RCEP - The Next ASEAN Focused Regional Economic Agreement

The Regional Comprehensive Economic Partnership (“RCEP”), a regional trade agreement currently being negotiated between the ASEAN countries and China, Australia, India, Japan, New Zealand and South Korea, has the potential to become the next mega-economic agreement after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) to facilitate the expansion of investment and trade in the Asia Pacific region. Given the current global trade environment, rising protectionist sentiments, and the expected increase in US trade sanctions against China, having a modern, comprehensive and mutually beneficial economic partnership like RCEP could be favourable for investors and consumers. This update examines what RCEP holds for Malaysia and what we might expect next.