KUALA LUMPUR: Malaysia must tackle the laggards to expedite the ratification of both the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) to sustainably recover from the Covid-19 pandemic.
Asean Business Advisory Council Malaysia (ABAC Malaysia) chairman Tan Sri Dr. Munir Abdul Majid said Malaysia should take advantage of the arrangements and markets from both free trade agreements (FTAs).
Otherwise, the country may lose out as other signatories countries are positioning themselves well ahead of their competitors for the first-mover advantage.
"We reaffirm our strong support for the government to expedite the ratifications of the RCEP and CPTPP by the end of 2021.
"Recognising the ratification of both free trade agreements (FTAs) would position Malaysia as a gateway to the Asean as RCEP and CPTPP markets provide opportunities for Malaysian businesses," he said at Asean-BAC Malaysia Webinar 2021 on "RCEP and CPTPP as Game-Changers in Asean Post Covid-19 Economic Recovery" here today.
Munir said the ratification would offer market access to nearly a third of the world's population while widening intra-regional sourcing channels of raw materials at competitive prices.
It will also integrate the supply chain within the RCEP and CPTPP regions and promote greater transparency, information sharing, trade facilitation, economic cooperation, standardisation of rules to e-commerce as well as providing certainty in the protection of intellectual property rights
However, Munir said several "Act of Parliament" and regulation would need to be amended to facilitate the ratification.
"We do not have a Parliament in session. Having a Parliament functioning is not just a matter of abiding principle but also one of the practical necessities to ensure we can move and take advantage of what is clearly in the lack interest," he said.
Munir said Malaysia would need a strong and stable government as the country relied heavily on professional civil servants.
"We do not have open, transparent and intellectually honest governance culture. The weak political position of the present government and opaque method of governance all transpire to damage economic and commercial interest," he cautioned.
ABAC Malaysia urged the government to take swift actions to allow businesses to take advantages of both FTAs that Malaysia has already signed, given the devastating impact of Covid-19, especially on the supply chains.
"We hereby seek the government to ratify the RCEP and CPTPP by the end of 2021 to gain early mover's advantage and strengthen the Malaysian economy, while fortifying stronger partnership with other Asean member states and signatory countries of both RCEP and CPTPP towards a sustainable economic recovery of Malaysia and the region," he said.
ABAC Malaysia is the undersigned representative of the trade association, chambers of commerce, professional bodies and foreign business association and business councils in Malaysia.