As a leading Southeast Asian economy, Malaysia has established itself as a prime destination for foreign trade and investment. The country has a favorable business climate and a strategic geographic location that makes it an attractive destination for international trade.
One of the ways Malaysia has promoted trade is through the establishment of free trade agreements (FTAs) with other countries. FTAs are agreements between two or more countries that eliminate or reduce tariffs, quotas, and other trade barriers, to encourage free trade between the signatory countries.
So, which countries have free trade agreements with Malaysia? Here’s a quick rundown:
1. ASEAN – Malaysia is a member of the Association of Southeast Asian Nations (ASEAN), a regional intergovernmental organization that promotes economic cooperation among its members. ASEAN member countries have established an FTA with each other known as the ASEAN Free Trade Area (AFTA), which Malaysia is a part of.
2. China – The Malaysia-China Free Trade Agreement (MCFTA) was signed in 2004, making Malaysia one of the first ASEAN countries to sign an FTA with China. The agreement has helped to increase trade between the two countries and has resulted in China being Malaysia`s largest trading partner.
3. Japan – The Malaysia-Japan Economic Partnership Agreement (MJEPA) was signed in 2006, creating a comprehensive partnership between the two countries. The agreement covers trade in goods and services, investment, intellectual property, and other areas.
4. Australia and New Zealand – The Malaysia-Australia Free Trade Agreement (MAFTA) and the Malaysia-New Zealand Free Trade Agreement (MNZFTA) were signed in 2012, creating a free trade zone between Malaysia, Australia, and New Zealand. The agreements cover trade in goods, services, and investment.
5. India – The Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) was signed in 2011, creating a framework for cooperation in trade, investment, and other areas. The agreement covers a wide range of economic activities, including trade in goods, services, and investment.
Additionally, Malaysia has FTAs with the United States, Pakistan, Chile, and Turkey, among others.
In conclusion, Malaysia has established an extensive network of free trade agreements with countries around the world. These agreements have helped to boost trade and investment, create jobs, and promote economic growth and development. If you are looking to do business in Malaysia, it is important to be aware of the country`s FTAs and how they can benefit your business.