Economic Partnerships and future integration with RCEP
The more we get together, together, together…
I like the Regional Comprehensive Economic Partnership (RCEP) which currently has 10 members. They are as follows: 10 members of the Association of Southeast Asian Nations, China, Japan, the Republic of Korea, Australia, and New Zealand. China is the 2nd largest economy in the world. Japan is the 3rd largest. South Korea is the 10th largest. The rest are out of the top 10 but ASEAN as a bloc is the 5th largest economy in the world.
Okay, enough of the introduction. Hopefully we get to work and do more yeah. First thing is definitely to trade from one another FIRST. Second is of course to trade in OWN currencies versus using US$ all the time which frankly is not needed. If I buy from China, I pay in RM and if they cannot accept RM, then might as well no need this kind of economic partnership lah. If Thailand buys from Malaysia, they pay in Thai Baht. We just ensure the currencies are all stable and demand for all the RCEP countries’ currencies would be more stable and will also facilitate the trade even better!
Just need to look at the fluctuation of the MOST USED currency to understand why. The day I buy and the day I pay may be different. This meant that the losses / gains may not even be because of my efficiency or productivity but it’s simply because of the movement of exchange rate. If this is the case all the time, better no need to do trading lah. Just play in the currency market loh.
The news article in nst.com.my here Xinhua reported that the RCEP agreement is now in effect for all 15 members. This agreement is focused on supporting an open, free, fair, inclusive, and rules-based multilateral trading system.
The RCEP agreement was signed in November 2020 by the 15 Asia-Pacific countries after eight years of negotiations. It entered into force on the first day of 2022, creating the world’s largest trade bloc.
The full implementation will inject strong momentum into regional economic integration, comprehensively enhance the level of trade and investment liberalisation and facilitation in East Asia, and contribute to the long-term stable development of the regional and global economy, said the commerce ministry. Please do read in full here. The news article in nst.com.my here
Let’s get India into this as well
If India joins, then this economic partnership will be even bigger. Other economic bloc will have to tread more cautiously when they negotiate with any RCEP members. Every negotiation should be based on partnership, win-win and never about who’s bloc is bigger. Some other economic blocs has been huge, has been able to integrate the economies well and has been able to move forward as one powerful entity. Any new economic partnership blocs is certainly welcomed, especially if Malaysia is part of it to benefit the economy and ultimately the businesses and the people too.
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