TAIWAN is the 18th largest trading member of the WTO and the seventh largest investor in the Asia-Pacific region. Nevertheless, it is still looking to forge closer ties with the international economy, particularly to take part in the Comprehensive Progressive Trans-Pacific Partnership (CPTPP).
Malaysia and Taiwan enjoy close trade ties. Taiwan is the fourth largest foreign direct investment source in Malaysia with accumulated investment totalling US$12.8 billion. It is also Malaysia’s sixth largest trading partner with the volumes of export and import in 2018 reaching US$10.6 billion and US$9.3 billion respectively. Malaysia is Taiwan’s seventh largest trading partner.
More than 1,750 Taiwanese firms in Malaysia rely heavily on a stable supply of materials, equipment, and key components from Taiwan. More than 75% of Taiwan’s exports to Malaysia are semifinished products.
Taiwan’s inclusion in the CPTPP can eliminate tariffs on components and encourage more Taiwanese companies to choose Malaysia as an investment destination and Asean production base. This will create more job opportunities, boost its exports and help connect Malaysia with the global value chains of ICT and other hi-tech industries via more investment and cooperation.
Taiwan’s inclusion in the CPTPP will make it easier for businesses from both economies to strengthen cooperation in Malaysia’s national key economic areas, especially in such sectors as energy financial services, electrical goods and electronics, and medicine and healthcare. Taiwan’s inclusion in the CPTPP will significantly benefit both Malaysia and Taiwan.
Jack Su
Senior Adviser
Taipei Economic and Cultural Office in Malaysia
