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KUALA LUMPUR: Malaysia will benefit from its participation in the Regional Comprehensive Economic Partnership (RCEP) Agreement, as it improves economic integration and facilitation between ASEAN countries and their dialogue partners, namely China, Japan, South Korea, Australia and New Zealand.
Vice Minister of Industry and International Trade, Senator Datuk Lim Ban Hong, said that each member state of the RCEP has its own advantages, whether in terms of raw materials, experience and technology, qualified and quality human resources, or a large market.
He said the RCEP would open up broader market access through the elimination and reduction of tariffs and non-tariffs, the harmonization of standards and technical regulations, as well as economic cooperation.
“This will facilitate cross-border trade in locally produced products. 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 in Dewan Rakyat today.
Husain wanted to know the benefits of Malaysia’s participation in RCEP for his socio-economy.
Lim said RCEP will strengthen the integration of local companies in the global supply and value 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 source 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 business 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 that intend to enter the RCEP market and enjoy the provided tariff privileges will choose to invest in the RCEP region. This will increase foreign and local direct investment since our country is a destination of choice for investments in the region.
“RCEP’s involvement is also expected to accelerate the regional economic recovery process after Covid-19 through market opening and further facilitation of trade between member states,” he said. – Called
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