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Malaysia is important to New Zealand for strategic, political and economic reasons. It is one of the South East 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.
New Zealand’s goods exports to Malaysia for the year-end December 2006 were NZ$497.5million (2005: $468m). Malaysia is our 9th largest bilateral trading partner overall (by value), at NZ$1.69 billion. New Zealand’s goods imports from Malaysia for 2006 were NZ$1.195b (2005: $945m).
Milk powder remained our largest export good to Malaysia in 2006 at $172 million. Other significant goods exports in 2006 were: Baking products, $39m; Ferrous waste & scrap, 25m; Sheep meat, $24m; Butter, $20m.
The number one imported good from Malaysia in 2006 was Petroleum oils, crude, at NZ$358 million. This constituted a 47% increase in import levels. Other significant goods imports in 2006 were: Computers, 171m; Television receivers, $48m; Transmission apparatus, 38m; Machinery parts, $26m.
These figures understate the value of our commercial relations with Malaysia as a proportion of New Zealand exports enter Malaysia via Singapore. More significantly, the trade figures take no account of non-merchandise earnings in key areas. Statistics New Zealand noted Malaysian tourists to New Zealand in 2006 numbered nearly 20,000. The worth of these visitors to the New Zealand economy has been valued at $50million. The Ministry of Education (MOE) has also observed Malaysian students in New Zealand numbered over 1,700 in 2006. The MOE estimated the worth of these students to the New Zealand economy at $70m.
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, telecommunications, electronics, software, information technology, and building products. Malaysian businesses have invested in the hotel and property sectors, forestry, fisheries, and food processing in New Zealand as well as in a major consultancy group. Business Councils are established in New Zealand and Malaysia.
The trading relationship is underpinned by cooperation at the official level. The bilateral Trade Agreement between New Zealand and Malaysia was signed in 1997, and entered into force on 1 January 1998. Bilateral Free Trade Agreement (FTA) negotiations were launched in March 2005 New Zealand and Malaysia have completed six rounds of negotiations so far. Background information on this process can be accessed at www.mfat.govt.nz top of page
New Zealand’s defence relationship with Malaysia goes back to initial, very substantial, deployments during the Emergency (1948 – 1960) and Confrontation (1963 – 1965). Today its foundations are in common membership of the Five Power Defence Arrangements – FPDA (1971) – and the bilateral programme of cooperation and assistance begun in 1964. The latter is administered through the Malaysia-New Zealand Defence Coordination Group (MNZDCG), which was formed and held its first meeting in 1996.
New Zealand units of all three services participate annually in the 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.
Our two countries’ defence forces also work well together in multinational peace-keeping operations, more recently in Timor Leste and in Lebanon. top of page
Malaysia and New Zealand share close education links, with many New Zealand universities having well established contacts and formal agreements with Malaysian education providers. Malaysia is an important source of overseas students, with an estimated 1700 students enrolled in New Zealand in 2006. Malaysian students contribute an estimated NZ$70 million to the New Zealand economy.
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. NZQA has, since 2001, had an MOU with the Malaysian National Accreditation Board (LAN). The Minister of Education, Hon Trevor Mallard visited Malaysia in May 2004 to raise the profile of New Zealand education expertise in Malaysia.
During the visit to New Zealand of Prime Minister Abdullah in March 2005 it was announced that an education counsellor would be placed in the New Zealand High Commission in Kuala Lumpur. Mike Connolly took up the position in July 2006.
From 2004 the New Zealand Government has funded a new International Scholarships programme. Malaysian students have been recipients of the scholarships (2004: four PhD students; 2005: three PhD students and 1 undergraduate student).
The bilateral Science and Technology Cooperation Arrangement (1994) allows for cooperation between our scientists and research institutes. Dr Anis Rahman (AgResearch) has been appointed by MORST as a coordinator for the Malaysia relationship. Policy dialogue between MORST and MoSTE also takes place under the auspices of the Arrangement.
The Arrangement also provides commercial benefits. The visit of the Hon Maurice Williamson, 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.
New Zealand and Malaysia also maintain close cooperation in science and technology through the APEC process. The 2004 APEC Science and Technology meeting was held in Christchurch. A number of Malaysian officials, scientists and private sector businesses attended the meeting. Last August Malaysia, as chair of ASEAN, hosted the first ASEAN Science, Technology and Innovation Ministerial summit. New Zealand was represented by a senior official from MORST at this meeting.top of page
Nearly 20,000 Malaysians visited New Zealand in 2006. This contributes an estimated NZ$50 million to the New Zealand economy. The recent Lord of The Rings movie trilogy has raised the profile in Malaysia of New Zealand’s beautiful landscapes.
A Working Holiday Arrangement (concluded in 1996) was recently expanded to allow for 1000 young Malaysians each year to work in New Zealand for up to six months. A number of New Zealanders may work in Malaysia under this scheme. An “Open Skies” Air Services Agreement dates back to 1998. Malaysian Airlines provides five non-stop return services each week between Auckland and Kuala Lumpur.
New Zealand and Malaysia are party to the following bilateral agreements:
Land Area - 329,758 sq km - Population - 26.6 million (comprising 57% Malays, 22% Chinese, less than 10% Indian and 11% others) - Capital City - Kuala Lumpur - Religion - Islam (and also Buddhism, Hinduism, Sikhism, Christianity) - Official Language - Bahasa Malaysia, English, Mandarin, Cantonese, Hokkien, Tamil
Political system - Federal constitutional monarchy -
National government - Barisan Nasional (coalition) -
National legislature - Westminster system -
Last election - March 2004 -
Next election due - At the latest by March 2009 -
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 - Prime Minister: Dato Seri Abdullah bin Haji Ahmad Badawi - Main political parties - Barisan Nasional ruling coalition;
United Malays Nasional Organisation (UMNO);
Malaysian Chinese Association (MCA);
Malaysian Indian Congress (MIC), plus others;
Opposition:
Democratic Action Party (DAP);
Parti Islam SeMalaysia (PAS);
Parti KeADILan; Rakyat (KeADILan)
GDP - US$149 billion (2006) - GDP Per Capita (2006) - US$ 5600 - Real GDP Growth - 2006: 5.9%; 2005: 5.3%; 2004: 7.1% - Exports (goods) fob - US$160 billion (2006) - Imports (goods) fob - US$126 billion (2006) - Main exports - Petroleum and liquefied natural gas, Electronic and electrical machinery, Chemicals and chemical products and Palm oil - Current account - Surplus of US$23 billion or 15.5% of GDP (2006) - Fiscal Deficit - US$4.2 billion or 3.5% of GDP (2006) - Gross external debt - US$51 billion (Dec 2005) - Inflation (consumer price) average - 2006: 3.3%; 2005: 3.0%; 2004: 1.5% - Unemployment - 2006: 3.3%; 2005: 3.6%; 2004: 3.6%
NZ Goods Exports (FOB) - NZ$497.5 million -
NZ Top Five Goods Exported (Dec 2005) - Milk powder: $172m;
Baking products: $39m;
Ferrous Waste & scrap: 25m;
Sheep Meat: $24m;
Butter: $20m
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Main Services Exports (Source NZTE) - Education: NZ$70m (over 1,700 students in 2006);
Tourism: NZ$50m (nearly 20,000 visitors in 2006);
Consultancy services: NZ$25m - NZ Goods Imports (CIF) - NZ$1.195 billion -
NZ Top Five Imports From Malaysia - Petroleum oils crude: $358m;
Computers: $171m;
Television Receivers: $48m;
Transmission apparatus: 38m;
Machinery Parts: $26m
Source: Statistics NZ (December 2006) except where stated.
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High-level visits from and to Malaysia, have cemented the bilateral relationship between New Zealand and Malaysia. This includes the visit to Malaysia by the Rt Hon Jenny Shipley (then Prime Minister) in November 1998 for the APEC Leaders’ Meeting. The Minister for Trade Negotiations, the Hon Jim Sutton visited Malaysia in June 2003. The Minister for Defence, the Hon Mark Burton, attended a Five Power Defence Arrangement Ministerial meeting in Malaysia also in June 2003. Conservation Minister Hon Chris Carter visited Malaysia in February 2004, for the UN COP7 Biodiversity meeting. Education Minister Hon Trevor Mallard visited Malaysia in May 2004. The Speaker of the House, the Rt Hon Jonathan Hunt, visited Malaysia in early 2004 and again for the Sarawak New Zealand Alumni Conference in July 2004. The Governor General, Dame Silvia Cartwright, undertook a State Visit to Malaysia in September 2004. Prime Minister Rt Hon Helen Clark and Foreign Minister Hon Winston Peters visited Malaysia in December 2005 to take part in the inaugural East Asia Summit (EAS). Minister Peters visited again in July 2006 for the ASEAN PMC and ARF meetings. Trade Minister Hon Phil Goff visited Malaysia in August 2006 for the ASEAN-CER Economic Ministers meetings.
From Malaysia, Prime Minister Dato’ Seri Abdullah Ahmad Badawi visited New Zealand in March/April 2005, accompanied by the Minister of International Trade and Industry Dato’ Seri Rafidah Aziz, the Minister of Foreign Affairs Datuk Seri Syed Hamid Albar, the Minister of Agriculture and Agro-Based Industry Tan Sri Muhyiddin and the Minister of Plantation and Industry Datuk Peter Chin Fah Kui. Following this high level visit, a delegation was led by the Minister of Plantation and Industry looking at forestry initiatives in New Zealand. Most recently, Agriculture Minister Muhyiddin visited New Zealand in April 2007.
The former Prime Minister, Dr Mahathir, visited New Zealand in 1996. The Minister for Human Resources, Datuk Dr Fong Chan Onn, visited New Zealand in March 2003. The Deputy Minister for Culture and Tourism, Dato Fu Ah Kiow, visited New Zealand in August 2003. The former Minister of Domestic Trade and Consumer Affairs (now Minister of Science, Technology and Innovation), Datuk Dr Jamaludin bin Jarjis, visited New Zealand from 8-13 February 2004.
The Safetravel website provides a travel advisory for travellers to Malaysia [external link].
