fbpx
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

Collage Accident Collage Accident
News9 hours ago

Father and Son Killed in Motorcycle Crash Caused by Jungle Fowl’s Sudden Road Crossing

One minute we could be talking and laughing in the car heading to dinner, and the next we could become...

Ft Wedding Ft Wedding
News9 hours ago

PAS MP Thanks City Council, JKR & PDRM For Helping With His Kids’ Wedding, Slammed by M’sians

In Malaysia, there are plenty of instances of abuse of power which occur all across the nation. One of the...

Airasia 13Th Award Airasia 13Th Award
News9 hours ago

AirAsia Upholds Title Of World’s Best Budget Airline For 13th Consecutive Year

Even when we were younger, the name AirAsia has always been ingrained in us. On 24 September, has been crowned...

Election Scam Election Scam
News10 hours ago

74yo M’sian Loses RM70k to Scammer Who Approached Her at Market Claiming To Be Govt Official

Just recently, Malaysia has been hit with a wave of scam incidents. That being said, many Malaysians have been living...

Collage Fight 1 Collage Fight 1
News11 hours ago

Australian Man Severely Injured in Fight With M’sians at TREC KL, PDRM Arrests 3 Local Men

If you have drank or partied before, you would know that the line between having just enough to drink to...

Collage Elephant Collage Elephant
News14 hours ago

Wild Elephants Return To A Residential Area in Kluang, Johor To Forage For Food

Wild animal sightings have become more and more frequent recently. Just 3-4 weeks ago, a tiger was spotted roaming a...

Feat Image Rural Roads Malaysia Feat Image Rural Roads Malaysia
News1 day ago

Rural Development Minister: Govt Allocates Over RM1.2 Billion To Improve Road Systems In Rural Areas

Rural Development Minister, Datuk Seri Mahdzir Khalid revealed that the government has allocated over RM1.2 billion to provide a better...

244291977 2069541206527870 5744218834695855290 N 244291977 2069541206527870 5744218834695855290 N
News1 day ago

Dubai Is Building A Huge, $5 Billion Moon Hotel That Has Low-Gravity Walking Experience

There will finally be a “moon” on earth.  This moon-shaped hotel is a giant replica of the moon and will...

Announcement

Latest Videos

TRENDING TODAY