KUALA LUMPUR (Nov 15): The Regional Comprehensive Economic Partnership (RCEP) can be an economic recovery tool against Covid-19, as it will help to ensure the opening of markets, as well as uninterrupted supply chain, according to Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali.
The signing of the RCEP agreement today between Malaysia and 14 other participating countries, will facilitate cross border trade, investments and the easing of non-tariff measures, Azmin said in a statement today.
“Realising that SMEs (small and medium enterprises) play pivotal roles in the backbone of every economy, RCEP could provide a level playing field between developed and least developed countries,” the senior minister added.
Azmin noted there is a specific chapter on SMEs providing provisions for information exchange and promotion of transparency measures to facilitate business and investment within the region, which includes providing economic and technical cooperation, especially to SMEs.
To Malaysian businesses, he said it will mean tariff elimination and reduction for merchandise goods including the facilitation of export and import of goods among the RCEP countries.
“Service providers including e-commerce will be able to enjoy greater market access in terms of cross border supply and establishing commercial presence in the RCEP markets,” Azmin added.
Additionally, he noted that the RCEP will promote, facilitate and protect the investment climate of participating countries within the region.
Azmin said the RCEP is the largest Free Trade Agreement (FTA) in the world, covering 15 countries with 2.2 billion or nearly a third (29.7%) of the world's population, and represents US$24.8 billion or almost a third (28.9%) of the world's gross domestic product (GDP) based on World Bank’s 2018 data.
He also added that the RCEP amalgamates and streamlines the existing ASEAN+1 free trade agreements involving Japan, Korea, China, Australia and New Zealand, into an inclusive and comprehensive agreement.
“With different economic development levels of all parties, RCEP will contribute to sustaining Malaysia as a preferred trading hub and investment destination,” Azmin said, noting that the RCEP reflects the country’s strong commitment towards international trade, connectivity, rules-based multilateral trading system and enhanced free flow of trade and investment.