KUALA LUMPUR (June 19): Bilateral trade between Malaysia and Australia between January and April 2014 rose 31.2% over the same period last year, as Malaysia’s exports to Australia moved up to RM11.2 billion, while imports reached to RM6.7 billion.

Speaking at a Victoria State’s trade mission event, Minister of International Trade and Industry Datuk Seri Mustapha Mohd attributed the growth in numbers to the formidable relationship enjoyed by both countries, facilitated by the Malaysia-Australia Free Trade Agreement (MAFTA) which came into effect last year.

With MAFTA, Malaysia eliminated tariffs on 97.6 per cent of goods imported from Australia, extending to 99 per cent by 2017. Meanwhile, Malaysian exports have benefited from duty-free entry into Australia from day-one.

In 2013, Malaysia’s total trade with Australia amounted to RM45.66 billion, an increase of 4.5% compared with 2012. Exports were valued at RM29.16 billion and imports at RM16.49 billion.

Major exports to Australia include crude petroleum, electrical and electronic products and refined petroleum products.

Major imports from Australia were manufactures of metal, metalliferous ores and metal scrap.

Victorian Commissioner to South East Asia, Tim Dillon said, “With industry modernisation across both economies, urbanisation and infrastructure expansion, rise in wealth and consumerism in the middle class, Malaysian and Victorian companies can tap on MAFTA to fast-track their market expansion.”

The state of Victoria, which shares similar interests in many of Malaysia’s National Key Economic Areas, represents about 26 per cent of Malaysia’s overall trade with Australia.

Malaysia’s exports to Victoria in 2013 represented 32 per cent of its total exports to Australia, while its imports from Victoria represented 16 per cent of its total imports from Australia in 2013.

Total goods traded between Victoria and Malaysia increased by 44.6 percent, or RM3.24 billion as Malaysia exported RM8.2 billion worth of goods to Victoria, marking a 48.8% increase.

Victoria, meanwhile, exported goods worth RM2.3 billion to Malaysia in the past year, well above the pre-MAFTA five-year average.

MAFTA also facilitated significant expansion in Victoria’s exports of liquid milk, yoghurt and chocolate confectionery to Malaysia’s growing market.

Victorian exports of unsweetened milk and cream have increased 45 per cent to total RM16.2 million in 2013, while cocoa and cocoa preparations have increased 20 per cent, to total RM8.9 million in 2013.

In advancing these opportunities, Minister for Trade & Employment, Louise Asher is leading more than 130 companies in a week-long trade mission to South East Asia, starting in Malaysia.

This is the second large-scale multi-sector trade mission the Victorian Government has organised to the region.

The Commissioner also said that the Economic Transformation Program has boosted investor confidence in Malaysia.

According to MATRADE, as at 2013, 507 manufacturing projects with Australian participation were implemented with total investments of RM23 billion.

These projects have created 36,157 jobs. Most projects were implemented in the chemicals, food manufacturing and transport equipment industries.