EVERYTHING You Need To Know About RCEP in Malaysia
News has gone around in the Malaysian business world that Regional Comprehensive Economic Partnership (RCEP) has come into force in Malaysia starting March 18th, paving the way for the country to be integrated into the world’s largest free trade agreement covering 15 countries and an estimated population of more than 2.2 billion individuals. However, what does this ACTUALLY mean for you and your business?
What is the Regional Comprehensive Economic Partnership (RCEP)?
RCEP is essentially the world’s largest free trade agreement that serves as an overarching mechanism for free trade among the participating countries with a unified set of rules and procedures for accessing preferential tariffs across the region.
This implementation will enable Malaysia to enjoy the global trade and investment ecosystem based on a rules-based multilateral trading system, eventually eliminating around 90% of tariff among member countries.
The marked reduction in barriers to trade across the region would reinvigorate businesses in the region, spark new regional supply chains and boost the growth of domestic businesses as they enter the global trading ecosystem.
How Does RCEP Benefit Your Business?
There are plenty of benefits that your export business can reap from this agreement as Malaysia is expected to be the largest ASEAN beneficiary of the agreement in terms of gains in exports, with a projected US$200 million increase, according to MITI.
Business owners from small to large scale are encouraged to take advantage of the vast investment opportunities and greater participation in regional and global value chains presented by this mega-trade agreement.
The most prominent benefits for your business includes:
- Elimination or reduction of import duties
- Promotion, facilitation, protection and investment liberalization;
- Protection of intellectual property rights, facilitation in e-Commerce; and
- Cross-Border Economic and Technical Cooperation
What Can You Do for Your Business to take advantage of RCEP?
As Regional Comprehensive Economic Partnership is still relatively new in Malaysia, it is important for you to get ahead of your competitors.
Malaysian Business owners are encouraged to review your current supply chain, identify opportunities of sourcing and take advantage of any incremental benefits.
If you’ve enjoyed our up-to-date write up on export-related topics, you’d be delighted to know that Exabytes will be offering EXCLUSIVE forums and webinars in the coming months where you’ll be invited to enjoy first-hand deep dive into this mega trade agreement and vastly improve your exporting business.
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