“For a fair comparison between the studies done by the UN, the World Bank and PwC Malaysia, the government would need to investigate their assumptions in full,” the ministry said in a statement today.

MITI said this in a written response to issues raised by former Senior UN Official, Prof Dr Jomo Kwame Sundaram recently that the TPPA would only result in modest economic gains.

It said Malaysia could not afford to rely solely on the projected results of any economic model in planning the country’s future, as different economic models used would result in different projected outcomes.

“Nobody can predict [the future] with any degree of certainty,” the ministry said.

However, it said trade and foreign investment played an important role in the country’s economic growth and transformation since independence.

“We believe these two factors will continue to play an important role in Malaysia’s economic development and modernisation.

“The government would like to reiterate that the benefits of participating in the TPPA outweigh the costs,” MITI said.

On Jomo’s assumption that the TPPA may lead to job losses, MITI said increased automation was expected to happen under the trade pact as the volume of trade grows.

“This is precisely the objective of the government, which is to increase capital input, move up the technology ladder, and attract higher quality foreign direct investment,” it said.

The ministry noted that Jomo’s arguments made it sound as though an open economy with higher trade activity was a negative progression.

“This runs contrary to the views of most economists, including those of the UN,” it said.

MITI also noted that provisions under the TPPA Labour Chapter, which promotes stricter labour laws, would help protect the welfare of workers.

– BERNAMA