EFFECTIVE MECHANISM: Photo shows Matrade headquarters in Putrajaya. Matrade says the CEPA package is expected to benefit Malaysian businesses that trade with mainland China and Hong Kong.
KUALA LUMPUR: Malaysian businesses are expected to benefit from China’s and Hong Kong’s services liberalisation measures under the 10th phase of the Closer Economic Partnership Agreement (CEPA) package between both governments.
In a statement yesterday, the Malaysia External Trade Development Corp (Matrade) said the Chinese and Hong Kong governments would implement liberalisation measures covering 22 service sectors provided under Supplement IX to CEPA.
“This will increase the number of liberalised service sectors to 48, while total number of service liberalisation measures will increase to 338,” it said.
Matrade said the measures were positive indications for Malaysian businesses to have greater access to mainland China market.
It said the new measures would grant relaxed market access conditions in legal services, accounting services, construction services, medical services, computer and related services, technical testing, analysis and product testing, placement and supply services of personnel, printing, convention and exhibition, other business services.
“Other services sectors included in the measures are telecommunications, audio-visual, distribution, environment, banking services, securities services, social services, tourism, cultural services, rail transport, individually owned stores, and education services,” it said.
CEPA has proven to be an effective mechanism, allowing Hong Kong to engage the Chinese authorities in liberalising the trade in goods and services with the mainland, Matrade said.
“As CEPA rules are nationality-neutral, Malaysian companies can enjoy the same benefits as local Hong Kong firms,” it said.
Matrade said all goods, with the exception of some prohibited articles, produced in Hong Kong according to CEPA rules of origin were eligible for tariff-free treatment upon entering mainland China market.
“For trade in services, Asean companies incorporated in Hong Kong can enjoy CEPA benefits as long as they are qualified as a Hong Kong service supplier,” it added.
Malaysian exporters of plastic tableware and kitchenware, aluminium wire bonders, medical equipment manufacturers, as well as service providers such as legal, accounting, construction, medical and computer-related services stand to benefit from the new Supplement IX of CEPA by establishing representative offices in Hong Kong or joint-ventures with Hong Kong companies in order to expand their exports to mainland China market, said Matrade. — Bernama