Malaysia won’t lose out to Vietnam: Council
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Malaysia will not lose its competitiveness to Vietnam even though it does not ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Malay Economic Action Council researcher Mohd Effuan Aswadi Abdul Wahab said there was no significant proof that there would be an increase in investment once a country signed a free trade agreement (FTA).
“It is said that many companies, especially manufacturing firms will move to Vietnam after the country has ratified the CPTPP as the trade agreement is being seen as opening doors for companies to go to countries which have ratified the FTAs. This is certainly not true,“ he said.
He said investors would look into various factors, including political stability, better infrastructure, skilled workers and rule of law, before making any investment decision.
“Investors will certainly look into Malaysia’s economic policies before they make any investment decision.
Questions & Answers
Q.What is the key argument against Malaysia losing competitiveness to Vietnam due to the CPTPP?
What is the key argument against Malaysia losing competitiveness to Vietnam due to the CPTPP?
A Malay Economic Action Council researcher states there's no significant proof that signing a free trade agreement directly leads to increased investment. He argues that companies will not automatically move to Vietnam simply because it ratified the CPTPP.
Q.Which factors do investors prioritise when deciding where to invest?
Which factors do investors prioritise when deciding where to invest?
Investors consider several factors beyond just free trade agreements. These include a country's political stability, the quality of its infrastructure, the availability of skilled workers, and adherence to the rule of law. They also examine economic policies.
Q.Who made the claims about Malaysia's competitiveness and investment factors?
Who made the claims about Malaysia's competitiveness and investment factors?
Mohd Effuan Aswadi Abdul Wahab, a researcher for the Malay Economic Action Council, made these claims. He disputed the idea that Malaysia would lose out to Vietnam without ratifying the CPTPP.
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