The newly elected United States of America President Donald Trump has said that the Trans Pacific Partnership (TPP) agreement is not going to happen.
Trump said, he will scrap the TPP on the very first day he becomes President of the US on January 20 next year.
But for us ordinary Malaysians, how will it affect the people? Will we lose out anything? Will the rakyat benefit?
Here are some positive and negative impact to Malaysians now that the TPP is not going to materialise.
Lost Opportunities to Boost Trade With the US
Without a doubt, now that the TPP is not going to happen, it will be a loss of better opportunities for Malaysia.
This is because, if the TPP was successful, Malaysian products such as Proton cars can be sold in the United States or Peru much easier.
In a way, Proton will lose out as it will not get to boost its business and its workers will not be able to enjoy bonuses or higher income.
But it is okay, because even if Malaysia cannot enjoy the benefits under the TPP, there will be opportunities elsewhere such as in China, Middle East, Africa and South America.
We Can Now Look at China
Now that the TPP is not going to happen, Malaysia can boost trade with China.
There are plenty of opportunities in China as it is the world’s second largest economy after the US.
MIDF Amanah Investment Bank Berhad chief economist Dr Kamaruddin Mohd Nor said eventhough the US do not want the TPP, it will still be business as usual for Malaysia.
The US withdrawal from the TPP opens an avenue for China to trade with Malaysia, of which Malaysia could benefit from.
China is already Malaysia’s biggest customer buying a lot of palm oil which has helped our smallholders.
Malaysia also buys a lot of our electrical and electronic products such as television, DVD players, computers and laptops which has helped our companies and its Malaysian workers.
This will really help our economy and help the rakyat earn an income and help put food on the table for their families.
Malaysian Economy Still Stable
Economists say Trump’s call to pull out of the TPP will not affect the Malaysian economy over the short or long term.
Moody’s Analytics associate economist Jack Chambers told New Straits Times on November 23 that it does not affect the Malaysian economy as our economic fundamentals are strong, cash reserves still high and domestic spending activities still active.
So the rakyat need not worry as they can be assured that the economy is strong and they will be able to earn a living and help feed their children.
Do More Trade With Other Countries
Eventhough the U.S is not keen on the TPP, there are other parts of the world which Malaysian can do trade with.
Sunway University economics professor Dr Yeah Kim Leng said Malaysia can do more trade with Europe, Middle East, African and South American countries.
In this way, the rakyat can be assured that Malaysian economy can continue to be strong and this will spillover to the rakyat.
We Now Have the RECP
Although the TPP is not going to work out, Malaysia will now have the RECP or the Regional Comprehensive Economic Partnership which involve all ten-member ASEAN nations and other countries which are Australia, China, India, Japan, South Korea and New Zealand.
The RECP which is led by China is a bigger market than the TPP.
This will be better for Malaysia as we can still do business with all the member countries and it will ensure that our economy remain strong and will be beneficial to the rakyat.