RCEP and CPTPP agreements: How will they benefit Malaysia?
In the rapidly evolving global trade landscape, Malaysia has secured a strategic position through its involvement in the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These groundbreaking Free Trade Agreements open up vast markets, streamline regulatory procedures, and offer numerous benefits to Malaysian businesses.
RCEP, the world’s largest free trade agreement, encompasses a population accounting for almost 30% of the global total and similar proportions of the world’s GDP and trade volume. This alliance offers Malaysian businesses unprecedented access to markets, raw materials, and opportunities for supply chain integration, while promoting information sharing, cooperation, and trade facilitation.
The CPTPP, on the other hand, offers access to untapped markets, such as Canada, Mexico, and Peru, with the potential inclusion of the United Kingdom. It promises to make almost all Malaysian exports duty-free by 2033, fostering a more secure and transparent trading environment with provisions for good governance, anti-corruption measures, and user-friendly compliance regulations.
Both RCEP and CPTPP are reshaping international rules, procedures, and measures, creating a smoother and more efficient trade and investment environment. Malaysian business owners stand to benefit significantly from these agreements, not just in terms of market access and cost savings, but also through enhanced competitiveness and business growth opportunities. These strategic partnerships are also projected to boost Malaysia’s economic reputation and overall welfare in the long run.
Find out more about how RCEP and CPTPP are set to drive the next wave of economic growth and prosperity for Malaysian businesses in our comprehensive analysis.
