Malay business council warns of 'economic tsunami'

The Malay Economic Action Council (MTEM) has warned that a new tsunami - an economic one - will hit Malaysia soon due to the Trans-Pacific Partnership Agreement (TPPA) that is expected to conclude by October, and will leave local businesses vulnerable.

"This new trade regime is a tsunami that will land in Malaysia, far greater than the political tsunami that just happened," warned MTEM chief executive oficer Mohd Nizam Mahshar.

Mohd Nizam (left) said, during a press conference in Kuala Lumpur, that the free trade agreement will have far-reaching impact on the country's local businesses and cost of living.

"An example, we estimate cost of medication will increase from RM200 to RM1,200 because generic medication can no longer be used as intellectual property rights for pharmaceutical companies will be extended under the agreement," he said.

He said among the other impacts include the local rice industry being overwhelmed by the influx of heavily subsidised American grain and wheat, local professional services such as lawyers and architects will face international competition, Malaysia becoming vulnerable to international lawsuits from multi-national corporations and preferential treatment for local companies is not allowed.

"The agreement may also render Prime Minister Najib Abdul Razak's 1Malaysia products such as Kedai Rakyat 1Malaysia illegal as it can be seen as a trade barrier because it gives subsidised rates to products - this can be a preferential treatment and violates the TPPA, Malaysia could be brought to the international court," he said.

He added that the use of a "negative list" means that the agreement will cover all industries unless it is exempted in a special list, as compared to a "positive list" where only industries listed will be covered.

'Lack of transparency'

Mohd Nizam further hit out at the government for lack of transparency in the negotiations of the trade agreement.

He declared MTEM will embark on a campaign for all MPs and state assemblypersons on both side of the divide to make clear their stance on the agreement.

"We did not know the content of the negotiations until we saw leaked documents uploaded on the Internet.

"We have very little time left, the 17th negotiation will start on May 15 to 24, in Peru and in one or two more negotiations, it will be completed... the TPPA is planned to be signed and officially launched in October 2013, most likely in Brunei," he said.

Mohd Nizam pointed out that several nations involved in the free trade agreement were already protesting but it had fallen off the radar in Malaysia.

According to the Malaysian International Trade and Industry's (Miti) website, the TPPA is a free trade agreement involving eleven countries, namely Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam.

It said that the TPPA is aimed towards deeper integration within the Asia Pacific region and would allow Malaysia to better engage the US.

"MTEM, together with its 50 NGO members representing half a million local enterprises, strongly urges the government to withdraw further TPPA involvement until a full accounting and cost-benefit analysis has been conducted, proper and meaningful public consultation and presented to parliament.

"The TPPA must be decided by the people of Malaysia, not by secretive bureaucrats," said Mohd Nizam.