PETALING JAYA: The East Asia Business Council (EABC) Malaysia Chapter has established the Regional Comprehensive Economic Partnership (RCEP) Business Advisory Council (RBAC) Malaysia Network, a domestic platform aimed at strengthening coordination between Malaysian manufacturers and exporters and the government agencies responsible for implementing RCEP.
EABC Malaysia Chapter chairman Tan Sri Soh Thian Lai said the network was established to help address the low level of business utilisation of RCEP despite the significant market access opportunities available since the agreement entered into force for Malaysia on March 18, 2022.
RCEP is the world’s largest free trade agreement, comprising 15 economies that collectively account for about 30% of global gross domestic product, trade and population, representing a market of around 2.2 billion people.
For Malaysian manufacturers, the agreement provides commercial advantages by improving market access and preferential tariff treatment in key export destinations such as China, Japan, South Korea, Australia and New Zealand, strengthening the competitiveness of Malaysian products against suppliers from countries outside the agreement.
RCEP also introduces a common set of Rules of Origin and a single certificate of origin framework, helping to reduce compliance costs, simplify documentation and support regional cumulation, allowing manufacturers to source materials and components across RCEP member economies while maintaining preferential market access.
Despite these advantages, business utilisation of RCEP remains limited, Soh said in a statement.
The EABC-Jetro Business Outlook Survey 2025 covering companies across the Asean Plus Three region found that while awareness of RCEP had reached 60.3%, actual utilisation remained below 20%.
Among companies not yet utilising RCEP preferences, 48.1% cited uncertainty over procedures, requirements and practical implementation as the main challenge. These findings show that greater support is needed to help businesses move from awareness to actual utilisation so they can better benefit from lower costs, stronger supply chain integration and improved export competitiveness.
Addressing this utilisation gap will be a key focus of the RBAC Malaysia Network.
EABC is the official private sector advisory body to Asean Plus Three Leaders, ministers and senior economic officials, channelling consolidated industry positions into regional economic policy dialogue across 13 member economies.
To support implementation of the RCEP, the RCEP Business Advisory Council (RBAC) was established in January 2022 as a dedicated private sector platform bringing together representatives from all 15 RCEP member economies, including Australia and New Zealand, to consolidate business input on the implementation of the agreement.
Since its establishment, Soh said, RBAC has held 10 meetings, compiled data on certificates of origin issued across member economies and engaged directly with the RCEP governments on issues relating to rules of origin, customs procedures and digital trade facilitation.
“The RBAC Malaysia Network extends this regional work into the domestic business community, providing Malaysian manufacturers with a structured platform to raise implementation issues, obtain practical guidance and contribute industry feedback to national and regional discussions on RCEP implementation,” he added.
Soh said Malaysia’s manufacturing sector is well positioned to derive greater value from RCEP.
“Malaysian manufacturers already export extensively across RCEP member economies, and the agreement directly strengthens their competitiveness in these markets while reducing compliance and sourcing costs for companies integrated into regional supply chains,” said Soh.
He added that the benefits are real but realising them at scale requires businesses to move beyond awareness into active use.
He said RBAC Malaysia Network will work directly with manufacturers to build practical understanding of RCEP requirements, resolve implementation obstacles and ensure that industry experience shapes how the agreement is applied and improved.
