Cross-border mobility a key benefit for Malaysian businesses under CPTPP: MITI

Potential collaborations among CPTPP countries can enrich businesses’ pool of expertise, therefore creating a diverse Malaysian workforce.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will allow professionals of participating countries to move across borders, therefore allowing businesses and SMEs in Malaysia to reap its benefits, as affirmed by the Ministry of Malaysia's Ministry of Investment, Trade and Industry (MITI).

In statement shared in a Facebook post, Minister of Investment, Trade and Industry Tengku Zafrul Aziz said cross-border mobility among these countries can be facilitated through mutual recognition agreements (MRA), after which different licensing and qualification procedures will be recognised by the relevant authorities or professional service bodies of the respective CPTPP countries, once the MRA has been developed.

Such arrangements would make way for potential collaborations with professionals from other CPTPP countries, thus enriching businesses’ pool of expertise, allowing productive transfer of knowledge, talent development, and the creation of a diverse Malaysian workforce, the Ministry added.

Apart from the above, Minister Zafrul also noted the following additional benefits businesses may reap from the CPTPP:

• Access for the export of Malaysian business and professional services, inclusive of industries such as engineering, architecture, taxation, legal, and accounting. There are also prospects in computer-related services in Australia, Chile, and Mexico; environmental services in Australia, Canada, New Zealand and Mexico; construction in New Zealand and Mexico, and financial services in Peru.
• CPTPP’s e-commerce provisions will help to reduce trade barriers, hence enabling Malaysian businesses and its consumers to benefit from easier access to online trading of goods and services with other CPTPP countries.
• The CPTPP’s provisions for Government Procurement will give Malaysian businesses equal opportunities to bid for government projects in other CPTPP countries.
• SMEs will be able to capitalise on the benefits of the CPTPP through the integration into the global supply chain.
• Businesses & SMEs will be given protection on intellectual property rights (IPR), allowing SMEs to overcome any obstacle in the use of e-commerce.
• CPTPP countries have also committed to eradicate bribery and corruption in international trade and investment.
• Capacity building and collaboration will foster relationships between different businesses and SMEs so that industries can learn from each other and share their best practices.

The Minister urged Malaysian businesses and SMEs to "fully utilise the CPTPP, which promotes trade and investment by facilitating numerous multilateral benefits through various enablers."

Since its implementation on 12 July 2023, and the signing of the UK Accession Protocol on 16 July 2023, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CTPTPP) currently provides a market of 500mn people, while collectively generating 15.4% of global GDP.

As highlighted by MITI, the CPTPP has enabled Malaysian exporters and producers to enjoy preferential tariff treatment via the CPTPP Certificiate of Origin (CO).

Notably, the CPTPP has helped to boost Foreign Direct Investment (FDI) into the country, reaching RM914.9bn at the end of Q3 2023.

Looking ahead, MITI has expressed to work together with the CPTPP countries to address current affairs such as supply chain resilience, decarbonisation, emerging technologies & AI.

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Lead photo / 123RF