By AFIQ AZIZ / Pic By AFIF ABD HALIM

COST and benefit analysis should be executed before the government can move forward with the Trans-Pacific Partnership Agreement 11 (TPPA-11) negotiations, following the departure of the US from the pact earlier this year.

Malay Economic Action Council (MTEM) CEO Ahmad Yazid Othman (picture) said Malaysia’s main intention to be part of the previous deal was to penetrate the US market, and now that the game has changed, a new analysis should be initiated.

An earlier audit report stated that more than 90% of the economic gains are attributable to lower non-tariff measures (NTMs).

“It is the duty of the government to carry out another detailed analysis, before it commits to participate in the TPPA-11 without the US or deregulate and remove the so-called NTMs,” he said in a statement yesterday.

A new analysis would allow certain deregulations or the removal of irrelevant measures that are only related to the previous pact.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed in July said that he hopes the remaining 11 TPPA members could reach an agreement at the Asia-Pacific Economic Cooperation meeting in November, stating that his team has fought hard for a fair deal that is in the best interest of the country.

Malaysia, the US and 10 other countries inked the TPPA on Feb 4, 2016, before US President Donald Trump announced his country’s withdrawal, claiming the deal would harm the nation’s economy and take jobs away from Americans.

Ahmad Yazid said it is essential that the government conserve all potential business opportunities to local companies, especially amid the challenging state of economy and reduced national revenue due to depressed commodity prices.

He said MTEM has estimated the total value of government-owned and state-owned enterprises (SOEs) procurements to be about RM400 billion by 2018.

“Under the (original) TPPA government procurement chapter, we will eventually be foregoing more than 70% government contracts to the country members, while under the SOEs chapter, only 60% of the procurement will be opened to foreign participation,” Ahmad Yazid said.

He said the government-initiated projects have been proven to be an effective fiscal measure to stimulate the Malaysian economy during the past economic crises such as in 1987, 1998 and 2008.

He added that there is a clear opportunity for Malaysia to gain more from TPPA-11.