The Official Portal Of Malaysia External Trade Development Corporation
Understanding Free Trade Agreements
With an open economy and a small domestic market, the free trade agreements (FTA) helps Malaysian companies to export throughout the world by strengthening our competitive advantage, strengthen investors' confidence as well as building Malaysia's economic sustainability.
Malaysia has implemented eighteen (18) FTAs comprising nine (9) bilateral and nine (9) regional FTAs.
Malaysia signed seven (7) bilateral FTAs with Australia, Chile, India, Japan, New Zealand, Pakistan and Türkiye. All bilateral agreements have been enforced.
Malaysia also signed nine (9) regional FTAs comprising:
1
Seven (7) through the Association of Southeast Asian Nations (ASEAN) with Australia, China, Hong Kong SAR, Japan, India, New Zealand and the Republic of Korea (ROK); and

2
Two (2) regional FTAs were signed under the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Both agreements have entered into force in 2022.
What is FTA?
Free Trade Agreement (FTA) is an agreement between two or more countries, where the countries involved have agreed to provide preferential treatment in each other’s markets. Each FTA partner offers flexibility or incentives to each other for the purpose of trade, investment, service provision and trade facilities as well as economic cooperation.
Why FTA is important?
Obtain better market access
Facilitate and promote trade, investment and economic cooperation
Enhance competitiveness of Malaysia’s exporters
Capacity building in specific areas through technical Cooperation
Obtain better market access
Facilitate and promote trade, investment and economic cooperation
Enhance competitiveness of Malaysia’s exporters
Malaysia’s exporters Image Capacity building in specific areas through technical Cooperation
For more information on the FTA, please visit Ministry of Investment, Trade and Industry (MITI)