Malaysian senate approves motion to ink TPP
Malaysia can now formally ink a controversial United States-led regional trade pact next month after the Malaysian parliament's Senate House approved a motion Thursday for the country to sign and ratify the 12-member Trans-Pacific Partnership (TPP) trade deal. Senate House President Abu Zahar Ujang said the motion to agree to Malaysia entering the TPP was passed in a voice vote at 6:00 p.m. local time (10:00 GMT) after six ministers discussed the various sensitive issues concerning Malaysia. He said the special one-day sitting saw some 21 senators debate motions tabled by International Trade and Industry Minister Mustapa Mohamed. On Wednesday, the Lower House - which comprises 222 elected lawmakers - approved the motion, with 127 parliamentarians voting in favor of the pact while 84 objected.
Of concern to those against the signing were the various amendments needed in the Federal Constitution in the areas of investor state dispute settlement, government procurement, how the pact would affect the business potential of local, small and medium-sized enterprises and Bumiputera special rights. Bumiputera are privileges granted to ethnic Malays who are considered economically weaker than the minority ethnic Chinese.
In winding up yesterday's meeting, Mohamed said the TPP would be essential to maintain Malaysia's economic growth as a trade-reliant economy. He said the pact would liberalize all 12 member markets and allow Malaysian corporations to set up business in any participating country. Mohamed said trade barriers to four new markets would be removed for Malaysian companies - the U.S., Canada, Mexico and Peru - with which Malaysia has yet to have individual trade pacts.
The TPP is expected to open up a market with a population of 800 million and a gross domestic product (GDP) worth $27.5 trillion to Malaysian companies. Negotiations on the deal between 12 countries - the U.S., Japan, Mexico, Canada, Australia, Malaysia, Chile, Singapore, Peru, Vietnam, New Zealand and Brunei (representing more than 40 percent of the world's gross domestic product) - ended in Atlanta, Georgia, in October.
The pact is set to be signed by country leaders in New Zealand on Feb. 4, subject to each nation's approval.
The largest economy in the world, China, has initiated a counter Regional Comprehensive Economic Partnership (RCEP) between 10 Southeast Asian countries and Australia, India, Japan, South Korea and New Zealand. The meteoric emergence of anti-TPP movements in Malaysia had battered efforts to justify the agreement's benefit to the general public as well as to the Malaysian economy.
Of concern to those against the signing were the various amendments needed in the Federal Constitution in the areas of investor state dispute settlement, government procurement, how the pact would affect the business potential of local, small and medium-sized enterprises and Bumiputera special rights. Bumiputera are privileges granted to ethnic Malays who are considered economically weaker than the minority ethnic Chinese.
In winding up yesterday's meeting, Mohamed said the TPP would be essential to maintain Malaysia's economic growth as a trade-reliant economy. He said the pact would liberalize all 12 member markets and allow Malaysian corporations to set up business in any participating country. Mohamed said trade barriers to four new markets would be removed for Malaysian companies - the U.S., Canada, Mexico and Peru - with which Malaysia has yet to have individual trade pacts.
The TPP is expected to open up a market with a population of 800 million and a gross domestic product (GDP) worth $27.5 trillion to Malaysian companies. Negotiations on the deal between 12 countries - the U.S., Japan, Mexico, Canada, Australia, Malaysia, Chile, Singapore, Peru, Vietnam, New Zealand and Brunei (representing more than 40 percent of the world's gross domestic product) - ended in Atlanta, Georgia, in October.
The pact is set to be signed by country leaders in New Zealand on Feb. 4, subject to each nation's approval.
The largest economy in the world, China, has initiated a counter Regional Comprehensive Economic Partnership (RCEP) between 10 Southeast Asian countries and Australia, India, Japan, South Korea and New Zealand. The meteoric emergence of anti-TPP movements in Malaysia had battered efforts to justify the agreement's benefit to the general public as well as to the Malaysian economy.