TPPA – The Winners and the Losers


How will Malaysian firms and Penang’s industries fare once the mega-FTA is in place?

The Trans-Pacific Partnership Agreement (TPPA) is a comprehensive free trade agreement (FTA) that involves 12 Pacific Rim countries: Singapore, Brunei, New Zealand, Chile, the US, Australia, Peru, Vietnam, Malaysia, Mexico, Canada and Japan.

Recently, three reports on the TPPA that relates to Malaysia have been issued. The first report by PricewaterhouseCoopers (PwC), “Study on Potential Economic Impact of TPPA on the Malaysian Economy and Selected Key Economic Sectors”, viewed the potential economic costs and benefits to Malaysia using a Computable General Equilibrium (CGE) model. PwC concluded that the TPPA will benefit the textiles, E&E, automotive, and plastics products and wood products sectors. The effect is neutral for the construction, palm oil, and retail and pharmaceuticals sectors, but it will be negative for the oil and gas sector.

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