SINGAPORE, Nov 13 — The Association of South-east Asian Nations (Asean) must not simply accept any trade deal that may be unfair to the region, Tun Dr Mahathir Mohamad said today amid the proposed Regional Comprehensive Economic Partnership (RCEP).

Despite that, the prime minister told the Asean Business and Investment Summit here that Asean must continue to expand its market by engaging in free trade agreements with its key partners, such as the RCEP.

"Some 65 per cent of Asean’s trade is with RCEP countries. We must therefore leverage on the existing high level of trade linkages.

"We must not just accept trade and investment measures that may be unfair to Asean nations, and Asean economic integration,” he said in his keynote address.

"RCEP must facilitate not only the interest of big firms but also the SMEs in the region. RCEP must see an enhanced role for SMEs to leverage and move towards becoming middle-sized and large-sized companies,” he said, using the abbreviation for ‘small and medium enterprises’.

The RCEP is a proposed free trade agreement between the 10 Asean members and the six Asia-Pacific states with which they have existing free trade agreements: Australia, China, India, Japan, South Korea and New Zealand.

When realised, RCEP would represent half of the global population and over 40 per cent of global trade.

Dr Mahathir said both the Asean Economic Community and RCEP can work in tandem in showing the world an "inclusive and dynamic integration among countries of widely varying levels of development”.

"What we require is fair and mutually beneficial trade and investment cooperation rather than the dominance by anyone,” said Dr Mahathir.

Speaking to reporters later, Dr Mahathir also said the finalisation of RCEP must take into account the different levels of the 10 Asean members.

He had earlier said in his speech that Asean could allow flexibility, so countries that can move faster are allowed to so but at the same time will always be mindful of the constraints of the others.

"Each country has got some problem. They ought to make room to certain constraints faced by the members,” Dr Mahathir said, when asked if Malaysia has reached the final word on RCEP.