Malaysia to Reaffirm Commitment to Multilateral Trading System at APEC Meeting

Strategic Insights -

Malaysia's delegation, led by Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Aziz, is set to participate in the 31st APEC Ministers Responsible for Trade (MRT) Meeting in Jeju, South Korea. The two-day meeting, which begins on May 15, comes at a critical juncture amidst persistent global economic uncertainty, ongoing tariff negotiations with the United States, and a rapidly evolving economic landscape. Malaysia will utilize the APEC platform to reaffirm its commitment to a transparent, rules-based multilateral trading system, with the World Trade Organisation (WTO) at its core.

Key Takeaways:

  • Malaysia is reaffirming its commitment to a transparent, rules-based multilateral trading system, with the WTO at its core, amidst global economic uncertainty.
  • The country will utilize the APEC platform to emphasize the importance of a robust and inclusive multilateral trading system, with a focus on artificial intelligence (AI) and demographic challenges.
  • Malaysia has expressed collective support for the Investment Facilitation for Development (IFD) Agreement, which aims to improve transparency, streamline procedures, and create a more predictable environment for investors, particularly in developing economies.
  • The IFD Agreement has the potential to improve the investment and business climate across the world, reducing the cost of investment and making it easier for investors to operate, expand, and contribute to economic growth.
  • Malaysia remains committed to working closely with APEC economies to ensure sustainability, innovation, and open trade that benefits all economies.
  • The country is set to meet with trade representatives from the United States, South Korea, Australia, and Japan to discuss various trade agreements and initiatives.

Statistics:

  • The 31st APEC MRT Meeting represents the 21 member economies of the Asia-Pacific Economic Cooperation (APEC), which account for nearly 40% of the world's population, almost half of global trade, and over 60% of the global economy.
  • APEC member economies have expressed collective support for the IFD Agreement, with the agreement aiming to improve transparency, streamline procedures, and create a more predictable environment for investors.
  • The IFD Agreement has the potential to contribute to the Putrajaya Vision 2040's goal of delivering a transparent and predictable trade and investment environment in the Asia Pacific Region.
  • Malaysia and South Korea agreed to resume FTA negotiations in March 2024.
  • APEC is an inter-governmental forum that promotes free trade throughout the Asia-Pacific region, representing nearly 40% of the world's population, almost half of global trade, and over 60% of the global economy.

Sources:

  • MITI statement released ahead of the working trip to Jeju.
  • Committee on Trade and Investment and the Investment Experts' Group joint statement.
  • APEC Trade and Investment Committee chair Christopher Tan's statement.
  • Tengku Zafrul's statement on Malaysia's commitment to working with APEC economies.
  • The Korea Times, "APEC ministers to focus on digital trade, innovation" (no date provided).
  • The Korea Herald, "APEC trade ministers gather for key talks" (no date provided).
  • WTO website (no date provided).