Malaysia: Ding support free trade, from promise to prosperit

On the day when the Regional Comprehensive Economic Partnership Agreement (RCEP) was officially signed, the Malaysian stock market was greatly boosted. The FTSE Malaysia KLCI was once close to the 1,600-point mark. Malaysian Prime Minister Muhyiddin said that RCEP can become the “main tool” for enhancing the regional economic integration of ASEAN and its dialogue partners, and help the region respond to the new crown pneumonia epidemic.

Tools for economic recovery in the post-epidemic era

　　 The new crown pneumonia epidemic has had a strong impact on the world economy. In the face of current challenges and difficulties, what the world needs is unity, not aggravating division. The signing of RCEP is an important milestone in the economic integration and economic revitalization of these 15 countries in the Asia-Pacific region, and a strong affirmation of the multilateral economic and trade system. In this regard, Muhyiddin emphasized that Malaysia firmly believes that RCEP can be used as one of the tools of economic recovery. The implementation of the agreement will encourage the reopening of the market and ensure that the international supply chain will not be interrupted.

　　 Affected by the new crown pneumonia epidemic, Malaysia’s GDP fell by 8.3% in the first half of the year compared with the same period last year. It is estimated that Malaysia’s GDP this year will drop by 3.5% to 5.5% from last year. The most direct impact of the epidemic on the Malaysian economy is the reduction of inbound tourists, which has affected travel agencies, airlines and other tourism-related industries and the retail industry. The signing of RCEP will expand new areas of economic and trade cooperation between Malaysia and ASEAN and China, Japan, South Korea, Australia, and New Zealand. The signatories will jointly develop larger and more open markets and prepare for economic recovery after the epidemic.

　　 RCEP emphasizes multilateral cooperation. Its member states include developed economies and developing countries. The economy and trade are highly complementary, and there is huge room for future growth and development. Through RCEP, internal and external connections are formed to inject new vitality and vitality into the world economy.

RCEP can be used as a tool for economic recovery in the post-epidemic era. This immediate effect is really impressive.

　　 Multilateralism and free trade are most in line with the long-term interests of the economic development of various countries. Malaysia has been integrated into the global multilateral trading system for more than half a century. In 1957, Malaysia joined the General Agreement on Tariffs and Trade, the predecessor of the World Trade Organization, after independence. According to the GATT and the rights and obligations of WTO members, Malaysia has adopted relevant policies and measures to actively adjust its industrial structure, which has effectively promoted the development of its economy.

　　According to the WTO agreement, Malaysia will gradually reduce tariffs and open up the market. Driven by the rapid development of foreign trade, Malaysia has gradually established an export-led industrial system. Today, Malaysia is a country with a relatively high level of industrialization in the ASEAN region. Full integration into the international trading system has contributed to the sustained development and prosperity of the Malaysian economy.

　　As one of the founding member states of ASEAN, Malaysia has made great contributions to promoting the integration of Southeast Asia and the development of ASEAN organizations. Now, the signing of RCEP will help ensure the opening of the Malaysian market and the stability of the supply chain. As Malaysia’s Minister of International Trade and Industry Azmin Ali said, “RCEP reflects our firm commitment to international trade, connectivity, a rule-based multilateral trading system, and the promotion of the free flow of trade and investment.”
China-Malaysia economic and trade cooperation goes further

　　 At the Malaysian “Shanxi Herbal Tea” tasting held in October, Zhang Guangbin, who lives in Malaysia, and his hometown of Linfen, Shanxi, discussed in depth how to promote the “Shanxi Herbal Tea” in the Malaysian market through a video connection. There are a large number of overseas Chinese living in Southeast Asia. They have had the habit of drinking Chinese herbal tea for many years. When Zhang Guangbin, who was stranded in Malaysia due to the epidemic, learned that Shanxi was vigorously promoting the brand of herbal tea, he felt that this contained huge business opportunities. Zhang Guangbin intends to open a medicated tea store in Malaysia, and plans to use this as a basis to promote Shanxi medicated tea to the Chinese communities in Singapore, Thailand and other countries, and to promote the medicated tea industry culture overseas.

　　 This is just a short story about the close exchanges and cooperation between China and Malaysia, the spread of Chinese culture and the strengthening of cultural and economic exchanges and cooperation with overseas culture. Now, the annual trade volume of China-Malaysia economic and trade exchanges has reached 100 billion U.S. dollars. From January to September this year, in the trade volume between China and ASEAN countries, Malaysia ranked second; in terms of trade growth rate, China-Malaysia trade increased by 3.1% year-on-year.

　　 Currently, Malaysia is implementing an economic transformation plan to develop electronic equipment, chemical engineering, electromechanical equipment, medical equipment, aviation, etc. Many preferential policies will be given to foreign-funded enterprises in these industries. Among ASEAN countries, Malaysia has a relatively better investment environment and has a closer economic and trade relationship with China. Industry insiders suggest that Chinese-funded enterprises can invest in local industries that are encouraged to develop in Malaysia and make arrangements in the Malaysian market in advance.

　　 It is worth noting that China and Malaysia will re-draw a five-year plan for bilateral economic and trade cooperation in the near future. Looking to the future, Malaysia will provide tax relief and land preferential measures for foreign investment including Chinese-funded enterprises at the policy level, and China-Malaysia economic and trade cooperation will also rise to the next level.

　　 After the signing of RCEP, China and Malaysia can not only further increase trade volume and expand new areas of economic and trade cooperation, but also give full play to each other’s advantages under the framework of the agreement to jointly develop third-party markets.

Source: International Business Daily

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