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KUALA LUMPUR: Malaysia’s participation in the Regional Comprehensive Economic Partnership (RCEP) will help drive the country’s economic recovery from the impact of Covid-19, especially in improving market access for local products in RCEP member states.
The Chief Minister and Minister of Industry and International Trade, Datuk Seri Mohamed Azmin Ali, said that local industry could enjoy preferential treatment through the elimination and progressive reduction of tariffs.
“Apart from tariffs, the reduction of non-tariff measures (NTMs), which is one of the main challenges to penetrate the international market, is also an important benefit of Malaysia’s participation in the RCEP.
“This can be achieved through the coordination of import and export procedures, the reciprocal recognition and acceptance of the industrial and technical standards of the respective countries, as well as the exchange of information,” he said during the oral question and answer session at the Dewan Negara of today.
Mohamed Azmin said that based on Malaysia Industrial Development Finance Bhd’s initial projection, Malaysia’s gross domestic product will increase by RM16 billion one year after the RCEP comes into effect.
Meanwhile, Malaysia’s Foreign Trade Development Corporation (MATRADE), which is responsible for the promotion and development of Malaysian trade, has projected that the performance of Malaysia’s exports to the RCEP market will increase by RM21 billion. year.
“Local companies can also strengthen integration in the global supply and value chain with the supply of raw materials, components, semi-finished and finished products in the RCEP market.
“This integration is further enforced through rules of origin that are easier to use due to the uniformity between all participating RCEP countries. Service providers, including e-commerce, will also be able to enjoy greater market access in terms of cross-border supply and create a commercial presence in the RCEP market, ”said Mohamed Azmin.
He said the RCEP agreement is expected to accelerate the regional economic recovery process and post-Covid-19 Malaysia through market opening, increased investment, trade facilitation and industrial integration, especially among small and medium-sized companies in the regional value chain. – Called
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