RCEP will be an important catalyst for Malaysia to further strengthen its relationship with its neighboring nations through collaboration and cooperation.
➡️ ASEAN’s 10 members are Malaysia’s top trading partners (58% of total trade in 2019)
➡️ Malaysia’s trade position will be greatly enhanced by increased market integration, reduced trade barriers, and enhanced trade facilitation.
➡️ Almost 60% of Malaysia’s trade involves RCEP members and around 56% of Malaysia’s exports go towards the countries covered by the RCEP.
➡️ This creates more commercial opportunities and partnerships with other RCEP members.
➡️ Increasing market liberalization along with competition will raise challenges to some domestic sectors and SMEs in terms of costs and products’ competitiveness.
➡️ Access to capital and the technology and expertise of overseas partners.
Various studies have indicated that RECP is expected to generate a net positive effect on Malaysia with a net increase in GDP between 0.8% and 1.7%, while increases in exports are expected to remain substantial at 24.4%. Sources: The Star Malaysia, MITI, EY, MIDA
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