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KUALA LUMPUR – The government is very much committed to Malaysia’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), said International Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
In an interview with CNBC this morning, he replied to a question on whether there would be a re-evaluation of the 11-member trade deal by saying Prime Minister Datuk Seri Anwar Ibrahim himself had signed all the necessary administrative agreements to ensure that exports and imports can continue under the ratified agreement.
“There were obviously some issues that were raised by various groups and we have addressed that by taking a number of actions to mitigate some of the concerns, so we are very much committed to participating in it,” he said on the CPTPP, which came into effect in Malaysia on November 29 last year.
Malaysia on strong footing to attract quality investments
The minister also said Malaysia’s economy is on a strong footing to attract quality investments, despite remaining challenges due to global economic uncertainties.
China’s move to reopen its borders next week bodes well for Malaysia, as it is Malaysia’s largest trading partner, he added.
“The move will help our exports and economy. Domestically, efforts focusing on environmental, social, and corporate governance (ESG) principles in key sectors, enhancing the ease of doing business, and moving up on the value chain in sectors that we are strong in will also help cushion the impact of global economic headwinds.
“Malaysia is forecasting 4% growth in 2023. Our (growth) numbers are looking good, inflation is at 4% and the unemployment rate is at 3.6%,” he said.
Tengku Zafrul added that Malaysia is expected to register gross domestic product (GDP) growth of 8.0-9.0% in 2022.
For the first nine months of 2022, the nation’s economy expanded by 9.3%, he said, adding that the country registered 14.2% GDP growth in the third quarter of 2022 amid robust domestic and external demand as well as an improved labour market.
During the interview, the minister also noted several possible concerns that could affect global economic growth prospects, namely monetary and fiscal tightening, global tensions which disrupt supply chains such as the Ukraine-Russia war, as well as exporters’ capacity in meeting ESG market demands.
Ringgit to strengthen further
When asked if the worst is over for the ringgit, which depreciated by 6% in 2022, Tengku Zafrul said he is optimistic that the local note will continue to strengthen in 2023, given Malaysia’s growth forecast for the year.
“I think the key point here is what is going to happen to the US dollar. From my point of view, I think the (US) dollar has reached a comfortable level,” he added. – Bernama, January 5, 2023
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