The ratification of two of the world’s mega-regional free trade agreements, namely the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marks a significant milestone for Malaysia in its pursuit of bolstering foreign investments and expanding its trade horizons.
Malaysia has successfully ratified the RCEP on 17 January 2022, followed by the ratification of the CPTPP on 30 September 2022. Subsequently, the RCEP came into force on 18 March 2022, while the CPTPP took effect on 29 November 2022. Through its participation in the RCEP and CPTPP, Malaysia gains deeper access to an extensive network of trading partners. With the CPTPP, Malaysia now has new market access to 3 new free trade agreement partners: Canada, Peru and Mexico.
The ratification of the RCEP and the CPTPP demonstrates Malaysia’s commitment to strengthening trade relations with key economies globally. These agreements offer an array of benefits, including increased market access to a wider range of high-quality raw materials at competitive prices, reduced tariffs and trade barriers, as well as enhanced regulatory transparency. Armed with these advantages, Malaysia is well-positioned to attract foreign investments, foster economic growth, and strengthen its role as a pivotal regional trading hub.
The potential inclusion of the United Kingdom in the CPTPP is anticipated to further bolster ties with Malaysia. While the exact impact of this inclusion remains to be seen, it presents a promising opportunity for Malaysia and the United Kingdom to explore new avenues of cooperation and forge stronger economic partnerships within the framework of the CPTPP. The United Kingdom’s participation can potentially open up additional market access and foster a conducive environment for mutually beneficial trade and investment activities.