KUALA LUMPUR, Jan 26 (Bernama) -- Malaysia risks facing trade diversion if it chooses to withdraw from the Trans-Pacific Partnership (TPP) as participating countries would have wider access to markets, said Datuk Irmohizam Ibrahim (BN-Kuala Selangor).
"The overall impact at national level may not appear large, but the trade diversion could become very significant for certain industries and for Malaysia's export revenue," he said at a special session on the TPP at the Dewan Rakyat here Tuesday.
The two-day special meeting beginning today is expected to be followed by one at the Dewan Negara on Thursday.
Irmohizam said the TPP would give Malaysia lower or zero tariffs on exports, adding open markets would widen opportunities for exporters wishing to venture overseas.
According to a World Bank report, Malaysia and Vietnam would benefit the most from the TPP while non-participating Asian countries woud be cut off from trade flows and post slow growth.
The Institute of Strategic and International Studies (ISIS) says Malaysia's participation in the TPP is consistent with the New Economic Policy and in line with its aspirations to be a high-income country.
"If we do not join the TPP we should be worried, as our economy would be left behind those of regional countries like Vietnam and Singapore.
"Joining the TPP could make Malaysia a more attractive investment and trade destination," said Irmohizam, who is also Malaysian Fisheries Development Authority Chairman.
The trade deal could also make the country's agro-food exporters more competitive in price and product quality while boosting exports of sea food products and livestock, he said.
-- BERNAMA
Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1210470
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