Free trade agreements (FTAs) have proved to be one of the best ways to open up foreign markets for Malaysian exporters. FTA is an agreement made between two or more countries under which countries involved are given preferential market access. FTAs' partner countries provide each other favorable treatment on trade, investment, provision of services and trade facilitation as well as economic and technical cooperation.
To date, Malaysia has signed and is implementing two bilateral FTAs and four regional FTAs. The bilateral FTAs signed are with Japan (MJEPA) and Pakistan (MPCEPA). Together with its ASEAN partners, Malaysia are parties to the ASEAN Free Trade Area (AFTA), ASEAN-Japan Close Economic Partnership Agreement (AJCEP), ASEAN Korea Free Trade Agreement (AKFTA) and the ASEAN-China Free Trade Agreement (ACFTA).
Exporters in Malaysia will benefit from FTAs through preferential treatment and market access. Exporters will also enjoy cost savings from elimination or reduction of customs duties and from mutual recognition agreements, trade facilitating customs procedures and removal of onerous regulations.
For service providers, FTAs provide improved market access for various commercial and professional services from Malaysia. FTAs also provide for easier entry for businessmen as well as more predictable terms for investment in the FTA partner country.
Source: MATRADE official portal.
