Malaysia

The Malaysia-Australia Free Trade Agreement (MAFTA) was executed on 22 May 2012 and entered into force on 1 January 2013.

The MAFTA eliminated 97% of tariffs on entry into force. 99% of tariffs will be eliminated by 2017. Remaining tariffs to be eliminated include:

  • Iron and steel – 96.4% to be eliminated by 2016, 99.9% to be eliminated by 2017 and 100% to be eliminated by 2020;
  • Sulphuric acid and petroleum – to be eliminated by 2016; and
  • Rice – to be eliminated by 2026.

Two-way trade in goods and services totalled $19.9 billion in 2013-14, of which exports in goods from Australia to Malaysia totalled $5.4 billion.

Australian exports to Malaysia are also covered by the ASEAN-Australia-New Zealand Free Trade Agreement which entered into force on 1 January 2010.

For detailed FTA information, please visit: http://dfat.gov.au/trade/agreements/mafta/Pages/malaysia-australia-fta.aspx

Date in force

  • 15 January 2013

Direct benefits

Eliminated or reduced tariffs on almost all exports.

Below you will find a way to look up the tariffs associated with a SELECTION of popular Australian exports. PLEASE NOTE: this is not a tariff calculator OR an exhaustive list. We recommend obtaining professional advice for products not listed here.

Indirect benefits

Relaxed import licencing regime in Malaysia.

Mutual recognition of goods and services standards.

Relaxation of visa and work permit regulations.

High standards of IP protection for patents, trademarks, geographical indications and copyright.

Reduction of limits on Australian ownership of Malaysian companies.

Certificate of Origin

Tariff concessions under the MAFTA are available to goods that "originate" in Australia or Australia and Malaysia.

Goods must be either wholly obtained in Australia, produced in Australia from originating materials, or produced in Malaysia and Australia from originating materials, non-originating materials, or a combination of originating and non-originating materials.

The non-originating materials must have undergone a change in tariff classification, or the non-originating materials that have not undergone a change in tariff classification must not exceed 10% of the value of the goods.

Some goods must meet the minimum regional value content.

Australian exporters or producers can support a claim of origin with a declaration of origin. This declaration can appear on the invoice or exporter / manufacturer's letterhead.

Doing business with Malaysia

There are many things to consider before embarking upon an export journey. Doing business in Malaysia presents some unique challenges, but there are a number of key areas to consider before doing any international business.

The areas to consider are:

Business activities and risks

  • Location
  • Legal Structure
  • Direct tax
  • Funding
  • Repatriation of profits
  • Transfer pricing
  • Withholding tax
  • Indirect tax
  • Staffing

For a full checklist that will put you on the right path to doing business in Malaysia, click HERE.

Want to know more? Visit the Export Council of Australia’s website.