MITI: Withdrawal From TPPA Will Not Bankrupt Malaysia

KUALA LUMPUR, Jan 5 (Bernama) -- The withdrawal from the Trans-Pacific Partnership Agreement (TPPA) will not bankrupt the Malaysian government, said the Ministry of International Trade and Industry (MITI). In a statement Monday, MITI said, the government could be sued for breach of the Investment Chapter of the TPPA, and if the breach was proven, compensation might have to be paid. "However, the withdrawal from TPPA does not constitute a breach of TPPA," it said. According to the ministry, under the Article 30.6, any party might withdraw from the TPPA agreement by providing written notice of withdrawal to the depositary. "Since withdrawal under the TPPA is allowed, withdrawal as such is an exercise of our rights and not a breach of the agreement," MITI said. The ministry was replying to an article on the TPPA published by the former Prime Minister, Dr Mahathir Mohamad, on his personal blog dated Dec 31, 2015 titled 'Quitting TPPA will make Malaysia bankrupt'. MITI said foreign investors could bring the government to Investor-State Dispute Settlement for a breach of any obligation under the investment chapter of the TPPA. "However, if Malaysia signs the TPPA, but then decided to withdraw, the protection under the Investment Chapter would be inapplicable to foreign investors. "Therefore, the mere act of withdrawal will not result in Malaysia being sued by a foreign company," it said. -- BERNAMA