RCEP a Key Catalyst to Revitalize Business Activities in Malaysia

KUALA LUMPUR: The Regional Comprehensive Economic Partnership (RCEP) Agreement will be a key catalyst for Malaysia in revitalizing domestic and international business activities in a post-pandemic world.

The Ministry of International Trade and Industry (MITI) said the pandemic has underscored the paramount importance of international trade and cooperation, as well as the linkages between regional supply chains.

“Business communities, from big to small entrepreneurs, are encouraged to take advantage of the vast investment opportunities and greater participation in regional and global value chains presented by this mega trade deal.

“As a trading nation, Malaysia will continue to be an open economy, with business-friendly and pragmatic policies that foster a conducive investment climate in the country,” he said in a statement today. .

Malaysia is set to be the 12th RCEP signatory to implement the agreement following the submission of the Instrument of Ratification (IOR) to the ASEAN Secretariat on January 17, 2022.

The world’s largest free trade agreement will enter into force for Malaysia on March 18, 2022 — joining 11 other signatory countries, namely Singapore, China, Japan, Brunei, Cambodia, Laos, Thailand, Vietnam, Australia, New Zealand, and South Korea which have completed the ratification process.

MITI said that within ASEAN, Malaysia is expected to be the biggest beneficiary of the RCEP deal in terms of export gains, with an expected increase of $200 million.

According to a report by the United Nations Conference on Trade and Development (UNCTAD) published on December 15, 2021, these gains would result from the elimination and reduction of customs duties on goods, including the facilitation of trade. export and import of goods between RCEP countries. .

“In addition, service providers, including e-commerce, will be able to benefit from improved market access in terms of cross-border sourcing and establishing a commercial presence in RCEP markets,” he said. he adds. – Bernama