Free Trade Agreement Malaysia China

Free Trade Agreement between Malaysia and China: An Overview

In recent years, Malaysia and China have been strengthening their diplomatic and economic ties. One of the most significant developments in this relationship was the signing of a Free Trade Agreement (FTA) between the two countries in November 2018. This agreement is expected to open up new opportunities for businesses and investors in both countries, as well as enhance the economic integration of the ASEAN region and China.

Overview of the FTA

The Malaysia-China FTA is a comprehensive agreement covering trade in goods, trade in services, investment, intellectual property, competition, and dispute settlement. The agreement eliminates or reduces tariffs on a wide range of products, including agricultural goods, industrial products, and textiles. It also provides for the liberalization of services in sectors such as telecommunications, finance, and transportation.

The FTA also includes provisions on investment, which aim to promote and protect foreign investment in both countries. The agreement ensures that investors from Malaysia and China are treated fairly and equitably in each other`s markets and are provided with greater protection for their investments. This is expected to encourage more businesses to invest in both countries, leading to greater economic growth and job creation.

Benefits for Malaysia and China

The Malaysia-China FTA is expected to bring a number of benefits to both countries. For Malaysia, the agreement is expected to boost exports to China, which is already Malaysia`s largest trading partner. The FTA will also provide Malaysian businesses with greater access to the Chinese market, which is one of the largest in the world. This will create new opportunities for Malaysian companies to expand their businesses, particularly in sectors such as manufacturing and services.

Similarly, China also stands to gain from the FTA. The agreement will make it easier for Chinese businesses to access the Malaysian market, which is also an important market for China. The FTA will also help China to diversify its trading partners and reduce its reliance on the United States. In addition, the agreement is expected to foster greater economic integration between China and the ASEAN region, which will benefit all parties involved.


The Malaysia-China Free Trade Agreement is a significant development in the economic relationship between these two countries. The agreement is expected to bring significant benefits to both Malaysia and China, as well as to the wider ASEAN region. For businesses and investors, the FTA provides new opportunities to expand their businesses and increase their market share. At the same time, the agreement will help to promote and protect foreign investment, leading to greater economic growth and job creation in both countries. As such, the Malaysia-China FTA is a welcome development for all stakeholders involved.