federation of malaysia -...
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Country Profile:
Federation of Malaysia
Estimated Population 28,859,000 (2011) 1
Estimated Growth Rate (Average Annual %) 1.6% annual changes (2010-2015) 2
Rank based on population 44th
3
Capital Kuala Lumpur
Language Malaysian
Currency Malaysian Ringgit (MYR)
Location: Malaysia is a Southeast Asian nation, which exists on two sides of the
South China Sea, split into Peninsular Malaysia which covers the southernmost
point of Eurasia, and Malaysian Borneo (East Malaysia), which is on the island of
Borneo. Malaysia is bordered by Thailand on the peninsula, and Indonesia and
Brunei on the island of Borneo. Malaysia covers an area of 329,847 square
kilometers (127,355 square miles).
1 http://data.un.org/CountryProfile.aspx?crName=Malaysia 2 http://data.un.org/CountryProfile.aspx?crName=Malaysia 3 http://www.worldatlas.com/aatlas/populations/ctypopls.htm
History
Before the rise of the European colonial powers, the Malay peninsula and the Malay archipelago were home to
empires such as the Srivijaya, the Majapahit (both ruled from Indonesia, but also controlling parts of Malaysia) and
the Melaka Sultanate. This was to change in the 16th century when the Portuguese established the first European
colony in Southeast Asia by defeating the Melaka Sultanate. Portuguese established the first European colony in
Southeast Asia by defeating the Melaka Sultanate. The Portuguese subsequently then lost Malacca to the Dutch. The
British also established their first colony on the Malay peninsula in Penang in 1786, when it was ceded by the Sultan
of Kedah. Finally, the area was divided into Dutch and British spheres of influence with the signing of the Anglo-
Dutch Treaty in 1824. With this treaty, the Dutch agreed to cede Malacca to the British and in return, the British
ceded all their colonies on Sumatra to the Dutch. The line which divided the Malay world into Dutch and British areas
roughly corresponds to what is now the border between Malaysia and Indonesia.
World War II was disastrous for the British Malayan Command. The Japanese swept down both coasts of the Malay
Peninsula and despite fierce fighting, much of the British military was tied down fighting the Germans in Europe. The
British military equipment left to defend Malaya were outdated and no match for the modern ones used by the
Japanese, the Japanese occupation was brutal, and many, particularly the ethnic Chinese, suffered and perished
during the occupation. After World War II, the Federated Malay States, Unfederated Malay States and the Straits
Settlements of Malacca and Penang were federated to form a single British colony known as the Malayan Union,
with Singapore splitting off.
Malaya gained independence from the British in 1957. The
Union Jack was lowered and the first Malayan flag was raised in
the Merdeka (independence) Square on midnight 31st August
1957. Six years later, Malaysia was formed on 16 September
1963 through a merging of Malaya and Singapore. Singapore
was expelled from the federation on 9 August 1965 after several
bloody racial riots, as its majority Chinese population and the
influence of the People's Action Party led by Lee Kuan Yew (later
the long-ruling Prime Minister of Singapore) were seen as a
threat to Malay dominance, and it became a separate country.4
Political System
Malaysia is a federal constitutional monarchy with a parliamentary
democracy largely influenced by the British parliamentary system. The
country consists of 13 states and 2 federal territories. The heads of 9 of the
states are hereditary rulers, and the heads of the remaining 4 states are
governors appointed by the sovereign, on the advice of the federal
parliament. One of the unique features of the political system in Malaysia is
that the sovereign (Paramount Ruler or Yang di-Pertuan Agang in Malay) is
elected every 5 years by and from the 9 hereditary rulers of 9 states of
Peninsular Malaysia. The sovereign is the supreme head of Malaysia and
supreme commander of the armed forces, but his power significantly
diminished in the 1990s due to the constitutional changes initiated by the
parliament; at present he plays a visible but mostly ceremonial role in the
political process in the country. The prime minister, who has considerable
executive power, must be a member of the 192-seat House of
Representatives, and he chooses the cabinet with approval from the sovereign. 5
4 http://wikitravel.org/en/Malaysia 5 http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Malaysia-POLITICS-GOVERNMENT-AND-TAXATION.html
Important Political Figures
Supreme head of state
Abdul Halim Mu'adzam Shah (born 28 November 1927) is the 14th and current
Yang di-Pertuan Agong (supreme head of state) of Malaysia, as well as the 27th
and current Sultan of Kedah. He previously served as the fifth Yang di-Pertuan
Agong from 1970 to 1975. He is the first person to hold the position twice, as well
as the oldest elected to the office. 6
Governor of Malaysia's central bank
Dr. Zeti Akhtar Aziz is the 7th and current governor of Bank Negara Malaysia,
Malaysia's central bank. She has been governor since May 2000, and was the first
woman in the position. Zeti Akhtar Aziz was born in Johor Bahru on 27/8/1947, her
father Royal Professor Ungku Aziz, who is of Malay, Circassian and English descent
and her mother Sharifah Azah Mohamed Alsagoff, who was of Hadhrami Arab and
Malay descent.
Zeti received early education at Assunta High School, Petaling Jaya in 1958. She
then did her Form 6 in St. John's Institution, Kuala Lumpur. In 1970, she received a
Bachelor's degree in Economics from University Malaya. She subsequently
continued her studies in the Department of Economics at the University of Pennsylvania, receiving a PhD in
monetary and international economics. As part of her PhD dissertation she carried out pioneering work on capital
flows and its implications for monetary policy.
Zeti Akhtar Aziz began her career as an economic analyst for the South-East Asia Central Bank Training & Research
Center, remaining at that post from 1979 to 1984. She was then appointed Deputy Manager of the Economics
Department at Bank Negara Malaysia.
In 2009, Global Finance magazine, named her as one of the world's best central bank chief. In 2010, she was named
"Tokoh Ma'al Hijrah 1432H" at the national-level Ma'al Hijrah celebration.
On 20 May 2011, Bloomberg columnist William Pesek picked Bank Negara governor Dr. Zeti Akhtar Aziz as one of his
top four nominees to head the prestigious International Monetary Fund (IMF) after the position became vacant
following the resignation of Dominique Strauss-Kahn who was arrested in New York, and is presently facing sexual
assault charges. 7
President of National Chamber of Commerce and Industry
Tuan Syed Ali Alattas is also the president of Malay Chamber of Commerce
Malaysia.
6 http://en.wikipedia.org/wiki/Abdul_Halim_of_Kedah 7 http://en.wikipedia.org/wiki/Zeti_Akhtar_Aziz
Economic Indicators 8
Indicator Indicator Value
Year 2013 Year 2012 Year 2011
GDP Growth (Constant Prices, National Currency) 5.1 % 5.613 % 5.084 %
GDP (Current Prices, National Currency) MYR 1,000.13 Billion. MYR 937.534 Billion. MYR 881.078 Billion. GDP (Current Prices, US Dollars) US$ 327.911 Billion US$ 303.527 Billion US$ 287.942 Billion
GDP Deflator 127.037 (Index, Base Year as per country's accounts = 100)
125.159 (Index, Base Year as per country's accounts = 100)
124.225 (Index, Base Year as per country's accounts = 100)
GDP Per Capita (Constant Prices, National Currency) MYR 26,279.76 MYR 25,429.60 MYR 24,487.46 GDP Per Capita (Current Prices, National Currency) MYR 33,384.96 MYR 31,827.54 MYR 30,419.45
GDP Per Capita (Current Prices, US Dollars) US$ 10,945.89 US$ 10,304.17 US$ 9,941.29 GDP (PPP), US Dollars US$ 532.515 Billion US$ 498.477 Billion US$ 463.689 Billion
GDP Per Capita (PPP), US Dollars US$ 17,775.70 US$ 16,922.37 US$ 16,008.99 GDP Share of World Total (PPP) 0.611 % 0.6 % 0.585 %
Implied PPP Conversion Rate 1.878 1.881 1.9 Investment (% of GDP) 26.4 % 25.463 % 23.585 %
Gross National Savings (% of GDP) 32.364 % 31.861 % 34.606 % Inflation, Average Consumer Prices (Indexed to Year 2000) 107.216 (Index, Base Year
2000 = 100) 104.908 (Index, Base Year 2000 = 100)
103.192 (Index, Base Year 2000 = 100)
Inflation (Average Consumer Price Change %) 2.2 % 1.664 % 3.174 % Inflation, End of Year (Indexed to Year 2000) 108.264 (Index, Base Year
2000 = 100) 105.933 (Index, Base Year 2000 = 100)
104.2 (Index, Base Year 2000 = 100)
Inflation (End of Year Change %) 2.2 % 1.664 % 2.964 %
Import Volume of All Items Including Goods and Services (Percent Change) 6.421 % 0.309 % 6.071 % Import Volumes of Goods Only (Percent Change) 6.598 % 0.37 % 4.597 %
Export Volume of All Items Including Goods and Services (Percent Change) 7.192 % -4.144 % 5.636 % Export Volumes of Goods Only (Percent Change) 4.54 % -3.633 % 4.863 % Value of Oil Imports US$ 24.443 Billions US$ 25.017 Billions US$ 18.86 Billions
Value of Oil Exports US$ 27.103 Billions US$ 27.415 Billions US$ 22.431 Billions Unemployment Rate (% of Labor Force) 3 % 3 % 3.05 %
Population 29.957 Million 29.457 Million 28.964 Million General government revenue (National Currency) MYR 240.291 Billions. MYR 237.899 Billions. MYR 218.291 Billions.
General government revenue (% of GDP) 24.026 % 25.375 % 24.775 % General government total expenditure (National Currency) MYR 280.587 Billions. MYR 278.087 Billions. MYR 251.474 Billions.
General government total expenditure (% of GDP) 28.055 % 29.662 % 28.542 % Total Government Net Lending/ Borrowing (National Currency) MYR -40.296 Billions. MYR -40.188 Billions. MYR -33.183 Billions.
Total Government Net Lending/ Borrowing (% of GDP) -4.029 % -4.287 % -3.766 % General Government Structural Balance (National Currency) MYR -40.197 Billion. MYR -39.682 Billion. MYR -30.979 Billion.
General Government Balance (National Currency) MYR -21.468 Billion. MYR -29.552 Billion. MYR -18.549 Billion. General Government Balance (% of GDP) -2.147 % -3.152 % -2.105 %
Total Government Gross Debt (National Currency) MYR 560.379 Billion. MYR 520.083 Billion. MYR 479.895 Billion. Total Government Gross Debt (% of GDP) 56.031 % 55.474 % 54.467 % Fiscal Year Gross Domestic Product, Current Prices MYR 1,000.13 Billions. MYR 937.534 Billions. MYR 881.078 Billions.
Current Account Balance (US Dollars) US$ 19.557 Billion US$ 19.417 Billion US$ 31.735 Billion Current Account Balance (% GDP) 5.964 % 6.397 % 11.021 %
8 http://www.economywatch.com/economic-statistics/country/Malaysia/year-2011/
Analyzing Malaysia’s foreign trade 9
From 2006 to 2010, Malaysia's exports increased on average by 5.5 percent each year and amounted to 198.8 billion US$ in 2010, reaching its previous level of 2008 after a significant decline in 2009. Imports increased on average by 5.8 percent each year and reached 164.6 bln US$. This resulted in a trade surplus of 34.2 bln US$ in 2010, slightly higher than surplus in 2009 of 33.6 bln US$. Trade was in surpluses with most MDG regions. Large surpluses were recorded with Southern Asia (+8.4 bln US$), Eastern Asia (+8.1 bln US$), South-eastern Asia (+5.8 bln US$) and Developed Asia-Pacific (+4.5 bln US$) among others. By partners, both imports and exports were diversified: 14 major partners accounted for 80 percent of exports and 13 major partners for imports in 2010.
Import Profile 10
Imports in Malaysia increased to 57868.44 Million MYR in July of 2013 from 52432.24 Million MYR in June of 2013. Imports in
Malaysia is reported by the Department of Statistics Malaysia. Malaysia Imports averaged 15614.86 Million MYR from 1970 until
2013, reaching an all time high of 57870 Million MYR in July of 2013 and a record low of 313.60 Million MYR in August of 1970.
Malaysia main imports are: machinery and transport equipment (60 percent of total imports), manufactured goods (12 percent),
fuel (10 percent), chemicals (9 percent) and food (6 percent). Main import partners are: China (15 percent of total imports),
Singapore (13 percent), European Union (11 percent), Japan (10 percent) and United states (8 percent). Others include:
Thailand, Indonesia, Taiwan and South Korea.
9 http://data.un.org/CountryProfile.aspx?crName=Malaysia#Social (Malaysia 2010 pdf) 10 http://www.tradingeconomics.com/malaysia/imports
Machinery &
transport equipment
Manufactured goods
Fuel
Chemicals
Main Imports
(Year 2013)
China
SingaporeEuropean
Union
Japan
United States
Main Import Partners
(Year 2013)
Export Profile 11
Exports in Malaysia increased to 60726.10 Million MYR in July of 2013 from 56748.80 Million MYR in June of 2013. Exports in
Malaysia is reported by the Department of Statistics Malaysia. Malaysia Exports averaged 18435.18 Million MYR from 1970 until
2013, reaching an all time high of 63471.70 Million MYR in July of 2008 and a record low of 328.10 Million MYR in February of
1970. Malaysia has an export oriented economy. The country's main exports are: electrical and electronics products (35% of
total exports), palm oil (15 percent), petroleum products (9 percent), liquefied natural gas (7 percent), timber and natural
rubber. Malaysia also sends abroad chemicals, machinery, appliances and manufactures metals. Main export partners are:
Singapore (15 percent of total exports), China (13 percent), Japan (12 percent), European Union (9 percent) and United states (9
percent). Others include: Thailand, Hong Kong and Indonesia.
Trade Balance 12
Malaysia recorded a trade surplus of 2857.70 Million MYR in July of 2013. Balance of Trade in Malaysia is reported by the
Department of Statistics Malaysia. Malaysia Balance of Trade averaged 2819.29 Million MYR from 1970 until 2013, reaching an
all time high of 15767.47 Million MYR in May of 2008 and a record low of -2880.61 Million MYR in June of 1997. International
trade plays a large role in Malaysian economy. Since 1998, Malaysia reports consistent trade surpluses.
11 http://www.tradingeconomics.com/malaysia/exports 12 http://www.tradingeconomics.com/malaysia/balance-of-trade
Electric & Electronics products
Palm oil
Petroleum products
Liquefied natural gas
Main Exports
(Year 2013)
Singapore
ChinaJapan
European Union
United States
Main Export Partners
(Year 2013)
Trade policies
Since its previous Trade Policy Review in 2006, Malaysia has continued to liberalize its trade and trade-related policies, mainly unilaterally, notwithstanding the global economic crisis that erupted in 2008. Nonetheless, trade and trade-related policy instruments applied both at the border and internally, remain integral parts of Malaysia's broad development policy. This is more evident in certain sectors, including automobile manufacturing, and in government procurement.
Trade Policy Table 13
Trade policy WTO accession 1 January 1995 Contribution to WTO budget (%, 2012) 1.137
Trade policy review 25, 27 January 2010 Import duties collected (%, 2000-2001) GPA accession Observer in total tax revenue 6.1
Tariff and duty free imports to total imports 1.0 Tariff binding coverage (%) 84.3 Number of notifications to WTO and measures in force
MFN tariffs Final bound Applied 2010 Outstanding notifications in WTO Central Registry 24 Simple average of import duties Goods RTAs – services EIAs notified to WTO 11-7
All goods 23.0 6.5 Anti-dumping (30 June 2011) 6 Agricultural goods (AOA) 66.8 10.8 Countervailing duties (30 June 2011) …
Non-agricultural goods 14.9 5.8 Safeguards (26 October 2011) 0 Non-ad-valorem duties (% total tariff lines)
2.9 0.7 Number of disputes (complainant-defendant)
MFN duty free imports (%, 2010) Requests for consultation 1-1 in agricultural goods 76.9 Original panel / Appellate Body (AB) reports 1-0
in non-agricultural goods 77.4 Compliance panel / AB reports (Article 21.5 DSU) 1-0 Services sectors with GATS commitments 73 Arbitration awards (Article 22.6 DSU) 0-0
Merchandise Trade Value Annual percentage change
2011 2005-2011 2010 2011
Merchandise exports, f.o.b. (million US$) 226 990 8 26 14
Merchandise imports, c.i.f. (million US$) 187 661 9 33 14
2011 2011
Share in world total exports 1.24 Share in world total imports 1.02 Breakdown in economy’s total exports Breakdown in economy’s total imports
By main commodity groups (ITS) My main commodity groups (ITS) Agricultural products 17.1 Agricultural products 11.3
Fuels and mining products 20.2 Fuels and mining products 17.4 Manufactures 62.0 Manufactures 69.2 By main destination By main origin
1. China 13.1 1. China 13.2 2. Singapore 12.7 2. Singapore 12.8
3. Japan 11.5 3. Japan 11.4 4. European Union (27) 10.4 4. European Union (27) 10.4
5. United States 8.3 5. United States 9.7
Commercial Services Trade
Value Annual percentage change 2011 2005-2011 2010 2011
Commercial services exports (million US$) 34 913 10 14 7
Commercial services imports (million US$) 37 490 9 17 17
2011 2011
Share in world total exports 0.84 Share in world total imports 0.95 Breakdown in economy’s total exports 0.84 Breakdown in economy’s total imports 0.95
By principal services item By principal services item Transportation 13.9 Transportation 34.9
Travel 52.3 Travel 27.5 Other commercial services 33.8 Other commercial services 37.6
Industrial Property
Patents grants by patent office, 2010 Trademark registrations by office, 2010 Residents Non-residents Total Direct residents Direct non-residents Madrid Total
204 1 973 2 177 5 642 8 402 … 14 044
a Refers to 2010 and to the average annual percentage change for 2005-2010.
13 www.wto.org/statistics (Trade profile 2012 pdf)
Tariffs 14
Tariffs and imports: Summary and duty ranges
Summary Total Ag Non-Ag WTO member since 1995 Simple average final bound 23.0 66.8 14.9 Binding coverage Total 84.3 Simple average MFN applied 2010 6.5 10.8 5.8 Non-Ag 81.9 Trade weighted average 2010 4.3 12.6 3.7 Ag: Tariff quotas (in %) 4.9 Imports in billion US$ 2010 163.5 12.6 150.9 Ag: Special safeguards (in %) 5.5
Frequency distribution Duty-free 05 510 1015 1520 2550 50100 >100 NAV in % Tariff lines and import values (in %)
Agricultural products Final bound 12.9 31.6 15.9 12.2 9.1 3.6 2.9 11.7 21.1
MFN applied 2010 74.7 10.4 4.6 1.9 2.6 2.8 0.7 2.1 5.1 Imports 2010 76.9 6.9 2.6 2.6 1.2 5.9 0.6 3.4 5.3
Non-agricultural products
Final bound 5.0 31.4 6.1 1.2 19.0 19.1 0.0 0 0.1 MFN applied 2010 63.2 9.0 7.9 2.7 12.9 4.2 0.0 0 0.0
Imports 2010 77.4 7.7 2.7 1.4 7.1 3.8 0.0 0 0.0
Tariffs and imports by product groups
Product groups Final bound duties MFN applied duties Imports
AVG Duty-free in %
Max Binding in %
AVG Duty-free in % Max Share in % Duty-free in %
Animal products 30.9 7.9 168 100 3.8 87.5 50 0.4 87.4 Dairy products 29.6 5.0 338 100 2.3 87.5 50 0.4 97.9 Fruit, vegetables, plants 119.5 11.0 >1000 100 2.9 74.5 90 0.8 82.9 Coffee, tea 18.8 4.2 69 100 5.7 43.8 15 0.8 81.2 Cereals & preparations 16.3 18.7 503 100 4.5 67.9 50 1.8 65.0
Oilseeds, fats & oils 31.6 4.2 >1000 100 1.8 66.3 20 1.9 84.1 Sugars & confectionary 16.7 0 30 100 2.5 81.3 15 0.6 94.4 Beverages & tobacco 302.5 0 >1000 100 119.7 28.4 >1000 0.5 3.7 Cotton 4.0 20.0 5 100 0.0 100.0 0 0.1 100.0 Other agricultural products 11.4 28.5 743 100 0.6 93.9 25 0.5 97.6
Fish & fish products 7.7 50.8 40 53.9 1.0 87.6 20 0.5 94.8 Minerals & metals 17.6 0.1 30 65.2 8.2 50.3 60 15.9 61.3 Petroleum 5.0 0 5 80.0 0.7 86.9 5 8.3 74.5 Chemicals 11.5 0.8 68 75.2 2.8 83.4 50 8.6 72.9
Wood, paper, etc. 19.1 4.1 35 92.9 10.1 45.5 40 2.0 46.5 Textiles 19.0 0 35 98.6 9.0 30.6 30 1.0 33.2 Clothing 20.7 0 30 98.3 0.2 98.9 20 0.2 98.7 Leather, footwear, etc. 21.8 0 40 87.9 10.5 53.6 40 2.2 76.6
Non-electrical machinery 9.1 8.8 40 88.0 3.5 75.3 35 13.1 81.1 Electrical machinery 13.8 25.8 30 89.0 4.3 72.5 30 30.9 92.5 Transport equipment 14.2 3.9 35 61.0 11.4 41.3 50 5.4 46.5 Manufactures, n.e.s. 10.0 19.2 35 91.1 4.5 70.2 50 4.1 94.4
Exports to major trading partners and duties faced
Major markets Bilateral imports Diversification 95% trade in no. of
MFN AVG of traded TL Pref. margin
Duty free imports
In million US$
HS 2-digit HS 6-digit Simple Weighted Weighted TL in % Value in %
Agricultural products 1. China 2010 3,619 7 13 16.7 9.7 2.8 84.2 21.2
2. Singapore 2010 1,920 22 118 0.3 1.7 1.7 100.0 100.0 3. European Union 2010 1,833 8 19 10.9 5.1 1.1 23.1 38.1
4. Pakistan 2010 1,679 1 3 16.6 17.7 0.0 8.5 0.2 5. United States 2010 1,650 8 13 3.9 0.4 0.0 32.6 82.4
Non-agricultural products 1. China 2010 46,790 23 151 8.7 3.9 3.0 91.1 89.9
2. Singapore 2010 33,953 51 454 0.0 0.0 0.0 100.0 100.0 3. European Union 2010 24,561 41 309 4.2 1.1 0.8 69.8 92.6
4. United States 2010 23,230 30 210 3.1 0.7 0.0 50.5 88.0 5. Japan 2010 20,585 33 192 2.1 0.5 0.3 95.4 94.2
14 Page 109, World tariff profiles 2012 booklet
Bilateral and multilateral agreements 15
Compared to its neighbors in Southeast Asia, Malaysia was late to get on the FTA train. But now it does not want to be left out of
the major deals, it seems.
Malaysia signed its first FTAs with Japan in 2005. In 2007, it signed with Pakistan. It also has FTAs with Chile (2010), India (2011)
and New Zealand (2009), It has been in FTA talks with the US, but these have effectively been shelves since 2009. It is in
negotiations with Australia, and may commence negotiations with the GCC and EFTA.
As member of ASEAN, it is also party to the agreements with China, India, Korea and Japan, and the negotiations with
Australia/New Zealand and the EU.
AANZFTA 16
Negotiations on this free trade agreement between the 10 ASEAN governments and those of
Australia and New Zealand were concluded in Singapore in August 2008. The agreement was
subsequently signed in February 2009 and came into force on 1 January 2010. The ASEAN-
Australia-New Zealand FTA (AANZFTA) envisions a regional common market by 2015, and marks
the first time that Australia and New Zealand have been involved jointly in negotiating an FTA
with third countries. It was also the first time ASEAN embarked on comprehensive FTA
negotiations covering all sectors, including goods, services, investment and intellectual property,
simultaneously.
China-ASEAN 17
In November 2001, China and the 10-member Association of
South East Asia Nations (ASEAN) began negotiations to set up a
free trade area. One year later, a framework agreement for the
planned FTA was signed. The FTA, a zero-tariff market of more
than 1.7 billion people, has been targeted to come into force in
2010 for the six original ASEAN members (Brunei, Indonesia,
Malaysia, Philippines, Singapore and Thailand) and in 2015 for
the other four (Burma, Cambodia, Laos and Vietnam).
Implementation of the framework agreement would occur in
stages. For instance:
- An early harvest program covering trade in goods came into force in July 2005.
- Negotiations on a dispute settlement mechanism were finalized in 2004 for implementation in 2005.
- Negotiations on trade in services were completed and an agreement signed in January 2007, for implementation in July 2007.
- The China-ASEAN investment agreement was to be signed at the ASEAN Summit in Thailand in December 2008
Politics around the China-ASEAN deal are delicate as ASEAN states want to avoid China’s domination and yet build their
economies by interacting with China, especially given the slowdown in demand from the US and European markets. At the same
time, China is moving up the manufacturing value-chain losing need for primary products that ASEAN states produce while its
search for raw materials such as minerals and oil has rapidly gone global. Finally, the coming into force of full-scale zero-tariff
farm trade with China from 2010 onward has raised many fears in the ASEAN world.
India-ASEAN 18
Over a period of five years, India and the Association of South East Asian Nations (ASEAN)
negotiated a bilateral free trade agreement — with plenty of difficulty. Under their initial
bilateral framework agreement, signed in Bali on 8 October 2003, the India-ASEAN FTA
for goods was supposed to be finalized by 30 June 2005. Negotiations on services would
start in 2005 and end in 2007. After a year’s delay, discussions ground to a halt in June
15 http://www.bilaterals.org/spip.php?rubrique112 16 http://www.bilaterals.org/spip.php?rubrique181 17 http://www.bilaterals.org/spip.php?rubrique95 18 http://www.bilaterals.org/spip.php?rubrique159
2006 when India released its ’negative list’ of items to be excluded from tariff reductions — with 900 products, both industrial
and agricultural, figuring on the list. (This was down from India’s initial negative list of 1,410 items.) India’s agriculture ministry,
in particular, was arguing hard to exclude commodities like rubber, pepper, tea, coffee and palm oil from the deal. Rules of
origin have been the other thorny issue. Two months later, in August 2006, Delhi issued a revised list, pruned down to 560
items. However, tremendous fears about the impacts of the India-ASEAN FTA on farmers continued to rattle the discussion. By
early 2007, in the midst of the new biofuels boom, palm oil became a central blockage point as Indonesia and Malaysia, both top
palm oil exporters, struggled to get India to lower its tariffs. On 28 August 2008, a deal was finally concluded. The agreement
was signed in 2009 and took effect (trade in goods) with 5 of the countries and India in January 2010, (Singapore, Malaysia,
Brunei, Myanmar and Thailand). India is pushing – without much apparent process – for a services liberalization deal with the
ASEAN countries.
Japan-ASEAN 19
In October 2003, the governments of Japan and of the 10-country Association of South-East
Asian Nations (ASEAN) signed a general framework for a bilateral free trade agreement. In
November 2004, they agreed to initiate the negotiating process. The talks started in April
2005 and ended in November 2007, and the agreement came into force on 1 December
2008. For the Japanese government, this FTA was an important target as it tries to achieve a
stronger position in Asia vis-à-vis China, Korea and United States. The finalization of the US-
Korea FTA talks in April 2007 jolted Tokyo into higher gear to get this deal completed. The
Japan-ASEAN FTA (officially a Comprehensive Economic Partnership) is a comprehensive one,
covering trade in goods, services, investments, rules of origin, dispute settlement, sanitary
and phyto-sanitary regulations, technical barriers to trade, economic cooperation and, on
Japan’s request, intellectual property rights. For groups in Southeast Asia, it is seen as
formalizing ASEAN’s role as a regional manufacturing hub for Japanese corporations. It is now easier and cheaper for Japanese
firms to move components (of automobiles, electronics, etc.) from one ASEAN country to another, in a regional assembly line.
Korea-ASEAN 20
The government of South Korea and nine members of the Association of South-East Asian
Nations (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, and Vietnam) signed an FTA together in May 2006, which took effect in July 2006.
Due to concerns about agriculture, particularly the deal’s provisions on rice and livestock,
Thailand negotiated separate arrangements with the Korean government to join the pact in
early 2009. Korea is also interested in a separate, higher level FTA with Malaysia.
The Indian Ocean Rim Association for Regional Co-operation (IOR-ARC)21
Initially known as the Indian Ocean Rim Initiative, is an international organization with 20 member
states. It was first established in Mauritius on March 1995 and formally launched on 6–7 March 1997 by the conclusion of a multilateral treaty known as the Charter of the Indian Ocean Rim Association for Regional Co-operation. In 2011, six priority areas of cooperation were identified for IOR-ARC. These include: Maritime Safety and Security, Trade and Investment Facilitation, Fisheries Management, Disaster Risk Management, Academic and Science & Technology Cooperation, and Tourism and Cultural
Exchanges.
19 http://www.bilaterals.org/spip.php?rubrique170 20 http://www.bilaterals.org/spip.php?rubrique142 21 http://en.wikipedia.org/wiki/Indian_Ocean_Rim_Association_for_Regional_Co-operation
The Organization of Islamic Cooperation (OIC) 22 is an international organization consisting of 57 member states. The organization states that it is "the collective voice of the Muslim world" and works to "safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony". The OIC has a permanent delegation to the United Nations, and is the largest international organization outside the United Nations. The official languages of the OIC are Arabic, English and French.
Trade Organizations 23
Associated Chinese Chambers of Commerce and Industry of Malaysia
Office Tower 7A, 7th
Floor, Plaza Berjaya – 12, Jalan Imbi Tel.: +603-21452503
55100 KUALA LUMPUR Fax: +603-21452653
Website: http://www.acccim.org.my +603-21452562
E-mail: [email protected]
Federal Agricultural Marketing Authority (FAMA)
Point Lot 17304, Jalan Persiaran 1, Bandar Baru Selayang Tel.: +603-61389622
68100 BATU CAVES Fax: +603-61383650
E-mail: [email protected]
Federation of Malaysian Manufacturers (FMM)
Wisma FMM, 3, Persian Dagang, PJU 9 Tel.: +603-62761211
P. O .Box 28, Jinjang Fax: +603-62741266
52200 KUALA LUMPUR +603-62747288
Website: http://www.fmm.org.my
E-mail: [email protected]
Kuala Lumpur & Selangor Indian Chambers of Commerce and Industry
116, Jalan Tuanku Abdul Rahman, 2nd
Floor Tel.: +603-26931033
50100 KUALA LUMPUR Fax: +603-26911670
Website: http://www.klsicci.com.my
E-mail: [email protected]
Malay Chamber of Commerce
Plaza Pekeliling, 17th
Floor, 2, Jalan Tun Razak Tel.: +603-40418522
50400 KUALA LUMPUR Fax: +603-40414502
Website: http://www.dpmm.org.my
E-mail: [email protected]
Malaysia External Trade Development Corporation (MATRADE)
Menara Matrade, Jalan Khidmat Usaha of Jalan Duta Tel.: +603-62077077
50480 KUALA LUMPUR Fax: +603-62037037
Website: http://www.matrade.gov.my
E-mail: [email protected]
22 http://en.wikipedia.org/wiki/Organisation_of_Islamic_Cooperation 23 Page 100, World directory of trade promotion organizations and other trade support institutions
Malaysian Associated Indian Chambers of Commerce and Industry
Megan Ave 11, Block B, 9th
Floor Unit 1 Tel.: +603-21712616
No. 12, Jalan Yap Kwan Seng Fax: +603-21711195
50450 KUALA LUMPUR
Website: http://www.maicci.org.my
E-mail: [email protected]
Malaysian International Chamber of Commerce and Industry (MICCI)
C-8-8, Block C, Plaza Mont’Kiara, 2, Jalan 1/70c Tel.: +603-62017708
P. O. Box 12921 Fax: +603-62017705
50792 KUALA LUMPUR +603-62017706
Website: http://www.micci.com
E-mail: [email protected]
Ministry of International Trade and Industry (MITI)
Block 10, Gov. Offices Complex, Jalan Duta Tel.: +603-62033022
50622 KUALA LUMPUR +603-62034701
Website: http://www.miti.gov.my +603-62031303
E-mail: [email protected]
National Chamber of Commerce and Industry of Malaysia (NCCIM)
37, Jalan Kia Peng Tel.: +603-21419600
50450 KUALA LUMPUR Fax: +603-21413775
Website: http://www.nccim.org.my
E-mail: [email protected]
Ministry of Agriculture and Agro-Based Industry
Blok 4G1 Wisma Tani, No.28 Tel.: +603-88701000
Persiaran Perdana, Presint 4, Pusat Pentadbiran Kerajaan Persekutuan, Fax: +603-88886906
62624 Putrajaya Malaysia
Website: http://www.moa.gov.my
E-mail: [email protected]
Affin Islamic Bank Berhad
Aras 17, Menara Affin, Tel.: +60 3 2055 9000
80, Jalan Raja Chulan, Fax: +60 3 2031 8562
50200 Kuala Lumpur.
Website: www.affinislamic.com.my
Al Rajhi Banking & Investment Corporation (Malaysia) Berhad
Ground Floor, East Block Tel.: +60 3 2301 7000
Wisma Selangor Dredging Fax: +60 3 2170 7100
142-B Jalan Ampang
50450 Kuala Lumpur
Website: www.alrajhibank.com.my
Alliance Islamic Bank Berhad
Alliance Islamic Bank Berhad Tel.: +6 03 2694 8800
Level 22, Menara Multi Purpose Fax: +6 03 2698 4691
Capital Square, 8 Jalan Munshi Abdullah
50100 Kuala Lumpur
Website: www.allianceislamicbank.com.my
AmIslamic Bank Berhad
Level 45, Menara AmBank Tel.: +603 2167 3000
No.8, Jalan Yap Kwan Seng Fax: +603 2166 5664
50450 Kuala Lumpur.
Website: www.amislamicbank.com.my
Asian Finance Bank Berhad
Level 2, Podium Block Tel.: +60 3 2079 1000
Kenanga International Fax: +60 3 20791 002 / +60 3 2079 1100
Jalan Sultan Ismail
50250 Kuala Lumpur
Website: www.asianfinancebank.com
Bank Islam Malaysia Berhad
32nd Floor, Menara Bank Islam Tel.: +60 3 2088 8000
No.22, Jalan Perak Fax: +60 3 2088 8028
50450 Kuala Lumpur
Website: www.bankislam.com.my
Bank Muamalat Malaysia Berhad
Menara Bumiputra, Jalan Melaka Tel.: +60 3 2698 8787
Peti Surat 10407 Fax: +60 3 2691 0388
50913 Kuala Lumpur
Website: www.muamalat.com.my
CIMB Islamic Bank Berhad
1st Floor Menara Promet Tel.: +603 2145 5959
Jalan Sultan Ismail Fax: +603 2144 4746
50250 Kuala Lumpur
Website: www.cimbislamic.com
HSBC Amanah Malaysia Berhad
Bangunan HSBC Tel.: +60 3 8321 5200
No. 2, Leboh Ampang Fax: +60 3 2070 1146
50100 Kuala Lumpur
Website: www.hsbcamanah.com.my
Maybank Islamic Berhad
Level 30, Menara Maybank Tel.: +60 3 2070 8833
100, Jalan Tun Perak Fax: +60 3 2026 1726
50050 Kuala Lumpur
Website: maybankislamic.com.my
United Overseas Bank (Malaysia) Bhd.
Menara UOB, Jalan Raja Laut Tel.: +60 3 2692 4511
Peti Surat 11212 Fax: +60 3 2694 0617
50738 Kuala Lumpur
Website: www.uob.com.my
Citibank Berhad
Aras 45 Menara Citibank Tel.: +60 3 2383 8585
165 Jalan Ampang Fax: +60 3 2166 7932
50450 Kuala Lumpur
Website: www.citibank.com.my
Al Rajhi Banking & Investment Corporation
6th Floor West Block Tel.: +60 3 2301 7000
Wisma Selangor Dredging Fax: +60 3 2332 6065
142-C Jln Ampang
50450 Kuala Lumpur
Alkhair International Islamic Bank Bhd
Level 27, Menara Standard Chartered Tel.: +60 3 2711 1606
30 Jalan Sultan Ismail Fax: +60 3 2711 0848
50250 Kuala Lumpur
Website: www.alkhairmalaysia.com
Deutsche Bank Aktiengesellschaft
18F, Level 18 Menara IMC Tel.: +60 3 2053 6859
Jln Sultan Ismail Fax: +60 3 2031 8707
50250, Kuala Lumpur
Elaf Bank B.S.C. (c)
36th Floor, Menara Maxis Tel.: +603 2615 0194
Kuala Lumpur City Centre Fax: +603 2615 0195
50088 Kuala Lumpur
Website: www.elafbank.net
PT. Bank Syariah Muamalat Indonesia, Tbk
G.23, Ground Floor, Kompleks Antarabangsa Tel.: +603 2711 0807
Jalan Sultan Ismail Fax: +603 2711 2528
50250 Kuala Lumpur
PKG Container International (M) Sdn Bhd (Transportation)
12 & 14, Lkr Sultan Mohamed 1A Tel.: +603 3176 6166
Kaw Prush Selat Klang Utara
42000 Pelabuhan Klang, Selangor
Website: www.pkgcisb.com
Email: [email protected] / [email protected]
Syabas LogIstics Sdn Bhd (Transportation)
No. 49, Jln Jati 2 Tel.: +603 7511 5139
Taman Nusa Bestari Jaya
81300 Scudai, Johor
Website: www.syabaslogistics.com.my
E-mail: [email protected]
Wantas Shipping (Langkawi) Sdn Bhd (Transportation)
Lot 661, Batu 5 1/2, Jln Kuala Kedah Tel.: +603 4762 4130
05400 Kuala Kedah, Kedah
NCT Forwarding & Shipping Sdn Bhd (Transportation)
Nct Forwarding, Jalan Tuaran Off Jalan Kolombong Tel.: +603 8843 5555
Bdc/sedco Industries Estate
88450 Inanam, Sabah
Air-Marine Cargo Agency Sdn Bhd (Transportation)
No. 57, 1st Floor, Medan Jaya Commercial Centre Tel.: +60 (0) 86-33 8855
Jln Tun Hussein Onn Fax: +60 (0) 86-33 3800
97008 Bintulu, Sarawak
Contact Person: Mr. William Chiew
Website: www.air-marine.com
E-mail: [email protected] / [email protected]
The Logistic Leader (M) Sdn Bhd (Transportation)
No. 27, Lorong Cunggah Tel: 603-3167 9819 / 603-3167 1895
42000 Pelabuhan Klang, Selangor Fax: 603-3167 9817
Contact Person: Mr. Fadzireen Lau
E-mail: [email protected]
Yinson Transport (M) Sdn Bhd (Transportation)
B34, 1st Floor, Jln Gebeng 2/7 Tel: +60 09-583 9609 / +60 09-583 9608
Kawasan Perindustrian Gebeng, Fax: +60 09-583 9607
26080 Kuantan,
Pahang
Contact Person: Mr Vincent Ong
Website: www.yinson.com.my
E-mail: [email protected]
Bumi Bakti Agency (Transportation)
U0102, 1st Floor, Jln Kenanga Tel: +60 087-417 406
87000 Labuan F.T. Malaysia Fax: +60 087-417 705
Contact Person: Mr. Christopher Yeo Swee Guan
E-mail: [email protected]
J L Customs Services (Transportation)
Block D, Lot D1, Ground Floor, Pertama Industrial Estate, Jalan Arsat, Tel: +6 087-41 5586 / +6 087-41 6586
Jalan Ranca-Ranca, 87000 Labuan F.T Malaysia Fax: +6 087-41 3268
Contact Person: Mr. David Shim
E-mail: [email protected]
Rosegate Insurance Brokers Sdn Bhd
B-06-03, Level 6 Block B, Tel: 603-7728 7673
Menara BATA, PJ Trade Centre, Fax: 603-7729 6355
No. 8 Jalan PJU 8/8A,
Bandar Damansara Perdana,
47820 Petaling Jaya,
Selangor
Contact Person: En. Mohamad Zam Zalman
E-mail: [email protected]
KTS Insurance Mutual Sdn Bhd
Ground Floor, Crown Towers, Tel: +6 082-34 8088
Jln Pending, Fax: +6 082-34 8099
93450 Kuching,
Sarawak
Contact Person: Mr. Wong Kee Huong