Minister: Major GLCs need protection under TPPA

State-owned firms such as Petronas and Malaysia Airlines Berhad (MAS) being subjected to certain "disciplines" under the Trans Pacific Partnership Agreement (TPPA), if signed, would be detrimental to national interests.

International Trade and Industries Minister Mustapa Mohamed said today that despite arguments that allowing state-owned enterprises (SOEs) to be subjected to international disciplines such as those in TPPA would be healthy for competition, the government considers such a move to be against national interests.

"Despite the arguments, the government’s position is that we need to protect our national interests, by ensuring the likes of Petronas, MAS, and Khazanah are not subjected to such disciplines," he added during a media briefing session on TPPA today.

The SOE is one the chapters that Malaysia is having reservations about in the TPPA negotiations, and have asked for a carve out (a temporary delay in implementation) in the chapter.

Mustapa said that he hoped the TPPA negotiations could be wrapped up by the end of 2015.

Mustapa, in outlining Malaysia's reservations on certain parts of the TPPA, stressed again that the agreement is far from being concluded despite the impending visit of US president Barack Obama at the end of the month.

 

"When it comes to market access, we are still not satisfied with the negotiations," he said.

 

He also said that Malaysia "have more issues compared to other countries" when it comes to the agreement, for which negotiations have taken place over the past four years.

 

"However, if we are not in the TPPA, the assumption, the possibility, is that we would have our credibility affected, and also affect the investor perception," he added.

 

He said that participating in TPPA, Malaysia can "determine the future" for international trade.

 

"Our Malaysian companies venturing overseas will also be affected," he said.