Taiwan stands as the 18th largest WTO trading member and also as the 7th largest investor in the region of Asia-Pacific. Yet, it is still trying to forge closer bonds with the international economy, especially for participating in the Comprehensive Progressive Trans-Pacific Partnership (CPTPP).
Malaysia and Taiwan have close trade ties. Taiwan is the 4th largest source of foreign direct investment in Malaysia having an accumulated investment that totals 12.8 billion U.S. dollars. It is also the 6th largest trading partner of Malaysia with the volumes of import and export in the year 2018 reaching 9.3 billion U.S. dollars and 10.6 billion U.S. dollars respectively. Malaysia is the 7th largest trading partner of Taiwan.
Over 1,750 Taiwanese firms located in Malaysia are depending heavily on a stable supply of equipment, materials, and major components from Taiwan. Over seventy-five percent of the exports of Taiwan to Malaysia are the semi-finished products.
The inclusion of Taiwan in the CPTPP could eliminate the tariffs on some components and furthermore, encourage more Taiwanese companies for opting Malaysia as their investment destination as well as Asian production base. This shall raise greater job opportunities, enhance its exports and also help in connecting Malaysia with the worldwide valued chains of ICT as well as other hi-tech industries through more cooperation and investment.
This inclusion of Taiwan in the CPTPP shall make it easier for the businesses from both of the economies for strengthening their cooperation in the national chief economic areas of Malaysia, especially in sectors such as energy financial services, medicine and healthcare, and electrical goods and electronics. Taiwan’s involvement in the CPTPP shall greatly benefit both Taiwan and Malaysia.