by GLORIA HARRY BEATTY
THE Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) between Malaysia and the UK is projected to boost investment and trade relations for both nations.
The agreement will be the first trade agreement (FTA) between both countries and will enter into force for the UK on Dec 15, 2024.
According to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, the UK remains a strategic trading partner to Malaysia, with total trade reaching RM14 billion in the first 10 months of 2024.
“Moving forward, with both countries in the CPTPP, I am confident that these numbers will improve, through increased Malaysian exports of, for example, sustainable palm oil, aerospace parts, oil and gas, renewable energy, environmental products, electrical and electronics, lifestyle products, as well as British exporters of machinery, pharmaceuticals, chocolates and confectionaries, and high-tech goods.
“Furthermore, UK exporters can also leverage on the 16 FTAs that Malaysia has ratified, including the Regional Comprehensive Economic Partnership and many others,” he said today.
Through the agreement, 94% of tariffs will be eliminated between the UK and Malaysia throughout the implementation period.
With the UK joining the CPTPP, acting British High Commissioner David Wallace noted that the combined GDP of the CPTPP members has increased from over £9 trillion (RM50.87 trillion) to around £12 trillion – or from around 12% to around 15% of global GDP, based on 2023 figures.
The UK will be the second-largest member behind Japan, increasing the GDP of the bloc by around 25%.
With a market of 68 million consumers and the sixth largest economy in the world, he pointed out that the UK is the second largest economy in the grouping, making it an attractive market for Malaysia and all CPTPP countries.
“Joining this existing trading group means that over 99% of current UK goods exports to CPTPP members are eligible for tariff-free trade and it means lower tariffs on CPTPP exports to the UK.
“UK and Malaysian businesses will be operating more on a par with local firms. Red tape can be cut and data localisation requirements removed,” he said.
