PETALING JAYA: The strong spillover benefits from the Trans-Pacific Partnership Agreement (TPPA) will offset some short-term adjustments that would need to happen should the TPPA finally be accepted in Malaysia.
Initial consensus among the investment community is that it may be still too early to comment on the TPPA, given that full details have so far been sparse.
However, the community believes that on the surface, the TPPA will be a net positive for the economy in the longer run should Malaysia decide to ratify it.
“From the longer-term perspective, this is a boon to the economy. I believe most economists will tend to think this way.
“Malaysia is already a highly open economy and export-oriented. We will gain from the market creation aspect of the TPPA, as it will enlarge the overall market for our products,” said Dr Yeah Kim Leng, the Dean of Malaysia University of Science and Technology’s School of Business.
“Free trade is always good for a country, as it enhances economic efficiency with greater market access,” he added.
The trade deal would be a gain for exporters who are operating out of Malaysia, namely, those who export to TPPA member countries, as trade barriers would be cut or removed completely, other analysts said.
JF Apex Securities Bhd head of research Lee Cheong Cheng said that exporters such as companies involved in the rubber, palm oil, and the electric and electronics sector would stand to gain from this deal.
“In general, the exporters will benefit from this deal. Industries will gain from greater market access to countries which were more protected before this with trade barriers,” Lee said.