It would be beneficial for Malaysia to remain aligned to all mega economies of the world, Najib says

By P PREM KUMAR & DASHVEENJIT KAUR / Pic By MUHD AMIN NAHARUL

Malaysia has proposed to accelerate a free trade agreement (FTA) with the US, following the economic powerhouse’s exit from the Trans-Pacific Partnership Agreement (TPPA) in January.

Prime Minister Datuk Seri Mohd Najib Razak said the proposal was submitted during a high-level Malaysian delegation meeting with the US Congress during his working visit to Washington last September.

The TPPA framework could be used as a template to complete the FTA negotiations, which have been delayed since 2008, Najib told the Dewan Rakyat yesterday.

“The Malaysian delegation sat for a dialogue with the US Congress, during which we had expressed hope for the US to remain a member in the TPPA. We have also proposed for the TPPA model to be used for an FTA between the US and Malaysia,” he said.

Najib said an FTA would be vital to elevate the trade and investment ties between the two countries.

“Although the US has withdrawn from the TPPA, both the US and Malaysia remain committed to continuing bilateral dialogues to discuss issues via the Trade and Investment Framework Agreement,” he said.

Najib said during the visit, the delegation ensured that Malaysia was treated fairly by US President Donald Trump’s administration, who had been streamlining the US’ economic, trade and investment policies.

“As a result, we hope Malaysia — as a country that practises free trade — will not be affected if the US implements trade protectionist measures,” he said.

The Malaysian delegation had also briefed Trump on the issue of high trade deficit between Malaysia and the US, where Malaysia was seen as exporting more compared to imports.

“If Intel Corp manufactured products here and sent it to Vietnam, after which it was exported to the US by Vietnam, the US counts it as exports from Malaysia,” he said, adding that Malaysia’s current trade surplus with the US stands at US$5 billion (RM21.2 billion).

The US is Malaysia’s third-largest trade partner with total investments worth RM135.9 billion in 2016.

Meanwhile, Najib said Malaysia has not changed its foreign policy, refuting allegations that it has been favouring China recently.

He further said that as a trading nation, it would be beneficial for Malaysia to remain aligned to all mega economies of the world, which could attract more investments and better trade performance.

“Our foreign policy is always about fundamental principles, and we do not change it according to the situation,” he said.