According to the agreement, from March 18, China began to implement the first-year tax rate applicable to RCEP ASEAN member countries on some imported goods originating in Malaysia. Under the RCEP agreement, both China and Malaysia have made new market opening commitments on the basis of the China-Asean Free Trade Area, and some products can receive new tariff preferences.
For example, China's exports to Malaysia of processed aquatic products, cocoa, cotton yarn and fabric, chemical fiber, stainless steel, some mechanical equipment and parts, as well as Malaysia's exports to China of canned pineapple, pineapple juice, coconut water, pepper and other agricultural products, as well as some chemical products, paper products, etc., on the basis of the China-Asean Free Trade area can obtain new tariff reduction.
Malaysia is China's second largest trading partner in ASEAN, while China has been Malaysia's largest trading partner for 13 consecutive years. According to customs statistics, in the first two months of this year, bilateral trade volume between China and Malaysia was 29.45 billion US dollars, an increase of 28.1% year-on-year, higher than the overall growth rate of China's foreign trade in the same period of 12.2 percentage points.
The effective implementation of the RCEP in Malaysia and the addition of the China-Asean Free Trade Area will further release the development potential of China-Malaysia trade in goods, help promote regional industrial transformation and upgrading, and inject new vitality into regional economic development.
Malaysia: RCEP will bring more opportunities, and people from all walks of life are looking forward to boosting economic recovery
Various sectors in Malaysia said that after the Regional Comprehensive Economic Partnership Agreement (RCEP) officially took effect in Malaysia today, it will become a catalyst for Malaysia's economic recovery and further promote the economic and trade exchanges between Malaysia and China.
According to statistics, trade with RCEP member countries accounts for nearly 60% of Malaysia's total trade, and the World Bank research report pointed out that by 2030, RCEP will help Malaysia's gross national product increase by 0.8%. Some analysts believe that after the official entry into force of RCEP, Malaysia is expected to "achieve substantial growth" in the food and beverage industry, chemical products, rubber products, plastic products, machinery and equipment and electronic and electrical products exports. Companies specialising in telecommunications, banking, finance and advisory services will also benefit.
▏ Lu Cheng, President of the Chinese Chamber of Commerce and Industry in Malaysia: Malaysia's geographical location is moderate in ASEAN, so there are great conditions for docking. After the RCEP comes into effect, the overall economic and trade costs and business costs will also be relatively reduced, which will certainly be of great help to the export sector.
China has been Malaysia's largest trading partner for 13 consecutive years, while Malaysia's exports to China also hit a record high in 2021. China and Malaysia have shown a high degree of complementarity in the economic and trade field. After the official entry into force of RCEP, the two countries are expected to deepen cooperation in more economic fields.
After the Regional Comprehensive Economic Partnership came into effect, the proportion of China's immediate zero tariffs on Malaysia reached 67.9 percent, and that of Malaysia's immediate zero tariffs on China reached 69.9 percent, which is an unprecedented high level. Economic and trade ties between the two countries are also expected to expand into high value-added manufacturing, information and communication technology, services, agriculture and renewable energy.
In addition to lowering tariffs, the RCEP came into effect and will also bring more changes in trade liberalization and facilitation. For example, regulations on paperless trade and electronic authentication will make cross-border logistics more convenient.
