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TRANSCRIPT
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Government of South Australia
MALAYSIA
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Thursday 31 January - Saturday 9 February 2008
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PROGRAM FOR THE DEPUTY PREMIER FOR TRIP TO
KUALA LUMPUR, MALAYSIA
STUDY TOUR REPORT LODGED
U (SPEAKER,./ HOUSE OF ASSEMBLY
10100am
CAL TIME PROGRAM NOTES
1 Meeting wit Senior Trade Commissioner, Austrade
1 1 .00am Meeting with Australian High Commissioner
3.30pm-4.00pm Meeting with Managing Director and Chief Executive, Maylasia Airlines
LOCAL TIME PROGRAM NOTES Ad
1 .00pm Depart for Airport
1 .30pm Check in
&30pm Depart Adelaide for Kuala Lumpur
8.15pm Arrive Kuala Lumpur Accommodation : Shangri-La Kuala Lumpur
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LOCAL TIME PROGRAM NOTES
1 000arn Tour around the Formula 1 Grand Prix Circuit at Sepang
LOCAL TIME PROGRAM NOTES 71 10.00am Meeting with Chief Executive, AirAsia
LOCAL TIME
PROGRAM
7.15am
Arrive Adelaide
NOTES
Under Section 15 of the Members of Parliament Travel Entitlement Rules, I hereby submit my travel report for my Trade Mission to Malaysia .
Hon K
Deputy Premier & Treasurer
LOCAL TIME PROGRAM NOTES
7.00pm Depart for airport
7.45pm Check in
9.45pm Depart Kuala Lumpur
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General information : Capital : Surface area : Official language : Population : Exchange rate :
Recent economic indicators . GDP (US$bn) (current prices) : GDP PPP (US$bn) (c) : GDP per capita (US$) : GDP per capita PPP (US$) (c) : Real GDP growth (% change YOY) : Current account balance (US$m) : Current account balance (% GDP) : Goods & services exports (% GDP) : Inflation (% change YOY) :
Australia's merchandise trade with Malaysie
A$m
8,000
6,000 -
4,000 -
2,000 -
2001 2002 2003 2004 2005
Exports
2006
Kuala Lumpur 330 thousand sq km Malay 26.4 million (2006) A$1 = 2 .7349 Ringgit (Feb 2007)
Malaysia's global merchandise trade relationships :
MALAYSIA
Real GDP growth
Fact sheets are updated biannually, May and September
Head of State : H.M . The Yang Di-Pertuan Agong XIII AI-Wathiqu Billah Tuanku Mizan Zainal Abidin Ibni AI-Marhum Sultan Mahmud AI-Muktafi Billah Shah Head of Government: Prime Minister YAB Dato' Seri Abdullah bin Haji Ahmad Badawi
Australia's merchandise exports to Malaysia
ASm 1,200 -
1,000 - 800 -
600 -
400 -
200 - 134 Primary STMs ETMs
2001
E 2006
Other
Fact Sheet
Compiled by the Market Information and Analysis Section, DFAT, using the latest data from the ABS, the IMF and various international sources. (a) All recent data subject to revision, (b) IMF/EIU forecast; (c) PPP is purchasing power parity, (d) Total may not add due to rounding .
2002 2003 2004 2005 2006(a) 2007(b) 95.3 104.0 118.5 130.8 150.9 160.6 223.9 241 .2 266.0 288.2 313.0 337.7 3,884 4,161 4,651 5,042 5,718 5,982 9,129 9,651 10,445 11,105 11,858 12,582
4.4 5 .5 7 .2 5 .2 5 .9 5.5 8,025 13,207 14,872 19,902 23,782 24,599
8.4 12.7 12.6 15.2 15.8 15.3 113.6 114.0 121 .1 123.4 122.2 116.4
1 .8 1 .1 1 .4 3 .0 3 .6 2.6
Malaysia's principal export destinations, 2006 : Malaysia's principal import sources, 2006 : 1 United States 18 .8% 1 Japan 13.2% 2 Singapore 15 .4% 2 United States 12.5% 3 Japan 8 .9% 3 China 12.1% 10 Australia 2.8% 12 Australia 1.8%
Australia's trade relations hip with Malaysia (d) : Australian merchandise trade with Malaysia, 2006 : Exports to Malaysia (A$m) : Imports from Malaysia (A$m) : Total trade (exports + imports) (A$m) :
Total share : Rank:
2,834 1 .7% 13th 6,707 3.8% 7th 9,541 2.8% 12th
Growth (yoy) : 12.8% 10.4% 11 .1%
Major Australian exports, 2006 (A$m): Major Australian imports, 2006 (A$m) : Copper 497 Crude petroleum 2,052 Aluminium 300 Computers 1,076 Coal 197 Telecommunications equipment 227 Ferrous waste & scrap 168 Integrated circuits 222 'Includes A$459m of confidential items, mainly wheat and sugar, 16% of total exports.
Australia's trade in services with Malaysia, 2006 : Exports of services to Malaysia (A$m) : Imports of services from Malaysia (A$m) :
Total share : 1,201 2.7% 865 2.0%
Major Australian service exports, 2006 (A$m) : Major Australian service imports, 2006 (A$m): Education-related travel 618 Transportation 452 Personal travel excl . education 227 Personal travel excl . education 270
KEY POINTS
SOUTH AUSTRALIA-MALAYSIA RELATIONS
"
Malaysia is a major trading partner for South Australia . In the 2006-07, two-way merchandise trade between South Australia and Malaysia was valued at $728 million . This was 35% higher than two-way trade the previous year .
"
Malaysia is South Australia's 6th biggest export market. Exports, which are valued at over $566 million, are dominated by refined copper ($394 mil) . Other key exports to Malaysia include grains ($44 mil), steel scrap ($28 mil), lead ($17 mil), silver ($11 mil) and wine ($10 mil) .
"
South Australia's enjoyed a large trade surplus with Malaysia in 2006-07, worth $400 million .
" South Australia enjoys a very close relationship with Malaysia, which has been developed through diplomatic, cultural and commercial linkages .
"
South Australia and Malaysia have a long history of cultural linkages . The City of Adelaide and the City of Georgetown, Penang have a long-standing sister city relationship .
"
The Australia Malaysia Business Council Inc (AMBC) actively promotes bilateral trade relations between Malaysia and South Australia. AMBC organises trade delegations to Malaysia on an annual basis .
"
Australia and Malaysia are currently negotiating a free trade agreement (FTA) . The Government of South Australia provides in principle support to the potential FTA, but not at any cost . The benefits of such an FTA through enhanced market access must be shown to outweigh any negative effects .
"
According to the 2006 Census, 1,219 South Australian residents claim Malaysian ancestry .
" In 2006-07 there were 17,705 visitors from Malaysia, who travelled from South Australia or to South Australia during the period .
" In 2007, there were 2,112 Malaysian students studying in South Australia, making Malaysia South Australia's third largest source of international students .
DISCUSSION
Merchandise Trade
Malaysia is a major trading partner for South Australia . In the 2006-07, two-way merchandise trade between South Australia and Malaysia was valued at
$728 million . This was $189 million higher (35%) than two-way trade the previous year . South Australia's trade surplus with Malaysia during the period was worth $400 million .
In 2006-07, Malaysia ranked as the 6th largest export destination for South Australian goods. During the period, South Australia exported $566 million worth of goods to Malaysia, an increase of $150 million on the previous year . The State's leading exports to Malaysia were refined copper (worth $393 million, an increase of $129 million on the previous year), combined confidential items (mainly bulk grains) (worth $44 million) and waste and scrap of alloy steel (worth $28 million) .
In 2006-07, Malaysia ranked 11 th in importance as a South Australian import source. The State imported $162 million worth of goods from Malaysia, up $32 million on the previous year . The State's top imports from Malaysia were colour television receivers (worth $21 million), boards and panels for the distribution of electricity (worth $ 11 million) and switches for circuits (worth $10 million) .
The following South Australian businesses export to Malaysia :
Investment
A number of South Australian businesses have established joint ventures in Malaysia covering agri-food, health, building materials, IT and consulting . Malaysian firms are investing in the manufacturing, call centre, construction and hotel industries in South Australia .
The following are some of the South Australian investment / joint venture projects in Malaysia :
"
Priority Engineering(SA) partnering with Perodua to provide services and technology to the automotive sector
"
Dtex (SA) partnering with Persoft Systems Malaysia to build a new security command centre in CyberJaya, designed to provide managed
Company Industry Beerenber Pt Ltd Condiments Cli sal Australia Pt Ltd Manufacturing Coopers Brewery Ltd Beer Dover Fisheries P Ltd Seafood Fox Creek Wines Pt Ltd Wine Henschke Cellars Pt Ltd Wine Pernod Ricard Pacific Pt Ltd Wine Primo Estate Wines Wine Woodhead International Pt Ltd Architects Yaldara Wines Wine
information security services to the Malaysian government and major national financial institutions
"
Fish Protech (SA) partnering with several Malaysian organisations to establish aquaculture farms in Sarawak (East Malaysia) and Malacca (State on the West Coast of Malaysia)
"
The Newell Group (SA) investing in Johore, (a southern Malaysian State) to produce fibreglass tanks for commercial storage of products, including tanks for use in the aquaculture industry
" The Swiss Hotel Association Hospitality School in Adelaide is delivering training in Malaysia in conjunction with the YTL Group.
The following are some of the Malaysian investment / joint venture projects in South Australia:
" YTL Corporation invested about $330 million in ElectraNet, which operates the States power transmission grid, in late December 2000
"
Tropical Canning Company, from Penang invested in SAFCOL, a food manufacturer
" Polyaire, manufacturer of air-conditioning products is owned by a Malaysian investor
" A small number of Malaysian businesses have invested modest amounts in property in the city of Adelaide and its outskirts
Export Opportunities
Export opportunities for South Australian business exist in the following sectors : horticulture, meat and livestock, seafood and aquaculture, education, healthcare and mineral resources and environment and waste management.
High Level Visits
South Australia enjoys a strong Government-to-Government relationship with Malaysia . A number of high level visits occurred between Malaysia and South Australia in the past ten years .
Malaysia's Minister for Industry and Trade, the Hon Dato' Seri Rafidah Aziz led a trade and investment delegation to Adelaide in August 2006 . This coincided with her Joint Trade Committee meeting with her counterpart, Minister Mark Vaile .
The Hon Kevin Foley, Minister for Industry and Trade, visited Kuala Lumpur in 2006 to support a defence delegation at the Defence Services Asia Exhibition .
The former Minister for Employment, Training and Further Education, Minister Stephanie Key visited Sarawak in 2005 to attend the Adelaide Australia Fair . The former Minister for Industry and Trade, the Hon Paul Holloway and the Governor of South Australia, HE Marjorie Jackson-Nelson, visited Sarawak to attend the Adelaide, Australia Fair in September 2004 . The Hon Paul Holloway also visited Kuala Lumpur in August of the same year as part of a broader ASEAN visit .
Sarawak's Deputy Chief Minister, Tan Sri Dr George Chan visited Adelaide during Clipsal 500 in March 2005, with four other high profile delegates . The purpose of the visit was to explore collaboration between South Australia and Sarawak in the agriculture, biotech and healthcare sectors . In August 2004, Sarawak's Chief Minister, visited South Australia to further strengthen Government to Government relationship . The Chief Minister met with the South Australian Premier and several Ministers .
South Australian Trade Missions to Malaysia
Below is a list of most recent trade missions from South Australia to Malaysia and their targeted industries :
Malaysian Trade Missions to South Australia
Below is a list of most recent trade missions from Malaysia to South Australia and their targeted industries :
Date Trade Mission Targeted Industry February Malaysia's Industrial Development Halal-certified agrifood 2007 Authority headquarters in Kuala products
Lumpur March Sarawak Deputy Chief Minister visited Health and bio-agric 2005 SA with other four high profile
Date Trade Mission Targeted Industry April 2006 Defence Services Asia Exhibition & Defence, food, wine,
Australia-Malaysia Business Council health, education, Mission sustainable transport
August Adelaide, Australia Fair, Education 2005 Sarawak July 2005 Sixth Malaysian International Food and Education, health and
Beverage Trade Fair, Kuala Lumpur tourism September Adelaide Australia Fair, Sarawak Education, health and 2004 tourism August Ministerial visit as part of a broader Health, automotive, ICT, 2004 ASEAN mission property, waste
management, and government to government relationship
August South Australian Asia Pacific Business 2004 Women Council led a business
dele ation to Penan
delegates March Malaysian delegation visited for Clipsal Automotive and agriculture 2005 500 December Minister of Health visited Adelaide Health 2004 March Malaysian potential buyers visited for Automotive 2004 Clipsa1500
AUSTRALIA - MALAYSIA RELATIONS
The Federation of Malaya was established on 31 August 1957 . On 16 September 1963 the Federation was enlarged by the accession of the states of Singapore, Sabah (formerly British North Borneo) and Sarawak. The name ̀ Malaysia' was adopted from that date . Singapore left the Federation on 9 August 1965 .
Malaysia is a federal constitutional monarchy and a parliamentary democracy . The Head of State is the Yang di-Pertuan Agong (King) . The Head of Government is the Prime Minister, who is also the head of the Cabinet .
On 31 October 2003, Prime Minister Tun Dr Mahathir Mohamad resigned after 22 years in office . His successor, Dato' Seri Abdullah Ahmad Badawi, led the Barisan Nasional to electoral victory at the 21 March 2004 general election, winning 199 of the 219 Federal seats, representing the highest-ever proportion of seats won in Federal Parliament . The largest number of opposition seats (12) was won by the secular Democratic Action Party (DAP) and it replaced Islam-oriented PAS, which won six seats, as the major opposition party . Federal and state elections are held concurrently every five years, with the exception of state elections in East Malaysia which are sometimes held separately. Prime Minster Abdullah called an early election to be held on 8 March 2008 .
Malaysia's Foreign Policy
The principles of national sovereignty and mutual respect for territorial integrity, mutual non-aggression, and non-interference in domestic affairs of other countries are central tenets of Malaysia's foreign policy . This is reflected in Malaysia's membership of the United Nations and prominent roles in organisations such as the Association of Southeast Asian Nations (ASEAN), the Organisation of the Islamic Conference (OIC) - which Malaysia has chaired since 2003, and the Non-Aligned Movement (NAM) - which Malaysia chaired from 2003 to 2006 .
Malaysia sees ASEAN as the main regional institution developing an integrated South-East Asian community. Malaysia was one of ASEAN's five original members (founded in 1967), and was the Chair of ASEAN from 2005 to 2006 .
Economic Overview
Since independence in 1957, Malaysia has been transformed from a commodity-based economy, focusing on rubber and tin, to one of the world's largest producers of electronic and electrical products . Malaysia is a significant trading nation as measured by trade as a share of gross domestic product (GDP), with its total trade in goods and services amounting to more than 200 per cent of GDP . Manufactured goods make up a large portion of Malaysia's exports, including electronic and electrical products - which comprise over 40 per cent of the value of total exports . Malaysia is the world's leading exporter of palm oil and is one of the region's major oil and gas exporters .
According to key development indicators, Malaysia is now a high middle-income, export-oriented economy, with GDP per capita of $US5718 in 2006, life expectancy
of 73 years and gross primary school enrolment of 93 per cent of the school age population . Malaysian statistics suggest poverty had fallen from 49 per cent of households in 1970 to around 5 per cent in 2004 .
Malaysia's economic development policies are enunciated in a number of guiding documents which include : Vision 2020 ; the National Mission (2006-2020) ; and the Ninth Malaysia Plan (2006-2010) .
In 1991 the Malaysian Government launched Vision 2020 - a plan for Malaysia to achieve developed economy status by the year 2020. Specific targets include increasing real GDP eightfold between 1990 and 2020 - translating to average annual growth of seven per cent - and increasing per capita income by a factor of four .
Recent Economic Performance and Outlook
The Malaysian economy expanded by 5 .7 per cent on an annualised basis in the second quarter of 2007, underpinned by strong domestic demand, particularly in the services sector which registered growth of 9.2 per cent in the second quarter of 2007. Malaysia's economy grew by 5.9 per cent in 2006 . The Malaysian Government forecasts GDP growth of 6 per cent in 2007 and between 6 and 6.5 per cent in 2008 . This is based on sustained global economic growth and high prices for primary commodities (including crude petroleum and palm oil) .
Malaysia continues to have a large trade surplus (since November 1997) . Annual inflation was 3.6 per cent in 2006 . The unemployment rate was 3 .3 per cent in 2006 and is expected to remain below 4 per cent in 2007 .
Malaysia's Trade and Foreign Investment Policy
Malaysia is a strong supporter of the multilateral trading system, in particular the World Trade Organisation . Malaysia participates actively in regional economic arrangements such as the ASEAN Free Trade Area (AFTA) and the Asia-Pacific Economic Cooperation (APEC) . Malaysia is also a member of the Cairns Group - which advocates more liberalised global trade in agriculture . Malaysia's major trading partners are the USA, Singapore, Japan and China .
Of considerable significance for Australia was the April 2005 decision to begin negotiations on a bilateral Free Trade Agreement (FTA). Malaysia is also pursuing bilateral FTA negotiations with the USA, New Zealand, Chile and Pakistan, and is part of the ASEAN-wide negotiations for ASEAN-Australia-New Zealand, ASEAN-China, ASEAN-India, ASEAN-Japan, ASEAN-Korea and ASEAN-EU FTAs. Malaysia has concluded an FTA with Japan.
Foreign Direct Investment (FDI) has played a large part in Malaysia's development . As a share of GDP, gross FDI has been sustained at 6 per cent in the post-Asian financial crisis years, compared with an average of 8 per cent in the mid-1990s when FDI flows peaked . The government has sought to channel investment into export-oriented manufacturing and capital-intensive and high technology industries .
Government Relations
Australia's formal relations with Malaysia date back to 1955 when a High Commission was established in Kuala Lumpur . Australia was one of fifteen countries to establish formal diplomatic relations with the Federation of Malaya in 1957 soon after independence . The current relationship draws on many long-standing associations including :
"
parliamentary, legal and administrative systems with many similar features and joint membership of the Commonwealth;
"
people-to-people links including students, business councils and immigration; "
regular and close consultations in a variety of policy fields such as a Ministerial-level Joint Trade Committee;
"
bilateral defence and security cooperation, including through the Malaysia-Australia Joint Defence Program and the Five Power Defence Arrangements .
A number of activities marked the 50th anniversary of Malaysia's independence on 31 August 2007. The Governor-General, His Excellency Major General Michael Jeffery AC CVO MC, represented Australia at the independence (Merdeka) celebrations in Kuala Lumpur on 31 August 2007 . in addition, the Department of Foreign Affairs and Trade (DFAT) released a bilingual photographic publication entitled Australia-Malaysia : Celebrating 50 Years, which chronicles some of the important events and achievements shared by Australia and Malaysia over more than five decades .
Bilateral Visits
Australia's relationship with Malaysia is underpinned by strong people-to-people links with a significant program of two-way high-level visits .
The official visit to Australia in April 2005 by Prime Minister Abdullah - the first by a Malaysian Prime Minister in 21 years - provided an opportunity to build on long-standing cooperation in a range of areas . A key outcome of the visit was the decision to proceed to bilateral free trade agreement negotiations . Then Prime Minister John Howard visited Malaysia in late 2006. More recently in May 2007, Prime Minister Abdullah attended the launch of an exhibition of traditional Malay women's garments (kebaya) collected by his late wife, Datin Paduka Seri Endon Mahmood, held at the Immigration Museum in Melbourne.
The King of Malaysia, His Majesty Tuanku Mizan Zainal Abidin, visited Australia from 6-10 June 2007 to participate in an Endurance Horse Race in Nanango, Queensland . Prime Minister Abdullah attended the APEC Leaders' Meeting in Sydney on 8-9 September 2007. Malaysia's Minister of International Trade and Industry, Rafidah, and the Deputy Minister of Foreign Affairs, Joseph Salang, attended the APEC Ministerial Meeting in Sydney on 5-6 September . Five other Malaysian ministers also made working visits to Australia during 2007 .
Malaysian Parliamentary Delegations visited Australia in June 2006 and June 2007, following an Australian Parliamentary Delegation visit to Malaysia in April 2006.
The Australian Parliament's Joint Standing Committee on Foreign Affairs, Defence and Trade tabled a report into Australia's Relationship with Malaysia in March 2007. The report noted the changing nature of Australia's relationship with Malaysia - from one of support in the early years of Malaysia's formation to the present wide-ranging and extensive collaboration across all fields .
Defence and Security Links
Australia's defence relationship with Malaysia dates back to well before Malaysia's independence in 1957, and reflects a common commitment to the security and stability of the region . The relationship is based on practical cooperation including the Malaysia-Australia Joint Defence Program, an ongoing Australian presence at the Royal Malaysian Air Force (RMAF) Base at Butterworth, and common membership of the Five Power Defence Arrangements .
In February 2005, DFAT published a book entitled Australia and the Formation of Malaysia 1961-1966, which documents Australia's support for the establishment of Malaysia and defence of its territorial integrity .
Bilateral defence cooperation occurs through the Malaysia-Australia Joint Defence Program, which formally commenced in 1992 under this name (although Australian defence cooperation assistance to Malaysia dates back to 1964) . The program includes the training of Malaysian military personnel in Australia, the attachment of Armed Forces personnel from each country to the other, and annual combined field exercises . Australia is Malaysia's major source of external military training .
Formally established in 1971, the Five Power Defence Arrangements (FPDA) commits Australia, New Zealand and the United Kingdom to consult on a response to any armed attack or threat against Malaysia or Singapore . The FPDA provides a valuable framework for conducting combined training exercises . More recently, the FPDA has expanded its focus to address non-conventional security threats facing the region, including terrorism and maritime security .
Australia and Malaysia cooperate closely on a range of security issues, with good links between police and immigration agencies . In August 2002, Australia and Malaysia signed an MoU on cooperation to combat international terrorism . Bilateral agreements on mutual assistance in criminal matters, and extradition, entered into force on 28 December 2006 .
Education
Australian expertise in education and training is highly regarded in Malaysia . Bilateral links in this sector date back to the 1950s through the Colombo Plan . Education for Malaysian students has traditionally been provided at universities in Australia, but university twinning arrangements and Australian campuses in Malaysia now allow Malaysian students to undertake Australian courses in Malaysia . Three Australian universities have campuses in Malaysia including Monash University, and in Sarawak - Curtin University and Swinburne University of Technology .
As of August 2007, 19,369 Malaysian students were enrolled in Australian education institutions onshore, making Malaysia Australia's fourth-largest source for international students . The offshore provision of education is also growing in importance with more than 15,000 students at Australian higher education institutions in Malaysia.
Migration/Tourism
The 2001 census showed 78,850 Malaysian-born people lived in Australia, an increase of three per cent from the 1996 census.
Malaysia recorded 277,125 Australian visitors in 2006, while there were 157,600 short-term visitor arrivals from Malaysia to Australia for the year to 31 August 2007, making it our second-largest source of visitors from South-East Asia .
An air services agreement is in place between Australia and Malaysia .
Other Areas of Cooperation
The Australia-Malaysia Institute was established by the Australian Government in April 2005 to strengthen people-to-people and institutional links with Malaysia, and to deepen mutual understanding and cooperation.
The Malaysia Australia Business Council (MABC) and the Australia Malaysia Business Council (AMBC) are important coordinating bodies for commercial linkages, and conduct regular dialogue with both governments, including through participation in the Joint Trade Committee meetings . They are an important source of information and advice for businesses active in Australia and Malaysia and play an important role in promoting strong networks in the respective private sectors .
The Malaysian Australian Alumni Council (MAAC) is a national organisation for Malaysian alumni associations of Australian universities . The MAAC spearheads the Malaysia Australia Colombo Plan Commemoration Scholarship initiative, which provides for a two-way exchange of scholars between Australia and Malaysia to undertake their tertiary education at institutions of higher learning in both countries .
Australia-Malaysia Economic and Trade Relations
In terms of two-way goods and services trade, Malaysia is Australia's third-largest trading partner in ASEAN and eleventh-largest partner overall with total trade in 2006-07 worth $11 .9 billion (3 .4 per cent share of Australia's total trade) . In 2006-07, total merchandise trade between Australia and Malaysia was $9.7 billion (Australian exports were $3 .1 billion and imports $6.6 billion) . Total two-way services trade in 2006-07 was $2.2 billion (Australian exports of $1 .24 billion ; imports of $936 million) .
Major merchandise exports from Australia to Malaysia include copper, aluminium, coal, ferrous waste and scrap, milk and cream, medicaments (including veterinary), zinc, food and live animals, chemicals and related products, and refined petroleum . Australia is a major provider of education services to Malaysia . Major Malaysian
merchandise exports to Australia include crude petroleum, computers, telecommunications equipment, integrated circuits, furniture, gold, refined petroleum, computer parts, radio receivers, and electrical machinery and appliances .
Malaysian investment in Australia has grown strongly in recent years . At the end of 2006, the level of Malaysian foreign direct investment in Australia was $4 billion, making Malaysia the twelfth-largest investor in Australia . Australian companies continue to pursue opportunities in Malaysia . At the end of 2006, the stock of Australian foreign direct investment in Malaysia was $385 million.
In February 2005, DFAT published a report entitled Malaysia : An Economy Transformed. The report analyses the challenges to Malaysia's economic development and the Malaysian Government's plans for new drivers of growth . It also discusses opportunities for expanding the Australia-Malaysia commercial relationship further .
Australia and Malaysia have a double taxation agreement .
Malaysia-Australia Free Trade Agreement
On 7 April 2005, Australia and Malaysia agreed to launch negotiations on a bilateral Free Trade Agreement (FTA).
The decision to begin FTA negotiations built on an already strong and broad-ranging bilateral relationship . It also followed consideration by both governments of comprehensive scoping studies into the likely impact of an FTA. The studies reached the conclusion that an FTA would deliver significant benefits to both countries .
There have been four full rounds of bilateral FTA negotiations since May 2005, the most recent being held in Kuala Lumpur in July 2006. Both sides have committed to completing a comprehensive, high-quality agreement . Ministers have not sought to apply a rigid timetable to the FTA negotiations .
Australia-Malaysia Joint Trade Committee
The annual Australia-Malaysia Joint Trade Committee (JTC) meeting provides a regular forum for the two countries to discuss their respective views on international and regional trade and economic issues, as well as to explore ways to expand the bilateral trade and economic relationship .
At the 13 1h JTC, held in Adelaide on 3 August 2006, ministers underlined their commitment to negotiating a high quality bilateral FTA. Ministers also reviewed progress on a range of activities under the Malaysia-Australia Agricultural Cooperation Working Group (which was reactivated in August 2005), as well as developments in cooperation initiatives in the franchising, medical devices regulation and coal and energy sectors .
Country Brief
South Australia's Top Export Destinations
South Australia's Top Import Sources
2006/07
2006/07 Singapore $1,095,382,399 .00 China $926,320,236.00 Japan $785,094,315.00 United States of America $652,536,954.00 Thailand $363,093,250.00 Korea, Republic of $324,414,862.00 Germany $201,422,253.00 Italy $178,119,513.00 New Zealand $177,994,746.00 United Kingdom $173,451,384.00 Malaysia (11th) $161,721,023.00 Taiwan $151,688,510.00
United States of America $1,122,151,095 .00 United Kingdom $851,805,594 .00 Japan $791,710,254 .00 China $675,569,197 .00 New Zealand $614,536,522.00 Malaysia (6th) $565,543,482.00 Saudi Arabia $448,899,611 .00 Canada $393,652,936.00 Thailand $329,510,951 .00
South Australian Exports by Country Malaysia
2002/03
$251,948,420 .00 2003/04
$244,333,259 .00 2004/05
$332,262,306 .00 2005/06
$407,592,682 .00 2006/07
$565,543,482 .00
South Australian Imports by Country Malaysia
2002/03
$122,325,590 .00 2003/04
$126,572,274 .00 2004/05
$123,203,396 .00 2005/06
$131,188,752 .00 2006/07
$161,721,023 .00
South Australia's Top 10 Export Commodities
$393,452,961 .00
Refined copper
2006/07 Malaysia
$43,990,078.00
Combined confidential items $27,976,845.00
Waste and scrap of alloy steel (excl . stainless steel) $17,392,421 .00
Unwrought refined lead $10,572,267.00
Semi-manufactured or powdered silver (incl . silver plated with gold or platinum)
$10,313,636 .00
Wine (excl . sparkling) of fresh grapes ; grape must with fermentation arrested by the addition of alcohol
$9,614,400.00
Waste and scrap of cast iron $8,940,090.00
Fresh or dried oranges $7,574,203.00
Frozen meat of sheep $4,468,146.00
Unwrought zinc (not alloyed)
South Australia's Top 10 Import Commodities
2006/07 Malaysia
$21,392,194.00
Colour television receivers (incl . video monitors and video projectors)
$11,070,506.00
Boards, panels, consoles etc for control or distribution of electricity, not exc 1000 volts
$9,543,349 .00
Switches for circuits not exc 1000 volts, nes $8,052,589 .00
Radio receivers of a kind used in motor vehicles (excl . combined with recording or reproducing apparatus)
$7,530,953.00
Digital monolithic integrated units $7,032,644.00
Parts for television and radio receiver and transmission equipment and other telecommunications equipment
$6,082,414.00
Wooden framed seats, nes $5,922,752.00
Non-coniferous wood continuously shaped along any edge or face (eg tongued, grooved, V-jointed etc)
$5,878,854.00
Combined confidential items $4,915,396.00
Non-coniferous wood sawn or chipped lengthwise, sliced or peeled, exceeding 6 mm in thickness
~~ ts t -aliaii 4~ O"tis, 1r1t0
AttStI`adf.`
Hon Kevin Foley Deputy Premier SA Austrade KL 1 Feb 2008
Global
picture
Malaysia/Australia
trade data
Recent
OZ export successes
Does
& Don'ts
Discussion
14000
12000
10000
8000
6000
4000
2000
The big league & some challengers
[GDP 2005 (US$ billions)]
® U.S .A
o Japan
o Germany
o China
o South Korea Malaysia
F Singapore ® India
D Russia
f~ Australia
15000
12000
9000
6000-
3000-
Aristraliatt Gowor1irwttt
icsti at3e
The challengers are for real
[GDP [ppp basis] 2005 (US$ billions)]
U.S.A
0 China
0 Japan
® India 0 Germany
El Russia
0 South Korea 19 Australia Malaysia
0 Singapore
~asi ;<~Cian ~tver~aa~~~:nt.
1IIStt , afIt°
Asia has some serious growth
[GDP growth 2001-2005 Average %]
o China Malaysia
o Japan
" India
El Russia
El South Korea o Singapore
El Australia
N U.S .A o Germany
200
180
160
140
120
100
80
60
40
20
0
Amdt<tlian t:;o~mtmvt1t
1est1'a
And some serious traders in the neighbourhood
[Exports as a % of GDP 2005]
1:1 Singapore
El Malaysia
El China
El South Korea ® Germany
Ei - ussia
IE Australia
1:1 Japan R.,, ,
N,
Economic Indicators (2006)
if "tratlc
.oti°cr°oatlull(
Malaysia Australia
GDP (US$bil) 147 744
GDP Per Capita (US$) 5,570 36,016
GDP Growth (%) 5.5 3.1
Inflation Rate (%) 3.8 3.5
Unemployment (%) 3.7 4.5
kilstraliarl
Malaysia's Exports to Australia 2006 (Total A$ 5.9 billion)
Oil & Petroleum
(0 Computers, Electronic D Integra e
circuits, TVs etc o o Iron & Steel Products
i list a :uic
Atpsti -aIimt Gr trriumlt
Australia's Exports to Malaysia, 2006 (Total A$ 2.8 billion)
Coal D Scrap Metal D Dairy
" Malaysians are "Australia familiar"
" English language
" Regulatory settings
" Time difference between Malaysia & Australia = 0-2 hours
" MAS = 47 flights weekly to Australia
+ J etsta r
+ AirAsia
Malaysia : A Good Business Partner For Australia
Aussie Graduates Aplenty
Education = Australia's biggest winner in Malaysia
"
250,000 Malaysian graduates of Australian unis
"
Great contacts across all sectors
"
CPA Australia has about 7,700 members in Malaysia
,;fi'r<ilinrt t ,werIIII ;t it
i tf~+
Auti11"aliall Gt)1e!"ttfilcllt
Awi'ade
MO NAS H University
You are not alone!
Leighton rioWAgs
--f- ~&f
1 .4-
1 .2
1
0.8
0.6
0.4
0.2
0
Australian Government rade
Australia's Exports to Malaysia, 2006 (Total A$ 2.8 billion)
~ " Copper Aluminium Coal D Scrap Metal D Dairyl
Some Recent Deals
" Boer goats
$20,000
" Corporate training
$25,000
" Stage production
$20,000
" Wine
$21,000
" Synthetic grass
$15,000
" Tertiary Education
$800,000
But there's also room for the small (or smaller) boys
MhJ LO ;-rl rl;z; w
" Snack-food
$120,000
" Electrical components
$150,000
" Construction material
$100,000
" Fruit
$15,000
" Hay
$110,000
" Industrial consultancy
$50,000
And some more deals
Just about anything goes these days in Malaysia!!
1z Sfrlfian ta>ti-croment
ade
Business culture : Differences, but not Obstacles
Respect comes with ability
Honoring contracts is very important
Aggressive discussion is common
~)rstralran 3
Personal obligations are very important
Age, title bring respect
Calm, self controlled discussion
" Introductions
"
Business cards
" Dress
"
Forms of address
" Gifts
"
Eating with Malaysians
Malaysian Business etiquette
