Malaysia expects double-digit growth in trade with Australia

KUALA LUMPUR: Malaysia expects double-digit growth in bilateral trade with Australia this year from RM43.72 billion last year, with the extensive implementation of the Malaysia-Australia Free Trade Agreement (Mafta).

Malaysia External Trade Development Corporation (Matrade) chief executive officer Datuk Dr Wong Lai Sum said Mafta, which came into force in January, would further boost bilateral trade between both countries, which had been posting double-digit growth in two-way since 2010.

“Malaysia and Australia have proven their resilience despite the lingering gloomy global economic climate. MAFTA will thus further boost our bilateral trade ties."

“For the first two months this year, Matrade has seen a jump in Malaysian exports to Australia, especially in consumer electronics, cocoa, palm oil and their derivatives,” she told reporters on the sidelines of a seminar on the updates of Mafta here yesterday.

Malaysia’s total trade with Australia grew 13.6 per cent last year to RM43.72 billion, with Malaysia’s exports expanding 13.3 per cent to RM29.1 billion, while imports from Australia stood at RM14.62 billion, up 14.1 per cent from 2011.

Australia was Malaysia’s eighth largest trading partner last year, accounting for 3.3 per cent of Malaysia’s total trade.

Malaysia’s major exports to Australia last year were crude petroleum and electrical and electronics, while Malaysia’s imports were mainly manufactures of metals, processed food, crude petroleum and mining goods.

Wong said Australia had been growing as an important trading partner for Malaysia as the trade figures spoke for itself.

“A decade ago, Australia was Malaysia’s 14th largest trading partner.

“This shows how important Australia has become for Malaysia, given the vibrant economic growth both the countries are enjoying,” she said.

Wong said the business fraternity from Kuala Lumpur and Canberra were constantly exploring opportunities to venture into new collaboration areas, with Mafta coming into force.

She said collaborations in existing sectors such as the furniture industry could be further enhanced as Malaysia was currently the second largest furniture exporter to Australia.

Meanwhile, Malaysia-Australia Business Council (MABC) chairman Michael Peter Halpin said Australia always had a ‘soft spot’ for Malaysia in terms of trade, investment, travel and tourism.
He said Australia firmly believed the global economy’s future was with the Asian region particularly with the Asean member countries.

“Australia will be focusing on the Asean region moving forward to expand its resources-based economy and Australia has always seen Malaysia as the ‘heart’ of the Asean region,” he said.
He said MABC was making efforts to simplify Mafta’s terms and conditions to make them simpler and in layman’s language.

“The move will help more companies to fully understand the benefits of Mafta and enhance flow of goods and services between Malaysia and Australia,” he added.