SMEs, don't be too quick to write off the RCEP

THE Regional Comprehensive Economic Partnership (RCEP), which came into force on Jan 1 this year, is poised to be a game changer for small and medium-sized enterprises (SMEs) in the agreement's 15 member countries.

Consisting of all 10 Asean member states and 5 of its dialogue partners - Australia, China, Japan, New Zealand and South Korea - the RCEP covers 30 per cent of global gross domestic product (GDP), amounting to US$26.2 trillion, and 30 per cent of the world's population or 2.2 billion people, making it the world's largest free trade agreement (FTA).

Despite the RCEP's economic lure, there have been concerns among certain quarters in member countries, wary that the deal may not bring as many benefits as suggested. In particular, SMEs in developing countries such as Cambodia, Indonesia, Malaysia and the Philippines have cautioned about the global competition RCEP may expose them to.