPUR: The World Bank is confident that Malaysia will experience 8.0% gross domestic product (GDP) growth by 2030, on top of normal growth, driven by the Trans-Pacific Partnership Agreement (TPPA).

World Bank Group Global Practice on Trade and Competitiveness senior director Anabel Gonzalez said the additional 8.0% growth would be the result of elimination of both tariff measures and non-tariff measures, post-TPPA.

“Provided the countries approve the deal, the TPPA will come into force in 2018 and from there, the period of liberalisation and reduction in tariffs will begin.

“It will take some time to reach zero tariff and we expect this to happen in 2030,” she told reporters after speaking at the Asian Strategy and  Leadership Institute Strategic Issues Forum (SIF)/Corporate Malaysia Roundtable. 

Gonzalez also said the World Bank Global Economic Prospects Report observed that the largest gains in GDP were expected in smaller, open TPPA member economies such as Malaysia and Vietnam.

This is because the two economies would benefit from lower tariffs and non-tariff messures in large export markets and at home, as well as, from stronger positions in regional supply chains through deeper integration.

While some quarters were concerned with Malaysia’s ability to compete internationally when all barriers were down, Gonzalez remained optimistic, saying that Malaysia had already been competing in international markets and it continued to do well.

“The question right now is how much more can be done and what kind of measures can be put in place to increase productivity,” she added. - Bernama