July 12th, 2013 by Hafiz Noor Shams
I have previously highlighted the cost of Malaysia not participating in the Trans-Pacific Partnership, which is a proposed free trade agreement among 12 countries across the Pacific. The cost comes in the form of trade diversion. I have only mentioned the qualitative aspect however. While it is good to know that, having quantitative assessment of the TPP will provide a greater case for joining, or not joining for that matter. Indeed, Pakatan Rakyat as well as the anti-TPP camp are demanding the goverment to release a cost-benefit analysis of the TPP. I think that is fair.
Well, they and all of us are in luck.
Inkyo Cheong of Asian Development Bank Institute recently published a working paper that comes close to a CBA. In the paper, the author does provide the impact on GDP of various countries:
For Malaysia in particular, the implementation of the TPP is projected to increase the GDP by 0.7% (see the TPP12 column). As you can see, Malaysia is expected to be one of the biggest winners of the TPP.