Most Malaysian manufacturers not utilising RCEP, CPTPP yet

President of the Federation of Malaysian Manufacturers  Tan Sri Soh Thian Lai. (Photo: theedgemarkets.com)

Kuala Lumpur (VNA) - Only 11% of Malaysian manufacturers are utilising both the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreements, according to a recent survey of the Federation of Malaysian Manufacturers (FMM).

The FMM's Business Conditions Survey for the second half of 2022 showed 66% of the 745 respondents said they are aware of the free trade agreements (FTAs), of which 9% of respondents are utilising the RCEP which took effect in March 2022, and 3% of respondents are utilising the CPTPP which was implemented in November 2022.

FMM president Tan Sri Soh Thian Lai said 77% of the respondents have not started utilising these FTAs yet.

Speaking at a press conference on March 16, Soh said 41% of those which have not utilised the FTAs cited reasons of not knowing where to start, suggesting a lack of information or policy direction on these FTAs among the respondents.

Another 33% said they are already utilising other FTAs and the duty exemption rate is lower, while 16% are not importing or exporting, and 6% have complained of a tedious application process.

He said despite the implementation of the RCEP and CPTPP, knowledge about them is still limited, particularly among exporters. The trade associations and government need to promote aggressively these RCEP and CPTPP so they can take advantage of this big opportunity for exports./.