Malaysia Free Trade Agreements List: What You Need to Know

Malaysia is a Southeast Asian country that is known for its diverse economy, which includes a wide range of industries such as agriculture, manufacturing, and tourism. One of the reasons why Malaysia has been able to sustain a strong economy is its involvement in free trade agreements. In this article, we will discuss some of the free trade agreements that Malaysia is a part of and what it means for the country.

1. ASEAN Free Trade Area (AFTA)

The ASEAN Free Trade Area (AFTA) is a free trade agreement that Malaysia is a part of, along with nine other Southeast Asian countries. This agreement was signed in 1992 with the objective of promoting economic cooperation and integration among its members. Under this agreement, tariffs and non-tariff barriers on goods traded within the region are gradually reduced, making it easier and cheaper for businesses to trade with each other.

2. Malaysia-Australia Free Trade Agreement (MAFTA)

The Malaysia-Australia Free Trade Agreement (MAFTA) was signed in 2012 with the aim of promoting bilateral trade and investment between the two countries. Under this agreement, tariffs on various goods and services are gradually reduced, making it easier for businesses to trade with each other. Malaysia exports a range of products to Australia, including palm oil, electrical machinery, and rubber, while Australia exports products such as meat, wine, and dairy products.

3. Malaysia-New Zealand Free Trade Agreement (MNZFTA)

The Malaysia-New Zealand Free Trade Agreement (MNZFTA) is another bilateral trade agreement that Malaysia is a part of. This agreement was signed in 2009 and aims to promote economic cooperation and integration between the two countries. Under this agreement, tariffs on a range of goods and services are reduced, making it easier for businesses to trade with each other. Malaysia exports products such as palm oil, electronics, and chemicals to New Zealand, while New Zealand exports products such as dairy products, meat, and wine to Malaysia.

4. Malaysia-Japan Economic Partnership Agreement (MJEPA)

The Malaysia-Japan Economic Partnership Agreement (MJEPA) was signed in 2007 with the aim of promoting bilateral trade and investment between the two countries. Under this agreement, tariffs on various goods and services are reduced, making it easier for businesses to trade with each other. Malaysia exports products such as electrical machinery, iron and steel, and petroleum to Japan, while Japan exports products such as vehicles, machinery, and chemicals to Malaysia.

In conclusion, Malaysia`s involvement in free trade agreements has played a significant role in promoting economic growth and development. These agreements have made it easier and cheaper for businesses to trade with other countries, which has resulted in increased trade and investment. As Malaysia continues to engage in free trade agreements with other countries, it will likely continue to see positive economic growth and development in the years to come.