Malaysia and other member countries in the Regional Comprehensive Economic Partnership (RCEP)must further improve trade facilitation rules across the region as reducing non-trade barriers can further enhance trade among member countries, an economist said.
Sunway University Business School Professor of Economics Dr. Yeah Kim Leng told Business Today those exporters and investor must understand their rights under international agreements and must provide a contact point for companies facing non-tariff barriers.
“It is paramount the red tape behind the various border barriers be reduced so that member countries can greatly benefit the bounties of trade rather than inhibited by non-trade barriers that would impede the flow of trade, “he said
The Regional Comprehensive Economic Partnership (RCEP) agreement comes into force for Malaysia On March 18 of this year, paving the way for the country to integrate into the world’s largest free trade agreement (FTA) that involves 15 countries, with a total population of more than 2.2 billion or nearly a third of the global population and world GDP.
Within ASEAN, Malaysia is expected to be the largest beneficiary of the Agreement in terms of gains in exports, with a projected US$200 million increase.
On what can Malaysia do to facilitate trade, Yeah said that the government must ease the greater flow of trade with better logistics and customs facilitation in ports and other points of entry.
He said that it must actively engage in the private sector and avail business opportunities so that can seize opportunities in the profitable RCEP market.
In addition, he said that the delivery mechanism but be improved so that the cost of doing business would be greatly reduced.
Yeah added that the Malaysian authorities must also make sure that procedural delays such as late customs clearance and cargo handling and lack of predictability in the interpretation of regulation will result in an escalation of costs for businessmen that must be avoided.
“Malaysia and all members of RCEP must ensure that delays in one country may have negative effects along the whole global production chain and suppliers of trade-related services may also see business reduced, he said.
On Malaysia Chian Trade, Yeah said that notwithstanding RECEP, Malaysia is already the largest trading partner with China and this is likely to grow in the future. The total trade with China for the year with US$78.58 billion with total exports being US$37.77 billion while exports were US$40.81 billion
