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Malaysia’s Ratification of the RCEP and CPTPP

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The ratification of two of the world’s mega-regional free trade agreements, namely the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marks a significant milestone for Malaysia in its pursuit of bolstering foreign investments and expanding its trade horizons.

Malaysia has successfully ratified the RCEP on 17 January 2022, followed by the ratification of the CPTPP on 30 September 2022. Subsequently, the RCEP came into force on 18 March 2022, while the CPTPP took effect on 29 November 2022. Through its participation in the RCEP and CPTPP, Malaysia gains deeper access to an extensive network of trading partners. With the CPTPP, Malaysia now has new market access to 3 new free trade agreement partners: Canada, Peru and Mexico.

The ratification of the RCEP and the CPTPP demonstrates Malaysia’s commitment to strengthening trade relations with key economies globally. These agreements offer an array of benefits, including increased market access to a wider range of high-quality raw materials at competitive prices, reduced tariffs and trade barriers, as well as enhanced regulatory transparency. Armed with these advantages, Malaysia is well-positioned to attract foreign investments, foster economic growth, and strengthen its role as a pivotal regional trading hub.

The potential inclusion of the United Kingdom in the CPTPP is anticipated to further bolster ties with Malaysia. While the exact impact of this inclusion remains to be seen, it presents a promising opportunity for Malaysia and the United Kingdom to explore new avenues of cooperation and forge stronger economic partnerships within the framework of the CPTPP. The United Kingdom’s participation can potentially open up additional market access and foster a conducive environment for mutually beneficial trade and investment activities. 

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Adeline Wong heads the Tax, Trade and Wealth Management Practice Group of Wong & Partners and the Tax and Trade Practice Group of Baker McKenzie member firms in the Joint Asian Offices. She has over 30 years of experience in the area of corporate tax planning, advisory, audit and investigation work. Adeline won the Euromoney Asia Women in Business Law Awards for the Tax category in 2013, 2018 and 2020. Her practice was named the Tax and Trusts Law Firm of the Year by the Asian Legal Business Malaysia Law Awards in both 2020 and 2021. She is ranked as a Band 1 practitioner by Chambers Asia Pacific for Tax and by the Chambers High Net Worth Guide for Private Wealth Law. Clients commend her as "a leading tax lawyer" and a "standout name in the private wealth market in Malaysia" in the Chambers guides. She is also listed as a Leading Individual by Legal 500 Asia Pacific and as an Elite Practitioner by Asialaw Profiles for Tax. The International Tax Review also ranks Adeline as a Highly Regarded practitioner among its Tax Controversy, Indirect Tax and Women in Tax Leaders Guides. She has presented in both domestic and international tax conferences, including conferences organised by the Tax Executive Institute in the US, Society of Trust and Estate Practitioners in Singapore and Bloomberg BNA's Global Transfer Pricing Conference in Shanghai. She is also a regular contributor to established publications on tax-related legislation and developments in Malaysia, such as Bloomberg BNA and the International Bureau of Fiscal Documentation.

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Kelvin Hong is a Senior Associate in Baker McKenzie, London office.

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Hui Teng Yong is a Legal Assistant in Wong & Partners, Kuala Lumpur office.

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