TPPA Will Collapse

Ilmuan is confident that even without the TPPA, Malaysia still stands a good chance of positive growth in many areas.

The newly completed US election has stirred old concerns anew, with the possible retreat of the US from TPPA. The pact that was mooted and dominated by US through its 60% trade building capacity is at risk of collapse.

Ikatan Ilmuan Nasional (Ilmuan) had from the very start of the TPPA negotiations, expressed our view that the TPPA would risk the Malaysian economy more than boost it.

Ilmuan is confident that even without the TPPA, Malaysia still stands a good chance of positive growth in many areas.

This is because Malaysia still has more friendly regional trade pacts such as the AEC and RCEP. As we speak, the AEC, which came into effect 1st January 2016, is growing at 4% a year.

Furthermore, with China being an essential member of the RCEP,  Malaysia has an established channel to compete effectively in the RCEP.

This is even more compelling as the Malaysian economy is 70% backed by SMEs. Thus, the regional pact would create a fairer playing ground for our SME players.

Therefore, Ilmuan opines that Malaysia endeavour to enhance its involvement in the AEC and RCEP, rather than fret about the TPPA, as the Malaysian economy would be able to grow more visibly and sustainably under these two pacts.

MAZLI NOOR
Deputy President
Ikatan Ilmuan Nasional (Ilmuan).

23rd November 2016.