THE Regional Comprehensive Economic Partnership (RCEP) is a boon to all member countries, including Malaysia, and everyone should take advantage of the opportunity it brings.
Speaking to FocusM, former International Trade and Industry second minister Datuk Seri Ong Ka Chuan said the free trade agreement would create a competitive edge for Malaysian products and services to be marketed among member nations.
“Some people see such agreements as a threat but it is not. RCEP will remove tariff and non-tariff barriers among member nations, allowing people to get quality products and services at a competitive price,” he said.
On Nov 15, Malaysia signed the RCEP agreement with 14 other nations. The deal is said to be the world’s largest free trade agreement to date.
Senior International Trade and Industry (Miti) Minister Datuk Seri Mohamed Azmin Ali said the signing signified to the world that Asean, with its five Free Trade Agreement (FTA) partners, prioritises regional economic integration that facilitates cross-border trade, investments and easing of non-tariff measures.
“The signing is the culmination of eight years of arduous and protracted negotiations involving 31 rounds of negotiations, eight ministerial meetings and four summits.
“Undoubtedly, it represents a significant and imperative milestone in the integration and revitalisation of economies of the 15 parties.
“RCEP reflects our strong commitment for international trade, connectivity, rule-based multilateral trading systems and enhancing free flow of trade and investment,” Azmin was reported saying.
Other major nations in the agreement include Australia, New Zealand, China, South Korea and Japan. India was supposed to sign RCEP but decided against it last year.
On the agreement, Ong said RCEP will fulfil three objectives; facilitate trade, provide quality service and free movement of capital among member nations.
“One of the things I can see is that it will facilitate the growth of e-commerce which is becoming popular across the globe,” said the former Malaysian Chinese Association (MCA) secretary-general.
Ong added that joining free trade initiatives is the way of the future in order to acquire a bigger market for products and services.
On concerns that China may throw its weight around under RCEP, Ong dismissed the notion outright.
“People have this assumption that China is behind RCEP but it is not. Asean is the prime driver of this agreement. China has its own programme, which is the Belt and Road Initiative,” he said.
On concerns that the US may see RCEP as a threat to its hegemony, Ong said the superpower should look into the agreement in a positive way.
He also said that just because Malaysia joined RCEP, it did not mean the Government is turning away from the US as evidenced by the former’s commitment to the now-stalled Trans-Pacific Partnership Agreement (TPPA).
“When former US president Barack Obama mooted the TPPA, we were in talks with them for years on the matter before the agreement was stalled under the current president.
“In fact, we can also expand RCEP to include the US later. We must remember that no one country dominates in a free trade agreement,” said Ong.
Echoing Ong’s sentiments, the Malaysia-China Chamber of Commerce (MCCC) said RCEP will bring great benefits to the Malaysian economy in the long run.
“The RCEP provides a win-win platform to strengthening the regional economic equality and multilateral cooperation which includes trades, investment, services and technical cooperation.
“It is also aimed at decreasing internal tax or even eliminate them. It will intensify the economic and trade activities within this region,” said its president Datuk Tan Yew Sing.
He then urged Malaysian small- and medium-enterprises (SME) to use the opportunity to strengthen their competitiveness, including the application of high technology to enhance productivity.
“More importantly, great attention must be given to market research, human resources training and product quality,” added Tan. – Nov 17, 2020
