fbpx
Connect with us

News

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

chloe-foo-1

Published

Feat2-14
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

Feat-Image-Ganu-Dun-3 Feat-Image-Ganu-Dun-3
News2 months ago

Did You Know: The Terengganu Exco For Women’s Affairs is a Man & No Female Ever Held The Position

Despite women making up the majority of registered voters in Malaysia with 10,622,151 or 50.3% in the 15th General Election...

Collage-18-52 Collage-18-52
News2 months ago

SG Driver Smashes M’sian Driver’s Rear Window With Golf Club on Expressway, PDRM Investigates

Driving is sometimes about patience, especially when you encounter a situation that grinds your gears but there is never a...

Poop-On-Everest Poop-On-Everest
News2 months ago

Mount Everest Climbers Will Now Need to Buy Poo Bags & Bring Their Faeces Back When Descending

Scaling mountains means that an individual has limited things that they can bring and will be in nature for the...

Fireworks-Cannot-After-Midnight-1 Fireworks-Cannot-After-Midnight-1
News2 months ago

PDRM: Public Advised Not to Play With Fireworks After 12am or Risk Facing Action

As with all festivities, firecrackers are a hot item, and many love to play with them, especially at night. PDRM...

Collage-3-155 Collage-3-155
News2 months ago

KTMB Introduces Open Payment System at 80 Stations via Apple Pay, Debit Cards & More!

Keretapi Tanah Melayu Berhad (KTMB) Komuter is gearing up to introduce support for the open payment system across 80 stations...

My-Post-1-2024-02-09T151501-148 My-Post-1-2024-02-09T151501-148
News2 months ago

This M’sian-Owned London Megastructure Has Been Named Among World’s Best Cultural Spots!

National Geographic recently released its newly expanded Best of the World 2024 guide that shares superlative experiences, hotels, restaurants, and...

Collage-1594 Collage-1594
News2 months ago

Cheras Man Bags Nearly RM11 Million Jackpot for Magnum 4D With Lucky Numbers 7474 & 3964

You’ll never know what luck awaits you and if it’s yours, it’ll be yours no matter where you go. A...

My-Post-1-2024-02-09T124559-609 My-Post-1-2024-02-09T124559-609
News2 months ago

Pet Dog in Penang Dies After an Alleged Drunk Person Slashed it Because it Apparently Bit Them

Disclaimer: Graphic content. Viewer discretion is advised. Being a dog owner can be a tricky situation. You have to train...

Announcement

Latest Videos

TRENDING TODAY