Build Up Capacity for SMEs to Take Advantage of RCEP -- ASEC

By Mohd Iswandi Kasan Anuar JAKARTA, Dec 23 (Bernama) -- As the Regional Comprehensive Economic Partnership (RCEP) Agreement enters into force on Jan 1 next year, governments must continue improving small and medium enterprises (SMEs) through capacity-building. Their role is crucial to ensure SMEs are able to enhance their competitiveness and reap the benefits of the agreement, according to ASEAN Secretariat (ASEC) in a statement. The mega free trade deal among the Asia-Pacific countries inked on Nov 15, 2020 provides opportunity for regional SMEs to be integrated into the regional value chain and narrow the development gap. Therefore, tailor-made regulations are needed to help SMEs to be better integrated into the regional as well as global value chains. ASEAN businesses, particularly SMEs, must familiarise themselves with the RCEP, especially since SMEs account for the majority of businesses in the region. The RCEP participating countries are Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. Experts said the signing during COVID-19 was an indicator of its importance as a driver of post-COVID-19 economic recovery and reflect countries’ commitment to economic growth through globalisation. The RCEP signatories make up 28 per cent of global gross domestic products and 30 per cent of the world’s population. In the regional level, ASEC said the participating countries are finalising the necessary measures and institutional arrangements to ensure effective and efficient implementation of the agreement. They are putting in place the necessary implementing laws and regulations at the domestic level. The RCEP has now been ratified by Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Singapore, South Korea, Thailand, and Vietnam. Indonesia, Malaysia, Myanmar, and the Philippines are the other signatories yet to ratify. -- BERNAMA