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.