Malaysia to benefit from in RCEP through economic integration, facilitation

Malaysia to benefit from in RCEP through economic integration, facilitation

17 Dec 2020

Malaysia will benefit from its participation in the Regional Comprehensive Economic Partnership Agreement (RCEP) as it enhances economic integration and facilitation between Asean countries and their dialogue partners, namely China, Japan, South Korea, Australia, and New Zealand.

Deputy International Trade and Industry Minister Senator Datuk Lim Ban Hong said each RCEP member state has its own advantages whether in terms of raw materials, expertise and technology, skilled and quality human resources, or a large market.

He said the RCEP would open up wider market access through the elimination and reduction of tariffs and non-tariffs, harmonisation of technical standards and regulations, as well as economic cooperation.

“This will facilitate cross-border trade for locally produced products. The RCEP will strengthen regional value chain activities through rules of origin that are easier to use,” he said in response to a question from Senator Datuk Husain Awang at the Dewan Rakyat yesterday.

Husain wanted to know about the benefits of Malaysia’s participation in the RCEP to its socio-economy.

Lim said the RCEP would strengthen the integration of local companies in the global value and supply chain to become more competitive on the international stage and become global companies.

He said the RCEP would make it easier for Malaysian companies to obtain raw materials for their manufacturing process.

Local service providers, including e-commerce, can also enjoy greater market access in terms of cross-border supply and create a commercial presence in the RCEP region as it is home to 2.2 billion people or one-third of the world’s population, he said.

“Companies intending to penetrate the RCEP market and enjoy the tariff privileges provided will choose to invest in the RCEP region. This will increase foreign and local direct investment as our country is a destination of choice for investments in the region.

“RCEP participation is also expected to accelerate the regional economic recovery process after Covid-19 through market opening and increased trade facilitation among member states,” he said.

Source: Bernama