Connect with us

News

What Is RCEP & What Will Malaysians Get Out Of It? Here’s What You Should Know

Published

feat2
Source: Bernama & Ismael Bashiri

ICYMI, Malaysia recently signed the Regional Comprehensive Economic Partnership (RCEP) deal on 15 November joining what is currently the world’s biggest trading bloc.

1511 rcep azmin

It currently involves 15 countries, 10 of which are from ASEAN while the other five are partners of ASEAN’s Free Trade Area (FTA):

  1. Australia
  2. China
  3. Japan
  4. Korea
  5. New Zealand

These 15 countries alone make up 29.7% of the global population, or 2.2 billion people, and have a combined Gross Domestic Product (GDP) of US$24.8 trillion (RM101 trillion). That’s a lot!

 

But, what in the world is RCEP???

RCEP Infographic English

It’s basically a deal signed by 15 countries to reduce or eliminate tariffs.

This means that goods coming from any of the countries–that have signed the RCEP–to Malaysia will NOT be taxed when they’re imported. Wow!

The same goes for Malaysian goods going out to these countries.

It is reported that this will make it easier for local companies to find cheaper raw materials from other third-world countries which are in the trading bloc.

There’s also the liberalisation of service sectors such as these:

  • Financial services
  • Telecommunications services
  • Movement of natural persons

The catch, however, is that it is only limited to those who are engaged in the trade of goods, the supply of services, or the conduct of investment, unlike in the EU.

 

So what will Malaysians actually get out of this deal?

photo 1597941051618 ed33b04d552b

According to experts, one crucial outcome from this deal is that it will help kickstart our economy again after being battered by Covid-19.

A report by The Edge also states that the Malaysian Employers Federation (MEF) has found that the RCEP will provide Malaysia with access to a bigger market for businesses and also attract foreign investments. 

Senior Minister (International Trade and Industry) Datuk Seri Mohamed Azmin Ali also stated that the deal will mean tariff eliminations and reduction for merchandise goods, including costs of export and import of goods among the RCEP countries.

photo 1578575437130 527eed3abbec

The Star also highlighted that with the RCEP, we will be able to see more Malaysian companies expanding their base to neighbouring countries.

In terms of the SMEs, MITI said that it could provide a level playing field between developed and less developed countries as well.

As for service providers, including those in e-commerce, they will also enjoy greater market access which means they can now sell their products at other online stores within the RCEP market or buy materials at cheaper prices from member countries.

 

Basically, at the end of the day, with the RCEP, tariff eliminations and reduction of merchandise goods between these 15 countries including Malaysia will allow Malaysians everywhere to enjoy lower prices on certain goods and services in the market. Hopefully, this will also help give our economy the boost it needs!

What do you think about this RCEP deal? Let us know in the comments below!

 

Also read: World Bank: Malaysia’s Economy Will Begin Recovering By Year-End, Return To Growth By 2021

Screenshot 2020 11 25 160821

Source: Bernama
Source: MITI
Source: Billow926
Source: Andy Li

Just In

My Post 1 2025 06 16T142323.074 2 My Post 1 2025 06 16T142323.074 2
News14 hours ago

Teacher Whose Decomposed Body Was Found in Johor Home Was Allegedly Depressed

The female teacher, Lo Kwan Fong, who was found dead in her home in Bandar Selesa Jaya, Johor, is believed...

chloe FT 19 1 chloe FT 19 1
News14 hours ago

Mentally Disabled Woman Who Killed 3 UiTM Students Last Year Released on RM40k Bail

A tragic accident on October 9 last year claimed the lives of three UiTM Dungun students after their motorcycles were...

collage 61 collage 61
News14 hours ago

M’sian Men Shot Dead at Cheras Mall Had Criminal Records, One Was Wanted for Murder

2 Malaysian men were brutally shot to death this morning (June 17) at Viva Home in Cheras. In an official...

chloe FT 18 1 chloe FT 18 1
News15 hours ago

Motorcyclist in KL Hits Car Door That Suddenly Swung Open, 55yo Pillion Rider Falls Off & Gets Run Over by Lorry

A 55-year-old woman was tragically killed in a road accident after the motorcycle she was riding collided with a car...

chloe FT 17 1 chloe FT 17 1
News17 hours ago

82yo Kedah Man Who Dragged Dog Behind Motorcycle Says He Doesn’t Remember Why He Did It

A recent Facebook video has sparked public outrage after an elderly man was seen riding his motorcycle in Kedah with...

collage 60 collage 60
News18 hours ago

“I want to clear my name” – Famous M’sian Singer Pleads Not Guilty to Sexually Assaulting a 17yo Girl

Last month, the mother of a 17-year-old girl lodged a police report against a popular Malaysian singer and actor who...

chloe FT 14 1 chloe FT 14 1
News19 hours ago

24yo Chinese Woman Dates Rich Men & Robs Their Homes After Moving In, Makes Off With Over RM118k

A 24-year-old woman from China was caught running a scheme to save up 10 million yuan (RM5 million) in hopes...

collage 59 collage 59
News20 hours ago

14yo M’sian Student Physically Attacked by Peers for Keeping Photos of His Ex-Girlfriend

A 14-year-old student was beaten by his peers out of jealousy and a relationship dispute. The victim was physically attacked...

Announcement

Latest Videos

TRENDING TODAY