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Map of Malaysia

Map of Malaysia.
flag of the Federation of Malaysia

Federation of Malaysia

 

Relationship with New Zealand

Bilateral relationship

Malaysia is important to New Zealand for strategic, political and economic reasons. It is one of the Southeast Asian countries best known to New Zealanders. There is a history of close and friendly links, stemming originally from Commonwealth ties, the Colombo Plan and shared security concerns. New Zealand deployed troops in the country during the “Malayan Emergency” (1948-1960), and during the “Confrontation” period in the 1960s. These early connections have been built on and enhanced. The relationship is friendly, has many aspects, and is significant to New Zealand.

Multilateral links

Malaysia is a founding member of the Association of South East Asian Nations (ASEAN) and attaches high priority to the security and stability of South East Asia. Malaysia plays an active and supportive role in ASEAN and its relations with ASEAN partners are very important to it. New Zealand is linked closely to ASEAN as a Dialogue Partner. In July 2009, Malaysia assumed the ASEAN dialogue coordinator role for New Zealand.

Malaysia and New Zealand are members of, and work together in, regional and wider groupings including APEC, the security-focused ASEAN Regional Forum (ARF) and the East Asia Summit (EAS). Malaysia hosted the first EAS in 2005. Malaysia plays an active role in both the Commonwealth and the United Nations, serving on the Security Council from 1999 to 2000. Malaysia is also actively engaged with the Organisation of the Islamic Conference (OIC), the Non-Aligned Movement (NAM) and the G15, a group of developing countries interested in promoting greater South-South economic cooperation.

Trade and Economic

Malaysia is currently New Zealand’s ninth largest trading partner (by value) and twelfth largest export market.  Two-way trade between New Zealand and Malaysia was valued at around NZ$2.3 billion for the year to December 2010, having reached a peak of NZ$2.93 billion for the year to December 2008. The cause of the decline is likely to be, at least in part, a result of the general fall in demand caused by the global recession, and figures have been trending upwards in the last six months. The bulk of New Zealand exports to Malaysia are agriculture-related, with dairy products (mainly milk powder) accounting for more than 50 percent. 

Southbound trade has also grown rapidly over the last five years. Malaysia currently ranks as New Zealand’s tenth largest source of imports, with crude oil and electronic products (mainly televisions and computers) representing around 50 percent of imports.  Malaysia continues to enjoy the surplus of trade it first gained in 1998. 

These figures understate the value of New Zealand’s commercial relations with Malaysia, as a proportion of New Zealand exports enter Malaysia via Singapore.  More significantly, they do not recognise the significant activities of New Zealand services suppliers in Malaysia. Both countries face a similar challenge to move economic activity up the value chain. To this end, New Zealand firms are seeking to develop higher value added services partnerships in education and training, sustainable agricultural technology, biotechnology research, specialised ICT applications, creative content industries, and sustainable tourism growth. 

Investment is another aspect of the New Zealand/Malaysian economic relationship.  About 20 New Zealand companies have significant investments in Malaysia covering a wide variety of sectors, including food/food technology, ICT and telecommunications, electronics, software, information technology, and building products.  Malaysian businesses have invested in the hotel and property sectors, forestry, fisheries, engineering and food processing in New Zealand as well as in a major consultancy group.  Business Councils are established in New Zealand and Malaysia and provide excellent sources of local networks and contacts for businesses in each market.

For more information on business opportunities in Malaysia, visit New Zealand Trade and Enterprise at www.nzte.govt.nz

The trading relationship is underpinned by cooperation at the official level.  The Agreement establishing the ASEAN-Australia -NZ Free Trade Area (AANZFTA), which entered into force on 1 January 2010, is facilitating bilateral trade and investment and focusing attention on areas of potential commercial opportunity. The Malaysia-New Zealand Free Trade Agreement (MNZFTA), which entered into force on 1 August 2010, provides for improved market access and greater certainty for New Zealand goods and services exporters and investors, and reaffirms Malaysia and New Zealand's commitment to trade liberalisation. Malaysia joined the negotiations for an expanded Trans-Pacific Strategic Economic Partnership Agreement in October 2010.

Read more information on all three agreements.

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Defence

New Zealand’s defence relationship with Malaysia goes back to initial, very substantial, deployments during the “Emergency” and “Confrontation” in the 1950s and 1960s. Today its foundations are in common membership of the Five-Power Defence Arrangements - FPDA (1971) - and the bilateral programme of co-operation and assistance begun in 1964. The latter is administered through the Malaysia-New Zealand Defence Co-ordination Group, which was formed and held its first meeting in 1996.

New Zealand units of all three services participate annually in FPDA exercises (involving New Zealand, Malaysia, Singapore, Australia and the United Kingdom). In addition to FPDA activities there are bilateral exercises, exchanges and training programmes contributing to one of New Zealand’s most substantial defence relationships.

New Zealand and Malaysia have many common security interests. Our two countries’ defence forces work well together in multinational peace-keeping operations, most recently in Bamyan, Afghanistan and in Timor-Leste and in Lebanon. A Malaysian Defence Adviser was accredited to New Zealand and arrived at the High Commission in Wellington in 2008.

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Education

Malaysia and New Zealand share close education links, with many NewZealand universities having well established contacts and formal agreements with Malaysian education providers. The New Zealand private sector also has education links with Malaysia. Malaysia is an important source of overseas students, which contribute an estimated NZ$80 million to the New Zealand economy. Malaysia is New Zealand universities’ third largest source of international students  In 2010, there were a total 2,133 international fee-paying Malaysians studying in New Zealand, including 1,717 in the university sector, and 369 doing postgraduate study. A substantial proportion of these students are sponsored by the Malaysian Government. 

Many thousands of Malaysians have been educated in New Zealand, originally through the Colombo Plan, and many now occupy senior positions in business, the professions and government administration.  A Chair of Malay Studies was established at Victoria University in 1996.  A bilateral Education Memorandum of Understanding (1996) provides a means for policy cooperation between our education authorities.  The Ministry of Education has a regional Education Counsellor based in the New Zealand High Commission in Kuala Lumpur.

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Science and Technology

The bilateral Science and Technology Cooperation Arrangement (1994) provides an overarching framework for science and technology links between New Zealand and Malaysia. The arrangement allows for cooperation between our scientists and research institutes, and for policy dialogue between government agencies. Biotechnology, advanced materials and environmental technology were identified in the Arrangement as priority areas for collaboration.

The visit of the Hon Maurice Williamson, then Minister of Research, Science and Technology, to Malaysia in 1997 with a delegation of scientists, resulted in the development of joint ventures and projects between New Zealand Crown Research Institutes (CRIs) universities, private sector and Malaysian entities.  Since 2000, Malaysian scientists have conducted Antarctic research at Scott Base, in cooperation with New Zealand.  Momentum was injected into biofuel and biotechnology opportunities during the former Prime Minister Clark’s visit to Malaysia in 2007. New Zealand and Malaysia also maintain close cooperation in science and technology through the APEC process.

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Tourism and Air Links

20,165 Malaysians visited New Zealand in the year to June 2010. This contributes an estimated NZ$55 million to the New Zealand economy.

A Working Holiday Arrangement (concluded in 1996 to allow 100 places in each direction) has been expanded to allow for up to 1100 young Malaysians each year to live and work in NewZealand for up to six months.  In the 2008/09 year 875 Malaysians took up this offer, following a high of 1052 in the previous year. An “Open Skies” Air Services Agreement dates back to 1998. 

Malaysian Airlines provides six non-stop return services each week between Auckland and Kuala Lumpur. On 1 April 2011 Air Asia X (the long-haul subsidiary of Malaysian-owned Air Asia) began a new direct service from Kuala Lumpur to Christchurch four times a week.

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Visits

High-level visits from and to Malaysia, have cemented the bilateral relationship.

Recent visits to Malaysia include:

Recent visits from Malaysia include:

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Key Facts

Overview


Official Name

Federation of Malaysia

Land Area

329,758 sq km

Population

27,730,000 (Sep 2008 estimate)
 (51% Malay, 24% Chinese, 11%
indigenous, 7% Indian, 7% others)

Capital City

KualaLumpur (Putrajaya is the “administrative centre”)

Religion

Islam (also Buddhism, Daoism, Hinduism,Sikhism, Christianity)

Language

Malay or Malaysian (Bahasa Malaysia),English, Mandarin, Cantonese, Hokkien, Tamil

Currency

Ringgit (RM)

Exchange Rate

NZ$1 = 2.37RM (May 2011)


Political


Political system

Federal constitutional monarchy

National government

Barisan Nasional (National Front) coalition

National legislature

Westminster system

Last election

March 2008

Next election due

At the latest by March 2013

Head of State

The 13th Yang di-Pertuan Agong of Malaysia, His Majesty the Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin

Head of Government

PM:  Dato’ Sri Najib Tun Razak

Key Ministers

Deputy PM: Tan Sri Muhyiddin Yassin

Foreign Minister: Dato Sri Anifah
Aman Finance Minister: Dato’ Sri Najib Tun Razak

Finance Minister: Dato' Sri Najib Tun Razak

Defence Minister: Dato' Seri Dr Ahmad Zahid bin Hamidi

Trade Minister: Dato’ Mustapa Mohamed

Key Opposition Figures

Dato’ Seri Anwar Ibrahim (Leader of Parti Keadilan Rakyat and official opposition leader)
Lim Kit Siang (DAP leader)
Abdul Hadi Awang (PAS leader)

Main political parties

Barisan Nasional ruling coalition:
United Malays National Organisation (UMNO)
Malaysian Chinese Association (MCA)
Malaysian Indian Congress (MIC)
10 other minor partners

Opposition:
Parti Keadilan Rakyat (PKR)
Democratic Action Party (DAP)
Parti Islam SeMalaysia (PAS)

PKR, DAP and PAS have formed a loose coalition - the Pakatan Rakyat - since the March 2008 general elections


Economy

(Source: Economist Intelligence Unit, January 2011)


GDP

US$237.8 billion (2010)

GDP per capita

US$14,724 (2010, PPP estimate)

Real GDP growth

2010: - 7.2%

Main exports

Electronic and electrical machinery; chemicals and chemical products; petroleum and liquefied natural gas; and palm oil.

Current account

Surplus of US$28 billion (2010 estimate)

Exports (FOB)

US$198.7 billion (2010 estimate)

Imports (FOB)

US$156.3 billion (2010 estimate)

Gross external debt

US$62 billion (2010)

Inflation (consumer price)
rate

Current: 1.7%
2010: 1.7%     2009: 1.1%     2008: 5.4%  

Unemployment rate

Current: 3.5%
2010: 3.4 % (est)     2009: 3.7%     2008: 3.3%    


Trade with New Zealand

Source: Statistics NZ: June 2010)


NZ Goods Exports (FOB)

NZ$775million

NZ Top Five Goods Exported

Milk powder: $290m
Malt extract: $46m
Sheep meat: $59m
Cheese: $31m
Butter: $46m

Main Services Exports

Source: NZTE estimates

Education: NZ$80m (over 2,113 students in 2010)
Tourism: NZ$55m (nearly 20,165 visitors in 2010)
Consultancy services: NZ$60m

NZ Goods Imports (CIF)

NZ$1.52 billion

NZ Top Five Imports From Malaysia

Television Receivers: $185m
Petroleum oils crude: $168m
Computers: $81m
Oilcake: $104m
Petroleum oils crude: $487m

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Representation

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Travel advice

The Safetravel website provides a travel advisory for travellers to Malaysia [external link].

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Page last updated: Tuesday, 17 May 2011 13:36 NZST