The signing of the world’s biggest free trade agreement (FTA) represents a significant and imperative milestone in the integration and revitalisation of economies of the 15 participating countries.

International Trade and Industry Minister Mohamed Azmin Ali said the agreement is testament to the strengthening of the multilateral trading system, while upholding the World Trade Organization’s development agenda.

“The RCEP will promote, facilitate and protect the investment climate of participating countries within the region.

“This includes information exchange and promotion of transparency measures to facilitate business and investment within the RCEP area,” Azmin told reporters after the signing.

The RCEP encompasses 15 countries with a combined population of 2.2 billion, or nearly 29.7% of the world’s population, and represents 28.9% of the world’s gross domestic product, based on World Bank’s 2018 data.

The RCEP amalgamates and streamlines the existing Asean+1 FTAs – which includes Japan, South Korea, China, Australia and New Zealand – into an inclusive and comprehensive agreement.

Elaborating on the actual benefits of the RCEP to Malaysia, Azmin said it will contribute to sustaining Malaysia as a preferred trading hub and investment destination.

To Malaysia’s businesses, he said it meant tariff elimination or reduction for merchandise goods, including the facilitation of export and import of goods among the RCEP member countries.

“Service providers, including (those engaged in) e-commerce, will be able to enjoy greater market access in terms of cross-border supply and establishing a commercial presence in the RCEP markets, he said.

Azmin said realising that the small- and medium-sized enterprises played a pivotal role to the backbone of every economy, the pact could provide a level playing field between developed and less-developed countries.