Japan Backs Malaysia’s Push For ASEAN Economic Integration Under RCEP, CPTPP

Kuala lumpur: Japan has voiced strong support for Malaysia's leadership in accelerating ASEAN's regional economic integration, emphasizing that cooperation under the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enhance standards, facilitate cross-border trade, and strengthen supply-chain resilience across the region. Japan's Ambassador to Malaysia, Noriyuki Shikata, highlighted that Tokyo views RCEP and CPTPP as essential elements of a free and open Indo-Pacific trade platform and intends to collaborate closely with Malaysia to advance regional market integration.

According to BERNAMA News Agency, both frameworks are critical to ensuring supply-chain connectivity and rules-based trade in the region. Ambassador Shikata remarked, "Under Malaysia's chairmanship, we are moving in the same direction towards a more connected and innovative regional economy." He emphasized the shared free-trade orientation of Japan and Malaysia, both of which are members of these agreements. Shikata added that Tokyo will continue to promote high-standard trade rules that foster innovation, investment, and inclusive growth.

The ambassador's comments came in an exclusive interview ahead of the 47th ASEAN Summit and Related Summits hosted by Malaysia. The summits, occurring over the next three days, will see participation from top leaders of the 10 ASEAN member states and key dialogue partners, including the United States, China, and Japan. Newly elected Japanese Prime Minister Sanae Takaichi, who assumed office on October 21, 2025, is set to travel to Kuala Lumpur to attend the ASEAN Summit and engage in bilateral talks with Malaysia's Prime Minister Datuk Seri Anwar Ibrahim.

CPTPP is a free trade agreement signed by 12 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, and Vietnam, with a combined GDP of about US$15.8 trillion, representing 14.4 percent of the world's total GDP. Meanwhile, RCEP, the world's largest free trade zone, encompasses ASEAN member states as well as Australia, China, Japan, New Zealand, and South Korea, accounting for 30 percent of the world's GDP.

Shikata noted that many Japanese companies in ASEAN face fragmented regulations and country-specific investment rules, which limit cross-border efficiency within regional value chains. He stated, "Harmonised regulations and greater connectivity would enhance regional value chains and help prevent future disruptions." He also mentioned that the ASEAN market is somewhat compartmentalized, citing examples such as auto companies in Cambodia facing trade disruptions due to the Thailand-Cambodia border dispute. Japan supports Malaysia and ASEAN's efforts to reduce such barriers through regulatory alignment and digitalization initiatives, encouraging more cross-border investments under both RCEP and CPTPP.

On the broader trade landscape, Shikata expressed Japan's openness to US re-engagement in the CPTPP framework but acknowledged that the decision ultimately rests with Washington. He also underscored the importance of peace and stability as the foundation of regional trade, pointing to situations in Myanmar and the South China Sea as potential risks to supply chains and energy security. He concluded, "Peace is fundamental. If Petronas explores energy resources and is disrupted, that is bad news from the energy security standpoint."