Preparing to export

Malaysia-Australia Free Trade Agreement

The Malaysia-Australia Free Trade Agreement (MAFTA) is a comprehensive agreement that further integrates the Australian economy into this fast-growing Asian region. Here’s what MAFTA means for trade between the two countries.

The Malaysia-Australia Free Trade Agreement (MAFTA) 

Malaysia is currently Australia’s ninth largest trading partner with two-way trade worth more than $25 billion in 2018-19. Since its introduction, MAFTA has opened even more avenues for Australian goods and services into the dynamic and fast-growing Malaysian market.

Thanks to MAFTA, 99% of Australian goods currently exported to Malaysia are now eligible for tariff-free treatment.

Some of the key outcomes on entry into force of the agreement include:

  • A liberalised licensing arrangement for liquid milk exporters, allowing access for higher value retail products.
  • Elimination of all tariffs on large cars and virtually all tariffs on automotive parts imported into Malaysia.
  • Elimination of virtually all tariffs on processed foods, plastics, chemicals and a range of manufactured products.
  • A guarantee for Australian exporters of wine to receive the best tariff treatment Malaysia gives any country.
  • Elimination of all tariffs on iron and steel.
  • Open access arrangements on rice from 2023 and all tariffs eliminated by 2026.

Australian investors are also guaranteed the right to majority ownership in companies in a wide range of sectors supplying services in Malaysia, including:

  • 100% ownership in higher education
  • 70% ownership in investment banking and direct insurance services
  • At least 70% ownership in all telecommunications services
  • 100%  ownership in accounting, auditing and bookkeeping services
  • 100% ownership in management consultant services (excluding financial management consulting)
  • 51% ownership in taxation services.

Source: DFAT

Are you preparing to export?

Whether you are an experienced exporter or exploring export opportunities for the first time, it's critical to understand what is required and to stay up to date. Our friendly team can guide you through the process of obtaining the right export documents you require to ensure smooth customs clearance and facilitate duty exemptions.


 

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