Malaysia Australia Free Trade Agreement

Październik 25, 2022by admin

The Malaysia-Australia Free Trade Agreement (MAFTA) is a bilateral agreement between the two countries designed to increase trade and investment opportunities. The agreement has been in place since 2013, and it has led to significant benefits for both countries.

As a professional, it is important to understand the key aspects of MAFTA and why it is relevant to readers. In this article, we will explore the background of the agreement, the benefits it provides, and the impact it has had so far.

Background of MAFTA

MAFTA was signed in 2012 and entered into force on 1 January 2013. The agreement was significant because it was Australia`s first free trade agreement with an ASEAN country. ASEAN stands for the Association of Southeast Asian Nations, and it is a regional intergovernmental organization comprising ten countries in Southeast Asia, including Malaysia.

The agreement aims to reduce barriers to trade and investment between Australia and Malaysia. It does this by eliminating tariffs on goods traded between the two countries, reducing barriers to services trade, and promoting investment flows.

Benefits of MAFTA

MAFTA has several benefits for both Malaysia and Australia. For Malaysia, the agreement provides access to new markets and investment opportunities in Australia. As a result, Malaysian businesses can expand their operations and increase their profits. The agreement also provides Malaysia with better access to Australian goods and services, which can lead to cost savings and increased competitiveness.

For Australia, MAFTA provides access to a growing market in Malaysia. The agreement eliminates tariffs on Australian goods exported to Malaysia, giving Australian businesses a competitive advantage over other countries. The agreement also provides Australian service providers with improved access to the Malaysian market, making it easier for them to do business in Malaysia.

Impact of MAFTA

Since its implementation in 2013, MAFTA has had a positive impact on trade and investment between Australia and Malaysia. Australian exports to Malaysia have increased by 34% since the agreement was signed, while Malaysian exports to Australia have increased by 25%. In 2019, bilateral trade was worth AUD 23.4 billion.

The agreement has also had a significant impact on investment flows between the two countries. In 2018, Australia was the largest source of foreign investment in Malaysia, accounting for 33% of all foreign investment. Meanwhile, Malaysia was the 16th largest source of foreign investment in Australia.


Overall, the Malaysia-Australia Free Trade Agreement has been a positive development for both countries. It has led to increased trade and investment flows, providing new opportunities for businesses in both Malaysia and Australia. As a professional, it is important to highlight the benefits of the agreement and its impact on trade and investment. By doing so, we can help readers understand the relevance of MAFTA and its significance for the business community.