KUALA LUMPUR (Jan 20): The International Trade and Industry Ministry is refuting ‎the study by well-known economist Professor Jomo Kwame Sundaram on the effects of the Trans-Pacific Partnership Agreement (TPPA), saying instead the trade pact will enhance transparency and good administration.

Ministry secretary-general Tan Sri Dr Rebecca Fatima Sta Maria said Jomo’s study was focused on trade and investment and did not look at the other benefits Malaysia would enjoy.

“TPPA is not only related to trade and investment, there are other elements in the trade deal that promote transparency and good administration.

“It also raises labour standards and protects the environment,” Rebecca said in an exclusive interview with The Malaysian Insider.

Rebecca also said Malaysia has advanced through trade and to reject its contributions would be unfair.

“You cannot say that trade is a bad thing. For a developing country dependent on trade, to say that it does not give any benefits is hard to swallow.”

‎Jomo, in revealing the study by the United Nations, said TPPA would effectively widen the inequality gap and result in a higher number of people losing jobs within a 10-year span among participating countries.

Commenting on Jomo’s study on the Global and Environmental Development (GDAE), Rebecca said it was unfair to dismiss the country’s ability to compete with other developing nations.

“The GDAE paper is only in US, Japan, Mexico, Australia, Canada and New Zealand as stand-alone units.

“Placing Malaysia with other developing nations may underestimate the potential benefits for Malaysia.”

According to Rebecca, the forecast that 771,000 jobs will be lost involves all participating ‎countries in the trade pact and not only Malaysia.

“The forecast that 771,000 jobs will be lost involves all TPPA countries, with an estimated 600,000 losing their jobs in the US, Japan and Canada.

“There is no forecast on job loses shared with Malaysia.”

Apart from that, allegations that only big companies would benefit from the trade pact was inaccurate as there were sectors where salaries would increase, she added.

She said engagement with stakeholders in Malaysia has also highlighted that labour cost could potentially increase in certain sectors, which mitigated the inequality issues.