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RCEP
IMPACT ON
EAST ASIA
INVESTMENT
WAN WADRINA WAN ABDUL WAHAB
MINISTRY OF INTERNATIONAL TRADE
AND INDUSTRY MALAYSIA
1
WHAT IS RCEP ?
ASEAN-driven
REGIONAL
COMPREHENSIVE
ECONOMIC
PARTNERSHIP
special and
differential
treatment
+ economic and
technical
cooperation
builds on existing
ASEAN FTAs
open accession
AUSTALIA
BRUNEI
CAMBODIA
CHINA
INDIA
INDONESIA
JAPAN
KOREA
LAO PDR
MALAYSIA
MYANMAR
NEW ZEALAND
PHILIPPINES
SINGAPORE
THAILAND
VIETNAM
2
RCEP : Integral Part of AEC
RCEP: Guiding Principles and
Objectives for Negotiating
modern, comprehensive, high-quality
mutually-beneficial economic
partnership
RCEP : What Does it Cover?
Investment Chapter
• liberal, facilitative, competitive
regional investment
environment
• Negotiations cover four pillars:
- promotion
- protection
- facilitation
- liberalisation
RCEP : Where are We?
Launched
2012
Conclusion?
2013
2014
2015
Nov
• 9 Rounds of negotiations
End of
2015
WHY
RCEP?
Single
Integrated
offering increased
opportunities :
Market
business
Investment
Trade in
Goods
Trade in
Services
SMEs
8
WHY RCEP ?
more than 3 billion people
combined GDP of more than
US$17 trillion
over 40% of world trade
In 2014, increase of FDI in flows
ASEAN – US$133 billion (5%) and
RCEP – US$363(4%)
9
Emerging regional ARCHITECTURE…
Market
Size
(mil)
Economic
Size
(US$ tril)
RTA
External
Trade
(US$ tril)
IntraRegional
Trade
(US$ tril)
Trade with
the World
(%)
RCEP
3,333.50
17.23
8.40
3.69
43.90
EAS
3,786.40
33.24
12.29
5.91
48.06
TPP
504.66
16.84
5.09
0.61
11.96
10
WHY
RCEP?
Expansion of intra-regional
trade and integrated supply
chain:
11
WHY Expansion of intra-regional
RCEP? investment:
Rest of
World,
31%
ROK
2.6%
Australia
3.4% China,
5.8%
•
ASEAN,
17.4%
EU-28,
15.7%
USA,
8.8%
Japan,
15.3%
During 2012-2014:
FDI Inflows into ASEAN :
US$136.2 Billion (44.5% from RCEP countries)
12
MALAYSIA IN
2015 : Malaysia : Chair of ASEAN
• Major milestone year: realisation of the ASEAN
Community will be announced.
• Malaysia’s Chairmanship : critical in ensuring
priority initiatives for the AEC are in place, the
integration process be seamlessly continued beyond
2015.
14
AEC: Challenges being Addressed
Tariff and NTBs, Local Protectionism
Inconsistent Regulations Across ASEAN
Weak Infrastructure Links
Diverse Levels of Market Maturity
Restrictions on Foreign Investment and Labour
Shortages of the Right Types of Workers
Cultural Diversity Across ASEAN
Are ASEAN Member States Ready for AEC 2015?
Economy
Singapore
Malaysia
Ease of Doing
Business Rank
(Out of 189)
1
Starting a
Business
Getting
Credit
18
6
26
78
95
101
114
135
148
177
Thailand
Vietnam
Philippines
Brunei Darussalam
Indonesia
Cambodia
Lao PDR
Myanmar
Paying
Taxes
13
17
23
Protecting
Minority
Investors
3
5
5
32
Trading
Across
Borders
1
75
125
161
179
155
184
154
189
89
36
104
89
71
12
116
171
25
117
154
110
43
92
178
178
62
173
127
30
160
90
129
116
36
75
65
46
62
124
156
103
11
Source: WB Doing Business 2015
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MALAYSIA : DOMESTIC INITIATIVES
INVESTMENT AND INDUSTRALISATION POLICY
 Manufacturing and services sectors towards higher valueadded, knowledge intensive and higher technology:
- Manufacturing :
Full liberalisation since 2003
- Services:
Progressively liberalising the 27 services
subsectors
 Entrepreneurial skills and promoting the development of
SMEs.
 Reducing regulatory barriers in order to improve the
environment for businesses.
 Attracting skilled talent from abroad to sustain growth of
a knowledge-based and innovative economy.
 Promoting regional growth and inclusiveness.
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INVESTMENT AND INDUSTRALISATION STRATEGIES
Investment
Agreements
i.e. regional
and bilateral
FTAs, to
enhance
foreign
investors’
confidence in
Malaysia
Ecosystem
approach to
promote the
entire value
chain of
industry
clusters
Malaysian
Investment
Development
Authority
(MIDA) as the
lead
investment
agency in
Malaysia
Continuous
improvement
of business
regulatory
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Malaysia Is Competitive Globally
Economy
2014/15 2013/14 2012/13 2011/12 2010/11 2009/10
(n=144) (n=148) (n=144) (n=142) (n=139) (n=133)
Switzerland
1
1
1
1
1
1
Singapore
2
2
2
2
3
3
USA
3
5
7
5
4
2
Hong Kong
7
7
9
11
11
11
Malaysia
20
24
25
21
26
24
China
28
29
29
26
27
29
Thailand
31
37
38
39
38
36
Indonesia
34
38
50
46
44
54
India
71
60
59
56
51
49
Source : Global Competitiveness Report, World Economic Forum (WEF)
n refers to number of participating countries
20
Thank you
Block 10, Government Offices Complex,
Jalan Duta, 50622 Kuala Lumpur, Malaysia
Tel: 603-8000 8000 | Fax: 603-6201 2337
Email: [email protected] | Website: www.miti.gov.my