The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) welcomes the Government of Malaysia’s announcement dated 5 October on our ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 30 September 2022. The CPTPP is expected to enter into force on 29 November 2022, 60 days after the ratification was made.
While it is a long overdue ratification for Malaysia as the CPTPP had already implemented on 30 Dec 2018, President of ACCCIM, Tan Sri Dato’ Low said that the CPTPP, reinforced by the RCEP will help to increase Malaysia’s expansion and diversification of trade and services as well as commercial opportunities, and hence, strengthening Malaysia’s economic recovery post the COVID 19 pandemic.
ACCCIM believes that Malaysia’s commitment in adopting the high standards of CPTPP will increase Malaysia’s attractiveness as an investment destination for companies looking to diversify their supply chains, opening up market access for goods and services as well as digital products.
The 10 CPTPP partners accounted for 29.0% of Malaysia’s total exports and 22.9% of total imports in 2021. They accounted for 31.2% of Malaysia’s electronics and electrical products exports. Malaysia would also gain access to new markets such as Canada, Mexico and Peru (1.5% of total exports and 1.1% of total external trade in 2021), of whom Malaysia does not have an FTA with these three countries. For instance, tariffs for electronics and electrical products will be reduced from the current maximum of 9%-20% based on the tariff elimination schedule for respective countries namely, Canada, Peru and Mexico. Through the CPTPP, these tariffs will be eliminated by 2028.
The chamber, being a strong advocate of open and free trade practices as well as rule-based trading system hopes that both the Government and business group can work together to help domestic SMEs to enhance their exports potential in the international markets.
The exports initiatives can be made possible through the support of product, brand and marketing development facilitation funds and grants as well as
incentives to assist those new comers to familiarise with the trade rules and regulations as well better understanding of market environment of our trading partners. We have to forge more business networking and market intelligence to penetrate newer markets offered under both CPTPP and RCEP.