THE government expects to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by mid-next year after it finalises the cost benefit analysis (CBA) for the partnership.
International Trade and Industry (MITI) minister Datuk Seri Mohamed Azmin Ali (picture) said the government had to conduct another round of the CBA due to the pandemic that disrupted the processes involved.
“We had conducted another CBA this year since there was a global pandemic. We had to look at the impact of the free trade agreement we have signed, the CBA will be completed by year-end.
“Once it is submitted, we will get a new mandate from the Cabinet before we proceed with the internal process. We expect everything to be completed by mid next year,” he said after officiating the Malaysia Aerospace Summit 2021 (MyAero’21) in Kuala Lumpur yesterday.
MITI had previously stated its plans to seek a mandate from the Cabinet on the ratification of the CPTPP by year-end or the first quarter of 2022 (1Q22).
Currently, as a signatory, Malaysia does not enjoy preferential tariff rates offered and is not allowed to block any consensus made by parties in all CPTPP meetings.
Meanwhile in his keynote address at the event, the minister said the aerospace industry is estimated to reach RM30 billion by 2025.
He noted that the 12th Malaysia Plan charts the direction for the advancement of the aerospace industry as a strategic sector that will realise the nation’s aspiration to be a global powerhouse.
“In order to uplift the aerospace ecosystem in Malaysia, it is imperative that we enhance value-creation across the whole value chain rather than just becoming a part of it.
“In this regard, Malaysia’s small and medium-sized enterprises (SMEs) have been formidable in a narrow range of aerospace products and would therefore require to move up the value chain into product and process designing,” he said.
With the recovery in the global economy increases demand for air travel as well as logistics, Mohamed Azmin said original equipment manufacturers such as Airbus, Rolls-Royce, Collins Aerospace and Spirit AeroSystems have declared their intention to increase procurement from more competitive sources.
Large local players are taking advantage of this development and will require a strong SME supply chain to support local value creation, he said.
“The global aerospace landscape is accelerating its reforms to meet aggressive carbon footprint reduction aspirations, where the environmental, social and governance agenda becomes a prerequisite to participate in the industry.
“Transforming with this requirement provides opportunities for the Malaysian supply chain to be future-ready for other similar global industry requirements,” said Mohamed Azmin.
He strongly urged local SMEs to fully capitalise and respond to the new trajectory towards environmental, social and governance transformation.
The adoption of advanced technology and digitalisation would be pivotal in achieving a sustainable supply chain, said Mohamed Azmin, as the transformation is not only limited to the companies themselves but also applies to supplies, service and utility providers.
MyAero’21 brings together 500 participants of the aerospace industry community to discuss the way forward for the Malaysian aerospace industry.
It is spearheaded by the National Aerospace Industry Coordinating Office under MITI and is organised in collaboration with The Institution of Engineers Malaysia.
Source: https://themalaysianreserve.com/2021/11/10/govt-expects-to-ratify-cptpp-by-mid-2022/