PETALING JAYA: The Malaysian Employers Federation (MEF) believes that the recent signing of the Regional Comprehensive Economic Partnership (RCEP) provides a much-needed boost to revive Malaysia’s economy impacted by the Covid-19 pandemic.
President Datuk Dr Syed Hussain Syed Husman said the trade pact made between 15 countries in the Asia-Pacific region would provide Malaysian companies access to more than a third of the world’s market.
“The RCEP is the biggest free trade agreement (FTA) in the world and will provide Malaysia access to a bigger market for businesses and also attract foreign direct investment, ” he said in a statement.
The RCEP agreement would also provide small and medium enterprises (SMEs) with a more level playing field between developed and less developed economies, strengthen the supply chain, and facilitate ventures into new opportunities, he added.
“In contrast to its predecessors, the Trans-Pacific Partnership (TPP) and Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the RCEP stands out impressively as it incentivises supply chains across the region while catering to political sensitivities, ” he said.
He said the TPP countries represented 26% of global trade and 793 million of the world’s consumers, while the CPTPP bloc represented 495 million consumers and constituted 13.5% of global gross domestic product (GDP).
The RCEP, meanwhile, represented US$24.8bil or close to a third or 28.9% of the world’s GDP, said Syed Hussain. — Bernama