MARKET DEVELOPMENT
TPP Boost to Global Market Access
TPP Boost to Global Market Access
07/10/2015 (New Straits Times) - Corporate captains and analysts say the Trans-Pacific Partnership (TPP) agreement will provide greater global market access for Malaysian companies and improve overall trade.
Tradewinds Corp Bhd chairman Tan Sri Megat Najmuddin Megat Khas said the TPP would open up new markets for Malaysian businesses.
“Hopefully, TPP will open more markets for us... we need markets as we are a big exporting nation,” Megat Najmuddin told Business Times.
Maybank Investment Bank said the TPP would provide greater market access for local companies and boost overall trade, which had been lacklustre amid weak commodity prices and China’s slowdown.
Wong Chew Hann and Suhaimi Ilias said Malaysia also stood to benefit from the inclusion of the United States, Canada and Mexico in the trade pact as they were countries that Malaysia did not have free trade agreements with.
“Exports to TPP signatory countries made up 41 per cent of total exports and 34 per cent of imports for 2015.
“Beneficiaries will largely be Malaysian exporters, especially in electrical and electronics (E&E), textiles, automotive components and parts, chemicals, palm oil, rubber and wood products,” they said, adding that potential losers could be domestic-based sectors as they faced the challenges of increased competition from trade liberalisation.
RHB Asset Management Sdn Bhd deputy director of equity investment Lim Tze Cheng said the true impact of the TPP would only truly be felt over the long term.
“It is too soon to tell of the impact. At the outset, it seems that it would open up the market further for those involved, which could be a positive thing. But the true impact can only be known over the long term,” said Lim.
Federation of Investment Managers Malaysia chief executive officer Nazaruddin Othman said the TPP would enable the local market to be opened even bigger, thus allowing a bigger selection for consumers.
“Prices may rise, though, due to the weaker ringgit,” he said.
Meanwhile, the US-Asean Business Council said the agreement would positively impact commercial relations between the US and TPP member countries.
“This is a critical component of engagement between the US and Southeast Asia,” its president and chief executive officer Alexander Feldman told Bernama.
The council said the agreement would improve intellectual property, environment, labour and e-commerce standards across the region.
Tradewinds Corp Bhd chairman Tan Sri Megat Najmuddin Megat Khas said the TPP would open up new markets for Malaysian businesses.
“Hopefully, TPP will open more markets for us... we need markets as we are a big exporting nation,” Megat Najmuddin told Business Times.
Maybank Investment Bank said the TPP would provide greater market access for local companies and boost overall trade, which had been lacklustre amid weak commodity prices and China’s slowdown.
Wong Chew Hann and Suhaimi Ilias said Malaysia also stood to benefit from the inclusion of the United States, Canada and Mexico in the trade pact as they were countries that Malaysia did not have free trade agreements with.
“Exports to TPP signatory countries made up 41 per cent of total exports and 34 per cent of imports for 2015.
“Beneficiaries will largely be Malaysian exporters, especially in electrical and electronics (E&E), textiles, automotive components and parts, chemicals, palm oil, rubber and wood products,” they said, adding that potential losers could be domestic-based sectors as they faced the challenges of increased competition from trade liberalisation.
RHB Asset Management Sdn Bhd deputy director of equity investment Lim Tze Cheng said the true impact of the TPP would only truly be felt over the long term.
“It is too soon to tell of the impact. At the outset, it seems that it would open up the market further for those involved, which could be a positive thing. But the true impact can only be known over the long term,” said Lim.
Federation of Investment Managers Malaysia chief executive officer Nazaruddin Othman said the TPP would enable the local market to be opened even bigger, thus allowing a bigger selection for consumers.
“Prices may rise, though, due to the weaker ringgit,” he said.
Meanwhile, the US-Asean Business Council said the agreement would positively impact commercial relations between the US and TPP member countries.
“This is a critical component of engagement between the US and Southeast Asia,” its president and chief executive officer Alexander Feldman told Bernama.
The council said the agreement would improve intellectual property, environment, labour and e-commerce standards across the region.