KUALA LUMPUR (July 27): Malaysia will continue to establish cooperation in the areas of diplomatic, trade and investment relations with Regional Comprehensive Economic Partnership (RCEP) members, despite the constraints and challenges, following China’s implementation of its zero-Covid policy.

Citing many reports and studies that have already been published, Senior International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali agreed that China's zero-Covid policy had led to a moderation in trade.

“Of course, the movement [controls] and closure of borders have an impact on the facilitation of trade and investment between China and RCEP member countries.

“However, if we look at the trade performance of our country for June, it increased by 43.4% [year-on-year] to RM270.39 billion. [As for our] trade with China, which is also a member of the RCEP, [we have] recorded a double-digit growth for 19 consecutive months,” he said.

Azmin said this in Parliament on Wednesday (July 27) in reply to a supplementary question from Datuk Darell Leiking (Warisan-Penampang), who wanted to know the impact of China's zero-Covid policy on RCEP partners.

Darell, who served as the international trade and industry minister during the Pakatan Harapan administration, initially asked about the impact on the country's trade since the RCEP came into effect in Malaysia last March, and the industries currently being prioritised by the government.

“As Malaysia only enforced the agreement last March, it is currently too early to assess the impact of the RCEP on the country's trade,” said Azmin, who is also the Member of Parliament for Gombak.

The RCEP came into force on Jan 1 this year, with Malaysia's participation coming into force on March 18.

Azmin said exporters and importers must have preferential certificates of origin (PCOs) to enable them to enjoy duty exemption or reduction under any free trade agreement (FTA).

According to the minister, he said data obtained since the beginning of the RCEP being enforced in March until June 30 saw 73 such certificates issued, with an export value of RM31.9 million for the export of goods under the RCEP. The month of June itself recorded the highest export value of RM21.5 million.

A PCO is an international document that proves the exported or imported goods fulfil the criteria stipulated in the rules of origin chapter of the agreement.

This includes the verification of the importing country’s customs in order to enjoy tariff concessions under the respective FTAs.

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