PRIME Minister Ismail Sabri Yaakob said he hopes that Asean and China can continue to work on upgrading the Asean-China Free Trade Agreement (ACFTA) for mutual benefit.

This followed an agreement to carry out a joint feasibility study to improve the effectiveness of the agreement to ensure it becomes more inclusive, modern, and comprehensive.

Ismail said it is imperative for Asean and China to diversify trade and investment.

“The ACFTA agreement remains the foundation of Asean-China trade relations and continues to play an important role in facilitating trade, so it is important that this agreement continues to be relevant and beneficial,” he said in Kuala Lumpur today.

Ismail said governments must continue to work together to facilitate economic recovery.

“As outlined in the Asean comprehensive recovery framework (ACRF), we have to keep the supply chain connectivity uninterrupted, and facilitate the movement of essential goods and services by removing trade barriers.

“Supported by key infrastructures such as ports, airports, and logistics networks that are adapted to the new norms, I am confident that trade activities can always run smoothly, thus further contributing to regional economic recovery efforts,” he said.

The prime minister said it is even more critical for small and medium enterprises (SMEs), which are the economic backbone of a country.

“I would strongly encourage both Asean and China to intensify co-operation in digital economy partnership to drive the use of technology among SMEs to empower their businesses,” he added.

He said the Regional Comprehensive Economic Partnership (RCEP) agreement, which was signed after eight years of negotiations, demonstrates a positive sign to the world that Asean and China, together with the other RCEP partners, are committed to economic integration, ensuring that transnational supply chains are not affected and keeping markets open amid the ravages of a global pandemic.

“This agreement offers local businesses wider market access and the opportunity to improve regional supply chains and diversify their respective production networks while helping to reduce the cost of doing business.

“I am pleased that this agreement will provide immense opportunities to bolster regional businesses and supply chains, as well as diversify production network for seamless integration towards global economic recovery and growth,” he said. – Bernama, September 16, 2022.