The Malaysian Insight

ECONOMIC Action Council member Jomo Kwame Sundaram has urged Putrajaya not to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), saying it would bring little benefit and could even be detrimental to the country.

The trade pact is a revival of the Trans-Pacific Partnership, which collapsed in 2017 after the US withdrawal. It seeks to cut tariffs amounting to US$13.5 trillion (RM54 trillion), or 13%, of the global gross domestic product.

The 11 signatories are Malaysia, Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.

“There’s a lot of propaganda to ratify the CTPPP, which is based on falsehoods,” Jomo said at the Malaysian Trade Union Congress 70th anniversary dinner last night.

“There are claims that if we don’t ratify the CTPPP, we won’t have economic growth. Actually, that’s not true.”

The Khazanah Research Institute senior research adviser said while exports might rise a little, imports would rise increase even more. The top import is expected to be automobiles.

“Japanese cars would come in and swamp the market and Proton and Perodua and what-not can say goodbye. The second biggest import? Can you guess it? It’s plastic waste.

“The three biggest sources of plastic waste are from Japan, Australia and Singapore, who are all members of the CPTPP. During BN (rule, the government) issued 160 licences for plastic waste processing plants.

“In fact, more than 90% of the plastic waste just go into landfills. They are not processed. Less than 10% are actually processed. We are destroying our environment.”

Jomo, who is formerly United Nations assistant secretary-general for economic development, said Putrajaya should do “nothing”.

“If you ratify the CPTPP, you won’t get very much benefit and if you don’t ratify, you’d be seen as anti-Japan, anti-Australia and anti-Singapore.

“So, let us be neutral and not ratify. Do nothing, basically. Even though you agree to sign it, without ratification, it means nothing.”

The Economic Action Council, which is chaired by Prime Minister Dr Mahathir Mohamad, said in a statement on Thursday that the cabinet would make the final decision on whether to ratify trade agreement.

The implications and potential impact of ratification were discussed in Thursday’s meeting, said the council.  

Economic Affairs Minister Azmin Ali, Finance Minister Lim Guan Eng, International Trade and Industry Minister Darell Leiking and the prime minister’s economic adviser Dr Muhammed Abdul Khalid are the government officials on the council.

Other council members include former minister Rafidah Aziz, Permodalan Nasional Bhd chairman Zeti Akhtar Aziz, Public Bank Bhd managing director Tay Ah Lek, Majlis Amanah Rakyat chairman Dr Hasnita Hashim and Bursa Malaysia chairman Shireen Ann Zaharah Muhiudeen. – November 9, 2019.