KUALA LUMPUR, 7 Nov: The Malaysian Government will face the risk of lawsuits from giant firms if they insist on implementing the investment dispute settlement (ISDS) by signing the Trans-Pacific Partnership Agreement (TPPA).
Member of Parliament for Lembah Pantai, Nurul Izzah, said that although many believe that the ISDS is important because it has been adopted in many countries, but the mechanism would only benefit foreign investors and cause local investors to fall into the second class.
She said that the government has been urged to create a special fund in case Malaysia is sued by giant companies at a high cost, in addition to advising them to accept the TPPA post-signing risk.
“This is a serious problem if the agreement is signed without knowing the burden to be shouldered by the country and it would affect future generations as well as the Malaysian economy.
“Leaders of Pakatan Rakyat (PR) have met with ISDS experts and we think that we cannot accept it without carefully looking at the black and white of every chapter of the TPPA to be signed by Malaysia,” she said in a press conference at Parliament today.
She said that PR has never rejected any trade dealings; however the implementation of the law may entrap many parties and should not be adopted.
She said that the TPPA should be stopped, especially since the United States have been found to be spying on Malaysia by using their embassy and high commission in Kuala Lumpur.
“We must stop this, especially after finding out what is being done by the US to Malaysia, and the government should seek clarification.
“Malaysia should emulate the European Union and stop US banking access after knowing that they were conducting surveillance on the country,” she said.