KUALA LUMPUR – The main effect of the US decision to withdraw from the Trans-Pacific Partnership Agreement (TPPA) is that ‘Asia will pivot to Asia’, bringing countries like Australia and New Zealand along with it.
President Donald Trump’s decision to pull the US out of the TPPA gave a reason for businesses within Asia to expand, look at more business partnerships and more market opportunities within the region as their key market, said Nordin Abdullah, Managing Director of consultancy firm Glenreagh Sdn Bhd.
“For Malaysia, with geographical and languages advantages, it is easier for Malaysians to compete in Asia, and the country now has the chance to negotiate with other TPPA’s partners for a more immediate near future benefit,” he told Bernama here today.
Nordin said the TPPA would have contributed to the long-term strategic goals of sustainable economic growth for the country but the long-time frames for implementation would also mean that it would take time for these to take effect.
“Malaysia now has the opportunity to negotiate with those partners again to bring those potential benefits into something that will be of benefit in the near future,” he said.
He said the impact on the Malaysian economy and businesses in general will most likely be minimal for the simple fact that the country has many free trade agreements, both bilateral and multilateral, and that export figures to these countries were steadily growing.
“While the US market will remain important, Malaysian exporters should continue to look at the high growth markets in Asia and West Asia as they are both geographically closer and easier markets to operate in for Malaysian companies looking to expand internationally,” he said.
He said the internal strengthen of US’ domestic economy through revitalisation of domestic infrastructure and domestic job creation may in fact have a positive effect on the global economy.
“However, this is yet to be seen. For Malaysia, of course, we will still continue to sell to US. If their domestic economy improves, the type of products and services that Malaysia already sells will increase in demand.
“So actually it would be a positive things,” he said. – BERNAMA