ASEAN, Australia & New Zealand FTA To Strengthen Malaysia’s Resilience In Competitive Regional Market
KUALA LUMPUR, April 23 (Bernama) -- The upgrade of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) on Monday (April 21) strengthens Malaysia’s resilience in an increasingly competitive regional market, which has a combined gross domestic product exceeding US$5.6 trillion (US$1 = RM4.38) and a population of more than 700 million.
In a statement, the Ministry of Investment, Trade and Industry (MITI) said Malaysia joins fellow ASEAN member states, Australia and New Zealand in welcoming the upgrade, which marks a significant milestone in Malaysia’s commitment to advancing inclusive, resilient and sustainable economic integration.
“The second protocol is expected to reduce transaction costs, support the digitalisation of trade, enhance supply chain resilience, and open new opportunities in sustainable trade and investment,” the ministry said in the statement released Wednesday.
MITI said the AANZFTA has been a vital part of Malaysia’s regional trade strategy since its entry into force in 2010.
“Utilisation of the agreement by Malaysian exporters has shown encouraging growth over the years.
“Export value doubled between 2016 and 2023, from RM5.8 billion to RM12.9 billion,” it said.
There has been sustained interest and momentum among Malaysian businesses to leverage the AANZFTA and better position themselves to benefit from the upgraded agreement, particularly as they adapt to evolving global conditions.
“With the second protocol now in effect, the upgraded agreement introduces meaningful improvements across 13 existing chapters, including Rules of Origin, Customs Procedures and Trade Facilitation, Competition, and Electronic Commerce.
“It also includes new chapters on trade and sustainable development, micro, small and medium enterprises (MSMEs), and government procurement.”
The Ministry said Malaysia appreciates the continued support from Australia and New Zealand through the AUD48.7 million Regional Trade for Development (RT4D) initiative, which plays a key role in delivering the benefits of both the AANZFTA and the Regional Comprehensive Economic Partnership (RCEP) to communities across the country.
It said Malaysia remains committed to the full and effective implementation of the upgraded agreement, and MITI will continue to work closely with industry players, particularly MSMEs, to ensure businesses are well-positioned to maximise the benefits of the enhanced provisions.
-- BERNAMA
