Free Trade Agreements

Banner FTA 2021.1
Free Trade Agreements (FTAs) are generally aimed at providing the means to achieve quicker and higher levels of liberalisation.

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 participated in 16 FTAs and implemented 15 FTAs. Seven are bilateral agreements with Australia, Chile, India, Japan, New Zealand, Pakistan and Turkey. All bilateral FTAs have been signed and enforced.

Malaysia has signed seven regional FTAs, through the Association of Southeast Asian Nations (ASEAN) FTA with Australia, China, Hong Kong SAR, Japan, India, New Zealand and Republic of Korea (ROK).

The Regional Comprehensive Economic Partnership (RCEP) agreement has come into force for Malaysia on 18 March 2022, paving the way for the country to integrate into the world's largest free trade agreement (FTA) that involves 15 countries including Australia, Brunei, Cambodia, China, Indonesia, Japan, Lao P.D.R., Malaysia, Myanmar, New Zealand, ROK, Singapore, The Philippines, Thailand and Vietnam. 

Malaysia has also signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018. This agreement was signed by all 11 member countries, including Malaysia, in 2018. This agreement has been enforced by Australia, Canada, Japan, New Zealand, Mexico, Peru, Singapore and Viet Nam. Malaysia is in the process of completing the ratification process which is expected to be finalised by the third quarter of 2022 at the latest.

What is an 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 cooperationHassle-free custom procedures
  • Enhance competitiveness of Malaysia’s exporters
  • Capacity building in specific areas through technical Cooperation

How do companies enjoy FTA privileges

Click here for more information on how companies can enjoy FTA privileges

For more information on the FTA, please visit Ministry of International Trade and Industry (MITI)

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