Australia-Malaysia Free Trade Agreement Negotiations
Overview
On 7 April 2005, Australia and Malaysia agreed to launch negotiations on a bilateral Free Trade Agreement (FTA).
Malaysia is an important economic partner and regional neighbour for Australia. It ranks as our third largest trading partner in ASEAN and our eleventh largest trading partner overall. Two-way trade between our two countries has grown steadily in recent years and in 2006-07 stood at around $11.9 billion.
The decision to begin negotiations on an FTA builds on our already strong and broad-ranging bilateral relationship. It also follows consideration by our respective governments of comprehensive scoping studies into the likely impact of a bilateral economic agreement which suggest that an FTA between Australia and Malaysia will deliver substantial benefits to both countries.
The Australian Scoping Study was conducted in consultation with a wide range of Industry, State and Territory, and non-government groups, and it concluded that an FTA would deliver significant benefits to both countries.
Updates
- Update - October 2007
- Previous updates
Scoping Study
Australian Scoping Study: An Australia-Malaysia FTA
- Executive Summary (pdf - 348KB)
- Full Report (pdf - 1,8MB)
- Terms of Reference
- Measuring the possible impacts of MAFTA. Economic Modelling – Report by the Centre for International Economics (pdf - 1MB). Also available in RTF (2.4MB)
Download
report in pdf ( 1.8MB)
Download
report in MS Word (2.6MB)
The study suggests that an agreement would increase Australia’s GDP by $1.9 billion over the period to 2027. Malaysia’s GDP would increase by RM18.3 billion (around $6.5 billion) over the same period. Malaysia gains more as the economy with higher trade barriers and a higher ratio of trade to GDP.
Submissions
On 19 August 2004, the Department of Foreign Affairs and Trade invited public submissions and comment on issues relevant to a potential FTA between Australia and Malaysia. The deadline for receiving submissions was initially Friday 15 October 2004, but this was subsequently extended until December 2004.
Sixty submissions about an Australia-Malaysia FTA were received from industry, professional and non-government bodies, companies, unions and individuals. Many of these came from peak industry and business organisations, representing the full range of agriculture, services and manufacturing industry sectors. Below is a list of public submissions received where the organisations have agreed to be listed.
Some organisations have provided permission for the text of their submissions to be made available on this website.
Public Submissions from organisations that wished to be listed (as received by sector):
General Business Organisations
- Business Council of Australia
- Malaysia Australia Business Council
Agriculture, Fishing and Processed Food
- Australian Beverages Council
- Australian Cotton Industry Council Ltd
- Australian Chicken Meat Federation
- Australian Wine & Brandy Corporation
- AWB Limited
- Dairy Australia Limited
- Horticulture Australia Ltd
- Masterfoods Australia New Zealand Pty Ltd
- Meat & Livestock Australia/ Red Meat Industries
- National Farmers Federation
- Ricegrowers Association of Australia
- WA Fishing Industry Council;
- Winemakers Federation of Australia
Mining and Manufacturing
- ALCOA
- Australian Industry Group
- Australian Plantation Products & Paper Industry Council
- Building Products Innovation Council
- Carpet Institute of Australia
- Federal Chamber of Automotive Industries
- Ford Motor Company
- Holden Limited
- Plastics and Chemicals Industries Association (PACIA)
- Remote Control Technologies Pty Ltd
- Textiles and Fashion Industries Association of Australia
- Toyota Australia Limited
Services, including Education
- ACIL Tasman
- Australian Film Commission
- Australian Nursing Federation
- ANZ Bank
- Curtin University
- Engineers Australia
- IDP Education Australia Limited
- International Legal Services Advisory Committee (ILSAC)
- Law Institute of Victoria
- Monash University
- Music Council of Australia
- National Institute of Accountants
- Professor Hok-Lim Tan
- Swinburne University of Technology
- Telstra Corporation Limited
Unions, NGOs and others
- ACTU
- AMWU
- Australian Fair Trade & Investment Network (AFTINet)
- Community and Public Sector Union
- Media, Arts and Entertainment Alliance
- The Hon Doug Everingham
- Mr John Hyde MLA
State and Territory Governments
- New South Wales
- Victoria
- South Australia
- Western Australia
- Tasmania
- Northern Territory
Additional Information
- Market Access Opportunities under the Malaysia-Australia Free Trade Agreement, by Michael Mugliston, Head Asia Trade Task Force, at the 8th Malaysia-Australia Joint Business Conference, 30 November 2006
- Malaysia - Economic, trade and general information
- APEC Study Centre Australia-Malaysia FTA Scoping Study Conference Papers
- Malaysia: An Economy Transformed, a report by DFAT's Economic Analytical Unit, 2005
Doing Business in Malaysia
For more information on doing business in Malaysia and about specific export opportunities, go to the Austrade website. As well as country-specific information, the Austrade website also has a database that can be searched by industry.
Contact Us
Asia Trade Task Force:
Email: malaysia.fta@dfat.gov.au
Fax:(02) 6261 2187
Asia Trade Task Force
Department of Foreign Affairs & Trade
RG Casey Building
John McEwen Crescent
BARTON ACT 0221
For media enquiries, please call DFAT's Media Liaison Section: (02) 6261 1555.