AIW 364 INTERNATIONAL TRADE FRAMEWORK

SEMESTER II, 2023

Lecturer Name : Dr. Shankar Chelliah

1. Ameerul Faydhi bin Idrus 157934 Fay

2. Esha Kaur A/P Jaswent Singh 157514

Esha
3. Muhammad Izzat Mirza Bin Mohd Nasir 158669 Izzat

4. Xu Xiyue 155732
Xu.
 Table of Contents

No Details Page

1.0 Introduction 1-2

2.0 How CPTPP enables wider market access? 3-5

3.0 How can Malaysia reach comparative advantage in 5 6-10

sectors?

4.0 “Harmonization of customs rules’ 11-12

5.0 Positioning of Malaysia to meet environmental 13-15

standards in the five sectors

6.0 Conclusion 16

7.0 References
 Introduction

The Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP)
or the TPP 11 is the latest trading block which was signed by 11 countries on the 8th of March
2018 in Santiago, Chile. Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, and Vietnam are among the 11 countries involved in this agreement.
This trade agreement was formerly known as the Trans-Pacific Partnership (TPP) which included
the United States of America. The TPP deal was officially commemorated on the 4th of February
2016, but it was never implemented since the newly elected US President Donald Trump pulled
out from the accord the third day he started his duties as the President. Many academics
predicted that this would be the end of the pact since without the United States’, the TPP’s
proportion of global GDP would fall from 38% to 13.5%. However, the 11 countries present,
driven mostly by Japan, stunned experts and pushed through the agreement, making it the
world’s third-largest trading bloc by GDP.

CPTPP deal is perceived as a high-quality trade deal as it involves deep fast tariff cuts
which includes a lot of areas such as agricultural, meat, seafood, dairy products, automotive and
info communication technology. Consumers are the biggest winners in this trade deal as products
or services which are traded among these 11 countries are traded with a relatively lower price
which causes the goods or services price to be lower in the country. The 11 CPTPP countries
anticipate large economic gains, with New Zealand expecting a $800 million to $2.9 billion of
increment in its GDP while Canada expects a $3.2 billion of increment. Agricultural and food
producers such as Mexico, Australia and New Zealand are also expected to benefit significantly,
as the agriculture sector is typically excluded from trade deals.

The benefits of the CPTPP deal have piqued the interest of few countries to join this deal
such as the United Kingdom, China, Taiwan, Ecuador, Costa Rica and Uruguay. In January 2018,
the United Kingdom's government announced that it was considering joining the CPTPP to
encourage exports following Brexit, and that it had held initial negotiations with some of the
members. The United Kingdom has sent its application to enter the deal on the 1st of February
2021 and is still awaiting accession ratification since 31 March 2023. The government predicts
that this deal will boost the UK's GDP by 0.8% over 10 years. Apart from that, China, Taiwan,
Ecuador, Costa Rica and Uruguay have submitted the formal application form to be a part of this
trading deal. In addition, South Korea, Thailand, Philippines, Indonesia and Comumbia have
announced their intention to enter the CPTPP deal as well.

Malaysia, which is among the 11 countries in the CPTPP deal, has visioned that
indigenous enterprises will have potential to expand throughout Asia Pacific and even further
abroad through this deal. According to the Department of Statistics Malaysia (DOSM), in the
cost-benefit Malaysia has predicted that through its involvement in the CPTPP deal, it would
benefit Malaysia economy significantly through increment of gross domestic product to
US$655.9 billion in 2030. According to the Ministry of International Trade and Industry (MITI),
the CPTPP supports Malaysia’s economic growth and strengthens its strategic position. The
CPTPP trading eliminates 95% of export tax between the member countries giving Malaysian
enterprises with significantly increased global sourcing opportunities with Canada, Mexico and
Peru which were not included in the prior Free Trade Agreement (FTA). This indicates that
companies in other CPTPP countries will have quick access to the Malaysian market which
would allow Malaysia to get a wider choice of quality raw materials at lower prices. According
to the ministry, this will boost the country’s attractiveness as a destination for foreign investment.
 How CPTPP enables wider market access

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership

(CPTPP) is a trade agreement between 11 countries which aims to promote economic integration
and market liberalization. One of the most prominent way CPTPP deal enables wider market
access is through the tariff barriers reduction and facilitate trade among the member countries.
Tariff is a tax imposed on imported or exported goods that are traded between countries. Tariffs
can increase the cost of goods as the tax imposed rises the price of the goods and services.
Hence, almost 95% of tariff reduction among CPTPP member countries will enable products
produced and give better market access. This will also make the product and services able to
compete in the domestic market of exported or imported countries while increasing the
competition globally. For instance, tariffs were lifted on cotton exports from Canada which
amounted to $2.1 billion. Reducing tariff barriers will also enable the countries to reach a larger
group of customers and increase its sales revenue which will then increase the net income of the
country and boost its economy at the same time. The importers of a nation will also be drawn
towards the goods and services or raw material from the nation they export their goods and
stimulate economic integration and cooperation among CPTPP nations. As an example, the
Malaysian petrochemicals industry will benefit as this will enhance a wider market penetration
opportunity. Apart from that, Mexico, Peru and Singapore have increased their imports while
Brunei and Singapore maximize their exports through the CPTPP deal.

Next, the CPTPP agreement enables wider market access by reducing non-trade
barriers among the 11 countries involved in the trade such as Technical Barriers to Trade (TBT),
Sanitary and Phytosanitary Measures (SPS) and also standardizing customs law. This will enable
an effective procedure to be imposed on the import and export of goods and services among the
countries involved. The customs law and regulations and procedures are available on the internet
which allows the country to get to know more about the country's customs law and prepare the
required document and get familiar with the procedures involved. Reducing non-trade barriers
will eliminate unnecessary arrival delays and ensure the shipments flow through ports in the
shortest time possible in order to comply with the customs procedures. In addition, there will be
a faster customs procedure for express delivery packages which will ensure that they will be
delivered within the time allocated. The CPTPP has robust anti-corruption and transparency
rules that acknowledges behind the border regulatory issues that may pose a cost factor towards
operational processes. The CPTPP also establishes rules for State-Owned Enterprises (SOE) that
would foster a fair system with regards to privately owned firms, while also encouraging
openness and solid business practices. This will urge governments to not give unfair advantages
to SOEs and regulate both private and SOE firms fairly.

CPTPP agreement can enable a wider market access by increasing Foreign Direct
Investment (FDI) in the member countries. Foreign direct investment is long term investment
made by a firm or government in a foreign entity. The CPTPP deal can help to attract more FDI
into the member countries that will help to facilitate the country’s economy as well. The CPTPP
deal which shares simpler and standardized rules for the member country allows companies to
set up their operations to the country even easier. The Malaysian government stated that
Malaysia’s involvement in CPTPP will help to drive medium to long term investment that would
open Malaysia’s domestic market to international investors with least amount of hindrance and
barriers. Furthermore, the improvement implemented in the domestic governance driven by the
CPTPP deal pledges will assist in increasing trust of international investors in Malaysia as a
trade partner and FDI destination. The CPTPP offers foreign investors strong safeguards and
national treatment, which might help stimulate FDI inflows, particularly in export-driven sectors
in poorer member countries. Vietnam saw a 7% increase in FDI inflows in 2019, the greatest
growth in ten years, led by South Korean and Chinese investors, while Malaysia saw a 3%
increase in FDI inflows in 2019, led by Japan. This would then increase the country’s economic
growth and GDP while creating new job opportunities for the citizens. The CPTPP deal has
made the member countries have a better and stronger connection between them and understand
each of their country's culture, tradition and customs better. This can also help to encourage FDI
in the member countries as the firms are aware of the consumer preferences in each country
before expanding their business.

Lastly, the Comprehensive and Progressive Agreement for Trans-Pacific

Partnership (CPTPP) enables wider market access through digital trading. Digital trading is a
business transaction supported by electronic media such as telecommunications and/or ICT
services that includes trading for both goods and services. Digital trading is not just limited to
products, it includes investments, online consumer protection, capacity building and so on.
CPTPP applies digital trading provisions such as non discrimination towards digital products,
domestic electronic transaction framework, paperless transaction and express shipment. CPTPP
member countries have agreed not to impose “localisation obligations'' that would force
corporations to create data storage centres or employ local computing facilities in CPTPP
country markets, giving businesses stability when making investment decisions. The phrase
"cloud computing" refers to a wide range of information-intensive services that can be delivered
through the internet. A pledge by CPTPP countries not to obstruct enterprises providing cloud
computing and data storage services strengthen Australia (one of CPTPP countries) capacity to
compete in major markets such as Japan, Singapore and Vietnam. This has provided new
opportunities and greater certainty for exporters. Digital trade also reduces many barriers that
have been imposed for trading between countries and also allows countries located further away
to build a business relationship with each other all thanks to the latest technology invented.
Owing to the evolution of the digital trading telecommunication industry, CPTPP countries
agreed on the importance of cooperation, including assistance for SME to overcome barriers of
digital trade.
 How can Malaysia reach comparative advantage in 5 sectors?

Malaysia definitely can be one of the dominant members of CPTPP through 5 sectors titled
electrical & electronic, plastics, chemicals, optical & scientific equipment and palm oil as the
competitive producer and exporter among the member countries. As CPTPP improves sourcing
channels for raw materials at competitive prices, Malaysia becomes the one of the main sources
for countries to obtain the raw materials connected to the mentioned sectors. So, how can
Malaysia improve and advance to reach a comparative advantage against other member countries
in these sectors?

Malaysia has been a presiding country in the Electrical and Electronic (E&E) industry. The
growth in the production over years is constantly increasing, from a production index of 100 in
2015 to 168.8 in 2022 (Statista., 2023). However, the nearby country which is Singapore has a
more advanced and developed E&E manufacturing industry than Malaysia. To be able to
compete in an advantageous position, Malaysia needs to strengthen the Research and
Development (R&D) department, also regional and global headquarters functions. The country
needs to strengthen the R&D department by encouraging investment to foster innovation in the
industry. Partnerships between industry players, provide incentives and promote collaboration
between research institutes and industry are some of the ways to strengthen the R&D department
of E&E industry. For example, The Post-School Finishing Programme in IC Design (PSFID)
designed to direct specialized talents towards satisfying the demands of the upstream activities of
the E&E industry. Programs like this will create long-term strategies to enhance the capability of
Malaysia in reaching the comparative advantage against Singapore. Malaysia also has an
impressive foreign investment occurrence in the E&E industry, demonstrating the country's
expertise and capacity to efficiently absorb foreign investments. However, the South East Asia
country needs to improve its overall regional and global headquarters functions. This is because
better headquarters will attract investors and clients while giving prestige to the host city. Thus,
increasing the revenue from the export sector of E&E industry. For example, a more
concentrated and centralized area of headquarters such as Penang are some of the factors that
attract foreign investors. As a result, foreign sources accounted for approximately 98.8% of total
investments in electronics manufacturing in 2021 and may increase in upcoming years
(Camarero, S., & Camarero, S., 2023a).

Moreover, Malaysia is a country specialized in the plastics industry, which makes the industry
well-established and supports the growth of many other important manufacturing industries.
With world scale resin manufacturing plants, it assures a stable supply of raw materials for the
petrochemical industry and assists Malaysia in yielding environment conscious packaging at
reasonable prices. However, the country needs to reinforce the plastic supply chains, also
enhance education and workforce skills in the yield of innovation of eco-friendly plastics.
Reinforcing the development of a robust supply chain will help build an efficient product line
ecosystem to manage the plastic industry (Camarero, S., & Camarero, S., 2023b). According to
data from the Department of Statistics Malaysia,In the eight months of 2021, revenue of
produced plastics climbed by 23% each year to RM 38.68 billion. The sales were influenced by
the export of plastics to international markets around the world. This achievement is the main
reason why reinforcement in supply chains should be applied. With more than 1,300 plastic
companies in the country, the efficiency of the product distribution will definitely increase the
productivity of the manufacturing. It will also improve the revenue circulation inside and outside
Malaysia, thus help Malaysia reach comparative advantages in the plastic industry. Based on
The Observatory of Economic Complexity, Malaysia exported around $1.16B in 2021, making it
the 17th largest exporter of raw plastic sheeting during the year. This means the demand for
plastic from the country is still high. However, the plastic sustainability programs done by many
countries may affect the industry. To encounter this problem, Malaysia needs to enhance the
education of plastic production and attract a broader pool of talent in the industry. For instance,
Thong Guan Industries Berhad, a local plastic converter, has developed nano-stretch film to
substitute inter stretch film, which is commonly used to wrap pallets and cargo. This great
innovation is the result of great knowledge and skills of plastic production. Adopting the
sustainability programs while improving the quality of the plastic will surely produce positive
outcomes for the plastic industry in Malaysia.

Chemical industries including oil and gas are Malaysia’s most prominent industries that help
maintain the economy of the country. Malaysia reaps the advantages of its closeness to the
region's substantial oil and gas deposits. The country is entitled to a consistent and plentiful
supply of feedstock, such as natural gas and crude oil, which are used as raw materials in
petrochemical manufacture. Petroliam Nasional Berhad (Petronas) maintains its position as
world’s strongest oil and gas brand and many more in Asian Oil and Gas Award 2022. However,
the decreasing of resources, the fluctuations of shares and the increasing size of the Malaysian
economy has brought many problems into the chemical industry (Onn, L. P., 2022). Among the
CPTPP members, Malaysia is one of the best countries in terms of oil and gas, or chemical in
general. However, the country still needs to maintain the high-end production technology of
petrochemicals and enhance the production of oleochemical products. Petronas has been leading
the world in advancement of production technology to produce petrochemicals. This has been
proven by many achievements won by the FDA owned company almost over 50 years in
operation. Malaysia needs to keep the momentum going as other countries are finding ways to
catch up to the standard. Companies such as Shell, Schlumberger, and Axxon Mobile are also
starting to build their bases in Malaysia to study from Petronas. The company also needs to avoid
having to face expertise shortages by allowing many students to study under its scholarship or
inside its own university. With the number of researchers and innovators, the company should be
able to keep leading the oil and gas industry for another decade. Besides maintaining the capacity
to produce oil and gas products, Malaysia is also required to boost exploration of new oil and gas
resources and production of new sustainability products. The country should facilitate increasing
investment in exploration efforts in Malaysia's territorial waters and onshore areas in order to
locate new oil and gas reserves. This may entail offering incentives and expediting regulatory
processes in order to entice domestic and foreign corporations to invest in exploratory projects
(Industrial Chemicals Environmental Management Standard - IChEMS - DCCEEW.). This action
will also help Malaysia maximizing the recovery from the existing resource fields. For example,
the government could utilize enhanced oil recovery (EOR) techniques to maximize recovery
from existing oil and gas assets. Encourage the use of cutting-edge technologies and best
practices to improve output and prolong the life of mature fields.

Furthermore, Malaysia is the number one exporter of palm oil among the CPTPP members. It is
said that the palm oil export is a significant contributor to the country's agriculture industry and
the estimated GDP from the plant-based products in 2021 is around RM34.79 billions
(Malaysian Palm Oil Council). However, Malaysia faces several challenges in increasing palm
oil exports internationally. This includes the ban from the European Union on palm oil products.
As reported by the International Sustainability and Carbon Certification, the ban on palm oil was
based on the aim to stop the deforestation of the rainforest mainly in Malaysia and Indonesia.
Thus, to achieve competitive advantages through the palm oil industry, Malaysia needs to
encourage sustainable palm oil production and tighten environmental rules and regulations.
Malaysia ought to emphasize sustainable palm oil producing practices. This involves fostering
responsible land-use planning, preserving high conservation value regions including peatlands,
and using best management practices to reduce adverse ecological effects. This will ensure a
long-lasting production of palm oil while preserving the nature of Malaysia, then nullify the ban
on the export products. Increased adoption of sustainable certification schemes, such as RSPO,
and encouraging smallholder participation in these programmes can assist drive industry
sustainability. This action can be realized by allocating funds to the research and development
sector, while creating more innovations to enlarge the palm oil industry. Malaysia also can
enhance the standards of palm oil cultivation to ensure that it complies with sustainable and
ecologically friendly practices (ISCC System). This includes enforcing anti-illegal deforestation
legislation, enhancing monitoring and enforcement procedures, and imposing harsher penalties
for violation. With all the regulations mentioned, deforestation can be reduced drastically and
creating a friendlier production to the environment. Clear norms and regulations can assist the
industry in moving towards more sustainable practices.

Last but not least, Malaysia has been blessed with a stable optical and scientific equipment
industry. The optical and scientific equipment industry in Malaysia had shown tremendous
growth and had an established foothold in the country as of September 2021. As part of its
economic diversification policy, Malaysia has made attempts to create high-tech businesses such
as optics and scientific equipment. Malaysia's government has put in place programmes and
regulations to encourage the expansion of high-tech sectors, such as tax breaks for enterprises
involved in optical and scientific equipment (GPC Gateway). These policies are intended to
attract investment, promote R&D, and boost the competitiveness of local industries. To reach a
comparative advantage, Malaysia needs to foster industry standards and certifications as
companies all around the globe require high quality products for the STEM industry. So, as the
manufacturer and supplier for the equipment, Malaysia must advocate adherence to international
quality standards and certifications in order to boost Malaysian competitiveness of goods in the
global market. This includes getting required product safety, performance, and reliability
certifications. This action can be done by encouraging engagement with foreign counterparts to
guarantee compliance with global standards and mutual certification recognition. Engage in
international forums and working groups to remain current on evolving standards and help shape
their evolution. Malaysia also requires the development of concentrated clusters of
manufacturing. The country should create specialized industrial clusters or zones centered on the
production of optical and scientific equipment. These clusters may connect industry participants,
suppliers, and supporting services together in one location, enabling collaboration, resource
sharing, and knowledge exchange. This action also helps ease the auditing and monitoring
process. By implementing systems for conducting regular audits and monitoring of certified
companies, the government could verify that standards are met on an ongoing basis (WTO). This
can involve periodic inspections, sample testing, and feedback systems to handle noncompliance
issues and keep certifications credible.
 Harmonization of custom rules
Custom rules or regulations are legal rules governing the import and export of goods and
the method of payment the goods are traded. It also includes law regarding taxes and customs
duties as well as restrictions imposed on customs. Malaysia classifies commodities according to
the Harmonized Tariff System. Any products which are traded in or out the country must be
classified using the Malaysian Customs tariff numbers. There are also additional procedures and
guidelines set by the Royal Malaysian Customs Department. For instance, the Customs (Rule of
valuation) Regulations 1999 is used in Malaysia for custom rules which is verified by the Royal
Malaysian Customs Department. The content of the rules includes interpretation and definition
of terms used during trading such as computed value, deductive value, identical goods, minimum
value, payable value, etc. Apart from that, the customs regulations 1999 also includes a section
for rules of valuation primarily for imported goods.

On the other hand, harmonization is defined as the action or process of establishing systems
or rules the same or comparable in multiple firms across multiple nations to ensure they work
simultaneously together. In this context, harmonization of customs rules is to ensure the customs
rules which are used while importing and exporting goods and services are standardized among
the CPTPP countries to facilitate trade and reduce technical barriers. This is because CPTPP is a
high-quality trade deal and formed to increase trading among the 11 countries. Hence,
harmonization of custom rules will help to achieve the goal of CPTPP.

Harmonisation and customs cooperation will increase ease of exporting and reduce costs
of import or export of goods and services among the 11 countries involved in CPTPP trade deal.
This will provide policies to address, implementing accelerated customs procedures for express
goods, and committing to make electronic systems more accessible. Harmonization of customs
rules will reduce the cost of streamlining of trade procedures by 3.9%, automation of border
processes by 3.5% and information availability by 3.0% which makes a total of 10.4% of cost
estimation reduction. CPTPP provisions to facilitate trade could reduce costs of exporting by up
to USD 121 million annually.
 Apart from that, this will also ensure CPTPP to improve its efficiency in trade
processes by publishing the list of Sanitary and Phytosanitary (SPS) and Technical Barriers to
Trade (TBT). The agreement on the Application of Sanitary and Phytosanitary (SPS) lays out the
fundamental criteria for food safety as well as living organism health requirement. All
governments maintain safeguards to protect consumer safety and to prevent transmission of pests
and illness among animals and plants. These measures come in many forms such as mandating
goods to originate from disease-free regions, demanding, inspecting products, particular
processing of products, establishing allowed maximum levels of pesticides or allowing the use of
only specified additives in food. This regulation applies to both domestic and imported food.The
agreement on Technical Barriers to Trade (TBT) aims to ensure that technical regulations and
practises do not impose needless trade barriers. Simultaneously, it recognises WTO members’
right to pursue legitimate policy goals such as public health and sustainable environment. The
TBT agreement strongly encourages countries to base their measures on global standards in
order to facilitate commerce. Through its comprehensive policies, it also attempts to promote a
consistent commercial environment.

In conclusion, harmonization of customs rules will help to facilitate trade and reduce
technical barriers among all the 11 CPTPP countries. This might result in an increase in trading
and allow each of the countries to enjoy the benefits derived from the country’s economic
growth.
 Positioning of Malaysia to meet environmental standards in the five sectors

The improvement of the channel of sources from joining CPTPP helps Malaysia
increased its exports without the need to go through the hassling customs rule of partnering
countries. This led to a need for Malaysia to meet the environmental standards in the five sectors
where it has a comparative advantage, namely Electrical and Electronics, Palm Oil, Chemicals,
Optical and Scientific Equipment, & Plastics. Following the environmental standards helps in
improving the flow of goods, as some partnering countries have strict regulations on
environmental safety.

The Malaysian government has introduced the Standard of Malaysia Act (Act 549), which
defines standard as an information sheet approved by a panel of practice standards that stipulates
obligations for phraseology, icons and labelling, as they correspond to production method along
with its standard. In conjunction to this, The Department of Standards Malaysia was founded to
serve as the National Standards Body and the National Accreditation Body, ensuring that
Malaysian products and services satisfy national and international standards. SIRIM QAS
International, a subsidiary of SIRIM, is a prominent company in Malaysia that provides testing,
inspection, and certification services for other companies' products with accreditation from
several bodies, including the previously aforementioned National Accreditation Body.

Under SIRIM purview, Malaysian businesses in the aforementioned five sectors need to
use ISO 14001, an internationally recognized standard for Environmental Management Systems
(EMS). It provides a framework for organizations to effectively manage and improve their
environmental performance. ISO 14001 EMS helps companies to comply with environmental
regulations, increase resource usage efficiency and cost savings, & identify and mitigate
environmental risks associated with the company’s operations. Implementation of ISO 14001
also enhances the companies’ reputation with customers and suppliers as it demonstrates their
commitment to environmental responsibility. As it is an international standard, Malaysia is able
to position itself as a country that is strict in implementing environmental standards for
businesses of Malaysian origin.
 Next is a deep dive into the aforementioned economic sectors. To meet the environmental
standards in the Electrical and Electronics & Chemicals sector, the Malaysian government has
enacted laws and regulations in controlling e-wastes. Section 34B in Part IVA of the
Environmental Quality Act 1974 prohibits the placing, deposit, or disposal of any scheduled
wastes on land or into Malaysian water. This includes hazardous wastes in any ordinary landfill
or dumped anywhere without any consideration in Malaysia. Section 34B (b) and (c) also
explained receiving or sending scheduled wastes, and the transit of scheduled wastes, is
prohibited without written approval from the Director General. Any disobedience to Section 34B
will be guilty and is liable to a fine maximum of RM500,000 or a maximum of 5 years of
imprisonment, or both. Malaysia uses the Guidelines for the Transboundary Movement of Used
Electrical and Electronic Equipment (UEEE), replacing the Guidelines for the Classification of
Used Electrical and Electronic Equipment (GCUEEE) in 2016. According to the policy on
transboundary movement of used electrical and electronic equipment and components, the age of
the equipment and its components cannot exceed five (5) years from the date of manufacture. As
a result, before any transboundary movement of UEEE may occur, the equipment and its
components must be thoroughly evaluated. The UEEE is one of the components in helping
Malaysia achieve environmental sustainability in managing e-waste, which is part of the
Sustainable Development Goals (SDGs).

Next is the Palm Oil sector.The palm oil business is one of Malaysia’s largest and most
strictly regulated sectors. The industry needs to cater 15 or more laws and regulations, where
some of the environmentally focused laws included are Environmental Quality Act 1974,
Environmental Quality (Clean Air Regulations) 1978, and Protection of Wildlife 1972. In terms
of international standards, the industry adheres to ISO 14000 standard series. ISO 14000 can help
to solve the environmental issues related with palm oil production. Concerns have been raised
about deforestation, biodiversity loss, greenhouse gas emissions, water pollution, and social
issues associated with land usage. Implementing ISO 14000 standards can help the sector adopt
sustainable practices and successfully manage these environmental and social implications.
 The ISO 14000 series' main standard, ISO 14001, provides standards for creating an EMS,
whereas the ISO 14040 series, which includes ISO 14040 and ISO 14044, focuses on life cycle
assessment (LCA). These standards give guidance for evaluating the environmental implications
of items and processes across their entire life cycle. LCAs are used in the Malaysian palm oil
sector to identify hotspots of environmental effect, such as deforestation, carbon emissions, and
water consumption, and to drive efforts to mitigate and minimise these impacts. ISO 14064 is
another essential ISO 14000 series standard that focuses on greenhouse gas emissions. It
specifies methods for quantifying, monitoring, and reporting greenhouse gas emissions and
removals. The implementation assisted the Malaysian palm oil industry in monitoring and
controlling its carbon footprint, therefore aiding efforts to cut greenhouse gas emissions and
contribute to climate change mitigation.

Lastly is the Optics and Scientific Equipment sector. The Malaysian government follows
ISO 11554:2017. ISO 11554:2017, "Optics and photonics - Environmental management -
Assessment and management of environmental risks and opportunities in the organisation,"
provides standards for optics-related organisations to analyse and manage their environmental
performance. The standard aims to promote sustainability, reduce environmental impact, and
improve overall environmental management in the industry. This standard offers various
advantages, including environmental risk assessment, EMS, sustainable integration, and legal
conformity with international standards. The Malaysian government, like a lot of governments
throughout the world, understands the value of environmental conservation and sustainable
development. They have put in place a variety of procedures and laws to guarantee that
businesses, including the optical industry, meet environmental requirements. ISO 11554:2017 is
a significant instrument for the Malaysian government in achieving these objectives.
Conclusion

In conclusion, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

(CPTPP) has made some significant impact for all the 11 member countries involved, especially
in terms of economic benefit. Tariff elimination imposed reduces the cost of imports and exports,
making goods and services more inexpensive and accessible. It also fosters foreign direct
investment and economic growth by enabling the cross-border movement of capital, goods, and
services. The CPTPP strengthens regional integration by developing a set of rules and standards
for trade and investment among its participants. This fosters cooperation and collaboration
among member countries by promoting a more unified and predictable business climate. It also
promotes the development of regional value chains, which allow enterprises to benefit from
common resources and production networks. All in all, the positive impact driven by the CPTPP
agreement cannot be overlooked and nations should explore the agreement more to attain more
benefits through it.
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