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Why Malaysia matters
Malaysia is New Zealand’s 10th-largest individual trading partner and an important export market in the heart of ASEAN for a wide range of our goods and services that are sought after by Malaysia’s young and growing middle-class population.
CPTPP will provide some improved market access for New Zealand’s goods and services exports to Malaysia, including through new government procurement opportunities. This will be over and above what we already have under the ASEAN-Australia New Zealand FTA (AANZFTA) and New Zealand-Malaysia FTA.
Reduced trade barriers
Under AANZFTA and the New Zealand-Malaysia FTA, many of Malaysia’s tariffs on goods trade with New Zealand have already been eliminated. CPTPP will eliminate all outstanding tariffs on New Zealand exports to Malaysia. Notably:
- the 20% duties on liquid milk will be removed over 16 years. During the tariff elimination period, Malaysia will provide a volume of additional duty-free quota for liquid milk to all eleven CPTPP Parties in addition to the quotas in New Zealand's existing free trade agreements with Malaysia.
- duties on wine will be removed over 16 years.
- more duty-free quota access for eggs for hatching and poultry.
You can search the online tariff finder(external link) to find the preferential tariff rate for your particular export or import item.
Under CPTPP, Malaysia has opened its government procurement market for the first time. Its government procurement market is sizable and procures a diverse range of goods and services, which will provide greater opportunities for New Zealand’s established industries as well as more specialised and niche exporters. Malaysia has a range of transitional measures that will also unlock competitive opportunities and put New Zealand businesses on equal footing to domestic suppliers over time.
Servicing the market
Under CPTPP, New Zealand service suppliers will have improved protection, predictability and transparency when doing business in the Malaysian market.
For New Zealand, key outcomes from Malaysia’s CPTPP commitments include:
- Providing access to private education providers with only limited exceptions (preschool, religious schools, and primary and secondary schools, covering the Malaysian national curriculum).
- Guaranteed ability for New Zealand lawyers to provide legal advice on New Zealand, international or third-party law on a fly-in, fly-out basis.
- Locking in current market access arrangements in the construction and related engineering services sector, guaranteeing that future market openings in these sectors will flow through to New Zealand providers.
- Giving New Zealand providers of private health and allied health services greater certainty regarding access and operating conditions in market. Malaysia’s commitments in these areas also mean that any further liberalisation in these sectors will flow through to New Zealand providers.
Working in Malaysia
New Zealand business people going to work in Malaysia will benefit from CPTPP:
- Business visitors can stay in Malaysia for up to 90 days provided they do not receive any remuneration from a source in Malaysia.
- Installers and servicers will be granted entry for up to six months.
- Intra-corporate transferees, such as senior managers and specialists, will be granted entry for up to two years, with multiple two-year extensions available.
- Contractual services suppliers in certain sectors can enter Malaysia for up to 12 months or for the duration of the contract (whichever is shorter). The specified sectors include accounting, auditing and bookkeeping, architectural, engineering services, urban planning and landscaping, specialised medical services, veterinary services, engineering, management consulting, wastewater management, education and construction service sectors.
- Independent professionals in certain sectors can also enter Malaysia for up to 12 months or for the duration of the contract (whichever is shorter). The specified sectors include accounting, auditing and bookkeeping, architectural, engineering services, urban planning and landscaping, computer related services, motion picture and video tape production and distribution services, wastewater management, managers and professionals marketing education services, lecturers and construction services.
CPTPP investment rules provide greater certainty and protection for investors, while preserving the rights of governments to legislate and regulate in the public interest. Strong rules will help ensure that New Zealand and Malaysian investors are treated in a fair, equitable and non-discriminatory manner, allowing them to compete on an equal footing with other investors.
CPTPP’s investor-state dispute settlement mechanism cannot be used for investments between Malaysia and New Zealand without government consent.