Malaysia has welcomed the entry into force of the Second Protocol to amend the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) on April 21, 2025. The Ministry of Investment, Trade and Industry (MITI) announced that this marks a significant step in Malaysia’s commitment to inclusive, resilient, and sustainable economic integration.
The upgraded AANZFTA is expected to bolster Malaysia’s resilience in a competitive regional market, with a combined GDP exceeding USD 5.6 trillion and a population of over 700 million. The Second Protocol aims to reduce transaction costs, support the digitalisation of trade, enhance supply chain resilience, and create new opportunities in sustainable trade and investment.
MITI highlighted that the AANZFTA has been a vital part of Malaysia’s regional trade strategy since its implementation in 2010, with Malaysian exporters increasingly utilizing the agreement. The export value doubled from RM5.8 billion in 2016 to RM12.9 billion in 2023.
The upgraded agreement introduces improvements across 13 existing chapters, including Rules of Origin, Customs Procedures and Trade Facilitation, Competition, and Electronic Commerce. New chapters on Trade and Sustainable Development, Micro, Small and Medium Enterprises (MSMEs), and Government Procurement have also been added.
Malaysia also acknowledged the support from Australia and New Zealand through the AUD$48.7 million Regional Trade for Development (RT4D) initiative, which supports the benefits of AANZFTA and the Regional Comprehensive Economic Partnership (RCEP).
MITI stated Malaysia’s commitment to the full and effective implementation of the upgraded agreement and its intention to collaborate with industry players, especially MSMEs, to ensure businesses can maximize the benefits of the enhanced provisions.
