High time to ratify the CPTPP

PERSATUAN Pengilang-pengilang Peranti Perubatan Malaysia (Perantim), the only association representing locally-owned Malaysian companies manufacturing medical devices, is in tandem with the International Trade and Industry Ministry (Miti) on the net benefits of participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Perantim strongly supports immediate ratification of the CPTPP, which was signed on March 8, 2018, with membership consisting of Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, Vietnam and Malaysia.

CPTPP countries have a combined population of 508 million people, generating total gross domestic product (GDP) of US$11.3tril and representing 13% of world GDP and 15% of world trade. These numbers have attracted even economic powers like the United Kingdom and China and others countries like Chinese Taipei and Ecuador to officially apply to become part of the CPTPP.

These are immense opportunities for Malaysian exporters, especially manufacturers of medical devices, who have established ourselves in recent years as high-tech, high quality, fast and reliable exporters.

The recent pandemic showed that Malaysia has become the darling sourcing and out- sourcing destination for medical devices, halal medical devices, and medical disposables (pic).

Nonetheless, Malaysia is lagging because we are one of only a few countries that have yet to ratify the CPTPP. Other countries, including our regional neighbours Singapore and Vietnam, have started to implement the CPTPP and are reaping benefits from this trade agreement. They have, in fact, started negotiating terms and market access conditions with the participating countries.

Perantim urges the Malaysian government to expedite the ratification so that we will not be left behind and lose the opportunities. These include terms and conditions provided for under the CPTPP, namely reciprocal technical assistance, capacity building, expert sharing among countries and, of course, the jewel in the crown, the elimination of tariffs and reduction of non-tariff barriers up to 15.5% for certain destinations.

Market liberalisation is part and parcel of any trade agreement. Nonetheless, Perantim feels that for the CPTPP, Miti and the Malaysian government have worked out the trade balances for the betterment of the business communities. It is time for us to play on the same level playing field with other countries, albeit with continuous support from the Malaysian government.

“Buy Malaysian First” must remain as the central policy, as it is imperative to continuously support the local medical devices manufacturers and other SMEs. New local innovations must be encouraged and supported with aid and fast-track registration policies. These cocktails will spur the industries and local economies.

JOHARI ABU KASIM

President

Persatuan Pengilang-pengilang Peranti Perubatan Malaysia