Tengku Zafrul says the CPTPP was a good beginning for companies to gain access into markets in each country from the aspect of tariffs and accessibility. – Bernama photo
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 through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the CPTPP was a good beginning for companies to gain access into 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 media covering Prime Minister Datuk Seri Anwar Ibrahim’s working visit to UK.
Tengku Zafrul said the impact of the CPTPP on bilateral relationships between both countries was discussed when Anwar met his counterpart Sir Keir Starmer on Jan 15 here.
Malaysia ratified the CPTPP in October 2024, joining Peru, Japan, Singapore, Chile, New Zealand and Vietnam in ratifying the agreement, while UK joined last 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, 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 (JETCO) meeting to explore ways to increase bilateral trade and investment.
On future prospect of investment from 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 RM5 billion,” he added.
Tengku Zafrul said potential investors were keen to hear from the prime minister himself the situation in Malaysia, and the policies under his administration.
During Anwar’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, UK.
He also launched Tenaga Nasional Bhd’s 102 megawatt (MW) Eastfield and Bunkers Hill solar farms, as well as visiting the Battersea Power Station, which is 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 added.
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
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