CONCLUSION
The cost-benefit analysis conducted by two independent organisations concluded that under TPPA, Malaysia’s national interest is taken care of and Malaysia is projected to achieve a gross domestic product (GDP) cumulative gain of USD107 billion to USD211 billion (RM890.07 billion) over a 10-year period from 2018 to 2027. This translates to an additional increase of GDP growth by 0.60 ~ 1.15 percentage points in 2027. Investment is projected to escalate by USD136-239 billion, while the accumulated savings from elimination of tariffs alone is estimated at USD12 billion over the same period. On the other hand, Malaysia’s nonparticipation in the TPPA would not only foregone the potential GDP gains but will also cost the country a cumulative GDP loss of USD9 billion to USD16 billion over the same 10-year period. TPPA is a boost to Malaysian businesses for duty free export to TPP countries after our graduation from GSP in 2014.
Way Forward for Malaysia
Based on the above, the TPPA is expected to bring more positive than negative impacts to Malaysian businesses. To realize the maximum benefits and avert the potential costs, capacity building measures, shortterm adjustments and structural reforms have to be undertaken by the industries, especially SMEs and the Government so that all are not left out in this new normal era. Some of these measures may include upskilling of workers, business process reengineering, upgrading of infrastructures or facilities, industry consolidation, productivity improvements, review of frameworks or guidelines and certifications, innovation, etc.
