Investor State Dispute (ISDS) And Trans-Pacific Partnership Agreement (TPPA) Malaysia And Challenges

Abstract

The significant contribution of Investor State Dispute Settlement (ISDS) in Trans- Pacific Partnership Agreement (TPPA) is highly indisputable. Among the concerns is any Investment Treaty Arbitration (ITA) negatively affects the developing countries to the benefit of developed countries. Albeit the oppositions many observers in Malaysia lack in analysing how ISDS may affect the state’s interest without argument that does it really affect Malaysia in practice. Historical evidence proven that ISDS never affects Malaysia though it never excludes the possibility of such occurrence. Therefore, this article intends to explore the nature of ISDS, its objective, ‘modus operandi’ and significance contribution in light of International Centre for Settlement of Investment Disputes (ICSID) and its on-going improvements. Thereafter, we will ponder upon criticism encountered especially deriving from European Unions’ discussion with America pertaining to Transatlantic Trade and Investment Partnership (TTIP); how the EU communities reacted upon the inclusion of ISDS in TTIP in general. Later, the discussion will begin on the effect relating to Malaysia circumstances, the challenge faced in long term. There will be pro and cons, yet the deciding factor will depend on the will of Malaysians to integrate our business sectors condition with ISDS standard especially in foreign countries. In conclusion, assuming that ISDS’s repercussion is parlous, it is up to Malaysians; either government or private sector to take it as advantage or vice versa to ensure that national interest is preserved.