LONDON, Jan 18 — Malaysia can expect an increase in investment and trade with the United Kingdom (UK) as both countries will have a free trade agreement for the first time via the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the CPTPP was a good beginning for companies to gain access to markets in each country from the aspect of tariffs and accessibility.
“This (CPTPP) will certainly encourage our companies to export goods and services to the United Kingdom,” he told the Malaysian press covering Prime Minister Datuk Seri Anwar Ibrahim’s working visit to the UK today.
He added that the CPTPP's impact on bilateral relationships between both countries was discussed when Anwar met his counterpart Keir Starmer on Wednesday (January 15).
Malaysia ratified the CPTPP in October last year, joining Peru, Japan, Singapore, Chile, New Zealand, and Vietnam in ratifying the agreement, while the UK joined in December.
CPTPP is an Asia-Pacific trade bloc made up of 11 countries plus the UK. The 11 original members are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
On Thursday (January 16), Tengku Zafrul and UK Minister of State for Trade Policy and Economic Security Douglas Alexander held the inaugural ministerial-led Joint Economic and Trade Committee meeting to explore ways to increase bilateral trade and investment.
On future prospects of investment from the UK, Tengku Zafrul said more companies are looking to venture into Malaysia or increase their investments there.
“We managed to get RM11 billion in potential investments during the Prime Minister’s visit here.
"The biggest amount is for data centres, with one company wanting to further invest RM7 billion,” he said.
Potential investors were also keen to hear from Anwar himself about the situation in Malaysia and the policies under his administration.
During the Prime Minister’s visit, he attended a roundtable meeting with captains of industry and Invest Malaysia, as well as launching YTL Group’s £2 billion (RM11 billion) housing development and arena north of Bristol.
Anwar also launched Tenaga Nasional Bhd’s 102 megawatt Eastfield and Bunkers Hill solar farms, as well as visiting the Battersea Power Station, Malaysia's largest investment involving public funds in Europe.
“These are private investments. Yet they are expected to bring tremendous benefits to Malaysia through profits, dividends and also imports of goods and services from Malaysia for their projects here,” he said.
The UK is Malaysia’s fourth largest trading partner in Europe, with total bilateral trade amounting to RM15.3 billion (US$3.34 billion) in the first 11 months of 2024.
— Bernama
