KUALA LUMPUR, 30 JUNE: According to one researcher, the Regional Comprehensive Economic Partnership (RCEP) can be a significant economic recovery instrument in the face of the Covid-19 pandemic. Datuk M Supperamaniam, a former ambassador to the World Trade Organization, said the RCEP, if properly implemented, may strengthen Malaysia’s economic position in the region and globally, which might be a critical component of the country’s recovery from the pandemic.
“Over the next 20 years, the RCEP, once fully implemented, will abolish tariffs on up to 90% of products exchanged between its signatories.”
He said today at the virtual Malaysia-China Chamber of Commerce RCEP roundtable series seminar, “It creates chances for Malaysian enterprises by granting market access to about a third of the world’s population.”
The RCEP, according to Supperamaniam, will increase intra-regional trade by linking supply chains and creating greater transparency for trade facilitation sharing.
“It’s crucial for the business community because they want to be competitive,” he explained.
He added that the RCEP would expand economic prospects and strategic alliances among member countries to explore business potential.
“Overall, I believe this RCEP would benefit Malaysia,” Supperamaniam said, “but some (industries) may have issues; so, there is a need to work together with the government to guarantee that they are aided.”
Despite the Covid-19 problem, he believes that Malaysia’s ratification of the RCEP will demonstrate that it wants to do business with the rest of the globe.
The RCEP brings together 10 ASEAN states — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam — as well as Japan, China, South Korea, Australia, and New Zealand, to form the world’s largest free trade pact.
The RCEP agreement has been ratified by Singapore, Thailand, China, and Japan thus far.
Malaysia is likely to ratify the RCEP by the end of the year, or the first quarter of 2022 at the earliest./n
