Malaysia's GDP Projected To Increase With TPPA, Says MIDF

KUCHING (Sarawak, Malaysia), August 17 (Bernama) -- Malaysia’s Gross Domestic Product (GDP) is projected to increase to US$211 billion between 2018 and 2027 with the Trans-Pacific Partnership Agreement (TPPA), says Malaysian International Development Finance Bhd (MIDF) Head of Development Finance Azizi Mustafa. He said although there was initial objection to the TPPA, more than 90 per cent of the economic gains would actually be attributable to lower non-tariff measures. "Sectors which contributed over 20 per cent of Malaysia’s GDP in 2014 are now expected to register higher growth, especially the manufacturing sub-sector," said Azizi at the 'TPPA & Asean Economic Community Talk' delivered by MIDF Chief Economist Dr Kamarudin Mohd Nor. He said the TPPA would also open up more markets and additional opportunities for Malaysia's small businesses to grow while the AEC would provide them better access to international markets. "The fact that ASEAN has a population of around 600 million and it being the world’s seventh largest economy makes Malaysia and Asean an attractive destination for business and investment," said Azizi. Meanwhile, Kamaruddin, in his presentation, said the TPPA would maintain Malaysia's position as a high value-added manufacturing hub and quality investment destination and enable duty free trade with new Free Trade Agreement partners, namely Canada, Mexico, Peru and the United States. He said the successful conclusion of the pact would form a huge duty free market of 800 million people with a combined GDP of US$27.5 trillion and at the same time create greater market access for Malaysian products and services. "The inflow of foreign investments will be a catalyst in driving Malaysia’s economic transformation agenda. "As a member of TPPA, Malaysia will also be able to increase its participation in the regional supply and value chain while the pact will facilitate access for Malaysian products and services into bigger markets," Kamaruddin added. -- BERNAMA