FTAs create a conducive environment for investments by providing protection to investment and enhancing Malaysia’s standing as an attractive investment destination. This will strengthen investor confidence and translate into potential employment opportunities and provide more choices at competitive prices for the consumer.
Contrary to arguments put forth by some critics, FTAs prompt local companies to work harder and become more efficient to stay competitive. The concessions accorded under FTAs are normally granted in stages over a period of time; long enough for the domestic producers to adapt their production processes to meet the increased competition in the domestic market.
Learn more about FTAs by reading “FTAs – Creating An Environment For Fair Trade ”. Also featured is the Malaysia-New Zealand FTA which helped increase the confidence of a New Zealand based company to invest in Malaysia and how the Malaysia-Japan Comprehensive Economic Partnership Agreement made Japan the largest investor in Malaysia in 2009. Other FTA engagements are also in the pipeline. — A piece by Tan Sri Abdul Rahman Mamat, Secretary General of MITI.