The bilateral trade relationship between Australia and Malaysia reached a significant milestone with the signing of the Malaysia-Australia Free Trade Agreement (MAFTA).
Building on the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA), this bilateral FTA guarantees tariff-free entry for 97.6 per cent of current Australian goods exports to Malaysia (99 per cent by 2017), while Malaysian exports benefit from duty-free entry into Australia. Significant gains have also been achieved for services and investment through access to increased foreign ownership in key services sectors where Australia has proven capability.
Malaysia is competing fiercely with other countries in the region to provide a pro-business environment. To this end the government has relaxed foreign ownership laws in the manufacturing sector and has also implemented a range of incentives to attract investors in priority areas such as operational headquarters, regional distribution centres and international procurement centres. The government has also invested heavily in infrastructure to facilitate both efficient business and a high standard of living, particularly in the major centres. It has also recently implemented liberalisation actions within the financial services sector to attract more international players to operate within the market.
Malaysia’s 2020 vision is to achieve developed nation status. The government plans and manages its progress towards achieving this vision through five-year plans.
More information on doing business in Malaysia
Why ASEAN and why now?
Why ASEAN and why now? Insights for Australian Business. A joint Austrade-DFAT publication examining Australia’s trade relationship with the Association of Southeast Asian Nations (ASEAN), the opportunities and challenges for Australian business engaging with the region and the future of the Australia-ASEAN trade relationship.
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