Malaysia backs upgraded Asean-Australia-New Zealand FTA to boost regional trade
KUALA LUMPUR: Malaysia has joined fellow Asean members, along with Australia and New Zealand, in welcoming the upgrade of the Asean-Australia-New Zealand Free Trade Area (AANZFTA).
The move marks a major step in Malaysia's commitment to inclusive, resilient and sustainable economic integration, the Investment, Trade and Industry Ministry (MITI) said in a statement today.
With a combined gross domestic product exceeding US$5.6 trillion (about RM24.68 trillion) and a population of over 700 million, the upgraded AANZFTA strengthens Malaysia's resilience in a competitive regional market.
The amendment is expected to reduce transaction costs, support the digitalisation of trade, enhance the resilience of supply chains and open new opportunities in sustainable trade and investment.
According to MITI, the AANZFTA has been a vital component of Malaysia's regional trade strategy since its entry into force in 2010.
Malaysian exporters' utilisation of the agreement has shown encouraging growth, with export value doubling from RM5.8 billion in 2016 to RM12.9 billion in 2023.
MITI said Malaysian businesses have continued to show interest and momentum in leveraging the AANZFTA to better position themselves for the benefits of the upgraded agreement amid 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 brings in new chapters on trade and sustainable development, micro, small and medium enterprises (MSMEs), and government procurement," it added.
MITI said Australia and New Zealand have contributed around AUD$48.7 million (about RM137.34 million) under the Regional Trade for Development initiative.
This support is crucial in realising the benefits of AANZFTA and the Regional Comprehensive Economic Partnership for local communities.
"Malaysia remains committed to the full and effective implementation of the upgraded agreement and MITI will continue to work closely with industry players, especially MSMEs, to ensure businesses are well-positioned to maximise the benefits from the enhanced provisions," it added.
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