8 COVER STORY n Malaysia has strong selling points, including

and CPTPP, binding it closer to its The result is an increasing brain At the same time, we are seeing Asia-Pacific partners (including China drain, with many Malaysians moving more regional free trade agreements for the former) by adopting common to Singapore and Australia, among (FTAs), such as the Regional JAIDEEP SINGH rules of origin for exports and others, for better pay. [...] The government has introduced the (RCEP) and the Comprehensive and Institute of Strategic Also in 2022, Malaysia joined the New Industrial Master Plan 2030 Progressive Trans-Pacific Partnership & International Indo-Pacific Economic Framework, a (NIMP 2030) to try to address these (CPTPP), which aim to reduce tariffs Studies Malaysia US-led initiative to promote supply challenges. [...] tive to defence, is of tremendous at least since the 2018 US-China tariff points, including In the first place, both the RCEP and geoeconomic importance.war. [...] The geopolitical shifts provide an an attractive alternative due to its a favourable The Federation of Malaysian invaluable impetus for Malaysia to strategic location and general Manufacturers reported that 77% of transform its model of economic non-alignment in the tussle between investment local firms were not using these growth. [...] Second, the purported will continue to languish in the mid- The country also offers a favoura- to fully benefit economic benefits of FDIs dle-income trap while our fast-grow- ble investment climate, ranking sec- from FTAs are not guaranteed without ing neighbours leave us in the dust.ond in South-East Asia in the World Competitiveness Ranking, the Economic Complexity Index and the Ease of Doing Bu.