KUALA LUMPUR: The Malaysian Plastics Manufacturers Association (MPMA) has urged the government to expedite the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The association said the ratification would open up greater export opportunities to CPTPP countries, including new market access to Canada and Mexico.

MPMA president Datuk Lim Kok Boon said Malaysian plastics manufacturers stand to gain from the elimination of tariffs and new market access for plastics products.

Lim said the recent cost and benefit analysis (CBA) studies released by the Ministry of International Trade and Industry (MITI) had shown favourable outcomes for the manufacturing sector, including plastics.  

"The CBA studies show that CPTPP countries account for 28.2 per cent or RM11.2 billion of Malaysian plastics exports (both primary and non-primary forms) in 2019.

"Presently, Malaysian exports face tariffs of up to 15 per cent, which adversely affects the competitiveness of Malaysian manufacturers for crucial products exported to CPTPP countries such as plastic films and sheets.

"With CPTPP, these tariffs will be eliminated by 2034 across all CPTPP countries," he said.

Meanwhile, Lim said the CBA studies also show that CPTPP can widen the sourcing channels for raw materials at competitive prices, which will benefit the plastics sector.

He said the demand for plastic finished products, including halal-certified plastics, is expected to increase in coming years, driven by greater demand for food and beverage packaging.

"There are also growing applications in the construction sector.

"The elimination of tariffs for plastics raw materials under the CPTPP is expected to reduce the cost of these materials, which would alleviate the cost pressure faced by plastics manufacturers in recent years due to increases in energy and labour costs," he said.

The CBA has clearly shown that the CPTPP will give the Malaysian plastics industry greater market access and provide a platform for companies to upgrade their products and services and enhance their competitiveness.

Based on the favourable benefits that would accrue to the Malaysian plastics industry, which would positively impact the Malaysian economy, MPMA would like to appeal to the government to ratify the CPTPP as soon as possible.