Bilateral relations

Australia and Malaysia are longstanding partners and friends. We will celebrate 70 years of diplomatic relations in 2027. Our relationship is based on mutual respect, common interests, shared history and strong community links.

As mid-sized democracies and open trading nations in the Indo-Pacific region dependent on maritime trade, we share a future in the region. We continue to support one another's aspirations for economic development, and shared interests in a region that is open, stable and prosperous.

In 2021, in recognition that we were a top 10 partner across most sectors, Australia and Malaysia elevated our bilateral relationship to a Comprehensive Strategic Partnership (CSP). The CSP is underpinned by three streams of cooperation: economic prosperity; society and technology; and defence and regional security. Under the CSP, Australia and Malaysia are expanding and modernising cooperation on trade and investment, education and cyber, as well as in new areas such as the digital economy, food security and climate change.

In April 2026, the Hon Prime Minister Albanese MP visited Malaysia, accompanied by the Senator the Hon Foreign Minister Wong to reaffirm our complementary trade and economic partnership, which included the signing of the Joint Statement on energy security with Prime Minister Anwar.

Other recent high-level visits includ:

• 1-4 Nov 2025 [Malaysia]: Deputy Prime Minister for ADMM+
• 26-29 Oct 2025 [Malaysia]: Prime Minister for ASEAN Leaders' meeting and Annual Leaders' Meeting
• 16 Oct 2025 [Malaysia]: Assistant Climate Minister for ASEAN-related Meetings
• 24 Sept 2025 [Malaysia]: Trade and Tourism Minister for ASEAN-related Meetings
• 12 September 2025 [Australia]: Annual Foreign Ministers' Meeting
• 21 August 2025 [Malaysia]: Deputy Prime Minister visit for High Level Committee Meeting
• 9-11 July 2025 [Malaysia]: Foreign Minister for ASEAN-related Foreign Ministers' Meetings
• 4 December 2024 [Malaysia]: Annual Foreign Ministers' Meeting

Trade and investment

Australia's economic and trade relationship with Malaysia is mature, comprehensive and complementary. In 2025, Malaysia was our second largest two-way goods trading partner in Southeast Asia and ninth largest partner globally. Total two-way trade in 2025was valued at A$35 billion.

There are a number of established Australian retail brands in Malaysia including Aesop, Arnott's, Blackmores, Boost Juice, Cotton On, Harvey Norman, and King Living.

Both Malaysia and Australia want to see sustained regional economic growth, for our collective prosperity. To help unlock opportunities in two-way trade and investment, Australia launched Invested: Australia's Southeast Asia Economic Strategy to 2040 in September 2023. The Strategy provides major opportunities for Australian business to diversify into Malaysian markets and to seize the vast economic opportunities our region presents. For Malaysia, the key sectors outlined in the Strategy's Malaysia Action Plan include: agriculture and food; resources (including the energy transition); education and skills; and the digital economy.

Since its launch in September 2023, Australia has been taking action to advance implementation of Invested: Australia's Southeast Asia Economic Strategy to 2040 (Invested). Investment Deal Teams, of DFAT, Austrade and Export Finance Australia (EFA), are working across the region to facilitate Australian investment in commercial projects. The Kuala Lumpur Investment Deal Team has a strong bilateral pipeline of potential opportunities for Australian investors, across sectors such as education, resources, healthcare and digital economy as identified in Invested: Malaysia to 2040 - Opportunities and Pathways for Australian Investors [PDF]. To-date, there has been over A$1.3 billion in new Australian investment supported under Invested across the region.

EFA, as part of the Deal Teams, has enhanced its financing tools, including through the establishment of the A$2 billion Southeast Asia Investment Financing Facility (SEAIFF) in 2024. The Memorandum of Understanding (MoU) between EFA and Malaysia EXIM Bank (MY EXIM) is unlocking further trade and investment between Australia and Malaysia under Invested.

Under Invested, Australia has also sent trade and investment business missions to Malaysia, in priority sectors such as Maritime De-carbonisation (April 2024), Digital Economy (Oct 2024), Energy Transition to Energy Asia (June 2025), an investment mission to the Johor-Singapore Special Economic Zone (June 2025), and the ASEAN Business and Investment Summit (Oct 2025).

In March 2024, Tony Lombardo was appointed as Business Champion to Malaysia in line with Invested, to facilitate greater commercial links between Australia and Malaysia.

Malaysia is home to some of Australia's major investments in Southeast Asia, including Cochlear, Lynas, NS BlueScope, Lendlease and, more recently, NextDC and AirTrunk. In the other direction, leading Malaysian businesses such as Gamuda, Gentari, OSK, Sime Darby, Petronas, as well as EPF and KWAP, are all significant investors in Australia.

Australia and Malaysia have prioritised cooperation on the digital economy to continue to modernise our economic relationship. We are strengthening our cooperation on cyber skills and security, promoting opportunities in TVET and digital skills, and encouraging two-way high-tech investments, such as investments by Australia's NextDC and AirTrunk in Tier IV accredited data centres in Malaysia. Our Australia-Malaysia Tech Exchange agreement on digital collaboration commits both countries to enhancing digital cooperation, reducing barriers to digital trade, and promoting open digital trade rules.

We share a common interest in a free and open global trading system. 2023 marked the 10-year anniversary of the entry-into-force of the bilateral Malaysia-Australia Free Trade Agreement (MAFTA). Australia and Malaysia are parties to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

• Malaysia trade/economic fact sheet [PDF].
• Doing Business in Malaysia
• Information on doing business in Malaysia

Education

Our relationship has long been grounded in education, with links stretching back to before Malaysia's independence in 1957. We estimate there are more than 500,000 Malaysian alumni of Australian education institutions.

Malaysia is our 13th largest source of international students, with almost 15,000 students studying in Australia in 2025. There is growing two-way interest in short courses, micro-credentials, fellowships and exchanges delivered in partnership with Malaysian and Australian institutions.

Four Australian universities have invested heavily in the development of Malaysia's higher education system with Curtin, Monash, Swinburne and Wollongong universities having campuses across Kuala Lumpur, Penang and Sarawak. In 2025, there were over 21,000 students studying with Australian universities in Malaysia.

Malaysians formed the largest number of original Colombo Plan participants (4,000). Today, Malaysia is one of the most popular destinations for Australian undergraduate students to study and intern in Malaysia through the New Colombo Plan. Since 2014, the New Colombo Plan has awarded 75 scholarships, 62 semester-length grants, and  4,798 short-term mobility grants for Australian undergraduates to undertake study and work-based experiences in Malaysia.

Agriculture and food security

Malaysia and Australia have a well-established and complementary agricultural trade partnership which benefits both countries. Australia is a reliable and major supplier to Malaysia of top quality agricultural and food products such as beef, wheat and dairy products, supporting value-adding industries in Malaysia and benefiting global food security.

Australia and Malaysia work closely with respective bilateral agencies to advance existing policy dialogue on bilateral, regional and multilateral agri-trade interests, especially through the Malaysia-Australia Agricultural Cooperation Working Group (MAACWG) and MAFTA structures. Being a core element of our CSP, the biennial MAACWG (underpinned by the MOU on agricultural cooperation) and MAFTA SPS Working Group remain the key fora for strategic and operational bilateral agricultural dialogue.

Under the MAACWG, Malaysia and Australia seek to build and enhance networking and partnership on food security and food safety. Engagement with the private sector to explore market and investment opportunities in sectors such as food and agribusiness has also been a key area of focus under this body. Under the Southeast Asia Australia Government Partnerships Program Australia has hosted capacity building activities with Malaysian Government agencies and agriculture industry.

In April 2026, the Australia-Malaysia Strategic Halal Red Meat Partnership was signed to strengthen collaboration between the two countries on trade in halal red meat and meat products. The new partnership further enhances bilateral cooperation on halal matters helping to safeguard and improve access to the Malaysian market for Australian halal-certified red meat and meat products.

Defence and security

Our shared history in defence and security cooperation stretches back to World War II where Australian forces and local communities fought side by side. 2025 marked the 80th anniversary of a number of significant wartime events, including the Sandakan death marches, the liberation of Sabah and Sarawak from Japan by Australian Forces and finally Victory in the Pacific and the Japanese surrender to Australian Forces in Labuan.

The defence relationship between Australia and Malaysia has continued to mature under the auspices of the Five Power Defence Arrangements (1971) and the Malaysia Australia Joint Defence Program (1992). In addition to numerous reciprocal secondments, courses and annual exercises, Malaysia hosts an ongoing Australian Defence Force presence at Royal Malaysian Air Force Base Butterworth. These long-standing links form the foundation of Australia and Malaysia's continuing deep defence cooperation.

Australia and Malaysia cooperate closely on security threats facing the region. There are close links between Australian and Malaysian police, security, counter-terrorism, civil maritime security, border and immigration agencies. Civil maritime security cooperation between the Australian Border Force (ABF) and Malaysian Maritime Enforcement Agency (MMEA) focusses on border protection and countering people smuggling. Through the ABF and MMEA flagship activity, Operation REDBACK, Malaysia and Australia work closely to counter regional civil maritime security threats such as people smuggling and the movement of illicit and illegal goods across borders. ABF cooperation with the Royal Malaysian Customs Department focusses on border modernisation, trade facilitation and countering the movement of prohibited, restricted and regulated goods. DFAT also has a Bilateral Maritime Cooperation Package with Malaysia, announced by Leaders in March 2024, which comprises a range of training and technical cooperation initiatives including Law of the Sea masterclasses, training on maritime domain awareness, and marine environment cooperation activities.

2023 marked the 50th anniversary of the Australian Federal Police's liaison office in Malaysia. Malaysia was the first overseas post set up by the Australian Federal Police; a further testament to our close, historical ties. The current law enforcement relationship is targeting transnational and serious organised crime with a particular focus on narcotics smuggling, cybercrime, counter terrorism and people smuggling.

Innovation and science

Malaysia and Australia recognise the importance of innovation to create modern and dynamic economies. Malaysia is growing its supportive, flexible environment for emerging businesses and Australia has a world-class research system and outward-looking and creative businesses that are ready to collaborate internationally.

A current top priority is addressing irreversible climate change by decarbonising our economies - both governments have committed to net zero by 2050. We are sharing expertise on energy storage solutions, green shipping and carbon capture, utilisation and storage. Our practical cooperation includes: an Austrade-led Australian delegation visit to Malaysia in June 2025 to identify new opportunities in the green economy and  attend the 2025 Energy Asia Conference in Kuala Lumpur, which featured the Australian Energy Innovation Showcase, university partnerships for energy literacy and tailored business-matching sessions.

We continue to grow our health cooperation, including through collaboration between Malaysia's Ministry of Health and Ministry of Science, Innovation and Technology and Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) on vaccine R&D and genomic sequencing. There is also continued cooperation to address regional health challenges through the Australian Government's Partnerships for a Healthy Region initiative.

Development

In 2025, the Australian Government launched the Australia-Malaysia Kerjasama (Cooperation) Program (AMKP) to support Malaysia's ambition to become a high-income status country by 2030.  AMKP will invest $13 million over four years (2025-26 – 2028-29) to establish strategic partnership with multilateral and local organisations to support Malaysia's reform agenda, promote inclusive economic growth, strengthen governance and resilience, and enhance social protection and gender equality. It will also provide targeted grants to civil society organisations to support democratic and institutional reforms.

People connections

People links between Australia and Malaysia are the heart of our relationship, and we are committed to further strengthening these connections throughout society.

Since 2023, there have been numerous visits between both countries with a focus on building parliamentary links and advancing institutional reform. These include a Malaysian parliamentary caucus critical minerals visit to Perth, study tours to Australia on legal reforms, including the establishment of Freedom of Information (FOI) legislation and an Ombudsman, and a two visits to Malaysia by Australian parliamentarians to discuss parliamentary processes and democratic institutions.

We are strengthening cooperation on youth and sport, including through dialogue between sports agencies and coaches, and by participation in regional sports events at all levels. We are also exploring economic opportunities from increased youth and sports engagement – from work on the creative economy through to Australian investments in the sports industry in Malaysia.

Tourism has always played a strong role in our people connections. In 2025, over 200,000 Malaysian tourists travelled to Australia. Airlines are considering new routes to further support this industry.

Australia has improved access to ASEAN member states by extending the business visitor visa length from three to five years and extending the 10-year visitor visa Frequent Traveller stream to ASEAN states

Australia is home to over 172,000 people of Malaysian heritage. Australia is proud of the substantial and longstanding contributions of the Malaysian diaspora in Australia, from Foreign Minister Wong to celebrity chefs Adam Liaw and Poh Ling Yeow.