Leslie Massey
The Malaysia-Australia Free Trade Agreement (MAFTA) is a bilateral agreement that came into force on 1 January 2013. It was signed in Kuala Lumpur, Malaysia, on 22 May 2012, following the conclusion of negotiations on 30 March 2012. MAFTA is a comprehensive agreement that covers trade in goods, services, investment, and economic cooperation, as well as intellectual property rights, e-commerce, and competition policy. The agreement has reduced trade barriers and increased economic integration between the two countries.
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What You'll Learn
- The Malaysia-Australia Free Trade Agreement (MAFTA) was signed in May 2012 and came into force on 1 January 2013
- MAFTA opens up new opportunities for Australian investors and suppliers of goods and services
- The agreement eliminates all remaining tariffs on Malaysian goods exported to Australia
- MAFTA makes it easier for skilled Australian workers to take up employment in Malaysia
- MAFTA covers intellectual property rights, e-commerce, and competition policy
The Malaysia-Australia Free Trade Agreement (MAFTA) was signed in May 2012 and came into force on 1 January 2013
MAFTA has brought the two countries' economies closer together, opening up new opportunities for Australian investors and suppliers of goods and services. It has improved access to the Malaysian market for Australian businesses and made it easier for Australian workers and their families to live and work in Malaysia. The agreement has also eliminated all remaining tariffs on Malaysian goods exported to Australia, helping make Australian businesses more competitive in Malaysia.
MAFTA has also had a positive impact on Australia's total goods and services exports to Malaysia, with exports almost doubling from $7 billion in 2012 to $13.6 billion in 2023. The agreement has also benefited Australian exporters, importers, and consumers by opening markets and freeing trade and investment between the two countries.
MAFTA is one of four FTAs that Australian businesses can use to trade with Malaysia. In addition to MAFTA, Malaysia is also a party to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), the Regional Comprehensive Economic Partnership Agreement (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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MAFTA opens up new opportunities for Australian investors and suppliers of goods and services
The Malaysia-Australia Free Trade Agreement (MAFTA) is a comprehensive agreement that entered into force on 1 January 2013, aiming to integrate the Australian economy into the fast-growing Indo-Pacific region. MAFTA has opened up new opportunities for Australian investors and suppliers of goods and services, enhancing the economic relationship between the two countries.
One of the key benefits of MAFTA for Australian investors and suppliers is the reduction and elimination of tariffs and trade barriers. Australia has eliminated 100% of its import duties, while Malaysia has committed to progressively reducing or eliminating import tariffs on 99% of its tariff lines. This has made it easier for Australian businesses to enter the Malaysian market and compete with local companies.
MAFTA also provides improved access to the Malaysian market for Australian service providers. It addresses non-tariff barriers to trade, such as import licensing regimes, and enables Australian companies to have majority ownership in various sectors, including tourism, research and development, and mining-related services.
The agreement further increases opportunities for skilled Australian workers seeking employment in Malaysia, with a simplified process for obtaining Malaysian visas. Additionally, MAFTA facilitates trade by allowing exporters to use a simple declaration of origin to state where their goods originated when trading under the agreement.
Overall, MAFTA has created a more favourable environment for Australian investors and suppliers of goods and services, fostering closer economic ties between Australia and Malaysia.
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The agreement eliminates all remaining tariffs on Malaysian goods exported to Australia
The Malaysia-Australia Free Trade Agreement (MAFTA) is a comprehensive agreement that entered into force on 1 January 2013. It comprises 21 chapters that cover trade in goods, services, and investment, as well as economic cooperation, intellectual property rights, e-commerce, and competition policy.
MAFTA builds on the ASEAN-Australia-New Zealand FTA (AANZFTA) to further liberalise the commercial relationship between the two countries. It contains several 'AANZFTA-plus' elements that benefit Australian exporters, businesses, and individuals by providing greater flexibility and improved access to the Malaysian market.
One of the key benefits of MAFTA is the elimination of all remaining tariffs on Malaysian goods exported to Australia. This means that no tariffs are imposed on Malaysian goods entering the country, making Malaysian products more affordable for Australian consumers and businesses. This, in turn, helps to make Australian businesses more competitive in Malaysia.
To benefit from the preferential tariff rates under MAFTA, exporters must fulfill the requirements under the rules of origin (ROO), which are based on the product-specific rules (PSR) stipulated under Appendix B of the Agreement. Imports into Australia require a Certificate of Origin (COO), while imports into Malaysia require a Declaration of Origin (DOO). The DOO can take the form of a declaration on the invoice or company letterhead, and must contain specific data requirements as listed in the Appendix on Data Requirements.
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MAFTA makes it easier for skilled Australian workers to take up employment in Malaysia
The Malaysia-Australia Free Trade Agreement (MAFTA) is a high-quality agreement that has further integrated the Australian economy into the fast-growing Indo-Pacific region. The agreement entered into force on 1 January 2013, opening up new opportunities for Australian investors and suppliers of goods and services, and bringing the two economies closer together.
MAFTA has made it easier for skilled Australian workers to take up employment in Malaysia. Firstly, it has increased the number of Australian business executives, senior managers, and experts allowed to live and work in Malaysia, and has allowed them to stay for longer periods. For example, the number of Australian senior managers allowed per commercial bank, merchant bank, and investment bank has been raised from two to five, and the number of specialists from five to ten. The maximum period of stay has also been extended from five to ten years for a range of financial services sub-sectors. In addition, Malaysia has expanded the scope of areas in which specialists may work, and has removed all limitations on representative offices.
Furthermore, MAFTA has made it easier for the spouses and dependants of Australians working in Malaysia to join them, by allowing them to stay and, in certain circumstances, to work in Malaysia for the same period as the primary applicant. This has been extended to 90 days for goods sellers and investors, and 12 months or more for other workers. Malaysia has also committed to a more timely and transparent visa application process for skilled personnel, which includes notifying applicants for work permits of the outcome of their applications before they arrive in Malaysia.
MAFTA has also established a framework for the mutual recognition of qualifications and licensing for professionals. This means that Australian qualifications and licenses will be recognised in Malaysia, making it easier for skilled Australians to work in the country.
Overall, MAFTA has made it significantly easier for skilled Australian workers to take up employment in Malaysia, by increasing the number of workers allowed to enter the country, allowing them to stay for longer periods, making it easier for their families to join them, and establishing a framework for the recognition of their qualifications and licenses.
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MAFTA covers intellectual property rights, e-commerce, and competition policy
The Malaysia-Australia Free Trade Agreement (MAFTA) is a comprehensive agreement that came into force on 1 January 2013. It covers a range of areas, including intellectual property rights, e-commerce, and competition policy.
Intellectual property rights are a key aspect of MAFTA. The agreement recognises the interaction between intellectual property law and competition law and how these two areas can impact each other. By addressing these issues, MAFTA provides a framework for the protection and enforcement of intellectual property rights in both countries.
In terms of e-commerce, MAFTA facilitates the participation of Malaysian and Australian suppliers in commercial exploitations of R&D. This includes assisting the Malaysian automotive industry in adopting best practices and promoting initiatives such as recycling, reducing, and reusing (3R). MAFTA also enhances economic cooperation between the two countries, creating opportunities for businesses in various sectors, including tourism, research and development, and mining-related services.
MAFTA also addresses competition policy, which is intimately related to intellectual property rights. The agreement outlines the commitments of both countries on the liberalisation of trade in goods and services, with Australia eliminating 100% of its import tariffs upon entry into force and Malaysia progressively reducing or eliminating import tariffs on 99% of its tariff lines by 2020.
Overall, MAFTA's coverage of intellectual property rights, e-commerce, and competition policy contributes to strengthening the economic relations between Malaysia and Australia, promoting trade and investment opportunities, and providing a framework for cooperation and protection in these areas.
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Frequently asked questions
The Malaysia-Australia Free Trade Agreement (MAFTA) is a comprehensive agreement that encompasses trade in goods, services and investment, as well as economic cooperation. It also covers intellectual property rights, e-commerce and competition policy.
MAFTA reduces trade barriers, making it easier for Australians to do business in Malaysia. It opens up new opportunities for Australian investors and suppliers of goods and services, bringing the two economies closer together. It also makes it easier for skilled Australian workers and their families to live and work in Malaysia.
MAFTA was signed in Kuala Lumpur, Malaysia, on 22 May 2012 and came into force on 1 January 2013.
