Regional Comprehensive Economic Partnership (“RCEP”) in Malaysia

On 21 January 2022, the Ministry of International Trade and Industry (“MITI”) has issued a media release to announce that Malaysia’s Instrument of Ratification (“IOR”) has been submitted to the ASEAN Secretariat on 17 January 2022.

With this, Malaysia will become the 12th signatory country on 18 March 2022 to implement the RCEP Agreement, joining Singapore, China, Japan, Brunei, Cambodia, Laos, Thailand, Vietnam, Australia, New Zealand and South Korea that have completed the ratification process.

RCEP is effectively the world’s largest free trade agreement covering 15 countries, which would serve as an overarching mechanism for free trade among the participating countries with a single set of rules and procedures for accessing preferential tariffs across the region (e.g. harmonizing the disparate rules of origin required to satisfy access to preferential duties across multiple countries).

RCEP covers, amongst others:

  1. Elimination or reduction of import duties;
  2. Promotion, facilitation, protection and investment liberalization;
  3. Protection of intellectual property rights, facilitation in e-Commerce; and
  4. Economic and technical cooperation.

The immediate priority for organisations is to review its current supply chain and examine the requirements of existing FTAs as well as what RCEP offers to identify opportunities to optimise sourcing and processing arrangements and to take advantage of any incremental benefits.  Equally important is formulating an effective strategy to gear up for higher level of competition in a single, wider market with the elimination of tariff and non-tariff barriers.

Please click on the above link for the Media Release on the Ratification of RCEP from MITI.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.

Petaling Jaya Office

Soh Lian Seng
Executive Director -
Head of Tax and Head of Tax Dispute Resolution
+ 603 7721 7019

Bob Kee
Executive Director -
Head of Transfer Pricing
+ 603 7721 7029

Tai Lai Kok
Executive Director -
Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
+ 603 7721 7018

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
+ 603 7721 7271

Outstation Offices

Penang Office

Evelyn Lee
Executive Director -
Penang Tax
+604 238 2288 (ext. 312)

Ipoh Office

Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
+605 253 1188 (ext. 320)

Kuching & Miri Office

Regina Lau
Executive Director -
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Johor Bahru Office

Ng Fie Lih
Executive Director -
Johor Bahru Tax
+607 266 2213 (ext. 2514)