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RCEP has potential to be economic catalyst in Asia-Pacific, says Ismail Sabri

SHANGHAI: The Regional Comprehensive Economic Partnership (RCEP) has the "potential of a catalyst for economic growth, innovation and connectivity in the Asia-Pacific", said former prime minister Datuk Seri Ismail Sabri Yaakob.

He highlighted Malaysia's gains alongside RCEP members, citing its transformative impact on trade and the economy.

"For example, from January to March this year, exports to RCEP countries comprised 29 per cent of Malaysia's total exports, reaching around RM203 million. This shows the agreement's ability to reduce the risks linked to reliance on a single region," he said at the China-Asean RCEP Forum yesterday.

He highlighted RCEP's role in developing greater trade ties and industrial collaboration in the Asia-Pacific.

"By boosting trade ties in the Asia-Pacific, Malaysia not only shields itself from potential supply disruptions but also creates new possibilities for diversifying exports and enhancing industrial collaboration.

"RCEP enhances access to expansive markets such as China, which has a population of 1.41 billion, and Indonesia, with 275 million people. Therefore, this economic integration can benefit all of us as it deals with the complexities of global trade, in the context of instability in the Middle East and Eastern Europe."

On Dec 12, 2023, the Investment, Trade and Industry Ministry said in the Dewan Rakyat that it was facing the challenge of increasing the rate of use of the RCEP and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) among local companies even though they have been enforced since 2022.

In November 2020, Malaysia signed the agreement with 14 RCEP participating countries, making it the largest free trade agreement in the world.

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