In November 2020, the Asia-Pacific countries of ASEAN, Japan, South Korea, China, Australia, and New Zealand signed RCEP. The 15-member RCEP agreement is a mega-free trade deal representing 29% of global GDP, 27% of global trade, and 30% of the world’s population. On January 17, 2022, Malaysia ratified the agreement, which promptly went into effect on March 18, 2022.
The RCEP agreement is expected to bolster the Asia Pacific’s trade architecture through tariff cuts and the harmonisation of the rules of origin of many preexisting ASEAN+1 FTAs. As such, it is hoped that RCEP can help promote the development of more complex regional supply chains within the Asia Pacific, already the centre of gravity for world manufacturing. Given Malaysia’s status as an export-oriented economy, RCEP is expected to provide new opportunities for Malaysia’s private sector, especially Small And Medium Enterprises (SMEs), through the streamlining of regional supply chains. SMEs are required to proactively figure out the benefits of RCEP to reap the benefits of lower tariffs, market access, and standardisation of rules. However, logistical requirements could erect trade barriers to SMEs’ participation in the global economy.
IDEAS, in collaboration with FedEx, hosted the conference titled “Highlights on Regional Comprehensive Economic Partnership (RCEP) and How It Can Benefit Your Business” on 15 December 2022 at Majestic Hotel Kuala Lumpur. This conference aimed to understand what RCEP is and how it will impact Malaysia’s businesses within the Asia Pacific’s trade architecture and regional supply chain ecosystem. It was successfully represented by our partners from FedEx Express, collaborators from the Malaysia External Trade Development Corporation (MATRADE), Deloitte, and the Ministry of International Trade and Industry (MITI) Malaysia. The conference and workshop saw the attendance of 106 delegates from the public, private, academic and business sectors.
Our conference began with the Welcoming Remarks speech given by the Founder and Chairman of IDEAS Malaysia, YAM Tunku Zain Al-‘Abidin ibni Tuanku Muhriz, followed by the Opening Remarks and Presentation from the Managing Director of FedEx Express Malaysia and Thailand and Keynote Address speech by the Senior Director of the Strategic Planning Division at Malaysia External Trade Development Corporation (MATRADE), YM Raja Badrulnizam Raja Kamalzaman.
The first half of the conference facilitated a panel discussion among policymakers and businesses on the opportunities RCEP brings. With the process of trade liberalisation already underway, it is pertinent to understand how this mega-trade deal will impact Malaysia’s economic landscape as well as global competitiveness. In particular, given the importance of SMEs to Malaysia’s overall economy and labour force, as well as the plethora of new global market opportunities being presented to them through the auspices of RCEP, it is particularly important to understand how SMEs and bigger firms alike can properly leverage on the strength of regional logistics providers such as FedEx Express to further integrate into the global supply chains.
Video of the panel discussion:
The second half of the conference, led by representatives from MITI and MATRADE, showcased a three-hour workshop to best advise and guide how Malaysian businesses can take advantage of RCEP when entering new markets or increasing their competitiveness. It covered specific provisions within the RCEP agreement, such as the presentation of the Preferential Certificate of Origin (PCO) to importing countries by any declaring the origin of their products in order to enjoy tax reduction or elimination.
Video of the workshop session:
Download the related event item here:
- Full Programme.
- Welcoming Remarks by YAM Tunku Zain Al-‘Abidin ibni Tuanku Muhriz, Founder and Chairman of IDEAS Malaysia.
- Opening Remarks by Woon Tien Long, Managing Director FedEx Express.
- Keynote Address by YM Raja Badrulnizam Raja Kamalzaman, Senior Director of Strategic Planning Division at Malaysia External Trade Development Corporation (MATRADE).
- Speaker Profile.
- FedEx Express Opening Presentation Slides by Woon Tien Long, Managing Director FedEx Express.
- In-Depth Information on RCEP from the official Portal of the Ministry of International Trade and Industry (MITI) Malaysia.
- Preferential Certificate of Origin (PCO) Application Guide from the official Portal of the Ministry of International Trade and Industry (MITI) Malaysia.
- Workshop Presentation Slides by Syed Mohamad Fairus Shaik Ismail, Deputy Director, China & Northeast Asia Section, Malaysia External Trade Development Corporation (MATRADE).
- Workshop Presentation Slides by Jamilah Ibrahim, Senior Manager, International Collaboration Unit, Malaysia External Trade Development Corporation (MATRADE).
