RCEP, CPTPP to boost Malaysia’s external trade beyond 2023

Malaysia’s external trade activities are expected to expand steadily beyond 2023 amid the impact of new trade agreements, apart from elevated commodity prices and lower interest rates, according to a research released on February 2 by Malaysian Industrial Development Finance Berhad (MIDF).

The research house said the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were also expected to lift the external trade performances in 2024.

As of 2022, RCEP members contributed 58.1% of Malaysia’s total trade while CPTPP members accounted for 27.5%, it noted.

Under those two free trade agreements (FTAs), Malaysian products are able to penetrate into wider markets while imported goods become cheaper. Hence, Malaysia’s exports and imports growth rates would touch 12.1% and 10.9% respectively in 2024, it added.

MIDF Research said the external front is still on a challenging path, with concerns of a global economic slowdown, inflation biting, tightening monetary policy in many countries and geopolitical risks in Europe and Asia.

It has foreseen slight moderation in exports growth forecast from 25% year-on-year in 2022 to 9.2% year-on-year in 2023./.

Source: Vietnam News Agency