Malaysia may look into the possibility of pursuing bilateral free trade agreements (FTAs) with the relevant Trans-Pacific Partnership Agreement (TPPA) members should the pact fail to materialise, said International Trade and Industry Minister Mustapa Mohamed.

The country would also prioritise strengthening the economic integration within Asean, as well as pushing for the conclusion of the Regional Comprehensive Economic Partnership, he said in a statement released by the International Trade and Industry Ministry (Miti) in Kuala Lumpur today.

Mustapa, who led the Malaysian delegation to the World Economic Forum annual meeting in Davos, Switzerland from Jan 17-20, said this when asked on Malaysia's strategy if the TPPA fails to materialise during a business luncheon held in Davos.

According to Bernama, the luncheon, attended by 50 existing and potential international investors from various sectors and countries was jointly hosted by Khazanah Nasional Bhd and the Malaysian Investment Development Authority (Mida).

Against the backdrop of rising protectionist sentiments in a number of countries, the minister assured the international community that the country was not in retreat, stressing that Malaysia remained open for business.

"Foreign investments have played a major role in our economic development and we will continue to welcome high quality investments, especially in the catalytic subsectors, namely chemicals, electrical and electronics, and machinery and equipment, as well as other high potential growth areas including aerospace, medical devices and digital economy," he added.

Mustapa said Malaysia has been a major beneficiary of foreign direct investment, which had also contributed to the country's exports given that a large number of foreign companies operating in Malaysia were 100 percent export-oriented.

"The presence of foreign companies in our economy has also provided our local small and medium enterprises access to valuable technology transfer and exchange of know-how, which are crucial in developing their capabilities which will allow them to be part of the global supply chain," said the minister.

During the luncheon, Mustapa has also responded to several questions raised by the audience, mainly on the direction of the Malaysian economy, especially in the context of President Donald Trump's administration and the current status of the economic integration of Asean.

To this end, he urged the investors to take advantage of the numerous opportunities available in the dynamic region of Asean by using Malaysia as the gateway.

Citing an example, he said, a large number of foreign companies such as Novartis, Roche, General Electric and Standard Chartered had made Malaysia their regional hubs.

He further reiterated Malaysia's strengths including its political stability, strong economic fundamentals and track record, business-friendly policies, excellent infrastructure, strategic position within Asean, as well as facilitation of investment through Mida.

"Despite the current challenging climate, our gross domestic product growth rate remains among the highest in the region and emerging markets," he said.

Also present at the luncheon were Khazanah Nasional managing director Azman Mokhtar, AirAsia Bhd chairperson Tony Fernandes and CIMB Group chairperson Nazir Razak.

Reuters reported that the new US administration of President Donald Trump said yesterday its trade strategy to protect American jobs would start with withdrawal from the 12-nation Trans-Pacific Partnership Agreement trade pact.