Malaysian Prime Minister witnesses the signing of RCEP (Source: Bernama)Kuala Lumpur (VNA) - The Federation ofMalaysian Manufacturers (FMM) is confident that the Regional ComprehensiveEconomic Partnership (RCEP) Agreement will considerably contribute to promotingmarket access for Malaysian companies, enabling new value chains, increasingeconomic activities, and strengthening supply chain links across the Asia-Pacificregion.
FMM President Soh Thian Lai was quoted by local media assaying that although Malaysia has implemented Free Trade Agreements (FTAs) withChina, the Republic of Korea, Japan, Australia and New Zealand through theASEAN, the RCEP will see the integration of the FTAs into a single, cohesivetrade and investment architecture in the region.
He said that the FMM greatly welcomed the signing of theRCEP which is timely and fully supported by Malaysian businesses.
Under the RCEP, the existing FTAs between ASEAN and partnerswill be streamlined and greater market access commitments will be made whilegaps in the existing agreements will be reduced to create a competitiveeconomic area, he said.
Soh added that it was important for Malaysia and its ASEANcounterparts to ensure the ratification by all the signatories by early nextyear so that the RCEP is able to come into force to benefit businesses in thisunprecedented time of need.
As for Malaysian companies, he said beyond the lowering oftrade barriers, the RCEP is expected to attract foreign companies keen onentering into an integrated ASEAN market as the agreement will enhancetransparency in trade and investment.
Soh noted that the trade pact would also facilitate advancedtechnical cooperation through digitalisation and smart manufacturing which willassist Malaysian small- and medium-sized enterprises (SMEs) in developing moreinnovative and competitive products to enable greater inclusion in global andregional supply chains.
He said it was imperative to stabilise manufacturingactivities in order to mitigate economic challenges posed by the COVID-19pandemic while diversifying supply chain connectivity across the region./.
VNA
