Trading Guide
Import and Export in Malaysia
As a trading hub, Malaysia has historically been linked with trade in every sense. From Malacca to Johor, Port Klang to Penang, there have been many efforts to make Malaysia an import-export hub of the world which has been very successful. As a trading port, Malaysia:
- Has fulfilled many trade relations with other nations
- Been involved with big economies like the US and China
- Been associated with trade pacts like ASEAN, WTO and APEC, to name a few
- Has benefitted as being the largest producer of palm oil, tin and rubber in the world
Malaysia Export
Throughout history, Malaysia has been exporting much of its produces to the rest of the world. Among them include:
- Rubber
- Tin
- Palm oil
- Wood products
- Textile and related products
- Chemicals
- Electronic appliances and equipment
- Petroleum
Meanwhile, Malaysia exports mainly to:
- Singapore
- China
- The US
Malaysia Import
On the other hand, Malaysia imports a lot of products as well. Its main import partner is:
- China
- Japan
- The US
The following products are imported by Malaysia:
- Chemicals
- Electronics
- Iron products
- Machines and equipment
- Vehicles
- Plastic products
- Petroleum products
Taxation and Tariffs
In Malaysia, imported and exported goods that are not from ASEAN or the Association of Southeast Asian Nations follow the HTS or Harmonized Tariff System. On the other hand, the ASEAN Harmonized Tariff Nomenclature or AHTN is followed for those coming from ASEAN countries.
- The tariff rate is between 0 and 50%
- The average duty for industrial goods coming into Malaysia is slightly more than 6%
- It is a lot higher for goods like alcohol
- For exports, it applies the ad valorem rates which is between 0 and 10%.
Free Trade Zones
It must be noted that within Malaysia, there are:
- 13 FIZs or Free Industrial Zones
- 12 FCZs or Free Commercial Zones
FTA or Free Trade Agreements
With this, Malaysia is able to trade within the countries and territories more efficiently. Malaysia has agreed on bilateral FTAs with several countries that include:
- New Zealand
- Australia
- Turkey
- Chile
- Pakistan
- Japan
- India
Partners with other countries
In terms of being partners in the ASEAN Trade in Goods Agreement, Malaysia is in this with:
- Korea
- Australia
- Japan
- Korea
- China
- India
Competition in trading
In terms of competition, Malaysia’s trading partners have similar services. This includes:
- Singapore – the nearest neighbor with a stronger economy and more renowned port
- China – While everyone wants to work with China, it is also the strongest economy in the world today
- India – Natural resources and manufacturing
- The Philippines – Shared services and outsourcing
- Bangladesh – manufacturing and textile
- Vietnam – A rising economy for manufacturing and natural resources
- Thailand – Tourism and travel
