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British military equipment left to defend Malaya were outdated and no match for the modern ones used by the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: acccim@acccim.org.my

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: famapg2@pop.moa.my

fama@pop.moa.my

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: webmaster@fmm.org.my

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: klsicci@po.jaring.my

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: wmaster@dpmm.org.my

noraini@dpmm.org.my

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: info@matrade.gov.my

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: maicci@maicci.org.my

info@maicci.org.my

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: micci@micci.com

Nicole@micci.com

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: mitiweb@miti.gov.my

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: enquiry@nccim.org.my

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: pro@moa.gov.my

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: sales@pkgcisb.com / pkgcisb@gmail.com

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: info@syabaslogistics.com.my

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: amarine@tm.net.my / info@air-marine.com

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: general@thelogisticleader.com

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: ptong@yinson.com.my

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: bumibakti88@gmail.com

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: jlcslbn@live.com

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: info@rosegate.my

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