Sunday, September 1, 2013

Disadvantages of TTPA to Malaysian Economy

A perspective from a former Malaysian Prime Minister

The main disadvantages of TTPA to Malaysia are;

1. Incapability of fully control of the trade value by the government and as an impact, the income will be leach out. Not enough money to sustain the economy then end up to fully import all the materials needed for domestic usage

2. Not able to control the currency. The RM will be locked at lower, always lower than USD during the trade. Thus its unfair. Then the risk will be, the RM may fluctuated and will be set and sell at lower price, which Malaysia gov. is not able to tight the currency under TTPA agreement.

3. TPPA indeed invites billion of FDI, however, the local gov will only could fore see is as a short term profit. The majority of the profit will be absorbed by the company under TTPA under long run agreement and Malaysia economy will be slowly sufffered from this as what Colombian and Peru government faced.