Malaysia confident IPEF will strengthen Indo-Pacific economic cooperation

TOKYO: Malaysia is confident that the Indo-Pacific Economic Framework (IPEF) will strengthen economic cooperation between countries in the Indo-Pacific and the ASEAN region, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

During the question and answer session at the 27th International Conference on the Future of Asia, he said the new trade initiative provides a holistic structure to resolve trade issues with partner countries.

The IPEF was launched on May 23 by the United States (US) President Joe Biden in Tokyo during his visit to Japan.

Malaysia is one of the member countries of the new trade pact, which also comprises the US, Australia, Brunei, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam.

Ismail Sabri said Malaysia has been a long-time supporter of inclusion through regional economic integration, with the signing of bilateral and unilateral agreements.

"As a country that has an advantage in terms of resources as well as talents, Malaysia always takes the opportunity to expand trade and investment liberalisation," he said.

He added that platforms such as the Regional Comprehensive Economic Partnership (RCEP) and the IPEF offer distinct advantages -- each one complementing the other, ultimately contributing to regional economic integration.

"The advantages offered by each pact differ for various sectors. Admittedly, some parties may stand to gain more benefits, depending on the economic landscape and the parties involved in the agreement," he said.

The prime minister added that Malaysia is expected to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by year-end.

Together with RCEP, the CPTPP will create the space for the implementation of the Free Trade Area of the Asia-Pacific (FTAAP) initiative.

"It can strengthen investors' confidence and encourage more foreign investments, not only among CPTPP member countries but also non-CPTPP countries as they want to take advantage of the tariff concessions offered through the agreement," he said.

Meanwhile, the elimination of and reduction in tariffs for exports and imports of products will further facilitate the trade flow for products and services among RCEP member countries.

It will also boost trade activities and cross-border investments, subsequently strengthening the regional value chain, he said.

Sectors which are expected to benefit from the RCEP include telecommunications, finance and commodities such as oil palm-based products, rubber, timber and timber products such as furniture.

-- BERNAMA