WT/TPR/M/436/Add.1  
19 April 2023  
(23-2834) Page: 1/136 
Trade Policy Review Body  
8 and 10 February 2023  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
MALAYSIA  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Didier Chambovey (Switzerland)  
This document contains the advance written questions  and additional questions by 
WTO Members , and replies provided by  Malaysia .1 
 
 
Organe d'examen des politiques commerciales  
8 et 10 février 2023  
EXAMEN DES POLITIQUES COMMERCIALES  
MALAISIE  
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président : S.E.  M. Didier Chambovey (Suisse)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la Malaisie .1 
 
 
Órgano de Examen de las Políticas Comerciales  
8 y 10 de febrero de 2023  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
MALASIA  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Didier Chambovey (Suiza)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la  OMC,  así como las respues tas facilitadas 
por Malasia .1 
 
_______________   
 
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/436/Add.1  
 
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Contents  
ARGENTINA  ................................ ................................ ................................ ......................  3 
AUSTRALIA  ................................ ................................ ................................ ......................  6 
BRAZIL  ................................ ................................ ................................ ...........................  20 
BRUNEI DARUSSALAM  ................................ ................................ ................................ ... 23 
CANADA  ................................ ................................ ................................ .........................  24 
CHILE  ................................ ................................ ................................ .............................  28 
CHINA  ................................ ................................ ................................ ............................  31 
COLOMBIA  ................................ ................................ ................................ .....................  35 
COLOMBIA – ADDITIONAL QUESTIONS  ................................ ................................ ..........  42 
DOMINICAN REPLUBLIC  ................................ ................................ ................................ . 44 
EL SALVA DOR ................................ ................................ ................................ .................  45 
EUROPEAN  UNION  ................................ ................................ ................................ .........  47 
EUROPEAN  UNION  – FOLLOW -UP QUESTIONS  ................................ ...............................  57 
HONG KONG, CHINA  ................................ ................................ ................................ ....... 60 
ICELAND  ................................ ................................ ................................ ........................  63 
INDIA  ................................ ................................ ................................ ............................  64 
INDONESIA  ................................ ................................ ................................ ....................  82 
JAPAN  ................................ ................................ ................................ ............................  90 
KAZAKHSTAN  ................................ ................................ ................................ .................  92 
KOREA, REPUBLIC OF  ................................ ................................ ................................ ..... 93 
NEW ZEALAND  ................................ ................................ ................................ ...............  94 
PAKISTAN  ................................ ................................ ................................ ......................  96 
PHILIPPINES  ................................ ................................ ................................ .................  97 
SAUDI ARABIA, KINDGOM OF  ................................ ................................ ......................  104  
SINGAPORE  ................................ ................................ ................................ ..................  107  
SINGAPORE – ADDITIONAL QUESTIONS  ................................ ................................ ...... 109  
CHINESE  TAIPEI  ................................ ................................ ................................ ..........  110  
THAILAND  ................................ ................................ ................................ ....................  112  
THAILAND – ADDITIONAL QUESTIONS  ................................ ................................ ........  115  
TÜRKYIE  ................................ ................................ ................................ ......................  121  
UNITED  KINGDOM  ................................ ................................ ................................ ........  123  
UNITED  STATE S ................................ ................................ ................................ ...........  127  
 
 
 
 
 
  WT/TPR/M/436/Add.1  
 
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ARGENTINA  
1. In paragraph 3.12, the report indicates that Article  12 of the Customs Law authorizes the 
Minister of Finance to set the value of any merchandise subject to duties by publishing a notification 
in the Official Gazette of the Federal Government, and that the The measure has been applied to 
motor vehicles in fu lly assembled units (new or used) imported by open approved permit holders, 
ostensibly to combat under -invoicing. However, the Minister of Finance ceased to exercise the power 
conferred on him by article 12 of the Customs Law in matters of motor vehicles i n fully assembled 
units.  
 
Question  
• Could you indicate whether this power of the Minister of Finance to set prices is still in force 
for products other than motor vehicles in fully assembled units?  
 
Answer : Yes, as stipulated under Section  12 of the Custo ms Act 1967.  
 
2. In paragraph 3.14 the report indicates that according to Schedule XXXIX, Malaysia has bound 
approximately 80% of its MFN tariff lines.  
 
Question  
• Could you please provide the reason(s) why Malaysia has not bound the remaining tariff lines?  
 
Answer : Such discrepancy is due to the increase in variant of duties i.e., nomenclature change and 
changes in tariff structure, which involved a large number of duty -free lines that were merged into 
other tariff lines during the HS transposition ex ercise.  
 
As we continue to work towards completing the remaining transposition processes for HS 2007, 
HS 2012 and HS 2017, consultations will be undertaken to address such discrepancies.  
 
3. In paragraph 3.21 the report indicates that Malaysia administers 19 WTO TRQs to regulate 
market access, mainly for milk, poultry meat and eggs. However, most of the quotas were 
underutilized or not used at all.  
 
Question  
• Could you please indicate if the Malaysian government intends to take any measures to 
encourage greater use of unfilled or underfilled TRQs?  
 
Answer : Malaysia is following closely the discussions under the Committee of Agriculture in the issue 
of underfiled/unused TRQs and endeavors to su pport the outcome of those discussions.  
 
4. In paragraph 3.22 the report indicates that manufacturers can request exemptions from 
import duties on raw materials and components used in the manufacture of goods, and on machinery 
and equipment not available i n Malaysia but essential to the manufacturing process.  
 
Question  
• Could you indicate what the procedure is like to request such exemptions and how the 
character of "essential to the manufacturing process" is determined?  
 
Answer : The Customs Duties (Exempt ion) Order 2017 provides an exemption for import duty on raw 
materials and components which are imported directly and used in the production of finished 
products.  
 
Only application with total duty and/or tax exemption value of MYR 5,000 and above (per 
subm ission) will be considered for exemption. Application must be submitted prior to the importation 
or purchase of the raw materials and components. Company applying for this import duty exemption, 
must provide the following documents:  
 
i. Manufacturing Licen se issued under the Industrial Coordination Act 1975 (ICA) or 
Confirmation Letter for a company exempted from manufacturing license under the ICA 1975 
from MIDA;  
ii. Tax incentive approval under the Promotion of Investment Act, 1986 (PIA) or Income Tax 
Act, 1967 (if applicable);  WT/TPR/M/436/Add.1  
 
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iii. Registration certificate or the letter of acknowledgement if the application for the registration 
certificate is pending for approval from the Department of Occupational Safety and Health 
(DOSH);  
iv. Company profile (latest printout) generated from Companies Commission of Malaysia (SSM) 
e-Info Services;  
v. Flow chart of manufacturing process; and  
vi. Layout plan of the machinery and equipment in the approved manufacturer's premise and to 
indicate the location of the machine ry and equipment.  
 
MIDA's  Guideline on the procedure for application for import duty and/or sales tax exemption on 
raw materials and components can be obtained from:  
https://www.mida.gov.my/wp -content/uploads/2022/07/2.0 -Latest -GUIDELINES -AND-
PROCEDURES -FOR-PC2-PC2-1-09042019.pdf   
 
5. In paragraph 3.31 the report indicates that Malaysia applies an excise tax to certain products 
that are considered non -essential or harmful to health or the environment, such as sugary drinks, 
motor vehicles, spirits, cigarettes and tobacco, playing cards and mahjong tiles.  
 
Question  
• Could you indicate under what parameters it is determined that a product is "non -essenti al" 
and if this tax is applicable to national products as well as imported ones?  
 
Answer : MOF imposes excise tax on products considered non -essential or harmful to health or the 
environment, for both national and imported. However, determinants of the prod ucts' statuses either 
essential or not are subject to request of the authorized Ministries/Agencies.  
 
6. In paragraphs 3.38, 3.39 and 3.40 the report describes the import licensing system for 
Malaysia, noting that most of the import licenses issued are imp ort licences not automatic.  
 
Question  
• Could you indicate how many tariff positions correspond to the products that must be 
processed non -automatic import licenses and to which economic sectors do such positions belong?  
 
Answer : The list of products that are subject to non -automatic import licenses can be accessed at 
http://mytraderepository.customs.gov.my/en/ntm/nauto/ilp/Pages/non_auto.aspx .  
 
The information is also available in Malaysia's reply to the Annual Questionnaire under Article  7.3 of 
the Agreement on Import Licensing Procedures for the year 2020 (G/LIC/N/3/MYS/15).  
 
7. In paragraph 3.42 the report indicates that Malaysia maintains a system of approved permits 
for the automotive industry, where a company must obtain approved permits to import and distribute 
automobiles, trucks, and motorcycles manufactured or assembled in the abroad as part of the 
National Policy for the Automobile Sector.  
 
Ques tion 
• Could you indicate the procedure to obtain the permits and the deadlines for the  granting 
them?  
 
Answer : Information regarding the procedures to obtain permits is publicly available at MITI's Portal 
(https://www.miti.gov.my/index.php/pages/view/3796?mid=84 ). 
 
8. In paragraph 3.64, the report indicates that, within the framework of a regime of incentives 
for production and trade, a company that has obtained the status of company "innovative" pays 
taxes on 30% of its taxable income during the five first few years from the start of production.  
 
Question  
• Could you indicate what are the requirements to obtain the status of "innovative" company?  
 
Answer:  The 'Pioneer Status' is an incentive in the form of income tax exemption of 70% or 100% 
of statutory income, which is granted to companies participating in promoted activities or producing 
promoted products under the Promotion of Investments Act 1986, for a period of 5 or 10 y ears. WT/TPR/M/436/Add.1  
 
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Eligibility for Pioneer Status and Investment Tax Allowance is based on certain priorities, including 
the level of value -added, technology used and industrial linkages. The list of promoted activities and 
products for consideration of incentive is ca tegorised under the General List, High -Technology 
Companies, Small Scale Companies, Selected Industries, Promoted Activities and Products for 
Reinvestment which can be accessed at: https://www.mida.gov.my/setting -up-content/promoted -
activities . 
 
9. In paragraph 3.81. laws and regulations regarding halal products are established (production, 
preparation, handling and storage).  
 
Question  
• What are the chances that refrigerators wi ll be authorized where part of their work is carried 
out under halal processing without being an establishment exclusively authorized for that purpose?  
 
Answer : The Malaysian Protocol requires that the establishment has dedicated halal requirements 
from pr oduction, preparation, handling and storage.  
 
10. In Paragraph 4.12 on "Measures to reduce the burden on agencies and organizations of 
conformity assessment", it indicates that specific remote assessments were authorized for reasons 
of COVID -19. 
 
Question  
• Could you please indicate if Malaysia plans to allow remote assessments for halal 
certifications?  
 
Answer : For the time being, the Department of Islamic Development Malaysia (JAKIM) has no plans 
to allow remote assessments for halal certification.  
 
• If so, when do you plan to implement such a measure? If not, what is the reason why which 
remote evaluations are not carried out for halal certifications through organizations authorized 
certifiers?  
 
Answer : As a regulator, there are elements in halal certification including Halal Critical Control Points 
that require a physical audit and that the verification has to be done on site and witnessed by the 
auditor from the competent authority on the site/plant before any decision on recognition can be 
concluded.  
 
11. Point 6.4 of the Government Report addresses the issue of "Development of the halal sector", 
a central issue for Malaysia's trade policy. However, not a central issue for Malaysia's trade policy. 
However, it does not address the measures that applies to the import of halal products.  
 
Question  
• Could you advise if it is possible in Malaysia to import beef without halal certification to be 
marketed at points of sale authorized for this purpose (eg supermarkets, hotels, restaurants)? If so, 
what are the applicable requirements and regulations, as well as the procedure to follow to carry 
out said import?  
 
Answer : Malaysia requires all imports of meat and meat products (except for pork and pork products) 
must be Halal - certified by JAKIM. As of  2022, JAKIM recognizes 83 foreign Halal certification bodies 
from 46 countries.  
  WT/TPR/M/436/Add.1  
 
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AUSTRALIA  
Report by the Secretariat (WT/TPR/S/436)  
1 Economic Environment  
1.2 Recent Economic Developments  
1.2.3 Main Macroeconomic Policy Developments  
1.2.3.2 Fiscal Polic y  
Page 19, Paragraph 1.10  
The report states that the authorities plan to pursue fiscal consolidation through reform initiatives 
including the introduction of a Fiscal Responsibility Act to further enhance fiscal discipline, 
expenditure effectiveness, and transparency in fiscal management.  
 
Question 1  
Could Malaysia provide an update on progress towards introducing the Fiscal Responsibility Act?  
 
Answer : Currently, the draft FRA bill is being reviewed by the Attorney General's Chambers (AGC) 
before tabling  to Cabinet and Parliament.  
 
Report by the Secretariat (WT/TPR/S/436)  
1 Economic Environment  
1.2 Recent Economic Developments  
1.2.4 Structural Policies  
1.2.4.1 Tax reform  
Page 20, Paragraph 1.14  
The report states that the 2022 Budget called for bold and effective reforms to the tax system 
through the adoption of a medium -term revenue strategy, to ensure sufficient funding for 
expenditure needs under the Twelfth Plan.  
 
Question 2  
Can Malaysia provide an update on progress towards implementing tax reforms?   
 
Answer : The Malaysian Government will continue to implement tax reform initiatives proposed by 
the Tax Reform Committee, which focuses on broadening the tax base, including rev iewing broad -
based incentives, reliefs, and deductions to support the growth of the digital economy. The 
government intends to implement e -Invoicing in stages to enhance the efficiency of the country's 
tax administration management.  
 
Labour market  
Report by the Secretariat (WT/TPR/S/436)  
1 Economic Environment  
1.2 Recent Economic Development  
1.2.4 Structural Policies  
1.2.4.5 Labour market policies  
Page 22, Paragraph 1.20  
The report states that during the review period, a mix of measures were introduced to,  inter alia, 
limit the number of migrant workers; they included a new job advertisement requirement for the 
employment of expatriates, effective January 2021, at the government -run portal for jobseekers 
called MyFutureJobs (https://www.myfuturejobs.gov.my) , managed by the Social Security 
Organisation (SOCSO) as a prerequisite condition when applying for expatriate posts to the relevant 
approving authorities that include, inter alia, the Malaysian Investment Development Authority 
(MIDA) and the Malaysia Digi tal Economy Corporation (MDEC), according to their respective sectors 
and scope of coverage, as well as a Malaysia@Work incentive programme providing cash incentives 
for a two -year period to encourage the recruitment of four categories of nationals (those who replace 
migrant workers, women returning to work after a career break of at least one year, college 
graduates who were unemployed for at least 12 months, and apprentices).52 As a result of 
pandemic -related restrictions on economic activities and border  closures, the share of the non -
Malaysian citizens dropped from 15% (2019) to 14% (2020) of the total labour force; as of end -
November 2020 there were about 1.38  million  registered migrant workers and seemingly an 
estimated 1.8  million  more worked illegall y. Several industries – including electronics manufacturing, 
oil palm plantations, and construction – continue to rely on lower -skilled migrant labour.  
 WT/TPR/M/436/Add.1  
 
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Question 3  
Could Malaysia please clarify how the requirement to advertise positions is implemented wit h respect 
to Malaysia's Mode 4 commitments? Is this requirement intended to be a part of an Economic Need 
Test?  
 
Answer : The current recruitment process of expatriates in Malaysia requires the employer to 
advertise the vacant position to Malaysians first in the MyFutureJobs portal under the purview of the 
Social Security Organization (SOCSO). The vacancy shall be advertised in the Portal for 30 days and 
upon expiry of the period, it can be opened to expatriates, provided that no Malaysians are interested 
to fill the position. This is in line with the policy that gives priority to Malaysians to fill up the job 
vacancy, before it can be opened and offered to expatriates.  
 
WTO  
Report by the Secretariat (WT/TPR/S/436)  
2 Trade and investment regime  
2.3 Trade agr eements and arrangements  
2.3.1 – WTO  
Page 32, paragraph 2.15  
The report highlights although Malaysia provided notifications on many subjects covered by the WTO 
framework during the review period, the timeliness of Malaysia's notifications could be improved in 
some areas. In agriculture, the most recent notifications on domestic support date from August  2022 
and 2018, covering the periods 2015 and 2012 -14, respectively. Moreover, Malaysia's obligations 
under Article  III:3 of the GATS to notify "any n ew, or any changes to existing laws, regulations or 
administrative guidelines which significantly affect trade in services" remain unfulfilled.  
 
Question 4  
Given the importance of notifications in underpinning the rules -based trading system and supporting 
predictability of trading outcomes, can Malaysia provide a timetable for submission of its outstanding 
notifications.  
 
Answer : Malaysia is committed to fulfill its notification obligations and will continue to strive to 
update the outstanding notifications . 
 
Mutual recognition agreements  
Report by the Secretariat (WT/TPR/S/436)  
2 Trade and investment regime  
2.3 Trade agreements and arrangements  
2.3.2 Regional and preferential agreements  
2.3.2.1 Association of Southeast Asian Nations (ASEAN)  
Page 33, Paragraph 2.19  
The report states the following: "In addition, trade in certain professional services is facilitated 
through mutual recognition agreements (MRAs) covering accountancy, medical professionals, dental 
practitioners, engineering services, nursin g services, architectural services, and a framework MRA 
for surveying qualifications."  
 
Question 5  
Request that Malaysia identify the parties to each of the six mutual recognition agreements and the 
dates each of those MRAs came into force?  
 
Answer : The si x MRAs are an ASEAN collective initative. Further details can be obtained from 
https://asean.org/our -communities/economic -community/services/  
 
Question 6  
In relation to the six MRAs, request Malaysia to provide statistics of the number of professionals 
moving to and from Malaysia utilising MRAs.  
 
Answer : Malaysia does not maintain such data.  
 
Question 7  
Request that Malaysia provide details of the objective, extent and coverage o f the 'framework MRA 
for surveying qualification'?  WT/TPR/M/436/Add.1  
 
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Answer : As this MRA is an ASEAN collective initative, further details can be obtained from 
https://asean.org/our -communities/economic -community/services/  
 
Report by the Secretariat (WT/TPR/S/436)  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affectin g Imports  
3.1.3 Tariffs  
3.1.3.2 Applied MFN rates  
Page 46, Paragraph 3.19  
Although almost all applied MFN rates are lower than their bound rates, some 11 tariff lines appear 
to be exceeding their bound levels. The authorities acknowledged that these errors  should be 
corrected.  
 
Question 8  
Does Malaysia intend to undertake reforms to address these errors?  
 
Answer : Such discrepancy is due to the increase in variant of duties i.e., nomenclature change and 
changes in tariff structure, which involved a large num ber of duty -free lines that were merged into 
other tariff lines during the HS transposition exercise.  
As we continue to work towards completing the remaining transposition processes for HS 2007, 
HS 2012 and HS 2017, consultations will be undertaken to addr ess such discrepancies.  
 
Competition policy  
Report by the Secretariat (WT/TPR/S/436)  
3 Trade Policies and Practices by Measure  
3.3 Measures Directly Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Page 64, paragraph 3.85, paragraph 3.86  
The report states that the Competition Act 2010 does not cover aviation, telecommunications, or 
energy as these sectors are regulated under other laws. Moreover, it does not extend to acts 
involving the exerci se of governmental authority, activities with purely social objectives carried out 
according to the "solidarity" principle, purchases of goods or services not for resale or resupply, 
services involving general economic interest (e.g. public utilities), col lective bargaining, or 
agreements or conduct that comply with any law. A Special Committee on Competition, set up in 
2012 and chaired by the MyCC, involves nine other sector regulators, including the Malaysian 
Communications and Multimedia Commission, the Energy Commission, the Malaysian Aviation 
Commission, and the Companies Commission of Malaysia.  
Although the Act prohibits abuse of dominant position (defined as more than 60% market share) 
and anti -competitive agreements (e.g. price fixing, market sharin g, or bid rigging), and in particular 
hard-core cartels, no provisions provide for ex ante scrutiny of mergers or acquisitions. According 
to the authorities, plans exist to revise the Competition Act to provide for merger and acquisition 
controls. The MyCC  would also prepare guidelines for the new merger control framework, which 
would be expected to come into force one to two years after the revised Competition Act has been 
gazetted. The proposed amendment of the Competition Act 2010 includes the amendment of 
provisions relating to the investigation and enforcement powers and the introduction of a merger 
control regime that will provide the MyCC with the authority to review and investigate transactions 
that are likely to cause market concentration. The merge r control regime is expected to come into 
force in 2023.  
 
Question 9  
Is Malaysia considering extending its regulatory regime for service sectors currently not covered 
under Malaysia's Competition Act 2010 (e.g., telecommunication and aviation) to prevent 
anti-competitive conduct and concentrations of market power through mergers and acquisitions?  
 
Answer : MyCC is currently amending the Competition Act 2010 to make Malaysia's competition law 
more extensive and in line with international practices.  The amendments include provisions relating 
to the investigation and enforcement powers and the introduction of a merger control regime that 
will give MyCC the power to review and investigate merger transactions that are likely to cause 
market concentration.   WT/TPR/M/436/Add.1  
 
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The introduction of the merger control regime will apply across various sectors and markets in 
Malaysia. Nevertheless, the exclusion of merger control regime will be provided to certain sectors 
which are regulated by the respective regulators.  
Even thoug h the exclusion is provided to certain sectors, the respective regulators may seek opinions 
or views on the mergers that are regulated by them.  
 
State trading  
Report by the Secretariat (WT/TPR/S/436)  
3 Trade Policies and Practices by Measure  
3.3.5 State t rading, state -owned enterprises, and privatization  
Page 65, Paragraph 3.94  
The report states that on 12  August  2021, the Government launched PERKUKUH (Perkukuh 
Pelaburan Rakyat) or the "Strengthening of the People's Investment Programme" consisting of 
20 key initiatives. PERKUKUH is designed to transform GLICs strategically for enhanced resilience 
and socio -economic impact.  
 
Question 10  
 
Could Malaysia please elaborate on the 20 key initiatives of their PERKUJUH program, and how it 
aligns with the OECD Econ omic Survey that was recently conducted for Malaysia in 2021?  
 
Answer : The PERKUKUH initiatives is developed to strenghten the role of Governement Linked 
Investment Companies (GLICs) to enhance support towards Malaysia's Economic Development and 
Twelfth Malaysia Plan (12th MP). The key takeaway from the 20 key initiatives are:  
i) redifining the role of government in business  
ii) sharpening the purposes mandate and objective of the GLICs  
iii) Enhance governance and coordination mechanism across GLI Cs to drive priorities linked to 
the national sustainable growth agenda.  
 
Page 66, Paragraph 3.98  
The report states that  international tenders are only opened if the goods or services are not available 
in the local market.  
 
Question 11  
Can Malaysia please  outline how this approach is consistent with the principles of the 'Government 
Procurement' chapter in the CPTPP?  
 
Answer : International tenders are allowed for tenders where Malaysia does not have an FTA or 
international agreement with that country, which is a separate procurement process from the 
Government Procurement chapter in the CPTPP.  
International tenderers are only  considered if there are no or less expertise under:  
i. Category A (below threshold): open tender amongst local Malaysian companies for 
procurement below the threshold and procurement that is not covered under the Government 
Procurement Chapter of FTAs; an d 
ii. Category B (equivalent/above threshold): open tender amongst local companies and FTA 
partners under international agreement obligations.  
The Government Procurement chapter in the CPTPP is subject to covered procurement only for CPTPP 
Parties.  
 
Report  by the Secretariat (WT/TPR/S/436)  
3 Trade Policies and Practices by Measure  
3.3.6 Government Procurement  
Page 66, Paragraph 3.97  
The report states that the Government Green Procurement Guidelines 3.0 published in October 
consists of 40 groups of selected  green products and services.  
 
Question 12  
How was the list of green products and services selected and established?  
 
Answer : The green products and services groups were identified by the Malaysian Green Technology 
and Climate Change Centre (MGTC) based on the pilot project conducted from 2016 to 2019 
involving several ministries.  WT/TPR/M/436/Add.1  
 
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Page 66, Paragraph 3.98  
The report states that although price considerations may be important in concluding a government 
contract, the "value for money" concept includes non -price factors as well as broader policy 
considerations such as the acceleration of economic growth through procurement, maximum use of 
local materials and resources, the promotion of local freight and insurance, transfer of technology, 
and incentives for indi genous entrepreneurs (Bumiputera). The report goes on to outline the various 
preference margins applied to benefit Bumiputera. It further notes that international tenders are 
only opened if the goods or services are not available in the local market .  
 
Question 13  
Can Malaysia please confirm that international tenderers are only considered if the goods and 
services are not available locally?  
 
Answer : International tenderers are only considered if there are no or less expertise under:  
i. Category A (below t hreshold) - open tender amongst local Malaysian companies for 
procurement below the threshold and procurement that is not covered under the Government 
Procurement Chapter of FTAs; and  
ii. Category B (equivalent/above threshold) - open tender amongst local companies and FTA 
partners under international agreement obligations.  
 
Question 14  
Can Malaysia please confirm that its government procurement framework, including in respect of 
the aspects listed in para.  3.98, will be applied in a manner consistent with its relevant trade 
agreement commitments – providing non -discriminatory access to covered contract opportunities 
for suppliers from trade partners such as Australia (for example, under the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership, which we congratulate Malaysia for recently 
ratifying)? The same question applies to Malaysia's implementation of its offset policy through the 
Industrial Collaboration Programme, as noted in para.  3.105 (p.  68).  
 
Answer : Yes, the government procurement framework will be applied in a manner consistent with 
its relevant trade agreement commitments providing non -discriminatory access to covered contract 
opportunities for suppliers from FTA partners.  
Malaysia's implementation of its of fset policy through the ICP is also applied in a manner that is 
consistent with its relevant trade agreement commitments as stipulated in Section  J: Transitional 
Measures of Annex  15-A which allows Malaysia to delay its application of its obligations on of fsets 
for a period of 12 years following date of entry into force of the CPTPP. After the 12th year, Malaysia 
will provide non -discriminatory access to covered contract opportunities for suppliers from FTA 
partners.  
 
Page 66/67, Paragraph 3.99  
The report s tates that penalties for non -compliance or substandard performance include the 
suspension of registration for up to five years, thus effectively barring opportunities to compete for 
government contracts as long as the suspension lasts. Exemption from regis tration exists under 
certain circumstances, subject to approval of MOF/CIDB, but the provision of tender deposits may 
not be waived for international bidders. While registered local suppliers and contractors are 
exempted from the tender deposit requirement s, these range from MYR  60,000 to MYR  1 million  for 
foreign bidders. In addition, successful bidders will need to provide performance bonds issued by 
financial institutions licenced to operate in Malaysia.  
 
Question 15  
Is an investigation undertaken to de termine if a supplier is non -compliant or has undertaken 
substandard performance under a contract?  
 
Answer : Yes 
 
Question 16  
What are the circumstances that a supplier may be exempt from registering with the Government?  
 
Answer : All suppliers are required  to register with the Government except for the registrstion of 
Basic Account which is only limited to participation in the procurement of up to MYR 20,000.00.  
 WT/TPR/M/436/Add.1  
 
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Question 17  
Is the suspension period for the exemption from registrations the same as the five -year period for 
suppliers already registered in the system?  
 
Answer : The registration for a Basic Account is only for three years.  
 
Question 18  
In the case where a supplier has rectified their practices, can a suspension be lifted earlier than the 
five-year period?  
 
Answer : No, the supplier must serve their 5 -year suspension period.  
 
Question 19  
Are performance bonds only required for foreign suppliers?  
 
Answer : The requirement to provide performance bonds is applied to all foreign and domestic bidders 
that are awarded contracts.  
 
Page 67, Paragraph 3.101  
The report states that invitations to tender may be found at the government website 
(http://www.malaysia.gov.my/ ), the e -procurement platform MyPROCUREMENT 
(http://myprocurement.treasury.gov.my ), or at the website of the procuring entities. The report 
also states that tender opening committees made up of senior government officials open bids and 
rank them according to the prices quoted.  
 
Question 20  
Are invitations to tender published on the Malaysian Government website, the e -procurement 
platform MyProcurement, and the website of the procuring entity concurrently? What about the 
ePerolehan (eP) system (referenced in para.  3.103 on p.  67), and how does it relate to these other 
websites?  
 
Answer : Invitations to tender are published on the e -procurement platform MyProcurement, the 
website of the procuring entity and ePerolehan platform concurrently. The Malaysian Government 
website only provid es a link to the ePerolehan platform and does not advertise tender invitations. 
The ePerolehan system is an online platform used by Federal Government to acquire goods and 
services and all notices of intended procurement are integrated with MyProcurement p ortal.  
 
Question 21  
Para. 3.101 notes that bids are ranked according to the prices quoted. How does this focus on price 
relate to the statement in paragraph 3.98 (p.  66), that although price considerations may be 
important, there are a range of other "valu e for money" and policy considerations that are taken 
into account?  
 
Answer : Price considerations is an important factor but other value for money and policy 
considerations are also taken into account when ranking bids. These considerations may include 
non-price factors.  
Malaysia considers other non -price factors to ensure the best possible purchase in the award of 
government contracts which include the application of life -cycle costing analysis (LCCA), 
environmental impact, labour considerations, good gove rnance, social considerations, innovation, 
delivery time, delivery period, past performance of the company as well as the quality of the goods 
besides ensuring the required technical specifications are fulfilled and the lowest cost is offered to 
the procur ing entity at a value for money.  
 
Page 67, Paragraph 3.102  
The report highlights Integrity Pacts that are commitments between the procuring authorities and 
the bidders to respect the integrity of the procurement processes and were introduced in 2010 to 
strengthen the procurement framework at federal and state levels. The report states that Integrity 
Pacts include sanctions for non -compliance, but there is no overall monitoring system. Various model 
Integrity Pacts exist, including for procurements of GLCs. Integrity Pacts are implemented to 
increase an agency's level of awareness about corruption among the parties involved in government 
procurement. For monitoring purposes agencies are currently required to submit monthly reports to WT/TPR/M/436/Add.1  
 
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the MOF to be coordinated  before submission to the National Governance, Integrity and 
Anti-Corruption Centre.  
 
Question 22  
Are the sanctions for non -compliance the same time period (up to five years) as suspension of 
registration?  
 
Answer : Sanctions for non-compliance are up to five years.  
 
Question 23  
Are the monthly reports to the National Governance, Integrity and Anti -Corruption Centre published 
publicly?  
 
Answer : The Governance, Integrity and Anti -Corruption Centre (GIACC) publishes an annual 
Progress Report on the National Anti -Corruption Plan (NA CP) which is publicly available online. The 
annual Progress Report covers six priority areas which includes Public Procurement.  
 
Question 24  
Are there any plans for an overall monitoring system to be developed and put in place?  
 
Answer : There are no plans for an overall monitoring system to be developed and put in place by 
the Ministry of Finance. At the moment, GIACC is the agency in charge of the overall monitoring 
system.  
 
Page 68, Paragraph 3.106  
The report notes that Malaysia has been an observer to th e WTO Committee on Government 
Procurement since 2012, with no move to initiate negotiations to join the WTO GPA. The report 
indicates that an assessment is to be carried out on the implementation of government procurement 
chapter obligations under other in ternational agreements involving market access offers.  
 
Question 25  
Can Malaysia please provide any further detail on its assessment of the implementation of 
government procurement obligations under other international agreements, and confirm if it is 
considering taking any further steps to join the WTO GPA?  
 
Answer : Malaysia will assess its readiness to join the WTO GPA as a member after a thorough 
assessment including impact study on CPTPP's implementation as well as other Free Trade 
Agreements (FTAs) tha t Malaysia is a Party to such as Regional Comprehensive Economic Partnership 
(RCEP).  
 
Agriculture  
Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.3 Domestic support  
Page 76, Paragraph 4.9  
The report from the Secretariat states that about 70% of all notified Green Box support over the 
four-year period related to a price subsidy for paddy rice described as decoupled income support.  
 
Question 26  
Could Malaysia please provide further information on this price subsidy, including:  
i) What the eligibility criteria is for such payments, and  
ii) Whether this subsidy has the effect of providing price support to producers?  
 
Answer : The domestic support measure is used as an income support measure for resource -poor 
farmers, rural development, and food security. The measure does not have trade distorting effects 
or effects on production and is consistent with Annex  2 of the AoA. The support is eligible to all 
registered paddy f armers, with a minimum age of 18 and owners of the land.  
 WT/TPR/M/436/Add.1  
 
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Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry and Fisheries  
4.1.1 Agriculture  
Page 84, Paragraph 4.33  
The report states that BERNAS is granted the so le right to import rice into Malaysia out to 2031, but 
that this right is subject to compliance with Malaysia's obligations under the WTO agreements, other 
international treaties, and agreements entered into or to be entered into by Malaysia in the future.  
 
Question 27  
Given the Malaysia -Australia Free Trade Agreement (MAFTA), under 'Appendix 2: Rice', provides 
that: 
"From 2023 imports in Malaysia from Australia shall be subject to the following conditions: (a) There 
shall be no restriction on who can impor t rice including no restriction on who can apply for any import 
licences"  
Can Malaysia please outline how BERNAS's activities are consistent with the provisions of MAFTA ? 
 
Answer : The Agreement between BERNAS and the Government of Malaysia has already take n into 
account the commitment by Malaysia in the Malaysia -Australia Free Trade Agreement (MAFTA).  
 
Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.6 Selected commodities  
4.1.1.6.4 Livestock  
Page 85, Paragraph 4.37  
The report from the Secretariat states that Malaysia's livestock policies are focused on, among other 
things, reducing dependency on imported feed.  
 
Question 28  
Could Malaysia please provide further information on how its policies will reduce dependency on 
imported feed?  
 
Answer : National Agrofood Policy 2.0 (2021 -2030) has been designed to reduce dependency on 
importation of animal feed and its raw materials, mainly for the poultry industry.  
Alterna tive feed stocks from local sources such as palm kernel cake (PKC) that are comparable to 
imported feed and effective in terms of feed conversion, quality and its price are being considered.  
 
Manufacturing  
Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.3 Manufacturing  
4.3.1 General  
Page 97, Paragraph 4.79  
According to the EPU, the sector needs to strengthen its competitiveness, resilience, and capacity 
so as to position itself for g lobal and regional opportunities and challenges in trade and investment. 
The focus will be to accelerate technology adaption and enhanced incentives to encourage 
investments in high value -added industries. In addition to the catalytic subsectors (electrica l and 
electronics, machinery and equipment, and chemicals and chemical products), Malaysia sees 
aerospace and medical devices as high growth subsectors to be explored.  
 
Question 29  
Can Malaysia please outline what policies have or will be implemented to a ddress this priority?  
 
Answer : The major policies are:  
1. TheTwelfth Malaysia Plan, 2021 -2025, the 5 -year development plan;  
2. The New Investment Policy which has been developed and anchored on the National 
Investment Aspirations; and  
3. The National Trad e Blueperint, 2021 -2025 which outlines the priority sectors of the country.  
 WT/TPR/M/436/Add.1  
 
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Services  
Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.4 Services  
4.2.2 Financial services  
Page 101, paragraph 4.95  
The Twelfth Plan aims to sustain Malaysia's position as a leading international Islamic financial centre 
where measures will be undertaken to develop more innovative market -based mechanisms and 
products, leveraging Islamic fintech, to better serve the needs of a wider financial ma rket and the 
economy. This shows that the sector plays a key role in the channelling of resources to productive 
activities that sustain growth. Launched on 24  January  2022, the Financial Sector Blueprint 
2022-2026 follows five basic thrusts: (i)  the fundin g of Malaysia's transformation to a high -income 
country; (ii)  improved financial inclusion through instruments such as mobile banking, enhanced 
financial ethics, and resilience measures that strengthen the financial well -being of households and 
businesses;  (iii) infrastructure and regulatory practices dedicated to better digital financial services 
while managing cybersecurity risks; (iv)  climate risks to be integrated into BNM's supervisory and 
prudential regulatory roles and internal processes to facilitat e orderly transition to a greener 
economy; and (v)  Malaysia as an international gateway for Islamic finance, including through 
advancing value -based finance and mainstreaming social finance. As the digitalization of finance 
continues, focus areas may inclu de digital currencies, assets, and banks; decentralized finance, and 
financial technology; and the diminishing role of physical cash. The Regulatory Sandbox created in 
2016 is providing a conducive experimental environment for innovative fintech solutions and new 
business models. Finance for all, wider adoption of value -based intermediation, and steady progress 
in greening finance are among the desired outcomes to be achieved by 2026.  
 
Question 30  
According to Malaysia's Financial Sector Blueprint 2022 -2026 (page 21), market participation is 
promoted in a way that serves the best interest of Malaysia, as set out in the FSA and IFSA. Could 
Malaysia please explain the criteria and processes by which foreign service providers and foreign 
investors are assessed  with respect to Malaysia's best interest?   
 
Answer : Pursuant to Section  10 of the FSA and IFSA, in assessing an application to carry on any 
licensed business under the respective Act, Bank Negara Malaysia (BNM) shall take into account 
prudential and best interest of Malaysia (BIOM) considerations, as set out in Schedule 5 of the FSA 
or IFSA, and such other matters that BNM considers relevant.  
 
Assessment of whether an application will be in accordance with BIOM, will have regard to:  
a. the effect of the investment on the level and nature of economic activity in Malaysia, including 
the effect on productivity, efficiency and quality of financial services;  
b. the contribution towards enhancing international trade and investment linkages  between 
Malaysia and other countries;  
c. the effect of the investment on the stability of the financial system, including on conduct and 
behaviours that could pose a risk to the financial system; and  
d. the degree and significance of participation of Malaysia ns in the financial sector.  
 
These assessments would be informed by relevant developments in, and affecting the financial sector 
in Malaysia, including emerging risks, structural changes and development priorities to address 
prevailing market gaps, such as  those outlined in the Financial Sector Blueprint. For example, the 
issuance of digital bank licenses aims at facilitating the entry of new players that contribute towards 
advancing greater financial inclusion by improving the efficiency, quality and suita bility of financial 
services for the unserved and underserved segments. Accordingly, in assessing the BIOM criteria for 
digital banking licenses, BNM takes into account the ability of an applicant to demonstrate to BNM's 
satisfaction a commitment in drivin g financial inclusion, particularly to underserved and hard -to-
reach segments in a sustainable manner, while preserving the interest of depositors.  
 
The application and assessment process for new licenses are set out in the Policy Document on 
Application Procedures for New Licenses under Financial Services Act 2013 and Islamic Financial 
Services Act 2013 which is published by BNM. Further details on the digital bank licensing framework 
can be found in the Policy Document on Licensing Framework for Digital Banks published by BNM.  
 
 WT/TPR/M/436/Add.1  
 
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Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.4 Services  
4.2.2 Financial services  
4.4.2.2  
Page 102, paragraph 4.96  
4.96. A licence granted by the Minister of Finance is needed to operate a bank in Malaysia. The 
licence application is reviewed by BNM, which forwards its recommendation to the Minister. 
Incorporation in Malaysia is required for all banks except internatio nal Islamic banks, which may opt 
for local incorporation or operation as a branch. Once incorporated in Malaysia, foreign -owned 
commercial banks may establish up to 8 physical branches and 10 microfinance branches. While 
foreign banks are required to obser ve a specified distance requirement (more than 1.5  km away 
from the nearest domestic banks/Development Finance Institutions (DFIs)) in establishing new 
branches, the authorities state that, in practice, foreign banks have been given flexibility to open 
branches in the vicinity of domestic banks. Foreign banks are also allowed to establish automated 
teller machines within their branch, with no limits on the number of machines.  
 
Question 31  
Could Malaysia please clarify the policy reason behind the numerical  limitation on the established 
branches by foreign -owned commercial banks? Do the numerical limits apply to domestic banks? 
Does Malaysia have any plans to increase this number to allow greater flexibility to foreign -owned 
banks in establishing commercial presence in Malaysia?  
 
Answer : Locally -incorporated foreign banks (LIFBs) must observe the maximum number of physical 
and microfinance branches as part of the operational requirements in Malaysia. However, it is 
observed that the policy has not impeded LIF Bs' ability to provide a wide range of financial services 
to consumers. This is further supported by the global movement towards the preference for delivery 
of financial services through digital means.  
 
Moving forward, Bank Negara Malaysia will liberalise  the branching policy aimed at enhancing the 
role of LIFBs in contributing to the needs of the domestic economy and furthering financial inclusion 
objectives. This initiative is part of the strategies to address remaining inclusion gaps, focusing on 
take-up and effective usage of financial services, especially for the unserved and underserved 
segments, outlined in the Financial Sector Blueprint 2022 -2026.  
 
Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.4 Services  
4.2.2 Financial servi ces  
4.4.2.3 Insurance and takaful  
Page 106, paragraph 4.107  
4.107. Foreign professional reinsurers, international takaful operators, and retakaful operators may 
conduct business in Malaysia through a branch office. However, licensed general insurers and takaful 
operators should first seek reinsurance/retakaful from licensed insurers/reinsurers/takaful 
operators/retakaful operators, or insurers/reinsurers/takaful operators/retakaful operators based in 
the LBIFC, before obtaining foreign reinsurance/retakaf ul support. Furthermore, licensed general 
insurers are required to cede (reinsure) 2.5% for all classes of business (with no cession limits) and 
15% for Auto Treaties and Auto Facultative (with 20% retrocession) to Malaysian Reinsurance 
Berhad.  
 
Question 32  
Could Malaysia please clarify policy reasons for the restriction on licenced general insurers and 
takaful operators in Malaysia from seeking support from Foreign professional reinsurers?  
 
Answer : Before obtaining reinsurance or retakaful cover from insurers/reinsurance companies and 
takaful/retakaful operators abroad, all licensed general insurers and takaful operators in Malaysia 
must first accord priority to insurers/reinsurers/takaful operators/retakaful operators (both domestic 
and foreign -owned) licensed in Malaysia, followed by those in Labuan.  
 
Foreign service providers are also accorded the same priority to provide coverage for Malaysian 
insurers and takaful operators, provided that the foreign service providers are licensed in Malaysia 
or Labuan.  WT/TPR/M/436/Add.1  
 
- 16 - 
 
Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.4 Services  
4.4.3 Telecommunication  
Page 111, paragraph 4.123  
4.123. The main legislation governing the sector remains the Communications and Multimedia Act 
(CMA) No.  588 of 1998 and the Malaysian Communications and Multimedia Commission Act 
(MCMCA) No.  589 of 1998. Since the last Review, there have been no changes to the legislation. 
According to the authorities, the CMA 1998 and the MCMCA 1998 are currently under review;  the 
proposed amendments in general are intended to strengthen the function, power, and governance 
of the Commission, in tandem with the evolution and growth of the communications and multimedia 
industry. The Ministry of Communications and Multimedia Malay sia (MCMM) is responsible for 
developing policies for the sector. The sector is regulated by the MCMC whose responsibilities 
include, inter alia, advising the Minister on all matters related to telecommunication activities, 
implementing/enforcing the regul ations related to telecommunications, and making 
recommendations on granting and cancellation of licences.113 The MCMM is the regulator for postal 
and courier services under the Postal Services Act No.  741 of 2012 and digital signatures under the 
Digital S ignature Act No.  562 of 1997.  
 
Question 33  
Could Malaysia please provide an update on the review of the CMA 1998 and MCMA 1998. Will the 
review include consideration of promoting trade openness and improved transparency in the 
telecommunications sector, i n line with Malaysia's Service Sector Blueprint?   
 
Answer : The main objectives of the Communications and Multimedia Act 1998 amendments are:  
 
a) to encourage the development of the communications and multimedia industry for future 
requirement and enhance consumer protection, inter alia, through the introduction of wider 
range of remedies and increase in penalties, aligning the competition related provisions with 
the current/updated laws regulating competition and providing clarity to the powers of the 
Comm ission in respect of issuance of legal instruments.  
b) to improve the network security aspect following the increase in the utilization and dependency 
of the public on digital services by introducing provisions on network security including the 
issuance of  a written notice to any relevant person for purposes of preventing, detecting, 
countering, mitigating or remediating any network security risk.  
c) to strengthen new media management including regulatory oversight over OTT (over -the-top) 
players and online  news portal by addressing social media concerns by providing a clear 
demarcation between section 211 and 233, allowing suspension of service for non -compliant 
CASPs; introducing a specific provision to address spam and broadening investigation powers 
to improve evidence gathering.  
 
The main objectives of the MCMC Act 1998 amendments include:  
 
a) enhancing the Commission's resilience to regulate and develop the rapidly evolving and 
challenging communications and multimedia industry.  
b) enhancing its develop mental role by augmenting its powers for the development and 
regulation of standards regarding infrastructure and platforms that promote interoperability, 
etc. and services provided over communications networks.  
c) strengthening and improving the Commissio n's governance by splitting roles of the Chairman 
and CEO, revising relevant provisions, revising composition of Commission members, 
including expertise of Commission members, specific qualifications for Chairman and CEO, and 
registering Ministerial Direct ions. 
d) strengthening and improving the Commission's operational matters, such as changing the 
term "Chief Executive" to "Chief Executive Officer", providing express powers to conduct audits 
on licensees, allowing for civil and financial penalties to be p aid into the MCMC Fund, increasing 
the financial limit for contracts, providing increased protection against legal proceedings, and 
empowering the Commission to publish information.  
 
At this juncture, details of the proposed amendments of the Communication s and Multimedia Act 
(CMA) 1998 [Act 588] and Multimedia Commission Acts (MCMCA) 1998 [Act 589] are not allowed to 
be shared as the Bills are marked as "Secret" under the Official Secrets Act 1972 [Act 88].  WT/TPR/M/436/Add.1  
 
- 17 - 
 
In this context, the implementation and the enfor cement by other agencies under the proposed 
amendments of Act 588 and Act 589 are subject to policy consideration of each of the agencies 
involved which is yet to be decided. To date, the proposed amendments are in progress.  
 
Report by the Secretariat (WT/ TPR/S/436)  
4 Trade Policies by Sector  
4.4 Services  
4.4.3  Telecommunication  
Page 114, paragraph 4.130 and 4.131  
Foreign individuals and companies may not apply for individual or class licences under the current 
licensing regime.125 They must be locally incorporated in Malaysia. There are no foreign equity 
restrictions on class licences, whereas applications for indi vidual licences are assessed on a case -
by-case basis. The Minister may decide to grant a licence based on the MCMC's recommendations 
under the CMA.126 According to the authorities, assessing an application for non -foreign equity 
restriction for a network f acility or network service provider licence, the MCMC would take into 
account factors, inter alia: investments made in Malaysia by the applicant and their economic 
impact; employment of Malaysians (number employed and key positions held) and job opportunit ies; 
transfer of technology and skills; the unique or exclusive nature of the business; and contributions 
to the socio -economic development of Malaysia. The authorities underline that these factors are not 
exhaustive, and applications received will be eval uated on a case -by-case basis.  
4.131. A limit of 70% foreign equity participation is permitted in network facility and network service 
provider licences.127 However, according to the authorities, in general, individual licences issued 
under the CMA 1998 c ontain special licence condition on the shareholding requirement where there 
is a requirement of a minimum 30% Bumiputera shareholding by a licensee that it must comply with 
and foreign shareholding is capped at 49% for a network facility or network servic e provider licensee. 
Equity restrictions do not apply if the licence holder is a publicly listed company, but they do apply 
when the licensee is a private limited company (Sendrian Berhad) held by a public limited company 
(Berhad).128 Also, the authorities  note that operators with Malaysia Digital Status may request for 
100% foreign equity when applying for Network Facility Provider Individual (NFP(I)) License and 
Network Service Provider Individual (NSP(I)) License.129  
 
Question 34  
Does Malaysia have any plan to liberalise its telecommunication sector or relax some restrictions 
that apply to foreign service providers in this sector?  
 
Answer : At the moment, operators with Malaysia Digital Status may request for 100% foreign equity 
when applying for Network Facility Provider Individual (NFP(I)) License and Network Service Provider 
Individual (NSP(I)) License. The approval is granted on a case to case basis. Malaysia will continue 
to monitor this development.  
 
Report by the Secretariat (WT/TPR/S/436)  
4 Trade P olicies by Sector  
4.4 Services  
4.4.4 Transport  
4.4.4.1 Air transport  
Page 115, paragraph 4.136  
4.136. MAVCOM issues air service licences and permits, which are required for the carriage of 
passengers, mail, and cargo by air for hire and reward.132 MAVCOM also issues licences for 
aerodrome operators and ground handling services. Among the criteria MAVCOM applies in assessing 
applications for air service licences and air service permits are whether the company is incorporated 
in Malaysia, whether it is direc tly under the control of a Malaysian company or person(s), and the 
ownership structure of the applicant. More than 50% Malaysian ownership is required by a non -
publicly listed company to hold an Air Services Licence, Air Services Permit, Aerodrome Operator  
Licence, or Ground Handling Licence, whereas publicly listed companies require 33% Malaysian 
ownership.  
 
Question 35  
Does Malaysia intend to review its air services licencing regime to further open its transport sector 
to foreign service providers?  
 
Answer: Malaysia has no intention to review its Air Services licencing regime to further liberalise to 
foreign service providers.  WT/TPR/M/436/Add.1  
 
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Report by the Secretariat (WT/TPR/S/436)  
4 Trade Policies by Sector  
4.4 Services  
4.4.5 Tourism  
Page 121, paragraph 4.165  
4.165. Foreign equity participation is restricted in certain tourism activities. In tour operators and 
travel agencies, equity is capped according to the country of origin of the foreign shareholder, for 
instance, 30% for non -ASEAN investors (Table  4.29). Autonomous liberalization of the tourism 
sector includes theme parks; convention and exhibition centres; travel agencies and tour operators' 
services (inbound travel only); hotel and restaurant services for 4 - and 5 -star hotels only; and food 
and beverage serving services for consumption on the premises for 4 - and 5 -star hotels only.  
 
Question 36  
Does Malaysia intend to review its foreign shareholders' equity cap in tourism to improve access and 
a level playing field for foreign service providers and invest ors? 
 
Answer : As the COVID -19 outbreak has had a substantial negative impact on Malaysia's tourism 
industry, the current focus is on its stabilisation and recovery. Thus, the issue regarding foreign 
shareholder's equity review is not looked into at this ju ncture.  
 
Report by the Government (WT/TPR/G/436)  
Report by the Government  
3.2.2 – National Policy on Good Regulatory Practice  
Page 17, paragraphs 3.11 and 3.12  
The report highlights Malaysia's Unified Public Consultation Portal (UPC) launched by the Malaysia 
Productivity Corporation in collaboration with the World Bank in 2019, with the main objectives of 
facilitating consultation with stakeholders, and complying with standards on good regulatory 
practice.  
 
Question 37  
Does the UPC accept feedback fro m international stakeholders? Are figures available on the number 
of registered users located outside Malaysia, and the proportion of UPC comments from outside 
Malaysia? Does the UPC include regulatory changes which may be notifiable to the WTO, such as 
under the SPS or TBT  Agreement s?  
 
Answer :  
a) UPC portal is developed by the Malaysia Productivity Corporation (MPC) as one of the methods 
to obtain inputs from their stakeholders in the process of developing regulations including 
those related to SPS and T BT. It provides the stakeholders easy access to regulatory 
consultations through a single portal which ensure the engagement is uniform, effective and 
efficient.  
b) to improve the network security aspect following the increase in the utilization and depend ency 
of the public on digital services by introducing provisions on network security including the 
issuance of a written notice to any relevant person for purposes of preventing, detecting, 
countering, mitigating or remediating any network security risk.  
 
Report by the Government  
4.3.2 – Malaysia Plastics Sustainability Roadmap  
Page 27, paragraph 4.19 -4.22 
The report highlights the significant contribution of the plastic industry to Malaysia's economy, 
including through trade and notes the 2021 launch of Malaysia's Plastics Sustainability Roadmap 
2021-2030 which has a vision to transform the plastic value chain to include more sustainable 
practices and adopting circular economy principles throughout the lifecycle.  
 
Question 38  
Given the dual importance of the plastics industry to Malaysia's economy and its commitment to 
industry -transformation, is Malaysia considering participating in the WTO's Dialogue on Plastic 
Pollution which includes other major plastic producers and is looking to identify ways that tr ade can 
support a reduction in harmful and unnecessary plastic pollution?  
 
Answer : Malaysia has actively participated in and supported international engagement on plastic 
pollution. As a member of WTO and recognising the two -pronged role of trade in suppor ting plastic WT/TPR/M/436/Add.1  
 
- 19 - 
 
industry's growth while reducing plastic pollution, Malaysia views that plastic producers must be 
responsible, committed, actively participating and offering solutions in tackling plastic pollution 
through the plastic value chain, including tr ade.  
 
Malaysia will assess its readiness to join the WTO's Dialogue on Plastic Pollution after a thorough 
assessment is done on its implementation, including review of relevant domestic regulations, as well 
as undertaking further consultation with local i ndustry players.  
  WT/TPR/M/436/Add.1  
 
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BRAZIL  
3. TRADE POLICIES AND PRACTICES BY MEASURES: IMPORT PROHIBITIONS, 
RESTRICTIONS AND LICESING (3.1.5)  
Page 50 (Para 3.35)  
The RMCD administers import controls, while other government ministries and agencies are 
responsible for legis lation and approval of licences. The importation of certain goods is prohibited or 
restricted for reasons of sanitary and phytosanitary (SPS), health, safety, religion, environmental 
purposes, or Malaysia's compliance with international agreements.  
Questio n: 
- Malaysia has historically failed to answer Brazilian requests for import licensing for different 
agriculture products, such as fruits and vegetables, due to the alleged phytosanitary risk associated 
to rubber trees (Hevea brasiliensis). Considering th e continental dimensions of Brazil and the limited 
area where rubber trees are found, could Malaysia explain in which terms these risk analyses comply 
with Article  6 of the SPS  Agreement , regarding the principle of regionalization?  
 
Answer:  Currently, DOA Malaysia has allowed several commodities from Brazil based on pest risk 
assessment as requested by MAPA Brazil.  
 
Hence, it is evident that Malaysia does not contradict the provisions un der Article  6 of the 
SPS Agreement  regarding the principle of regionalization.  
 
However, Malaysia shall maintain its protection measures against SALB disease of rubber coming 
from SALB endemic countries as per current domestic regulation and regional commi tment stipulated 
under the APPPC agreement.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE: SANITARY AND PHYTHOSANITARY 
REQUIREMENTS (3.3.3)  
Page 63 (Para 3.79)  
The responsibility for enforcement of SPS -related legislation primarily rests with the Ministry of  
Agriculture and Food Industries (MAFI) through the Department of Fisheries (fish and fish products), 
the Department of Veterinary Services (animals and animal products), and the DOA (plants, plant 
products, and regulated articles) regarding various SPS is sues. The Ministry of Health (MOH), 
through its Food Safety and Quality Division, is responsible for food safety matters. At the entry 
points, the MAQIS is a one -stop institution providing integrated services with respect to quarantine 
and certification of  imports and exports, whether animals, carcasses, fish, agricultural produce, 
plants, soils, or microorganisms. MAQIS also inspects and enforces regulations that cover food and 
related matters.  
 
Questions:  
- In June 2022, Malaysia's government announced the end of a system of allocation of quotas and 
import permits to establishments processing poultry meat in the country. Until then, exporters where 
not allowed to sell directly to the domestic market, in par ticular whole poultry. Could Malaysia 
indicate if this abolition of this quota system is permanent or could it be reinstated at any time?  
 
Answer:  On 18  May 2022, Malaysia announced there is no allocation of import quota of poultry meat 
for processing purp oses and it is allowed to sell directly into the domestic market. However, the 
importation of poultry meat is still subjected to an import permit (IP) by MAQIS.  
 
Under the current policy, the import quota system was abolished to address the insufficient s upply 
of selected agriculture commodities. Malaysia would review this measure based on the domestic 
supply level and its impacts to the domestic producers.  
 
- In 2022, some shipments of Brazilian meat have been denied entry in a Malaysian port due to 
requirements not included in the international sanitary certificates negotiated and established 
between the Brazilian Ministry of Agriculture and Livestock (MAPA) and the Department of Veterinary 
Services (DVS) of Malaysia. Since those requirements came from o ther Malaysian government body 
(MoH), could Malaysia point out who is the focal and enquiry point(s) for negotiating each sanitary 
and phytosanitary certificate?  
 
Answer:  DVS Malaysia would like to have clarification on what kind of issues have been facing  by 
Brazilian meat pertaining to denied entry into Malaysia. The focal point for SPS matters is the Ministry WT/TPR/M/436/Add.1  
 
- 21 - 
 
of Agriculture and Food Security (MAFS) and both DVS and MOH are enquiry points on SPS 
certification . 
 
- Brazil has requested information and propo sed preliminary terms for sanitary and phytosanitary 
certificates for different products, including live sheep and goat, pork, thermoprocessed poultry and 
bovine products, guaraná, apple and melon, and is experiencing undue delay in Malaysian responses. 
Could Malaysia explain the reasons for such backlog?  
 
Answer:  DOA and DVS acknowledged that the application by MAPA has been received. The 
application of the listed products is currently being reviewed by both DOA and DVS and will require 
MAPA to complete qu estionnaires on Country Risk/ Pest Risk Analysis. DOA and DVS will 
communicate bilaterally with MAPA on this matter.  
 
Malaysia would like to reiterate that Malaysia has provided all required responses by Brazil through 
Embassy of Brazil in Kuala Lumpur in a timely manner.  
 
Page 63 (Para 3.81)  
Requirements pertaining to halal products are specified under Section  29 of the Trade Description 
Act 2011 (Act 730), the Halal Food - Production, Preparation, Handling and Storage - General 
Guidelines (MS 1500:2009), and the Malaysian Protocol for the Halal Meat and Poultry Production.  
 
Question:  
- The Department of Islamic Development Malaysia (JAKIM), the agency responsible for the Islamic 
affairs, including halal certification in Malaysia, has prepared a  new General Guideline for Halal Food, 
which will be a substitute for Trade Description Act 2011 (Act 730), the Halal Food - Production, 
Preparation, Handling and Storage - General Guidelines (MS 1500:2009). Could Malaysia inform 
when the new protocol shou ld be enact and if there is the intention to open the new legislation for 
comments from third parties?  
 
Answer:  The Halal food - General requirements (Third revision) MS1500:2019 has been published 
by the Department of Standard Malaysia (DSM) as a referen ce document for a certification of food 
products. The document has been made open for public comments prior to its enforcement on 
1 January 2021 . However the previous MS1500:2009 (the Halal Food - Production, Preparation, 
Handling and Storage - General Gui delines) is still in force and applicable for slaughtering house 
schemes until a specific Malaysian Standard related to a slaughtering scheme is available and 
enforced. The MS1500:2019 does not substitute the Trade Description Act 2011 (Act 730).   
 
PART I I: QUESTIONS REGARDING THE GOVERNMENT REPORT 5.2. SECTORAL POLICY: 
AGRICULTURE SECTOR  
Page 32 (Para 5.2.3 - National Agrofood Policy 2021 -2030)  
5.20. The National Agrofood Policy 2021 -2030 (NAP 2.0) is a continuity of Malaysia's food security 
and agrofood sector transformation agenda in the decade of 2021 -2030. The formulation of the 
NAP 2.0 considers current challenges including global climate change, resource scarcity, 
populationgrowth, labour force competency as well as the need for food system transform ation and 
national socio -economic development. The policy supports the aspirations of the agrofood sector to 
be more sustainable, resilient and technology -driven to propel economic growth while prioritizing 
national food security and nutrition. 5.21. The N AP 2.0 framework incorporates economic, social, 
and environmental elements as key principles with an emphasis on modernization and smart 
agriculture, strengthening market and product access, human capital development, food system 
sustainability, as well as  creating conducive business ecosystems and governance. To increase the 
nation's food security and income of the food producers, 18 strategies and 58 action plans are being 
implemented across four subsectors of the agrofood sector comprising paddy and rice , fruits and 
vegetables, livestock, as well as fisheries and aquaculture.  
 
Question:  
- The NAP 2.0 stresses the objective of Malaysia of reaching self -sufficiency or a certain level of 
self-sufficiency in almost all agriculture sectors, based on food security justifications. Could Malaysia 
please present which support mechanisms are being used to promote self -sufficiency across different 
sectors? Could Malaysia ensure the compatibility of possible disincentives to imports with the 
principles of nationa l treatment and most favorable nation?  
 WT/TPR/M/436/Add.1  
 
- 22 - 
 
Answer:  As a support mechanism to reach self -sufficiency level for targeted sub sectors, MAFS 
continuously providing funding support as well as enhancing financial services for food producers. 
The action plans includ e designing and establishing insurance scheme for food producers against 
natural disasters; increasing funding that support sustainable or technology driven farming; and 
facilitating financial credibility and improving private funding through digitalizatio n of credit rating 
of food producers. Malaysia as a free -trading nation and WTO member does not discriminate between 
nations on importations of agricultural products. In fact, Malaysia has abolished the Approved Permit 
(AP) (except for rice) which refers t o the approval of import quotas and import permission for 
selective agrofood commodities. However, importers are still required to have an import permit (IP) 
for biosecurity control purposes at entry point of the country to ensure that the imported product s 
are free of diseases and pests. The IP requirements are as in the acts and regulations in force with 
the technical assessments of the respective competent authority. The importation of agrofood 
commodities is subjected to the requirements by importers ba sed on the demand of domestic 
consumption and industry needs.  
 
6.4. OTHER DOMESTIC POLICIES: DEVELOPMENT OF HALAL INDUSTRY Page 35 (Para 6.13 
6.17)  
Paragraph 6.13  
The global Halal landscape is rapidly changing, as rising demand has resulted in the entrance  of 
many new global players that offer Halal products and services. Hence, Malaysia's Halal industry 
development will be strengthened to produce competitive Halal industry players in capturing a bigger 
global Halal market share.  
 
Question:  
- The Halal Indu stry Master Plans (HIMP 1.0 and HIMP 2.0) highlight the project of Malaysia to 
become a global "halal hub", establishing halal certification and standards throughout different 
sectors with the support of different agencies, such as JAKIM and the Halal Deve lopment Corporation 
(HDC), that would become a reference in the international halal sector. Could Malaysia explain how 
it can be ensured that the development of halal standards could be implemented without creating 
unnecessary trade barriers that may not c omply with the TBT agreement provisions?  
 
Answer:   
1. Just like any other sector, without exception, Halal MS is still bound by the policy and 
procedures on Development of MS with the objectives:  
 
a) To ensure that MS developed are in line with established  best practices, in conformity with 
international and bilateral agreements and effective in serving all national stakeholders.   
b) To ensure that actions taken are consistent with the obligations as a member of the World Trade 
Organization (WTO) with rega rd to the Technical Barriers to Trade (TBT) Agreement.  
 
2. The normative references for this policy and procedures, among others are:  
 
a) ISO/IEC Guide 59 Code of good practice for standardization.  
b) Annex  3 to the WTO/TBT  Agreement -Code of Good Practice for the Preparation, Adoption and 
Application of Standards.  
c) ISO/IEC Guide 2 Standardization and related activities – General vocabulary.  
 
 
  WT/TPR/M/436/Add.1  
 
- 23 - 
 
BRUNEI DARUSSALAM  
GOVERNMENT REPORT  
 
Page 8  
2. ECONOMIC DEVELOPMENT  
2.3 Economic Development Plans  
2.3.2 Strengthening Infrastructure and Connectivity  
 
2.26. Malaysia aims to become a transport and logistics hub in the region by 2025. Appropriate 
initiatives will also be introduced to enhance the competitiveness of the transport and logistics 
sectors. T he adaptation of a multimodal cargo movement approach will be introduced to enhance 
logistics services capability and reduce the cost of distribution. In addition, a national warehouse 
regulation will be developed to ensure uniformity in warehouse developm ent. The orderly 
development of warehouses will open up opportunities for Malaysia to be ASEAN's distribution 
centre, particularly for goods purchased online and courier services.  
 
Question:  
1. Could Malaysia share more details on the appropriate incentive s planned to be introduced to 
enhance the competitiveness of the transport and logistics sectors.  
 
Answer : Currently, there is no new incentives specifically allocated for transport and logistics sectors.  
 
For available incentives, please refer to : 
Transport Technology: https://www.m ida.gov.my/industries/manufacturing/transport/   
Logistic Services:  https://www.mida.gov.my/industries/services/logistic -services/   
 
2.28. Priority will also be given to the cons truction of roads, connecting villages as well as linking 
villages with the nearest towns. Under the Eleventh Malaysia Plan, 3,000  km of paved roads were 
planned to be constructed. The linkage between rural and urban areas will be strengthened by 
improving  connectivity and mobility to foster greater economic integration. For instance, the 
Pan-Borneo Highway is expected to promote better connectivity for movement of people, goods and 
services in Sabah and Sarawak.  
 
Question:  
2. Could Malaysia share the progr ess of the Pan -Borneo Highway.  
 
Answer : The Pan Borneo Highway spans through the states of Sarawak and Sabah. Phase 1 of 
PBH Sarawak is currently at 91% completion and is expected to be fully completed by third quarter 
of 2023. While the Phase 1 of Sabah P an Borneo Highway is currently at 73% completion and 
expected to be fully completed by first quarter of 2025.  
  WT/TPR/M/436/Add.1  
 
- 24 - 
 
CANADA  
QUESTIONS REGARDING THE GOVERNMENT REPORT (WT/TPR/G/436) AND 
SECRETARIAT REPORT (WT/TPR/S/436)  
 
GOVERNMENT REPORT  
Page 19, Para 3.28:  
As noted in the report, Malaysia is implementing its SME Masterplan, which encompasses six High 
Impacts Programmes (HIPs).  
 
Questions:  
1. Can Malaysia share data on the proportion of SMEs owned by underrepresented groups such 
as women, Indigenous Peoples and persons with disabilities participating and benefitting and from 
the HIPs?  
 
Answer : HIPs implemented under the SME Masterplan have achi eved the aspiration of having an 
average of 30% women participation in the programmes. For instance, about 35% - 46% of 
participants under HIP 2, HIP 4 and HIP 6 were women -owned SMEs.  
 
2. Of the various HIPs, which have had the best engagement to date fro m SMEs owned by 
underrepresented groups such as women, Indigenous Peoples and persons with disabilities?  
 
Answer : HIP 6: Inclusive Innovation has the best engagement with underrepresented group as about 
half of the recipients that participated in this prog ramme were women -owned SMEs. Besides that, 
implementation of HIP 6 has benefitted all segments of society, particularly B40 community, 
indigenous peoples (Orang Asal), disabled persons, single mothers, pensioners, as well as business 
community particularly  in the rural areas. This is aligned with the aim of the programme to empower 
the bottom 40% of the income group to leverage on innovation, promote transformation of 
communities, including microenterprise in the rural areas through handholding as well as p rovision 
of technical, financial and management support.  
 
Page 23, paragraph 3.55:  
Canada notes that paragraph 3.55 reads: "Despite being an observer to the plurilateral Government 
Procurement Agreement (GPA) under the WTO, Malaysia has undertaken specifi c commitments on 
Government Procurement, under the CPTPP. Most of these commitments are identical to those in 
the GPA, while in some areas, it goes beyond the GPA. This includes dedicated measures by the 
Parties to ensure effective participation by SMEs in  government procurement activities. " 
 
Canada also notes that the Secretariat Report states in paragraph 1.106: "Malaysia has been an 
observer to the WTO Committee on Government Procurement since 2012. However, no move to 
initiate negotiations to join the W TO GPA has been taken nor does one appear to be forthcoming. " 
 
Question:  
3. In light of the statement in the Government Report in paragraph 3.55 that Malaysia has 
undertaken commitments in the CPTPP that are similar to the GPA, has Malaysia given considera tion 
to initiating accession to the GPA?  
 
Answer : Malaysia will assess its readiness to join the WTO GPA as a member after a thorough 
assessment including impact study on CPTPP 's implementation as well as other Free Trade 
Agreements (FTAs) that Malaysia is a Party to such as Regional Comprehensive Econo mic Partnership 
(RCEP).  
 
Page 28, paragraphs 4.23 – 4.25:   
Canada takes note of the National Mineral Industry Transformation Plan 2021 -2030 described in the 
report.  
 
Questions:  
4. In relation to this plan, how has Malaysia revised its policies or regulati ons regarding 
investments from foreign investors in various areas of the mineral supply chain (i.e. extraction; 
exploration/ prospecting; transformation)?  
 WT/TPR/M/436/Add.1  
 
- 25 - 
 
Answer : Presently there is no specific policy or regulation regarding investments from foreign 
investors, with respect to mineral exploration/ prospecting and mining.  
 
5. Malaysia is part of the Basel Convention on the Control of Transboundary Movements of 
Hazardous Wastes and their Disposal. Canada exported close to 150  M$ in non -ferrous me tal 
scrap  including copper, zinc and aluminium. Will the National Mineral Industry Transformation 
Plan 2021-2030 include provisions on circular economy, recycling and re -purposing? What is 
Malaysia 's approach on this issue?  
 
Answer : The National Mineral In dustry Transformation Plan 2021 - 2030 incorporates the concept of 
circular economy in the whole supply chain of mineral industry to optimise the consumption of 
mineral resources in the country. In addition to that, another action plan is for Malaysia to p romote 
and encourage industial players to develop urban mining concept, particularly in re -using minerals 
that are sourced from wastes/ industrial wastes.  
 
SECRETARIAT REPORT  
3 TRADE POLICIES AND PRACTICES BY MEASURES  
Page 60, para . 3.67:  
As noted in the report, Malaysia introduced the Smart Automation Grant initiative, which provides 
allocations to support SMEs and enhance their competitiveness.  
 
Question:  
6. Can Malaysia share further details on the proportion of SMEs owned by underrepresented 
groups suc h as women, Indigenous Peoples and persons with disabilities benefitting from these 
initiatives?  
 
Answer : There are 67,552 entrepreneurs that have participated in various entrepreneurship 
programmes under the Ministry of Rural and Regional Development. Fro m this, 413 are Indigenous 
people (Orang Asal). Most of the assistance provided for them is in the form of grant, including 
training, tools, appliances and premises.  
 
Page  65, paragraph  3.93:  
It is noted that Malaysia has a large number of government -linked corporations (GLCs), 
i.e. enterprises with a primary commercial objective, that are owned through seven government -
linked investment corporations (GLICs).  
 
Questions:  
7. Does the federal government of Malaysia have an official list of federal GLCs, along with their 
sectors, mandates and/or assets?  
 
Answer : The Minister of Finance through The Minister of Finance (Incorporated) has a list of 
companies formed to serve specifi c social mandate.  
 
8. Are there GLCs and GLICs at the sub -federal level (e.g., the individual states)?  
 
Answer : At sub -central level, State Government can also establish its own GLC, for example the 
Selangor Agricultural Development Corporation.  
 
9. If yes, in which sectors are these sub -federal GLCs and GLICs present? Could Malaysia please 
provide some examples of specific sub -federal entities?  
 
Answer : Malaysian GLCs  are present in utilities, banking and finance, and telecommunications.  
 
Page 66, para . 3.99:  
As noted in the report, Malaysia promotes Indigenous entrepreneurs through its procurement policy 
(Bumiputera suppliers).  
 
Questions:  
10. Does Malaysia procuremen t policy also include programs specific to SMEs owned by 
underrepresented groups such as women and persons with disabilities?  
 WT/TPR/M/436/Add.1  
 
- 26 - 
 
Answer : Malaysia does not have any specific programs for SMEs owned by underrepresented groups. 
Nevertheless, Malaysia 's policy r ecognises the important contribution of SMEs toward economic 
growth and employment opportunities which is stated under current Central Contract policies 
whereby some items are procured from persons with disabilities.  
 
11. Does Malaysia collect disaggregate d data on the proportion of SMEs owned by 
underrepresented groups such as women, Indigenous Peoples and persons with disabilities who win 
government procurement bids?  
 
Answer : Due to Malaysia 's decentralized structure of government procurement, there is no  
centralized data available on SMEs owned by underrepresented groups that win government 
procurement bids.  
 
12. How does Malaysia promote and enhance visibility and awareness of procurement 
opportunities available to SMEs?  
 
Answer : Malaysia has various ini tiatives and policies in place to promote and enhance visibility and 
awareness of procurement opportunities available to SMEs. In the National Entrepreneurship 
Policy  2030, under Strategic Thrust 5: Strengthening Entrepreneurial Capabilities and Performanc e 
of Micro, Small and Medium Enterprises, government procurement platforms will encourage SMEs 
to build capacity and capability to scale up their businesses and enter the international markets. This 
includes strengthening the implementation of the Vendors ' Development Programme (VDP) as well 
as providing targeted support for market access especially for Bumiputera MSMEs through leveraging 
on government procurement to prioritise local product and services.  
 
Promotion and awareness of procurement opportunities are undertaken by the relevant government 
agencies such as the Ministry of Finance (MOF) and Ministry of Entrepreneur and Cooperatives 
Development (MECD) through notifications in its websites on opportunities available and various 
outreach pr ogrammes  
 
Page 68, paragraph 3.106:  
The Secretariat Report notes: "An assessment is to be carried out on the implementation of 
government procurement chapter obligations under other international agreements involving market 
access offers. " 
 
Question:  
13. Could Malaysia please elaborate on the purpose of and timelines for the assessment?  
 
Answer : The purpose of the assessment on the implementation of government procurement chapter 
obligations under other international agreements is to obtain a better underst anding on the impact 
of these obligations on socio -economic development as well as to obtain insights on what Malaysia 
stands to gain from participating in relevant FTAs.  
 
Page 70, paragraph 3.110:  
The report notes that breaches of confidence as regards tr ade secrets are generally actionable in 
courts provided certain criteria are met, including in the event of unauthorized use or further 
disclosure taking place or should it be anticipated.  
 
Question:  
14. Can Malaysia provide examples of court cases regard ing anticipated breaches of confidence in 
respect of trade secrets?  
 
Answer : Trade secret cases is under purview of judicial body. Report of the cases could be found via 
commonlii.org/elaw.my/Lexisnexis.com.my  
 
Page 72, paragraph 3.116:  
The report notes th at under the Landlord Liability initiative, warning notices are issued to landlords 
and building management to ensure that their premises are not used as sales and distribution 
centres for counterfeit and pirated goods (more than 400 notices were issued in  2022).  
 WT/TPR/M/436/Add.1  
 
- 27 - 
 
Question:  
15. Is Malaysia considering the development of any initiatives similar to the Landlord Liability 
initiative in respect of infringing goods online?  
 
Answer : The provisions in the Trademarks Act 2019 also cover infringement via the interne t.  
 
Various efforts and approaches have been executed to strengthen trademark protection and 
enforcement actions against online counterfeiting encompassing various e -commerce platforms such 
as Shopee, Lazada, Mudah, Zalora, Lelong, as well as through soci al media such as Facebook, 
Telegram, Twitter, Instagram, WhatsApp and others. The Ministry of Domestic Trade and Cost of 
Living (MDT) provides full cooperation to local and international trademark owners through 
integrated enforcement actions to fight agai nst counterfeiting and piracy in the country. MDT works 
closely with the platform owners to remove content related to counterfeit products sold online.  
 
In terms of copyright protection, the Ministry has introduced Cyber Copyright Enforcement (Cycore) 
Program which is a collaboration platform between MDT and strategic partners with copyright owners 
in combating the distribution of digital piracy in the internet medium.  
 
4 TRADE POLICIES BY SECTOR  
Page 77, table 4.2:  
Based on an analysis of the data from notifications used to create the table, Canada has observed a 
144% increase in financing to palm oil producers, from 12.8  million  MYR in 2017 to 31.3  million  
MYR in 2021, as well as in financing of "Small and Medium Size Industries " with an increase o f 
17 250% between 2017 and 2021, from 0.2  million  MYR in 2017 to 34.7  million  MYR in 2021.  
 
Questions:  
16. Could Malaysia explain the reasons behind the net increase in financing for both categories?  
 
Answer : More than 50% of the total funding was provide d to the development of the food industry 
and agriculture -related activities (i.e. the agriculture entrepreneur financing) during the review 
period, except in 2021. A special relief scheme for farmers severely affected by the COVID -19 
pandemic accounted fo r approximately 13% and 10% of the financing in 2020 and 2021, 
respectively.  
 
17. Could Malaysia define the criteria for SMEs to be eligible for funding under the "Fund for Small 
and Medium Size Industries "? 
 
Answer : Malaysian SMEs that fulfil the followin g criteria:  
• Registered with the Companies Commission of Malaysia (SSM), or authorities/district offices 
in Sabah and Sarawak, statutory bodies for professional service providers.  
• Shareholding by Public Listed Companies and Government Linked Companies ( if any) in the 
SMEs shall not exceed 20%.  
• Malaysians residing in Malaysia that hold a minimum of 51% shareholding in the business.  
  WT/TPR/M/436/Add.1  
 
- 28 - 
 
CHILE  
WT/TPR/S/436 – Informe de la Secretaría OMC  
2 Regímenes de Comercio e Inversión  
2.4 Régimen de inversión  
Párrafo 2.40, p. 40  
"En diciembre de 2020 se puso en funcionamiento el portal MalaysiaBiz, actualmente gestionado por 
la Agrupación de Pymes de Malasia, un organismo dependiente del Ministerio de Fomento de la 
Actividad Empresarial y las Cooperativas (MECD ). Este portal sirve de ventanilla única para el 
registro y la obtención de licencias de empresas, lo cual facilita los negocios y fomenta la creación 
de nuevas empresas. Hasta la fecha, se ha cargado en el portal información sobre casi 3.000 
requisitos en  materia de licencias o registro. Comprende los requisitos a nivel federal, estatal o local 
de seis organismos de registro y 518 autoridades expedidoras de licencias, que abarcan 
1.174  actividades económicas. De estos, seis organismos de registro y 66 auto ridades expedidoras 
de licencias se han integrado en el portal".   
 
Translation (Google): "The MalaysiaBiz  Portal was launched in December 2020 and is currently 
managed by SME Corporation Malaysia, an agency under the Ministry of Entrepreneur and 
Cooperative Development (MECD). This Portal acts as a one -stop centre for business registration 
and licensing to im prove ease of doing business and to encourage formation of new businesses. To 
date, information regarding nearly 3,000 licensing or registration requirements have been uploaded 
onto the Portal. Covering the requirements at federal, state, or local authorit y levels of 6 registration 
bodies and 518 licensing authorities encompasses 1,174 business activities. Among these, 
6 registration bodies and 66 licensing authorities have been integrated through the Portal. " 
 
Pregunta:  En el párrafo 2.40 se menciona el portal MalaysiaBiz, actualmente gestionado por la 
Agrupación de Pymes de Malasia. Al respecto, Chile agradecería a Malasia compartir más información 
sobre el portal, en particular respecto a las materias o tipos de licenc ias y autoridades de registro. 
Asimismo, Chile agradecería a Malasia indicar si este portal contempla procesos de comercio exterior.  
 
Translation (Google): para . 2.40 mentions the MalaysiaBiz portal, currently managed by the 
Malaysian SMEs Cluster. In thi s regard, Chile would appreciate Malaysia sharing more information 
on the portal, particularly regarding the subjects or types of licenses and registration authorities. 
Likewise, Chile would appreciate Malaysia indicating whether this portal contains forei gn trade 
processes.  
 
Answer:  The registration bodies that are currently integrated with MalaysiaBiz Portal, among others 
are the Companies Commission of Malaysia, Malaysia Co -operative Societies Commission, The Board 
of Quantity Surveyors Malaysia, The Boa rd of Engineers Malaysia and many others.  
 
The types of business registration that are available in the Portal are for:  
i. Sole Proprietorship;  
ii. Partnership;  
iii. Joint Venture;  
v. Cooperative; and  
vi. Professional service providers  
 
The types of busin ess licenses that are applicable through MalaysiaBiz Portal include:  
i. Business premise;  
ii. Manufacturing;  
iii. Retail;  
iv. Distributive Trade;  
v. Printing;  
vi. Liquor; and  
vii. Import & Export  
 
This Portal acts as a one -stop centre for business registra tion and licensing in Malaysia to encourage 
formation of new businesses. Therefore, the Portal does not include foreign trade processes.  
 WT/TPR/M/436/Add.1  
 
- 29 - 
 
WT/TPR/G/436 – Informe del Gobierno  
3 EVOLUCIÓN DE LA POLÍTICA COMERCIAL  
3.2 Iniciativas para . facilitar el comercio  
3.2.10 Marco de Acción para . el Emprendimiento Social 2030  
Párrafo 3.34, p. 23  
"El Marco de Acción para el Emprendimiento Social 2030 fija una nueva dirección nacional para el 
emprendimiento social en Malasia mediante la creación de un ecosistema amplio y propicio que 
apoye el crecimiento de las empresas sociales. En el Marco también se describen iniciativas para 
mejorar el conocimiento, divulgación e inculcación del concepto de un emprendimiento social 
competitivo y efectivo para mejorar los medio s de subsistencia de la sociedad"  
 
Translation (Google): "SEMy2030 provides a new national direction for the social entrepreneurship 
in Malaysia by developing a comprehensive and conducive ecosystem to support the growth of social 
enterprises. The framewor k also outlines initiatives for enhancing awareness, reach and inculcation 
of a social entrepreneurship concept that is competitive and impactful to improve the livelihood of 
society. " 
 
Pregunta : En el párrafo 3.30 se menciona la Acción para . el Emprendimiento Social 2030. Al 
respecto, Chile agradecería a Malasia indicar cuáles son las entidades gubernamentales que son 
parte de esta iniciativa y si se contemplan a las cooperativas dentro de los beneficiarios.  
 
Translation (Google): para . 3.30 ment ions the Action for Social Entrepreneurship 2030. In this 
regard, Chile would appreciate Malaysia indicating which government entities are part of this 
initiative and whether cooperatives are included among the beneficiaries.  
 
Answer:  SEMy2030 recognizes t he important role that cooperatives can play as a social enterprise. 
Cooperatives are also included as some of the beneficiaries of the initiatives under SEMy2030.  
 
Various government entities involved in this initiative are :  
a. National Institute of Ent repreneurship (INSKEN)  
b. Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank)  
c. Malaysia Co -operative Societies Commission (SKM)  
d. Co-operative Institute of Malaysia (IKMa)  
e. TEKUN Nasional  
f. SME Corporation Malaysia  
 
3.4 Acuerdos de li bre comercio  
Párrafo 3.43, p.24  
"Malasia sigue dando una gran prioridad a la apertura de los mercados y considera su activa 
participación en los acuerdos de libre comercio (ALC ) como un elemento básico para lograr una 
mayor liberalización multilateral del comercio. Hasta la fecha, Malasia ha aplicado en total 15 ALC, 
que comprenden 7 ALC bilaterales con Australia, Chile, la India, el Japón, el Pakistán, Nueva Zelandia 
y Türkiye;  y 8 ALC regionales, que son la Zona de Libre Comercio de la ASEAN (AFTA), la Asociación 
Económica Amplia Regional, y los ALC de la ASEAN con China, Australia y Nueva Zelandia, la India, 
el Japón, la República de Corea y Hong Kong, China".  
 
Translation (G oogle):  Page 24, para . 3.43 "Malaysia continues to place high priority on market 
opening and considers its active engagement in free trade agreements (FTAs) as building blocks for 
wider multilateral trade liberalization. To date, Malaysia has implemented a  total of 15 FTAs which 
comprises seven bilateral FTAs with Australia, Chile, India, Japan, Pakistan, New  Zealand  and 
Türkiye; and eight regional FTAs, which are the ASEAN Free Trade Area (AFTA), Regional 
Comprehensive Economic Partnership Agreement, as we ll as ASEAN 's FTAs with China, Australia and 
New Zealand , India, Japan, Republic of Korea and Hong Kong, China " 
 
Question : Paragraph 3.43 highlights Malaysia 's participation in regional and bilateral FTAs. 
Regarding these Agreements, Chile would appreciate  if Malaysia could share information of the 
process through which they are incorporated to its national legislation.  
 
Answer : Malaysia 's legal system requires any new laws/ regulations to be tabled and approved by 
the Parliament, including in instances whereby national laws are amended to bring these in line with 
international treaty obligations.  
 WT/TPR/M/436/Add.1  
 
- 30 - 
 
Question : In addition, Chile would appreciate if Malaysia could share information regarding the 
process of incorporation of the decisions made by the  Administrative Bodies of these Agreements, 
to Malaysia´s national legislation.  
 
Answer:  This also extends to decisions made by the Administrative Bodies that are added and 
subsequently, form part of the amendments to existing laws. However, in the case of  Malaysia 's 
participation in international treaties and conventions, including the CPTPP, Federal Constitution 
provides exclusive rights for the Executive, i.e. Cabinet to decide.  
 
6 OTRAS POLÍTICAS INTERNAS  
6.10 Empoderamiento de las mujeres y los jóvene s 
Párrafo 6.30, p. 40  
"Malasia obtuvo un 63,9% en el subíndice sobre participación y oportunidades económicas del 
Informe mundial sobre la brecha de género de 2021, porcentaje superior al promedio mundial, 
situado en un 58%. Además, el Gobierno está resuel to a seguir garantizando la participación de las 
mujeres en la planificación y el desarrollo del país, para lo cual ha incorporado un capítulo específico 
sobre el empoderamiento de las mujeres en el 12º Plan de Malasia y el presupuesto de 2022. Su 
objetivo  fundamental es reducir al mínimo la desigualdad de género y establecer un ecosistema 
favorable para las mujeres, que fije una cuota para mujeres en los puestos de responsabilidad, 
mecanismos de crédito para las mujeres empresarias y servicios de apoyo, co mo programas de 
creación de capacidad, servicios de atención infantil y un plan de seguridad social".  
 
Translation (Google): "Malaysia 's 2021 Global Gender Gap score for Economic Participation and 
Opportunity sub -index is 63.9% which is above the global average of 58%. Further to that, the 
Government is committed to continue ensuring the participation of women in the country 's planning 
and development by incorporating specific chapter for women empowerment in the Twelfth Malaysia 
Plan and 2022 Budg et. Its ultimate goal is to minimize the gender gap and establish a conducive 
ecosystem for women which includes a quota for women in the decision -making positions, credit 
facilities for women entrepreneurs and support services such as capacity building pr ograms, child 
care services and social security scheme. " 
 
Pregunta : En el párrafo 6.30 se mencionan  algunas de las medidas que Malasia ha tomado 
para. reducir lo más posible las brechas de género. Al respecto, Chile agradecería a Malasia indicar 
cual es el  ámbito de aplicación de la " cuota para mujeres en los puestos de responsabilidad " que 
menciona el párrafo. Junto con ello, Chile agradecería a Malasia compartir más información sobre 
los "mecanismos de crédito para . las mujeres empresarias y servicios de apoyo, como programas 
de creación de capacidad ". Respecto a estos programas, agradeceríamos también compartir 
información sobre el proceso de implementación y sus resultados  
 
Translation (Google):  Para 6.30 mentions some of the steps Malaysia has taken to reduce the gender 
gap as much as possible. In this regard, Chile would be grateful to Malaysia for indicating the scope 
of application of the "quota for women in positions of responsibility " mentioned in the para.  Along 
with that, Chile would appreciate Malaysia sharing more information on "credit mechanisms for 
women entrepreneurs and support services, such as capacity building programs ". Regarding these 
programs, we would also appreciate information on the implementation process and its resul ts 
 
Answer:  To enable an environment that promotes equitable access to high -quality jobs and top 
leadership positions to all talent, regardless of gender and socioeconomic background, Malaysia has 
a policy of 30% target of women in the decision -making positions in pu blic sector, as well as in 
corporate sector (the percentage of female participation in the board of directors of the top 
100 publicly listed companies).  
 
Regarding credit mechanisms, Malaysia offers various schemes for women entrepreneurs such as 
group fin ancing and one -off business capital assistance to encourage women to do business. To 
further equip women with conducive support in doing business, there are opportunities to attend 
structured training focusing in leadership, financial management, legal and  counselling. Other than 
that, business matching for business development, and technical assistance on the changing 
business landscapes.  
  WT/TPR/M/436/Add.1  
 
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CHINA  
PART I: QUESTIONS REGARDING THE Secretariat Report   
Page 18, Para 1.7  
During the review period, the objective of monetary policy remained to maintain price stability while 
giving due regard to the developments in the economy from the de jure independent central bank 
of Malaysia (Bank Negara Malaysia (BNM)), which uses an overnight policy rate (OPR) as it s main 
policy instrument; BNM does not set a specific inflation target. According to the IMF, monetary policy 
decisions continued to be data -driven and guided by the evolving balance of risks surrounding the 
outlook for domestic growth and inflation. Durin g the review period, the BNM continued its 
accommodative monetary policy stance to inter alia respond to the pandemic, with its OPR gradually 
reduced from 3.25% (January 2018) to 3% (May 2019), 2.75% (January 2020), 2.5% (March 2020), 
2% (May 2020), and 1. 75% (July 2020), until it was raised to 2% in May 2022 and subsequently to 
2.25% in July 2022. According to the IMF, the current accommodative monetary policy stance 
remains appropriate and Malaysia is well prepared to face a gradual increase in global int erest rates 
although a sharp tightening of global financial conditions and risk -off investor behaviour could lead 
to surges in capital outflows.  
Question:  
⚫ What are the main reasons for Bank Negara Malaysia not setting a specific inflation target?  
 
Answer : In promoting monetary stability, Bank Negara Malaysia is mandated to pursue a monetary 
policy which serves the interests of the country with the primary objective of maintaining price 
stability while giving due regard to the developments in the eco nomy.  
Adopting an explicit inflation target is not well -suited to our domestic conditions. The aim is to ensure 
that inflation is low in Malaysia and the inflation expectations are well anchored. This is to promote 
monetary stability that is conducive to t he sustainable growth of the Malaysian economy.  
 
Page 38, Para 2.40  
The MalaysiaBiz Portal was launched in December 2020 and is currently managed by SME 
Corporation Malaysia, an agency under the Ministry of Entrepreneur and Cooperative Development 
(MECD). This Portal acts as a one -stop centre for business registration and licensing to improve ease 
of doing business and to encourage formation of new businesses. To date, information regarding 
nearly 3,000 licensing or registration requirements have been uploa ded onto the Portal. Covering 
the requirements at federal, state, or local authority levels of 6 registration bodies and 518 licensing 
authorities encompasses 1,174 business activities. Among these, 6 registration bodies and 
66 licensing authorities have b een integrated through the Portal.  
Question:  
⚫ Can a foreign natural person or company apply to register a company in Malaysia online 
through the MalaysiaBiz portal?  
 
Answer : Yes, a foreign company can benefit from the services offered in MalaysiaBiz Port al namely 
application for business registration and licensing as well as business licensing renewal. Users can 
access MalaysiaBiz Portal services by following these five (5) simple steps:  
 
1. Register a user ID;  
2. Search for registration and/or business licensing;  
3. Apply for registration and/or business licensing;  
4. Check the status of the application; and  
5. Get approval.  
 
Page 46, Para 3.19  
Significant nomenclature differences render impossible a full comparison between the bound 
Schedule XXXIX (in HS02) and the 2022 applied tariff (in HS17). Approximately 20% of the tariff 
lines could not be compared. Although almost all applied MFN rates are lower than their bound rates, 
some 11 tariff lines appear to be exceeding their bound lev els. The authorities acknowledged that 
these errors should be corrected.  
Question:  
⚫ Can Malaysia provide us with an update on the correction of the above errors?  
 
Answer : The correction will be made respectively after consultation with the relevant Minist ries. 
 WT/TPR/M/436/Add.1  
 
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PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 14, Para 2.69  
Under the National Economic Recovery Plan (PENJANA) stimulus package, tourism tax has been fully 
exempted from 1  July 2020 to 30  June 2021 to help revive the tourism sector affected by the 
COVID -19 pandemic. The tourism tax exemption has been further extended until 
31 December  2022.  
Question s: 
⚫ How effective is the tourism tax exemption in reviving the tourism sector affected by the 
COVID -19 pandemic? Does Malaysia plan to f urther extend the tourism tax exemption or abolish the 
tourism tax altogether in the future?  
 
Answer : In line with the post -COVID -19 economic recovery, tourism tax has been re -introduced on 
foreign tourists effective 1  January  2023.  
 
Page 15, Para 2.78  
Act 446 also seeks to improve the Guidelines for Foreign Workers Accommodation 2018, which 
covers the minimum standard for accommodation space, basic facilities for workers' accommodation 
and elements of security and hygiene. The enforcement of the Act, inclu ding the new regulations 
governing housing and workers facilities was aimed at preventing the spread of the COVID -19 
pandemic in accordance with Recommendation 115 (Workers Housing Recommendation, 1961) by 
the ILO.  
Question:  
⚫ Are the Guidelines for Forei gn Workers Accommodation 2018 merely a recommendation or 
suggestion? What are the monitoring and penalty mechanisms for violations of the Guidelines?  
 
Answer : The Guidelines for Foreign Workers Accommodation (2018) which was introduced in 2018 
has been revoked since the amendment of the Employees' Minimum Standards of Housing, 
Accommodations and Amenities Act 1990 (Act 446) came into effect on 1st  June 2020. The Act 446 
aims to protect the rights and welfare of the workers pertaining to the accommodation  in which the 
employers are required to provide a more systematic and conducive workers' accommodation based 
on the standards in the Act that are in line with the international standards.  
 
The employers and centralized accommodation providers must ensure that health examination 
expenses for their employees are also under the responsibility of the employer. Furthermore, the 
employers have to quarantine the employees as directed by the health officer and disinfect the 
common areas regularly. The employers mu st take measures to prevent and control infectious 
diseases such as COVID -19 and refer to the Health Medical Officer if there are symptoms of infectious 
diseases at the housing and accommodation areas.  
 
Failure to comply with Act 446 may result in employer s or provider to be fined MYR 50,000 for each 
offence.  
 
Page 17, Para 3.15 -3.16 
The Malaysia External Trade Development Corporation (MATRADE ) actively assists foreign 
companies that are keen to source products and services from Malaysia. As a trade promotion 
organization, MATRADE also engages in Joint Promotion Activities with other TPOs to help promote 
and strengthen economic partnership, suc h as with the Japan External Trade Organization (JETRO), 
Asian Trade Promotion Forum (ATPF), ASEAN -Japan Centre (AJC) and ASEAN -Korea Centre (AKC).  
 
The Export Coordination Committee (JK -X) was established in 2018. The JK -X is supported by 
10 Sectoral Tas k Force (STF), led by MATRADE to assist relevant Ministries and Agencies to 
coordinate export promotion activities. The 10 sectors involved are:  
Question s: 
⚫ How can foreign companies sourcing products and services from Malaysia obtain assistance 
from the  Malaysia External Trade Development Corporation (MATRADE) and the Export Coordination 
Committee (JK -X)? 
 
Answer : Foreign companies sourcing products and services from Malaysia may reach out to 
MATRADE through www. matrade.gov.my .  
 
MATRADE's  offices are located in 46 cities around the world, where our Trade Commissioners actively 
reach out to foreign buyers to connect with Malaysian suppliers.  WT/TPR/M/436/Add.1  
 
- 33 - 
 
Page 25, Para 4.4 -4.5 
Malaysia has a robust regulatory framework such as the Control of Drugs and Co smetics Regulations 
(CDCR) 1984, which enables the conditional fast track registration for pharmaceutical products 
during disasters to provide expedited access to pharmaceutical products for treatment or prevention 
of disease. The same regulation was also applied for implementing fast track evaluation for Clinical 
Trial Import License (CTIL) evaluation of investigational products during pandemic situations starting 
28 August  2020 without compromising the quality of assessment and adherence to international 
regulatory requirements.  
 
The Medical Device Authority (MDA) under the Ministry of Health exempted the registration 
requirements and approval were given to these essential medical devices through special access and 
conditional approval. This provision min imized the disruption of treatments and ensured the 
availability and timely access to medical device in healthcare facilities.  
Question s: 
⚫ How long will the conditional fast track registration for pharmaceutical products and the 
exemption from registrati on requirements for essential medical devices last?  
 
Answer : All medical devices to be imported into Malaysia shall be registered under Section  5 of the 
Medical Device Act 2012 (Act 737) and additional information can be obtained in the link below:  
https://www.mda.gov.my/announcement/885 -registration -of-COVID -19-ivd-test-kits.html   
 
The conditional registration of pharmaceutical products (including vaccines) will be used during 
disaster and not limited to COVID -19 pandemic only. Details on the requirement of the conditional 
registration can be referred to the link below:  
https://www.npra.gov.my/easyarticles/images/users/1047/Lampiran -A-Guidance -and-
Requirements -on-Conditional -Registration -of-Pharmaceutical -Produ cts-During -Disaster -June-
2022.pdf   
 
Page 27, Para 4.18  
The MSPO Trace is established to track and trace MSPO certification, from plant to the supply chain. 
The MSPO Trace comprises four modules: Certification; Logo; Complaints and Grievance; and 
Traceabili ty. The MSPO Trace platform was also set up to monitor the certification and traceability, 
which provides assurance on the sustainability of Malaysian palm oil.  
Question s: 
⚫ How does the Complaints and Grievances module of the MSPO Trace work? How do 
international consumers initiate complaints and grievances?  
 
Answer : To file a complaint or grievances, consumers can log in into MSPO Trace website under 
'Complaints & Grievances' tab. The complaint reported will be reviewed, investigated and presented 
to Dis pute Resolution Committee (DRC). Details can be obtained in the following website:  
https://mspotrace.org.my/Complaints_home  
 
PART III: OTHER QUESTIONS  
Question: Please introduce Malaysia's policy on combating the illicit trade in cigarettes.  
 
Answer : Malaysia takes seriously the issue of illicit trade in cigarettes and the safety of cigarettes 
sold in the domestic market because it can affect the intellectual property rights of trademark own ers 
and can result in huge losses. MDT is responsible in regulating fair trade and taking concrete action 
to protect intellectual property rights under the Trademarks Act 2019 and Copyright Act 1987 to 
reduce illicit trade.  
 
Possible offences related to c igarettes are:  
 
a) Not displaying price tag;  
b) Not affixing the appropriate designation of the goods, quantity, and manufacturer's address 
on the cigarette packaging;  
c) Selling and distributing cigarettes using false trade descriptions such as the manuf acturer's 
address and false contents of the cigarettes; and  
d) Selling and distributing counterfeit cigarettes without the permission of the trademark owners.  
 
The above offences will be investigated in accordance to the provisions of the law regulated by  the 
Ministry as follows:  WT/TPR/M/436/Add.1  
 
- 34 - 
 
a) Paragraph 3(1) of the Price Control (Price Marking by Retailers) Order 1993;  
b) Paragraph 3(1) of the Price Control (Labeling by Manufacturers, Importers, Manufacturers and 
Wholesalers) Order 1980;  
c) Section  99 – 102 of the Tr ademarks Act 2019; and  
d) Section  5 of the Trade Descriptions Act 2011.  
 
Question: Please introduce Malaysia's regulatory, trade and tax policies on new tobacco products 
such as e -cigarettes.  
 
Answer : In Malaysia, manufacturing activities of electronic cigarettes (e -cigarettes) and electronic 
vaping devices without nicotine are allowed provided the activities are located in the Licensed 
Manufacturing Warehouse (LMW), and these activities shall be in line with the National Investment 
Aspiration s. 
 
E-cigarettes are not governed under the Control of Tobacco Product Regulations 2004. However, 
any preparation, solution, compound, or mixture of substances containing nicotine including 
e-cigarettes is currently controlled under the Poison Act 1952. Un der Section  22 of the Poison 
Act 1952, substances containing nicotine are prohibited from being sold or supplied by retail to any 
person except registered pharmacy and medical practitioner for quit smoking treatment. Besides, 
the distribution and supply of  any preparation containing nicotine requires registration and approval 
as a medicinal product from the Drug Control Authority, as specified under the Control of Drugs and 
Cosmetics Regulations 1984 and the Sale of Drugs Act 1952.  
 
Furthermore, Section  8 of the Poison Act 1952 also prohibit the importation of e -cigarettes 
containing nicotine except by person licensed under this Act. Besides that, the importation must 
follow customs (Prohibition of Imports) Order 2017.  
  WT/TPR/M/436/Add.1  
 
- 35 - 
 
COLOMBIA  
INFORME DE LA SECRETARÍA - DOCUMENTO WT/TPR/S/436  
 
1 ENTORNO ECONÓMICO  
1.2 Evolución económica reciente  
1.2.4.3 Política de competencia  
En el párrafo 1.16 la Secretaria informa que "Según las autoridades, una economía con unos niveles 
adecuados de competen cia aumenta el atractivo del país para hacer negocios y estimula la afluencia 
de grandes corrientes de inversiones nacionales y extranjeras; la Comisión de Competencia de 
Malasia (MyCC) ha seguido velando por que se realicen esfuerzos concertados para luch ar contra las 
prácticas anticompetitivas y fomentar un mercado robusto y competitivo, adaptado a las necesidades 
de desarrollo sostenible de la economía malasia (sección 3.3.4); con arreglo a las principales 
modificaciones, se implantará un sistema de cont rol de las fusiones y se reforzarán las competencias 
de la MyCC en materia de investigación y observancia".  
Translation (Google): Page 20, Paragraph 1.16 "According to the authorities, an economy with 
healthy levels of competition increases a country's attractiveness as a place of doing business and 
lead to large flows of domestic and foreign investments; the Malaysia Competition Commission 
(MyCC) continued to ensure that concerted efforts are taken to combat anti -competitive practices 
and to c ultivate a healthy and competitive marketplace in sync with the needs for sustainable growth 
of the Malaysian economy (Section  3.3.4).[1] In 2018, MyCC was removed from direct supervision 
of the prime minister's office and required to report directly to pa rliament.[2] In January  2022 the 
MyCC suggested structural policies to facilitate the adoption of e -commerce strategies, particularly 
by SMEs, taking the lessons from the pandemic years.[3] Furthermore, work to amend the Malaysian 
Competition Act  2010 has been under way with amendments subject to parliamentary approval by 
October  2022 and to come into force by end of  2022 (Section  3.3.4)key amendments would 
introduce a merger control regime and strengthen MyCC's investigation and enforcement powers."  
 
1. El Gobierno de Colombia agradece al Gobierno de Malasia ampliar información sobre las 
principales medidas que ha adoptado para . fomentar un mercado robusto y competitivo que este en 
equilibrio con el desarrollo sostenible.  
Translation (Google): The Governmen t of Colombia would appreciate if Government of Malaysia 
could provide information on the main measures it has adopted to promote a robust and competitive 
market that is in balance with sustainable development.  
 
Answer:  The Malaysia Competition Commission have taken several initiatives to address the 
practical, theoretical and evidentiary challenges of the current crisis and its effect the MSME's in 
Malaysia, which shall be deliberated based on the following segment:  
 
• Establish the Case Prioritization Pri nciples. The MyCC has set several thresholds that take into 
account MSME's aspects, for example, size of firms, turnover of firms, the value of the tenders 
and seriousness of the infringement as indicators before proceeding with any investigation 
proceed w ith any investigations.  
• Flexibilities in Imposing Fines. The MyCC has adopted the flexibilities approach in imposing 
fines on the target enterprises notably, MSME's. For example, provide a substantial discount 
on fines, a moratorium on paying fines and come up with a fines instalment plan.   
• Internal Exemptions Procedures. The MyCC has simplified the internal exemption assessment 
procedures by reducing the day of assessment, providing consultation opportunities with 
applicants and providing flexibiliti es in relief of liability criteria in Section  5 of the Competition 
Act 2010. Please refer to https://www.mycc.gov.my/market -review for further details . 
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importacio nes  
3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana  
En el párrafo 3.6 se indica que "El Programa de Agentes Económicos Autorizados (AEO) sigue 
desempeñando un papel importante para proteger y facilitar el comercio y para aumentar la 
eficiencia operativa. En la presentación del presupuesto de 2021, el Gobierno anunció que 
simplificaría el proceso de acreditación de los agentes económicos autorizados y ampliaría el 
Programa de AEO para incluir a los proveedores de servicios de logística y a los operadores de 
depósitos autorizados.9 El 31 de agosto de 2022 había 114 agentes económicos autorizados en 
Malasia, frente a los 94 de 2021".  
 WT/TPR/M/436/Add.1  
 
- 36 - 
 
Translation (Google): Page 41, para . 3.6 "The AEO programme continues to play an important role 
in securing and facilitating trade, as well as in increasing operational efficiency. The Government 
announced in the 2021 budget speech that it would simplify the AEO accreditation process and 
broaden the AEO programme to include logistics services providers and appro ved warehouse 
operators.[1]The RMCD would bring together [43] permits and trade licensing agencies to the AEO 
platform.[2] n 2022, there were 94 AEOs in Malaysia, against 59 in 2017.[3]"  
 
2. ¿Qué operadores económicos pueden hacer parte del programa AEO? ¿Malasia ha establecido 
Acuerdos de Reconocimiento Mutuos de los AEO con otros países? cuáles? ¿desde cuándo están 
operando? que beneficios se han registrado?  
Translation (Google): What econom ic operators can be part of the AEO program? Has Malaysia 
established AEO Mutual Recognition Agreements with other countries? which? since when are they 
operating? What benefits have been recorded?  
 
Answer:  The AEO  program in Malaysia began in 2010 by making importers, exporters and 
manufacturers the pioneer scope for this program. It continues to expand the scope to include 
logistics service providers and approved warehouse operators in 2021.  
 
A total of 3 countri es have signed MRAs with Malaysia, Japan in 2014, Hong Kong , China  in 2016 
and South  Korea in 2017.  
 
Upon signing of the MRAs, both parties agree to provide benefits and trade facilitation measures 
which include reduced import inspection rates, faster clea rance of import cargo and simplified 
verification of import -related documents.  
 
En el párrafo 3.10 se señala que "El contrabando sigue siendo motivo de preocupación y guarda 
relación con, entre otras cosas, la evasión del pago de derechos o impuestos y la elusión de las 
prohibiciones. Como se ha señalado anteriormente, las modificaciones introdujeron sanciones graves 
por los delitos de contrabando, como por ejemplo de cigarrillos que contengan tabaco y de bebidas 
alcohólicas. La información relativa al valo r de las mercancías confiscadas es confidencial y, por lo 
tanto, no está a disposición del público".  
 
Translation (Google): "Smuggling remains a concern and is related to duties and tax evasion, 
circumvention of prohibitions, etc.[4] As noted earlier, the amendments introduced hefty penalties 
for smuggling offences, for example in relation to cigarettes containing tobacco and intoxicating 
liquor.[5]"  
 
3. ¿Qué programas de control ha implementado Malasia para . contrarrestar el contrabando? 
¿Existe algún prog rama que se esté implementando en el marco de ASEAN?  
 
Translation (Google): What control programs has Malaysia implemented to counter smuggling? Are 
there any programs being implemented within the ASEAN framework?  
 
Answer:  Malaysia has established a coordi nated operation on targeted goods to combat smuggling 
into Malaysia.  
 
At ASEAN platform, RMCD is one of the member in the ASEAN Customs Enforcement Compliance 
Working Group (CECWG), which collabarates and establishes information sharing on enforcement 
and compliance matters. Malaysia is the chairperson for CECWG.  
 
3.1.1.1 Valoración en aduana  
En el párrafo 3.11 se informa que "Desde el último examen no se han registrado grandes cambios 
en el Reglamento de Aduanas (Normas sobre Valoración) de 1999. Las normas de valoración en 
aduana de Malasia siguen la jerarquía de los métodos de valoración est ablecida en el Acuerdo relativo 
a la Aplicación del Artículo VII del GATT de 1994 de la OMC, ya que prevén que el valor de transacción 
(basado en el precio c.i.f.) es la base principal para la valoración de las mercancías importadas. Si 
no se puede utiliza r este método, el Reglamento de Aduanas prevé métodos de valoración 
alternativos, a saber, el valor de transacción de mercancías idénticas o similares, el valor deducido, 
el valor reconstruido u otros métodos de valoración".  
 
Y el párrafo 3.12 menciona que  "El artículo 12 de la Ley de Aduanas faculta al Ministro de Hacienda 
para fijar el valor de cualquier mercancía sujeta a derechos mediante la publicación de una WT/TPR/M/436/Add.1  
 
- 37 - 
 
notificación en el Diario Oficial del Gobierno federal. En el ejercicio de esa función, el Min istro sigue 
las recomendaciones de la Oficina de Gestión de la Valoración en Aduana. La medida se ha aplicado 
a los vehículos automóviles en unidades totalmente montadas (nuevos o usados) importados por 
titulares de permisos aprobados abiertos, aparentemen te para luchar contra la subfacturación. Sin 
embargo, según las autoridades, en marzo de 2020 el Ministro de Hacienda dejó de ejercer la 
facultad que le confería el artículo 12 de la Ley de Aduanas en materia de vehículos automóviles en 
unidades totalmente  montadas. En la actualidad, en los trámites correspondientes a los vehículos 
automóviles en unidades totalmente montadas nuevos y usados se utiliza el método de valoración 
de la OMC".  
Translation (Google): Page 43, para . 3.11 "There have been no significa nt changes to the Customs 
(Rules of Valuation) Regulations 1999 since the previous Review. Malaysia's customs valuation rules 
follow the hierarchy of valuation methods laid down in the WTO  Agreement on Implementation of 
Article  VII of the GATT  1994 as they  stipulate the transaction value (based on the c.i.f. price) as the 
principal basis for the valuation for imported goods. If this method cannot be used, the Customs 
Regulations outline the alternative valuation methods, i.e. the transaction value of identi cal or similar 
goods, the deductive value, the computed value, or other valuation methods.[6]"  
 
Page 43, para . 3.12 
"Section 12 of the Customs Act authorizes the Minister of Finance to fix the value of any dutiable 
goods by notification in Federal Government Gazette. In this capacity, the Minister acts upon 
recommendations of the Customs Valuation Management Section.[7]  At present, this measure 
applies to completely built -up motor vehicles (new or used) imported by open Approved Permit (AP) 
holders, ostensibly to combat under -invoicing. The stipulated values have been gazetted  2014.[8]"  
 
4. Tomando en consideración lo in dicado en los párrafos 3.11 y 3.12 ¿cuál es el proceso 
establecido para . aplicar el mecanismo de fijar el valor de cualquier mercancía sujeta a derechos, 
sin que sea considerado como un precio indicativo o un precio mínimo?  
 
Translation (Google): Taking in to account what is indicated in paras . 3.11 and 3.12, what is the 
process established to apply the mechanism for setting the value of any merchandise subject to 
duties, without it being considered as an indicative price or a minimum price?  
 
Answer:  Customs  authority does not set any value that has to be declared by any importer because 
the predetermined value violates the principle of WTO Valuation Agreement. The predetermined 
value is considered as a minimum value and is prohibited under the WTO Valuation Agreement.  
 
Pursuant to subsection 13(1)(b), Customs Act 1967, the proper officer of Customs may, in respect 
of any dutiable or uncustomed goods, value, weigh, measure or otherwise examine, or cause to be 
valued, weighed, measured or otherwise examined suc h dutiable or uncustomed goods, for the 
purpose of ascertaining the customs duty leviable thereon.  
 
The subsection coincides with Article  17 of the WTO Valuation Agreement, the proper officer of 
Customs have the right to determine that any statement, document or declaration as statisfactory 
as true or accurate when presented for customs valuation purposes.  
 
In case the proper officer of Cust oms is still not satisfied that the customs value can be determined 
under Regulation 4, Customs (Rules of Valuation) Regulations 1999 (after seeking further 
explanation or other evidence), the proper officer of Customs may value the imported goods using 
the alternative methods.  
 
3.1.3 Aranceles  
3.1.3.2 Tipos NMF aplicados  
En el párrafo 3.16 la Secretaria indicó que "En general, la estructura arancelaria no se ha modificado 
desde el examen anterior. Los aranceles aplicados de 2022 se basan en el SA 2022. Com prenden 
11.435 líneas arancelarias (excluidas las líneas dentro de contingentes) a nivel de 10 dígitos, de las 
cuales el 99% están sujetas a tipos ad valorem (gráfico 3.1). En torno al 74,3% del total de líneas 
arancelarias están gravadas con tipos ad valo rem del 10% o menos, ya que más del 50% de las 
líneas arancelarias están libres de derechos en régimen NMF. Los derechos no ad valorem afectan a 
119 líneas arancelarias —principalmente productos agropecuarios como las frutas comestibles, las 
bebidas alcohó licas y el tabaco — y ofrecen una protección arancelaria considerable en algunos casos. 
Los EAV que la Secretaría pudo estimar iban del 4,4% al 452,8% (sobre el tabaco tipo Virginia WT/TPR/M/436/Add.1  
 
- 38 - 
 
secado al aire caliente) y eran superiores al 50% en casi una cuarta parte de las líneas arancelarias 
incluidas en la estimación".  
Translation (Google): "Overall, the tariff structure remains unaltered since the previous Review. 
The 2022 applied tariff  is based on the [2017] version of the Harmonized Commodity Description 
and Cod ing System (HS).[4] It comprises 11,713 tariff lines at the 10 -digit level, of which 99.0% 
carry ad valorem rates (Chart  3.1). About 73.5% of all tariff lines face ad valorem rates of 10% or 
less, as more than 50% the tariff lines are duty -free on an MFN b asis. Non -ad valorem duties affect 
116 tariff lines – mainly agricultural products such as edible fruits, alcoholic beverages, and 
tobacco  – and involve considerable tariff protection in some instances. The AVEs the Secretariat was 
able to estimate ranged from 4.4% to 452.8% (on flue -cured virginia type tobacco) and exceeded 
50% on nearly one quarter of the estimated tariff lines.[5]"  
 
5. Colombia agradece al Malasia brindar información sobre la lista de las 119 líneas arancelarias, 
principalmente agropecua rios, a las cuales les aplica los derechos no ad valorem.  
 
Translation (Google): Colombia would appreciate if Malaysia could provide information on the list of 
119 tariff lines, mainly agricultural, to which it applies non -ad valorem duties.  
 
Answer:  Details on the 119 tariff lines can be found in Attachment A  
 
En el párrafo 3.19 se reporta que "Las grandes diferencias en la nomenclatura hacen imposible 
realizar una comparación completa entre la Lista XXXIX consolidada (en la nomenclatura del 
SA 2002) y los  aranceles aplicados en 2022 (en la nomenclatura del SA 2017). Aproximadamente el 
20% de las líneas arancelarias no se pudieron comparar. Aunque casi todos los tipos NMF aplicados 
están por debajo de sus tipos consolidados, unas 11 líneas arancelarias pare cen exceder de sus 
niveles consolidados. Las autoridades reconocieron que esos errores debían corregirse".  
Translation (Google): "Significant nomenclature differences render impossible a full comparison 
between the bound Schedule  XXXIX (in HS  2002) and the  2022 applied tariff (in HS  2017).[9] 
Approximately 20% of the tariff lines could not be compared. Although almost all applied MFN rates 
are lower than their bound rates, some 11  tariff lines appear to be exceeding their bound levels 
(Table  3.3)."  
 
6. Podría Malasia aclarar por qué razón se excedieron los niveles consolidados en la Lista XXXIX? 
¿Qué medidas está implementando Malasia para . ajustar las 11 líneas arancelarias que parecen 
exceder sus niveles consolidados?  
Translation (Google): Could Malaysia clarify why the bound levels in Schedule XXXIX were exceeded? 
What measures is Malaysia taking to adjust the 11 tariff lines that appear to exceed their bound 
levels?  
 
Answer:  Such discrepancy is due to the increase in variant of duties i.e., nomenclature change and 
changes in tariff structure, which involved a large number of duty -free lines that were merged into 
other tariff lines during the HS transposition exercise.  
 
As we continue to work towards completing the remaining transposition proc esses for HS 2007, 
HS 2012 and HS 2017, consultations will be taken to address any discrepancies.  
 
3.2 Medidas que afectan directamente a las exportaciones  
3.2.2 Impuestos, cargas y gravámenes  
En el párrafo 3.48 se menciona que "Malasia grava una serie de productos con impuestos a la 
exportación, de conformidad con la parte III 11) de la Ley de Aduanas de 1967 (cuadro 3.9). Los 
ingresos procedentes de los derechos de exportación representaron, en promedio, el 0,8% de los 
ingresos fiscales totales recaudados  entre 2018 y 2021. En 2022, 123 líneas arancelarias al nivel de 
10 dígitos del SA estaban sujetas a derechos de exportación. La mayoría de las líneas arancelarias 
están sujetas a derechos ad valorem que oscilan entre el 5% y el 20%. Las autoridades señala n que 
la razón de ser de la imposición de derechos de exportación sobre determinados productos es la 
conservación de los recursos naturales. En lo que respecta al aceite de palma, el tipo de los derechos 
de exportación varía en función del precio de mercad o, y se aplica una exención de los derechos de 
exportación para asegurar el sostenimiento de los ingresos de los pequeños agricultores y mejorar 
la competitividad del sector de la palma aceitera. Malasia eximió plenamente del derecho a las 
exportaciones de  aceite de palma en bruto entre el 1 de julio y el 31 de diciembre de 2020, en el 
marco de las iniciativas del Plan Nacional de Recuperación Económica (PENJANA) a fin de amortiguar WT/TPR/M/436/Add.1  
 
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los efectos de la pandemia de COVID -19. La aprobación de la exención es com petencia del Ministerio 
de Hacienda".  
Translation (Google): In paragraph 3.48 it is mentioned that "Malaysia levies export taxes on a 
number of products in accordance with the Customs Act 1967, Part III (11) (Table 3.9). The revenue 
from export duties acc ounted for 0.8% of total tax revenue on average between 2018 and 2021. 
In 2022, 123 tariff line items at the 10 -digit level were subject to export duties. Most tariff lines 
carry ad valorem duties ranging from 5% to 20%. The authorities note that the ratio nale for levying 
export duties on selected items is for conservation of natural resources. Regarding palm oil, the rate 
of export duty varies according to the market price, and an export duty exemption is in place to 
ensure that smallholders' income is sup ported and improve oil palm industry competitiveness. 
Malaysia fully exempted the duty for exports of crude palm oil from 1  July 2020 until 
31 December  2020 under the National Economic Recovery Plan (PENJANA) initiatives in order to 
cushion the impact of C OVID -19 pandemic. Approval for the exemption is under the purview of the 
MOF."  
 
7. Colombia agradece al Gobierno de Malasia brindar información sobre los criterios utilizados 
para. gravar las exportaciones de las líneas correspondientes a animales vivos y aceite de palma.  
Translation (Google): Colombia appreciates if the Government of Malaysia could provide information 
on the criteria used to tax exports of lines corresponding to live animals and palm oil.  
 
Answer:  The export taxes on live animals is one o f the strategies for the conservation and protection 
of livestock population in Malaysia such as purebred animals, which are limited in number in 
Malaysia.  
 
8. En relación con el mismo parágrafo, Colombia agradece al Gobierno de Malasia confirmar si 
estos gravámenes han sido considerados como restricciones a las exportaciones y en caso negativo, 
bajo qué justificación.  
Translation (Google): Regarding the same paragraph, Colombia appreciates if the Government of 
Malaysia could confirm whether these taxes ha ve been considered as restrictions on exports and, if 
not, under what justification.  
 
Answer:  The objective of imposing export duty on crude palm oil (CPO) is to ensure enough supply 
of CPO for domestic consumption especially for the downstream sector. Non etheless, export duty 
does not restrict export of CPO since Malaysia is a large exporter of CPO.  
 
3.2.4  Apoyo y promoción de las exportaciones  
En el párrafo 3.52 se informa que "La Corporación Malasia de Desarrollo del Comercio Exterior 
(MATRADE) ayuda a los exportadores a desarrollar y ampliar sus oportunidades en el extranjero. 
Entre sus servicios figuran la elaboración de programas de formación para mejorar las capacidades 
de comercialización de los exportadores, la realización de estudios de mercado y la recopilación de 
información comercial, la puesta en contacto entre los exportadores y los importadores extranjeros, 
la representación de Malasia en los foros internacionales de comercio, la protección de los intereses 
comerciales de Malasia en el extran jero y el asesoramiento al Gobierno sobre cuestiones 
relacionadas con el comercio. La MATRADE, que se centra en las exportaciones de productos 
manufacturados y semimanufacturados, formula y aplica una estrategia de comercialización de las 
exportaciones de esos productos. La MATRADE se ocupa también de la promoción de las 
importaciones sobre una base selectiva".  
Translation (Google): Page 56, para . 3.52 "The Malaysian External Trade Development Corporation 
(MATRADE) assists exporters in developing and expand ing their opportunities overseas. Its services 
include training programmes to enhance the marketing skills of exporters, market research and 
collection of commercial intelligence, matching exporters with foreign importers, representing 
Malaysia in internat ional trade fora, protecting Malaysia's trade interests abroad, and advising the 
Government on trade -related matters. Focusing on exports of manufactured and semi -manufactured 
goods, it is formulating and implementing an export marketing strategy for such goods. MATRADE 
also promotes imports on a selective basis."  
 
9. ¿Podría el Gobierno de Malasia ampliar la información sobre la promoción de las importaciones 
sobre una base selectiva? En particular, Colombia tiene interés en conocer los sectores y productos 
específicos que se benefician de esta estrategia.   
Translatio n (Google): Could the Malaysian Government provide more information on import 
promotion on a targeted basis? In particular, Colombia is interested in learning about the specific 
sectors and products that benefit from this strategy.  WT/TPR/M/436/Add.1  
 
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Answer:  MATRADE only pro motes imports on selective basis to facilitate Multi National Companies 
(MNC) and Large Corporation to source from local Malaysian companies as part of their supply chain 
development through the "Import Subtitution Programme".  
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.1 Agricultura, silvicultura y pesca  
4.1.1 Agricultura  
4.1.1.6 Determinados productos básicos  
4.1.1.6.1 Aceite de palma  
En el Párrafo 4.18 se informa que "(...) Las autoridades señalan que la serie revisada de normas 
MSPO (MS 253 0:2022) entrará en vigor el 1 de enero de 2024; las normas MSPO revisadas aplicarán 
requisitos estrictos para abordar los componentes ambientales, sociales y de 
gobernanza/económicos de la sostenibilidad, y preverán la rastreabilidad para esa rama de 
produ cción y sus colectivos interesados."  
Translation (Google): "Besides the MPIC, several public agencies support the subsector. These 
agencies include the MPOB, the MPOC, and the Malaysian Palm Oil Certification Council (MPOCC). 
The MPOB remains the principal  agency responsible for promoting and developing national objectives 
and policies for the oil palm industry, and regulation of the sector. Its functions also include research 
and development, training, coordination and collaboration with national and inter national 
organizations.[10] The MPOC aims, inter  alia, at promoting palm oil and its products and developing 
trade opportunities.[11]"  
 
10. Colombia agradece al Gobierno de Malasia ampliar la información de los requisitos que 
aplicarán en serie revisada de  normas MSPO cuya vigencia está prevista para . el 1° de enero 
de 2024.  
Translation (Google): Colombia would also appreciate if the Government of Malaysia could provide 
further information on the requirements that will be applied in the revised series of MS PO standards, 
which are scheduled to come into force on 1 January  2024.  
 
Answer:  The new revised MSPO standards incorporate new elements such as introducing and 
incorporating the High Conservation Value (HCV) approach, new planting cut -off date, Greenhouse  
Gases (GHG) emission monitoring and control, social rights, International Labour Organization (ILO) 
Forced Labour Indicators and ILO Decent Work Agenda, triangular employment, anti -bribery, ethical 
recruitment, and local sustainable development which is i n line with UNSDG.  
 
INFORME DE GOBIERNO - DOCUMENTO WT/TPR/G/436  
 
6 OTRAS POLÍTICAS INTERNAS  
6.10  Empoderamiento de las mujeres y los jóvenes  
En el párrafo 6.30 se indica que "Malasia obtuvo un 63,9% en el subíndice sobre participación y 
oportunidades económicas del Informe mundial sobre la brecha de género de 2021, porcentaje 
superior al promedio mundial, situado en un 58%. Además, el Gobierno está resuelto a seguir 
garantizando la participación de las mujeres en la planificación y el des arrollo del país, para . lo cual 
ha incorporado un capítulo específico sobre el empoderamiento de las mujeres en el 12º Plan de 
Malasia y el presupuesto de 2022. Su objetivo fundamental es reducir al mínimo la desigualdad de 
género y establecer un ecosistem a favorable para . las mujeres, que fije una cuota para . mujeres en 
los puestos de responsabilidad, mecanismos de crédito para . las mujeres empresarias y servicios de 
apoyo, como programas de creación de capacidad, servicios de atención infantil y un plan d e 
seguridad social.  
Translation (Google): "Malaysia's 2021 Global Gender Gap score for Economic Participation and 
Opportunity sub -index is 63.9% which is above the global average of 58%. Further to that, the 
Government is committed to continue ensuring the  participation of women in the country's planning 
and development by incorporating specific chapter for women empowerment in the Twelfth Malaysia 
Plan and 2022 Budget. Its ultimate goal is to minimize the gender gap and establish a conducive 
ecosystem for women which includes a quota for women in the decision -making positions, credit 
facilities for women entrepreneurs and support services such as capacity building programs, child 
care services and social security scheme."  
 
11. El Gobierno de Colombia desea resaltar los avances de Malasia para . promover el 
empoderamiento de las mujeres y los jóvenes y agradece al Gobierno de Malasia ampliar la 
información sobre las estrategias implementadas, su alcance e impacto en los grupos beneficiados.  WT/TPR/M/436/Add.1  
 
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Translation (Google ): The Government of Colombia wishes to highlight Malaysia's advances in 
promoting the empowerment of women and youth and thanks the Government of Malaysia for 
providing more information on the strategies implemented, their scope and impact on the benefici ary 
groups.  
 
Answer:  Malaysia has constantly strived to make incremental improvements in relation to women's 
advancement and development through legislative and policy reforms to ensure better 
representation of women in politics, economy, and social sphere . Thus, Malaysia has implemented 
Gender Responsive Budgeting (GRB) initiative aims to ensure that the various perspectives of gender 
are integrated into the formulation of national policies from the planning to the implementation 
stage. In addition, Gender  Focal Teams (GFTs) has been appointed in government ministries and 
agencies to support gender mainstreaming by advocating, advising as well as integrating gender 
perspective in implementing policies, programs and projects within their ministries.  
  WT/TPR/M/436/Add.1  
 
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COLOMB IA – ADDITIONAL QUESTIONS  
Intellectual property rights  
 
Based on the information submitted, could Malaysia provide detailed information on:  
1. The total number and possible value of intellectual property assets (ie: Number of patents in 
force, trademarks, GIs, industrial designs, copyrights and plant varieties and their value to the extent 
as possible).  
 
Answer : The following are the numbers of IP in force in Malaysia as of 2021:  
(i) Patent: 34,170  
(ii) Trademark: 414,263  
(iii) Industrial desig n: 20,631  
(iv) Geographical indication: 104  
 
2. Indicate the nationality of the holders of said intellectual property rights (IPR), as well as of 
the IPR applicants, indicating whether they are nationals or foreigners. Indicate the evolution of the 
partici pation (share %) of nationals and foreigners over time.  
 
Answer : The breakdown of the number of IP applications according to Malaysian and foreign 
nationalities for the years 2017 to 2022 are as follows:  
 
 MALAYSIA  FOREIGN  
2017 21,300 (42.4%)  28,888 (57.6%)  
2018 21,643 (40.8%)  31,355 (59.2%)  
2019 24,245 (43.2%)  31,941 (56.8%)  
2020 20,102 (39.5%)  30,792 (60.5%)  
2021 21,606 (36.0%)  38,346 (64.0%)  
2022 19,926 (33.4%)  39,773 (66.6%)  
 
3. Statistics of the balance of payments (BoP) of Malaysia on "Charges for use of intellectual 
property", discriminating "payments" (payments) and "receipts" (receipts), as well as their evolution 
over time. Ideally and to the extent possible, indicate the percentages of payments and rec eipts 
relative to Latin America.  
 
Answer : The data on the "Charges for use of intellectual property", discriminating "payments" 
(payments) and "receipts" (receipts), as well as their evolution over time by countries is not publicly 
available.  
 
4. Indicate the percentage participation of IPR trade  in the country's total trade, as well as its 
evolution over time  
 
Answer : The data is not available.  
 
Agriculture, forestry and fisheries  
 
5. Could Malaysia indicate if it has a national policy or legal instruments to Prevent, Deter and 
Eliminate Illegal,  Unreported and Unregulated Fishing, and if so, share details on its structure and 
operation?  
 
Answer : The amended Fisheries Act 1985 (Amendment 2019) imposes a penalty on the owner or 
skipper for every crew member of a foreign fishing vessel which encroac hed into Malaysian Fisheries 
Waters, a penalty which is significantly heavier than the previous provisions. To ensure sustainable 
fishing on the high seas, the newly amended law also imposes a penalty on any local fishing vessel 
which fished without a vali d license or in violation of license conditions on the high seas. Such a 
deterrent punitive measure is a manifestation of Malaysia's determination to put a stop to IUU fishing 
and deprive offenders of the benefits accruing from such fishing consistent with  the FAO - IPOA-IUU.  
 
Other than that, Malaysia's NPOA -IUU which was launched on 19  November  2013 has garnered 
supports from various domestic maritime -related authorities with different jurisdictions to combat 
IUU fishing. In a bid to effectively combat IU U fishing, Malaysia strengthened our effort by WT/TPR/M/436/Add.1  
 
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establishing a National IUU Steering Committee and IUU Working Committee involving multiple 
agencies responsible for combating IUU fishing.  
 
6. Could Malaysia indicate whether it provides subsidies or governme nt support to the fisheries 
sector, and in particular to fishing and fishing related activities in waters beyond national jurisdiction?  
 
Answer : No. 
 
7. Could Malaysia indicate which Regional Fisheries Management Organizations and/or 
Arrangements it partic ipates in?  
 
Answer : Malaysia has been a Member to the Indian Ocean Tuna Commission (IOTC) since 1998.  
 
 
  WT/TPR/M/436/Add.1  
 
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DOMINICAN REPLUBLIC  
En la página 62, párrafo 3.56 del Informe de la Secretaría se indica lo siguiente:  
 
"Los fabricantes establecidos en las zonas francas industriales deben exportar al menos el 80% de 
su producción, a menos que el Ministerio de Comercio Exterior e Industria haya aprobado un 
requisito de exportación inferior (del 60% como mínimo). Las exenciones de los derechos de 
importación d ependen también del valor del contenido nacional; si este porcentaje es inferior al 
40%, las materias primas no originarias deben haber sido objeto de una transformación sustancial 
durante el proceso de fabricación […]".  
Translation: On page 57, para . 3.56 "Manufacturers established in the FIZs must export at least 
80% of their production, unless a lower export requirement (minimum 60%) has been approved by 
the MITI. Import duty exemptions also depend on the value of local content; if this is less than 40%,  
then non -originating raw materials must have undergone substantive transformation during the 
manufacturing process.The free zones regulations were amended twice during the review period, 
but the amendments did not materially change the benefits applicable  in the free zones. Outside the 
free zones, manufacturers may alternatively apply to operate licensed manufacturing warehouses 
(LMW) to avail themselves of the same privileges and benefits. Companies with LMW status (or those 
that operate in a FIZ) may, up on application, sell up to 40% of their production on the domestic 
market."  
 
1. ¿Cuál es el objetivo de que las exenciones de los derechos de importación para . las zonas 
francas industriales, dependan, entre otras condiciones, del valor del contenido nacio nal? 
Translation: What is the purpose of import duty exemptions for industrial free zones depending, 
among other conditions, on the value of the national content?  
 
Answer : The import duty exemption is given to the manufacturers in FIZs to cater to the incr easing 
needs of the business communities in facilitating export -oriented manufacturing activities.  
 
The value of the local content condition is imposed to facilitate the manufacturers in FIZs and LMWs 
to enjoy import duty equal to the ATIGA rate under the  Customs Duty Order (Goods Originating 
from States ASEAN) (ASEAN Harmonized Tariff Nomenclature and Agreement ASEAN Trade in 
Goods) 2017.  
 
The policy of 100% export of the production from the FIZs and LMWs is still enforced. However, any 
application to sel l to the domestic market will be strictly treated and evaluated on a case -by-case 
basis.  
 
2. Favor indicar cómo el requisito de valor nacional cumple las disposiciones del artículo 3 del 
Acuerdo sobre Subvenciones y Medidas Compensatorias (Acuerdo SMC).  
Translation: Please indicate how the national content requirement meets the provisions of Article  3 
of the Agreement on Subsidies and Countervailing Measures (SCM  Agreement ). 
 
Answer : A Free Zone is an area in any part of Malaysia that is declared by the Min ister of Finance 
under the provision of Section  3(1) of the Free Zones Act 1990, as a Free Commercial Zone or Free 
Industrial Zone (FIZ). The activities and industries therein are subject to minimal customs formalities 
as it is deemed under Section  2 (1 A) of the Customs Act 1967 to be a place outside the Principal 
Custom Area except in respect of Prohibition of Imports and Exports under Section  31 of the Customs 
Act 1967. Hence, products from companies located in the FIZ destined for Malaysian domestic 
market are considered as imported products and subjected to import duty at MFN/applied rates. 
However, effective 1  January  2011, products produced in the FIZ destined for the Malaysian market 
are eligible to enjoy ASEAN or ATIGA duty rates if they comply wit h the origin criteria, i.e. local 
content or substantial transformation.  
  WT/TPR/M/436/Add.1  
 
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EL SALVADOR  
Documento WT/TPR/S/436  
2. REGÍMENES DE COMERCIO E INVERSIÓN  
2.2 Formulación  y objetivos  de la política  comercial  
Párrafo  2.8: El 12o Plan de Malasia  2021-2025 (12o Plan) es transformador  y tiene por objeto  
introducir  reformas  fundamentales  para. alterar  la trayectoria  de desarrollo  de Malasia.  Aunque  se 
reconoce  que la pandemia  de COVID -19 aceleró  la adopción  de tecnología  digital debido  a su impacto  
en las operaciones  comerciales  y en la forma  de relacionarse  de las personas,  la pandemia  también  
exacerbó  las desigualdades  y disparidades  socioeconómicas.  Al formular  el 12o Plan se ha tenido  en 
cuenta  la estrategia  de reapertura  progresiva  de la economía  y los ocho paquetes  de estímulo  (que 
ascienden  a más del 35% del PIB) previstos  en el Plan Nacional  de Recuperación,  introducido  en 
junio de 2021.  El 12o Plan está organizado  en torno  a tres temas  principales  (reestructuración  de la 
economía;  fortalecimiento  de la seguridad,  el bienestar  y la inclusión;  y promoción  de la 
sostenibilidad),  cuatro  elementos  de política  catalizadores  (desarrollo  de aptitudes,  aceleración  de 
la innovación  y la adopción  de tecnología,  mejora  de la conecti vidad  y la infraestructura  de 
transporte,  y mejora  del servicio  público),  y 14 factores  determinantes.  Las prioridades  de desarrollo  
están  en consonancia  con los Objetivos  de Desarrollo  Sostenible  de la Agenda  2030 para. el 
Desarrollo  Sostenible .  
 
Pregunta : ¿Podría  Malasia  profundizar  acerca  de las acciones  concretas  que se incluyen  en el Plan 
Nacional  de Recuperación  y los principales  resultados  desde  su implementación  en junio de 2021?  
 
Answer : The implementation of the National Recovery Plan in J une 2021 has assisted Malaysia to 
enter the transition phase to endemic starting from 1  April 2022 following the success of preventive 
management and public health control measures in containing the spread of COVID -19. This phased 
transition is an importan t factor towards reopening of economic activities and national borders 
completely. In the phase of economic uncertainties and difficulties in making business strategies, 
this phased transition has also helped to elevate confidence to the local businesses a nd in attracting 
foreign direct investments in Malaysia.  
 
2.3 Acuerdos  y arreglos  comerciales  
2.3.2  Acuerdos  regionales  y preferenciales  
¿Podría  Malasia  indicar  si es sus futuras  estrategias  de Política  Comercial,  tiene contemplada  la 
suscripción  de Acuerdos  Comerciales  con países  de Latinoamérica?  
 
Answer : Cognisant of the crucial role assumed by Free Trade Agreements (FTAs), both within the 
economic and political context, Malaysia welcomes any opportunity to explore the possibility of  
embarking on mutually -beneficial FTAs with new partners, including the Latin American countries.  
 
Besides that, as Malaysia is already a Party to the gold standard CPTPP Agreement, which is the 
most ambitious FTA signed by Malaysia, thus far, we strongly  encourage Latin American countries 
to positively consider joining the CPTPP, through an accession process. Malaysia firmly believes that 
a high -standard, high -quality trade agreement such as the CPTPP will further intensify trade and 
investment potentials  of both regions.  
 
Documento WT/TPR/G/436  
3. EVOLUCIÓN DE LA POLÍTICA COMERCIAL  
3.2 Iniciativas para . facilitar el comercio  
3.2.2  Política  Nacional  sobre  Buenas  Prácticas  de Reglamentación  
Párrafo  3.10: La declaración  sobre  el impacto  de la reglamentación  es un documento  elaborado  
por el organismo  de reglamentación  para. apoyar  una propuesta  de nuevo  reglamento  o de 
modificación  de un reglamento  tras consultar  a las partes  afectadas.  Contiene  una descripción  del 
análisis  del impacto  de la reglamentación  realizado,  así como  su propio  análisis,  opción  recomendada  
y estrategia  de aplicación.  La declaración  sobre  el impacto  de la reglamentación  se presenta  al 
responsable  de la adopción  de decisiones  para. que este pueda  tomar  decisiones  bien 
funda mentadas  en una evaluación  equilibrada  de la mejor  información  disponible.  Además,  cuando  
un reglamento  propuesto  tiene una incidencia  directa  en el comercio,  debe incluirse  una evaluación  
del impacto  en el comercio  en la declaración  sobre  el impacto  de la reglamentación.  En el período 
comprendido entre 2014 y julio de 2022, se recibió de los organismos de reglamentación un total 
de 992 notificaciones de reglamentación y 186 declaraciones sobre el impacto de la reglamentación.  
 WT/TPR/M/436/Add.1  
 
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¿Podría  Malasia  indicar  qué elementos  toma en cuenta  para. poder  realizar  la evaluación  de impacto  
que realizan  en reglamentación?  
 
Answer : The scope of National Policy on Good Regulatory Practice (NPGRP) applies to all regulation 
(new and existing) affecting economic, social and  the environment. The preparation of Regulatory 
Impact Statement (RIS) is not required for:  
 
• Regulations that are implemented for reasons of national security and sovereignty;  
• Regulations relating to criminal law, such as the Penal Code; and  
• Administ rative circulars that are intended for public service administration.  
 
  WT/TPR/M/436/Add.1  
 
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EUROPEAN  UNION  
WT/TPR/S/436 – WTO Secretariat's Report  
3. Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Import  
3.1.3 Tariffs  
3.1.3.3 Tariff Rate Quotas ( TRQs)  
Paragraph 3.20, page 46:  "Malaysia continues to apply TRQs to satisfy the needs of small and 
medium domestic producers, affecting approximately 0.2% of total tariff lines (Table 3.2). TRQs 
apply to certain agricultural products, mainly live swine and  poultry, poultry meat, liquid milk and 
cream, eggs, and round cabbage. The allocation of TRQs is determined by the Ministry of Agriculture 
and Food Industries and allocated to importers on a first -come, first -served basis."  
 
EU Question 1 : Could Malaysia provide the number of applications received and applications 
approved by the Ministry of Agriculture and Food Industries for imports under TRQs? What are the 
criteria for approving applications to use the Tariff Rate Quotas?  
 
Answer : The n umber of applications received and approved through the I -permit system under 
MAQIS is not publicly available.  
 
The allocation of TRQs is determined by the DVS, DOA and Ministry of Agriculture and Food Security 
(MAFS) and allocated to importers on a first  come -first served basis.  
 
3.2.3 Export prohibitions, restrictions, and licensing  
Title 3.2.3, page 55.  
EU Question 2:  On 21/07/2022, Malaysia informed of an export restriction on live day -old chick 
broilers and live broilers (except coloured birds and vil lage chicken), whole chicken, chicken cuts 
and parts. The measure is in force from 1  June 2022 until 07  December  2022. Could Malaysia inform 
of the latest state of paly of the measure? Is the measure still in force, after the announced expiry 
date of 07  December  2022?  
 
Answer : Since October 2022, Malaysia has relaxed the export restriction on live broilers (except 
coloured birds and village chicken) in phases by allowing 1.8  million  live broiler birds to be exported 
per month. This amount is determined base d on the surplus quantity of domestic supply. In 2023, 
Malaysia is considering to fully lift the export restriction once the domestic supply can meet domestic 
need.  
 
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and Other Technical Requiremen t 
Title 3.3.2, page 61.  
EU Question 3 : The EU would like to refer to a recently notified Standard, related to Amendments 
to regulations 361 to 386  A and 387 and insertion of a new regulation, i.e. regulation 384A to the 
Food Regulations 1985 [notified to t he WTO under G/TBT/N/MYS/114]. As already asked in EU 
comments on this notification, the EU is concerned that the alcoholic range for wines and liqueurs 
constitutes a trade barrier for third countries' exporters. Unless there are objective justifications f or 
such deviations from international practices and standards, could Malaysia reconsider its wines and 
liqueurs definitions?  
 
Answer : The requirement for standard and labelling compliance for alcoholic beverages under the 
Malaysian Food Regulations 1985 is an existing regulation that has been enforced since its 
gazettement. It is not a new regulation, including the minimum percentage of alcohol content 
specified for each type of alcoholic beverages.  
 
Section  29 (1), Food Act 1983 also sta ted that the importation of any food which does not comply 
with the provisions of this Act or any regulation made thereunder is prohibited for sale in Malaysia. 
As such only alcoholic beverage that complies with the standards including its alcohol content can 
be imported and sold in Malaysia.  
 
3.3.3 Sanitary and Phytosanitary Requirements  
Paragraph 3.83, page 63 : "Malaysia is a member of the key international standard setting bodies 
in the SPS area, i.e. the Codex Alimentarius Commission (since 1971), the W orld Organisation for 
Animal Health (WOAH), and the International Plant Protection Convention. According to the WT/TPR/M/436/Add.1  
 
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authorities, Malaysia takes into account guidelines issued by these institutions in the conduct of risk 
assessment. Regarding bovine spongiform encephalopathy (BSE), Malaysia's surveillance and 
monitoring systems are based on WOAH standards."  
 
EU Question 4 : How does Malaysia implement the obligation of WTO Members to apply 
regionalisation measures according to available guidance of the World Organisation for Animal Health 
(WOAH) in the event an outbreak of a livestock disease? (Article  6 of the WTO  Agreement  on 
Sanitary and Phytosanitary Measures)  
 
Answer : Malaysia as a member of WTO and WOAH, is committed to comply with the guidelines of 
regionalization measures according to available guidance of WOAH in the event of an outbreak of 
livestock diseases.  
 
EU Question 5:  Has Malaysia concluded any agreements on regionalisation with other countries? If 
yes, with which countries, since when, for whi ch diseases, and under which conditions?  
 
Answer : Malaysia has agreed with France on implementing compartmentalization in the event of 
HPAI outbreak for the import of GPS and PS DOC from France in 2022. Malaysia has also agreed 
with China in compartmental ization implementation for HPAI for poultry cuts and parts import from 
China in 2022.  
 
3.3.6 Government Procurement  
Paragraph 3.98, page 66:  "Although price considerations may be important in concluding a 
government contract, the "value for money" concept includes non -price factors as well as broader 
policy considerations such as the acceleration of economic growth through procurement, maximum 
use of local materials and resources, the promotion of local freight and insurance, transfer of 
technology, and inc entives for indigenous entrepreneurs (Bumiputera). Bumiputera suppliers benefit 
from a preference margin of 2.5% to 10%, inversely proportional to value, for goods and services 
contracts valued at MYR  100,000 to MYR  15 million , while they receive no prefer ences for contracts 
above MYR  15 million . For goods made locally by Bumiputera manufacturers, the preference margin 
is 10% for contracts below MYR  10 million , up to 5% for contracts between MYR  10 million  to 
MYR 100 million , and 3% above MYR  100 million . International tenders are only opened if the goods 
or services are not available in the local market."  
 
EU Question 6:  Could Malaysia please provide further information as to how the price preferences 
for Bumiputera suppliers are applied for contracts betwe en MYR  100,000 and MYR  15 million , and if 
there is a difference between goods/services and works contracts? Is the preference for goods made 
locally by Bumiputera manufacturers calculated on the top of price preferences for Bumiputera 
suppliers?  
 
Answer:  For procurement of goods which are more than MYR 100,000, Bumiputera suppliers are 
accorded price preference or Margin of Preference (MOP).  
 
EU Question 7:  As Malaysia is a party to CPTPP and this agreement contains government 
procurement obligations in CPT PP, could Malaysia explain, for procurement covered by CPTTP, how 
the Bumiputera preferences are implemented in a manner which is compatible with its procurement 
obligations?  
 
Answer:  Malaysia's Bumiputera preferences are implemented in accordance to Secti on G: General 
Notes of the Government Procurement Chapter of the CPTPP. The same price preferences and equal 
treatment are accorded to both Bumiputera and CPTPP Party suppliers in Category 2 of the General 
Notes.  
 
Paragraph 3.105, page 68:  "Malaysia implem ents its offset policy through the Industrial 
Collaboration Programme (ICP), which covers defence and non -defence procurements. The 
Technology Depository Agency (TDA) within the MOF oversees the ICP. Nearly 800 projects have 
been established to date in 14 sectors. These projects represent a procurement value of some 
MYR 107 billion  since the programme's inception. For maintenance, repair, and overhaul contracts, 
a new Performance Based Contract (PBC) Policy came into effect on 1  July 2022. Although there is 
no direct relationship between the two programmes, the TDA plays an important role as it has been 
assigned to be the centre of reference for implementation of the PBC."  
 WT/TPR/M/436/Add.1  
 
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EU Question 8:  Could Malaysia please provide further information as to its offset policy? What does 
this consist of?  
 
Answer : Offset Program involves activities that strengthen local competitiveness by giving priorities 
to the technology development and knowledge -based  economy.  
 
It enhances the capacity and capabilities of the local companies to enable their competitiveness in 
the global markets. The offset program is applicable to foreign companies that receive Government's 
contract subject to the Minimum Threshold Va lue of MYR 50 million . 
 
Paragraph 3.106, page 68:  "Malaysia signed the United Nations Convention Against Corruption 
in 2003. It adopted the APEC Non -Binding Principles on Government Procurement, endorsed by APEC 
leaders in 1999, and participates actively i n the APEC Government Procurement Experts Group. 
Malaysia has been an observer to the WTO Committee on Government Procurement since 2012. 
However, no move to initiate negotiations to join the WTO GPA has been taken nor does one appear 
to be forthcoming. An  assessment is to be carried out on the implementation of government 
procurement chapter obligations under other international agreements involving market access 
offers."  
 
EU Question 9:  Does the Government of Malaysia intend to become a full party to the Agreement 
on Government Procurement (GPA)?  
 
Answer:  Malaysia will assess its readiness to join the WTO GPA as a member after a thorough 
assessment including impact study on CPTPP's implementation as well as other Free Trade 
Agreements (FTAs) that Malaysia is a Party to such as Regional Comprehensive Economic Partnership 
(RCEP).  
 
EU Question 10:  Could Malaysia elaborate further on the assessment being carried out on the 
implementation of government procurement chapter obligations under other international 
agreements involving market access offers?  
 
Answer : The purpose of the assessment on the implementation of government procurement chapter 
obligations under other international agreements is to obtain a better understanding on the impact 
of these obligations on socio -economic development as well as to obtain insights on what Malaysia 
stands to gain from participating in the relevant FTAs.  
 
3.3.7 Intellectual Property Rights  
Paragraph 3.107, page 68:  "Regarding membership in the International Union for the Prot ection 
of New Varieties of Plants (UPOV), Malaysia's Protection of New Plant Varieties Act 2004 (Act 634) 
is undergoing amendments to make it compatible with the 1991 Act of the UPOV Convention. 
Malaysia is planning to accede to the Locarno Agreement Estab lishing an International Classification 
for Industrial Designs."  
 
EU Question 12:  Could Malaysia provide further information on the ongoing amendments to its 
Protection of New Plant Varieties Act 2004 (Act 634)?  
 
Answer:  The amendments to Act 634 is being finalised.  
 
EU Question 13:  Could Malaysia update on any recent progress made in acceding to the Locarno 
Agreement?  
 
Answer:  Malaysia through MyIPO is in the midst of preparation to obtain internal approval before 
depositing the instrument of accession (Lo carno Agreement) with WIPO.  
 
Paragraph 3.108, page 69:  "Intellectual property (IP) is among the subjects addressed in the 
RCEP, although the agreement recognizes the different national systems and levels of development 
and capacity. The IPR chapter of RCEP incorporates many concepts established in the WTO 
TRIPS  Agreement  and the CPTPP. The CPTPP chapter on IP is comprehensive and encompasses 
nearly all areas of rights and enforcement. However, certain provisions included in its forerunner 
(the TPP) have been suspended, particularly those concerning the protectio n of undisclosed data for 
pharmaceutical patents, copyright, protection of encrypted programme -carrying satellite and cable 
signals, and Internet service provider liability. As noted in the 2018 Secretariat report, some of WT/TPR/M/436/Add.1  
 
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Malaysia's ASEAN and bilateral ag reements include IP -related provisions, i.e. those with Japan, 
India, Pakistan, Australia, New  Zealand , Chile, and Türkiye."  
 
EU Question 14:  Could Malaysia explain its decision to suspend the above -mentioned RCEP 
provisions, as well as provide further inf ormation on when these suspensions will be lifted?  
 
Answer : The suspension list under the CPTPP has been agreed upon by all parties to the CPTPP and 
will be lifted with the consensus of all the parties.  
 
EU Question 15:  Could Malaysia provide an overview o f IP-related provisions included in the 
above -mentioned agreements?  
 
Answer:  The majority of the IP -related provisions are primarily concerned with confirming TRIPs 
Agreement obligation and IP cooperation. Some of the agreements also include elements of 
trademark, patent, industrial design, copyright, geographical indication, and enforcement.  
 
Paragraph 3.111, page 70:  "Malaysia encourages domestic companies to acquire industrial 
property rights. Tax deductions are accorded to companies (with minimum 70% do mestic 
ownership) for costs in acquiring IP from foreign right holders. (…) Malaysia introduced the 
Intellectual Property Filing Fund under the Eleventh Plan and the initiative continues for another five 
years under the Twelfth Malaysia Plan, 2021 -2025 (Tw elfth Plan). The objective of this initiative is 
to assist entrepreneurs, youth, and students to protect their IP as well as to increase the number of 
local applications."  
 
EU Question 16:  Are these incentives available to foreign -owned companies?  
 
Answer:  No, the applicant must be a citizen of Malaysia  
 
EU Question 17:  Could Malaysia provide further details on specific measures introduced by  
Twelfth  Plan?  
 
Answer:  The Intellectual Property Fund under the Twelfth Plan covers the cost of filing an IP 
applica tion with MyIPO and the cost of patent drafting provided by registered patent agent.The fund 
can only be applied once a year to file a trademark, patent, industrial design, copyright or 
geographical indication. The fund is allocated for a period of 4 years , from 2022 to 2025.  
 
Paragraph 3.112, page 71:  "The Copyright Tribunal, an alternative forum for interested persons 
to apply for certain uses of copyrighted works or claiming relief, is administered by MyIPO. However, 
the Copyright Tribunal has not heard any cases thus far."  
 
EU Question 18:  In the opinion of Malaysia, what could be the reasons that no cases have ever 
been brought before the Copyright Tribunal?  
 
Answer:  The Copyright Tribunal has not heard any cases due to a lack of agreement between the 
disputing parties to refer the case to the Tribunal. Some of the disputing parties prefer to request 
government intervention to settle the dispute instead of bringing the case to the Tribunal.  
 
Paragraph 3.314, 72:  "Music Rights Malaysia Berhad (MRM) was es tablished in 2017 to serve as 
a centralized licensing body and collection society for royalties due to authors, producers of sound 
recordings, and performers in the music industry. However, it appears that MRM struggled to 
function properly, and it was the refore decided to dissolve MRM in July 2020."  
 
EU question 19:  Could Malaysia elaborate on the dysfunctionalities mentioned regarding Music 
Rights Malaysia Berhad?  
 
Answer : Music Rights Malaysia Berhad  (MRM) is comprised of four collective management 
organizations (CMOs). MRM's main function is to collect royalties from users and distribute the 
royalties to the four CMOs so that the royalties will be distributed to their members. There was no 
interventi on from the government in their operation. The dissolution of MRM was a decision made 
by the four CMOs that prefer to operate independently.  
 WT/TPR/M/436/Add.1  
 
- 51 - 
 
Paragraph 3.315, page 72:  "Complaints may be addressed to the Ministry's Enforcement Division, 
whose officers have  extensive powers to search for and seize infringing good and materials as well 
as arresting persons suspected of IPR violations. Investigations determine whether or not criminal 
proceedings may be initiated. A Special Taskforce Combating Counterfeit Goods  brings together the 
various stakeholders, including trademark owners, to give direction to the enforcement activities. 
Twenty -eight agencies and industries representing trademark and copyright owners participated at 
the taskforce's annual meeting held in September 2022."  
 
EU Question 20:  Could Malaysia provide figures concerning complaints received, as well as 
information on the outcomes of the following investigations?  
 
Answer : In 2022, MDT has received a total of 79 complaints regarding trademark infringement and 
83 complaints regarding copyright infringement. However not all the complaints will result in a case 
because only complaints which are complete with the required documentation of ownership and 
authorisation of Trademarks or Copyr ight will be investigated under the Trademarks Act 2019 or the 
Copyright Act 1987.  
 
EU Question 21:  Could Malaysia provide a summary report of the above -mentioned annual 
meeting?  
 
Answer : The party is advised to write officially to the ministry for the rep ort. 
 
Paragraph 4.7, page 75:  "Under the strategy of modernization in the sector, the Twelfth Plan 
states that a smart farming fund is to be established for small farmers and young agropreneurs to 
accelerate the adoption of modern technology in the sector.  Moreover, the adoption of green and 
sustainable practices such as the Malaysian Agricultural Practices (myGAP) certification, the 
Malaysian Sustainable Palm Oil (MSPO) certification, and the Malaysian Organic (myOrganic) 
certification are to be accelerate d." 
 
EU Question 22:  What are the applicable legal framework and the intentions of Malaysia with regard 
to the certification of organic products, both under its domestic production and with regard to organic 
products coming to Malaysia from third countries ? 
 
Answer : myOrganic is the certification of organic product in domestic production which is voluntary 
in nature. myOrganic certification scheme recognize farms that practice organic farming towards 
producing safe and quality farm produce while preserving the environment and also their health and 
wellbeing.  
 
In terms of imported organic products, current regulation is administered through Food Act 1983 
under the purview of the Ministry of Health.  
 
Currently, Malaysia has not received any application to exp ort organic animal products to Malaysia 
from third countries.  
 
EU Question 23:  Could the Malaysian authorities give more details on how the Malaysian 
Sustainable Palm Oil (MSPO) Certification Scheme is enforced? What were the results of the controls 
perfor med since the entry into force of the scheme in 2020?  
 
Answer : The Malaysian Sustainable Palm Oil (MSPO) standard is a national certification standard 
created by the Malaysian government and developed with input from stakeholders in the palm oil 
industry. First launched in November 2013, it officially came into implementation on a voluntary 
basis in January 2015.The MSPO certification became mandatory from 1January 2020 and regulated 
under the Article  21(1) of MPOB (Licensing) Regulations 2005. The enforcem ent are carried out by 
Malaysian Palm Oil Board (MPOB) and assisted by Malaysian Palm Oil Certification Council (MPOCC). 
The uptake of MSPO since 2020 has been received well by the industry as more than 95% of eligible 
entities has been MSPO certified.  
 WT/TPR/M/436/Add.1  
 
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WT/TPR/G/436 – Government Report  
2. Economic Development  
2.3 Economic Development Plans  
2.3.2 Strengthening Infrastructure and Connectivity  
Paragraph 2.29, page 8:  "Connectivity across regions will be enhanced through the development of 
transport infrastructure to serve the needs of the people and the industries. Rail and road networks 
will also be integrated to provide better connectivity between airports, ports, i ndustrial areas, and 
cities in promoting growth and mobility as well as providing economic opportunities."  
 
EU Question 24:  Improving urban -rural access as well as regional transport connectivity is 
essential. Does the strategic approach also envisage to a ddress urban nodes (major cities along 
strategic transport corridors) and the notion of better connecting them to strategic transport 
corridors by efficient, reliable and inclusive multi -modal solution to avoid that cities/urban nodes 
become corridor bottl enecks and thus hamper trade flows?  
 
Answer : Rail and road infrastructure has a key role in ensuring the efficient operation of economic 
activities by providing access to urban as well as rural area that contribute towards social well -being. 
The city not o nly needs to manage intra - and intercity mobility but also the movement of goods and 
cargo.  
 
Hinterland connectivity of seaports and airports is often cited as a key concern in moving cargo, 
leading to increased costs and delays in movement of goods.  
Some  of the challenges include the imbalanced modal split which is highly dependent on road, traffic 
congestion and limitations in inland facilities (such as  warehouses and depots).  
 
The National Transport Policy looks into urban nodes and connects them to tra nsport corridors by 
establishing a seamless and efficient total logistics system to facilitate efficient transportation of 
goods and people.  
 
2.3.3 Digital Economy  
Paragraph 2.55, page 12:  "One of Malaysia's key drivers to maintain trust in the digital 
environment and international trade is balancing open data flows and data protection. The Digital 
Economy Blueprint has charted the pathway forward to increase public confidence in the 
management of personal data and data privacy in all trade agreements by in corporating cross border 
data protection. This has led to the development of National Data Sharing Policy in 2022 and the 
review of Malaysian Personal Data Protection Act (PDPA) to improve cross -border data transfer 
provisions and implementation mechanism by 2025."  
 
EU Question 25 : Could Malaysia explain whether the review of its Personal Data Protection Act 
(PDPA) to improve cross -border data transfer provisions has already concluded and whether it has 
led to a reform of the PDPA?  
 
Answer : The Personal Dat a Protection Act 2010 (Act 709) is still under review, and has yet to be 
finalised. Efforts are currently being made to expedite the review of Act 709.  
 
Paragraph 2.56, page 12:  "The balance between open data flows and data protection will ensure 
seamless and secure international trade ecosystem in the transfer of information across national 
borders. This enables Malaysian government agencies to transmit information for online transaction, 
track global supply chain, share research, provide digital cross bor der service and support 
technological innovation among countries."  
 
EU Question 26:  Will private enterprise also be able to transfer such information across borders?  
 
Answer:  In Malaysia, Personal Data Protection Act 2010 (Act 709) regulates the processing  of 
personal data in commercial transactions and related matters. Section  129 (3) of Act 709 provides 
that a data user (including private enterprise) may transfer any personal data to a place outside 
Malaysia subject to a number of conditions. Kindly refer  to the Act which is accessible at:  
https://www.pdp.gov.my/jpdpv2/laws -of-malaysia -pdpa/personal -data-protection -act-
2010/?lang=en   
 WT/TPR/M/436/Add.1  
 
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2.5 Labour and Minimum Wage Policy  
2.5.1 Ratification of the International Labour Organization (ILO) Protocol of 2014  
Paragraph 2.72, page 14:  "The DWCP  has outlined the cooperation framework between Malaysia 
and the ILO until 2025 which includes three country priorities, namely rights at work, future of work 
and labour migration. Through DWCP, Malaysia has successfully established the inaugural National 
Action Plan on Forced Labour 2021 -2025 and is currently implementing it."  
 
EU Question 27:  What is the state of implementation of the 2019 Decent Work Country 
Programme?  
 
Answer : The DWCP is the main cooperation framework through which the ILO provides sup port to 
its member states. DWCP for Malaysia consists of 2 phases, Phase 1 from 2019 to 2020, and Phase  2 
from 2021 to 2025. Both phases are in line with the Eleventh and Twelfth Plans, as well as the 
UN 2030 Agenda for Sustainable Development Goals.  
 
The implementation of DWCP is carried out through various activities such as knowledge sharing, 
capacity building, advocacy, dialogue and sharing best practices. To date, one (1) project has been 
completed and seven (7) projects are ongoing.  
 
2.5.4 National Ac tion Plan on Forced Labour 2021 -2025  
Paragraph 2.79, page 15:  "The National Action Plan on Forced Labour (NAPFL) 2021 -2025 was 
formulated with the technical assistance from the ILO through one of the projects under DWCP 
namely "From Protocol to Practice: A  Bridge to Global Action on Forced Labour" (BRIDGE). The action 
plan sets out commitments of the Government to eradicate forced labour in Malaysia through 
one-nation approach."  
 
EU Question 28:  What is the state of implementation of the National Action Pla n on Forced 
Labour  2021-2025? Have the activities on amending law and adjusting practice included in the 
National Action Plan been taken according to the timelines therein?  
 
Answer : The National Action Plan on Forced Labour (NAPFL) Steering Committee overs ees the 
implementation, monitoring and evaluation of the NAPFL 2021 - 2025. The Committee is chaired by 
the Ministry of Human Resources and supported by four (4) Technical Committees, Awareness; Legal 
Compliance and Enforcement; Labour Migration; and Remed ies and Access to Protection Services. 
The Technical Committees are responsible in identifying the targeted activities, programes and 
issues towards achieving the action plan.  
 
To date, the Employment Act 1955 has been amended and came into effect on 1  January 2023. 
Among the new provisions included in this Act is the prohibition of forced labour, which carries a fine 
not exceeding MYR 100,000 or imprisonment not exceeding 2 years or both.  
 
3. Trade Policy Developments  
3.2 Initiatives to Facilitate Trade  
3.2.7 The New Investment Policy based on National Investment Aspirations  
Paragraphs 3.20 -3.21, page 18:  "3.20. The New Investment Policy based on New Investment 
Aspiration (NIA) was launched on 6  October  2022 to serve as a basis for comprehensive reforms of 
Malaysia's investment policies. The Government has been working with multiple stakeholders 
through series of engagements and labs to put in place comprehensive reforms and enabling policies 
to strengthe n our offerings to investors.  
3.21. The New Investment Policy based on NIA will intensify high technology and innovation which 
balance economic and environmental sustainability, consistent with global benchmarks in 
environmental, social and governance (ES G). Subsequently, NIA is aligned with the Twelfth Malaysia 
Plan."  
 
EU Question 29:  Will the New Investment Policy include sustainability in all its dimensions including 
social sustainability as outlined in the United Nations Sustainable Development Goals on an equal 
footing with economic and environmental sustainability?  
 
Answer : The NI P outlines clear action plans with a central focus on advancing ESG in trade and 
investment as well as achieving national -level sustainability targets on a similar footing with 
economic and environmental sustainability as outlined in the UNSDG.  
 WT/TPR/M/436/Add.1  
 
- 54 - 
 
Building o n the NIP launch in October 2022, Malaysian Investment Development Authority (MIDA) 
and the United Nations Development Programme (UNDP) Malaysia are planning to launch the 
Malaysian Sustainable Development Goals (SDG) Investor Map in Q2 2023 for reference by both 
domestic and international investors.  
 
The map will provide insights and tools needed by the private sector to increase their investment 
towards the SDG, which contributes to helping to fill the financing gap faced by governments to 
meet the countr y's SDG targets, including its climate ambitions.  
 
Paragraph 3.24, page 19:  "In this context, the NIA takes into account global interest surrounding 
carbon -neutrality, including the use of technology to help reduce carbon footprint. The following are 
among  the transforming strategic sectors that have been identified based on the latest ESG -based 
practices: i. Manufacturing: transformation to drive increased manufacturing of sustainable products 
such as electric vehicles and adoption of ESG practices such as  social responsibility; ii. Services 
Sector: incorporation of latest ESG practices into services such as corporate governance standards 
and sustainable investing; iii. High -Tech Sectors: integration of advanced technologies with latest 
ESG trends such as g reen data centres; and iv. Energy and Power: accelerated transition of energy 
and utility industries towards renewable sources."  
 
EU Question 30 : What are the market access requirements for foreign investors for the four sectors 
enumerated in paragraph 3.2 4, in particular with regard to manufacturing and energy and power?  
 
Answer:  Market access requirements vary between various multilateral or bilateral trade agreements 
including CPTPP, RCEP and WTO. The market access requirements can be accessed at:  
https://fta.miti.gov.my/index.php/pages/view/4?mid=23   
 
4. Challenges and Opportunities of External Environment  
4.3 Trade and Environment  
4.3.3 National Mineral Industry Transformation Plan  
Paragraph 4.25, page 28:  "Transformation outlined in TIM 2021 -2030 will include strengthening 
activities in upstream, midstream and downstream of value chain. The plan aims to increase the 
country's income from new economic activities based on mineral resour ces and attracting more 
foreign investments. Based on the preliminary mapping, the country's mineral resources are 
estimated to reach MYR  4.11trillion. TIM 2021 -2030 which was launched on 22  April 2021, outlines 
five key thrusts as listed below: i. governa nce and legislation; ii. development of mineral industry 
and value chain; iii. inventory and mapping of mineral resources; iv. technology and innovation; and 
v. human capital development."  
 
EU Question 31 : How is Malaysia planning to attract more investmen ts in the mineral industry? 
What would be the conditions for foreign investors to invest in the mining sector?  
 
Answer : The National Mineral Industry Transformation Plan 2021 - 2030 has outlined strategies and 
action plans in promoting investments in the mineral industry. The strategies involved are; 
introduction of incentives and stimulus economy to attract investors (bo th domestic and foreign), 
comprehensive inventories and the mapping of mineral resources.  
 
Malaysia is currently working on action plans to introduce suitable and attractive incentives/ 
packages, other incentives for investment that prioritise sustainabil ity and the adoption of green 
technology, as well as to encourage quality private investment.  
 
Malaysia also listed 5 strategic minerals that have huge potential to be developed, including tin, 
silica sand, bauxite, kaolin and rare -earth elements (non -radioactive), which have higher economic 
potential.  
 
4.3.4 Policy on Forestry  
Paragraph 4.27, page 28 : "Based on the Forest Resource Assessment 2020 (FRA 2020) conducted 
by the Food and Agriculture Organization (FAO), Malaysia is amongst the 25 developing countries 
that have high forest cover and low deforestation activities (HFLD) in the world. Malaysia has been 
recognized as a HFLD country as our forest areas cover more than 50% of land areas and the 
deforestation rate is below the average glob al deforestation rate. Furthermore, Malaysia has set a 
control mechanism by setting a national cap palm oil plantation amounting to 6.5 million hectares, WT/TPR/M/436/Add.1  
 
- 55 - 
 
no new planted area on peat soil and no conversion of Permanent Reserve Forest for oil palm 
plantation s, or for any other agricultural activity."  
 
EU Question 32:  Could Malaysia explain the reasons for setting the national cap on palm oil 
plantations at exactly 6.5  million  hectares? What is the current planation area of palm oil recorded 
under the national  cap? How does the control mechanism pertaining to the national cap work in 
practice?  
 
Answer : The national cap on oil palm plantation at 6.5  million  hectares was an initiative by the 
Ministry of Plantation and Commodities in 2019, taking into account the availability of agricultural 
land and the pledge to keep 50% of land under forest and green cover. The total matured and 
immature planted area for oil palm is currently at 5.67  million  hectares based on MPOB licensed 
holder. The national cap is part of the  government's commitment to ensure domestic oil palm 
industry is sustainably developed.  
 
6. Other domestic policies  
6.2 Competition Act 2010  
Paragraph 6.4, page 34:  "Since 2019, the Malaysia Competition Commission (MyCC) has 
embarked on an amendment exerci se for the Competition Act 2010 to make Malaysia's competition 
law more extensive and in line with international best practices."  
  
EU Question 33:  Does the Malaysia Competition Commission (MyCC) envisage introducing domestic 
Subsidies/State aid control t o ensure a level playing field between foreign and domestic enterprises 
in Malaysia?  
 
Answer : The amendment on the Competition Act 2010 was intended to introduce the merger control 
regime and to further enhance the existing provisions in the Competition Ac t 2010 in order to 
strengthen investigation and enforcement powers and procedure as well as promote competitive 
environment on a level playing field.  
 
6.3 Protection of Intellectual Property Rights  
Paragraph 6.10, page 34:  "The amendments to the Copyright Act 1987, among others, allows 
members of collective management organization to refer any dispute between the members and 
CMO to the Copyright Tribunal, improves provision relating to CMO to ensure transparency, 
accountability and good governance, provides  ex-officio act to search and seize any infringing copies 
that are prohibited from being imported into Malaysia and offences relating to streaming 
technology."  
 
EU Question 34:  Could Malaysia please provide further details on the ex officio action protection 
and share its latest figures on action taken in these matters?  
 
Answer : Malaysia participated in World Customs Organisation's (WCO) joint operation on illicit 
COVID -19 medic ation on fake medical products in 2022.  
 
EU Question 35:  The paragraph mentions the possibility to search and seize "any" infringing copies, 
however Malaysian customs has been quoted as having no jurisdiction to exercise over goods in 
transit or which chan ge vessels, and are only able to inspect goods coming to Malaysia directly for 
import and export purposes. Do Malaysian customs authorities have jurisdiction over goods in transit 
or which change vessels? If yes, could Malaysia provide further details on t his reform and its 
implementation?  
 
Answer : No, Malaysian Customs has no provision to exercise any search or seize of any infringed 
goods which are in transit or transhipped.  
 
EU Question 36:  The paragraph mentions several changes related to the functionin g of the CMOs. 
Could Malaysia please provide a thorough description of this reform, its rationale and its intended 
objectives?  
 
Answer : Pursuant to the new amendment in the Copyright (Amendment) Act (CAA), only a company 
limited by guarantee may apply to be declared as a Collective Management Organisation (CMO) for 
a renewable period of two years. Previously, any society or organisation could apply to be declared WT/TPR/M/436/Add.1  
 
- 56 - 
 
as a CMO for an indefinite period. This ensures that the functions of the different CMOs are n o longer 
allowed to overlap with one another.  
 
A new section, 27  M of the CA 1987, was introduced to empower the Controller of Copyright 
("Controller") to issue guidelines relating to the declaration and operation of a CMO. The failure to 
comply with such guidelines may result in the revocation of the declaration given to a CMO.  
  WT/TPR/M/436/Add.1  
 
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EUROPEAN  UNION  – FOLLOW -UP QUESTIONS  
EU Question 3 : The EU would like to refer to a recently notified Standard, related to Amendments 
to regulations 361 to 386  A and 387 and inser tion of a new regulation, i.e. regulation 384A to the 
Food Regulations 1985 [notified to the WTO under G/TBT/N/MYS/114]. As already asked in 
EU comments on this notification, the EU is concerned that the alcoholic range for wines and liqueurs 
constitutes a  trade barrier for third countries' exporters. Unless there are objective justifications for 
such deviations from international practices and standards, could Malaysia reconsider its wines and 
liqueurs definitions?  
 
Answer:  The requirement for standard an d labelling compliance for alcoholic beverages under the 
Malaysian Food Regulations 1985 is an existing regulation that has been enforced since its 
gazettement. It is not a new regulation, including the minimum percentage of alcohol content 
specified for e ach type of alcoholic beverages.  
 
Section  29 (1), Food Act 1983 also stated that the importation of any food which does not comply 
with the provisions of this Act or any regulation made thereunder is prohibited for sale in Malaysia.  
As such only alcoholic  beverage that complies with the standards including its alcohol content can 
be imported and sold in Malaysia.  
 
EU Follow -up question to Question 3:  
We are aware that Food Regulations 1985 is not impacted by the recent review as concerns the 
minimum/maximu m percentage of alcohol content, but during the public consultation several 
stakeholders suggested eliminating any reference to the alcohol content or at least lowering the 
minimum – increasing the maximum depending on the type of product, and such suggest ions were 
summarily rejected without presenting valid counter -argumentations. Also, the minimum / 
maximum percentage of alcohol content has not been enforced in the past, thus several products 
not in compliance with the requirements still obtained an appro ved permit (AP) by the authorities 
and were placed on the Malaysian market after paying the corresponding customs and excise duties. 
The sudden and unannounced change in policy at the beginning of 2022 caught industry operators 
by surprise and resulted in shipments being held at customs.  
 
Therefore, we would like to ask the Malaysian authorities if they could consider (i)  allowing products 
that had already obtained an AP to be released from customs and placed on the market, and 
(ii) using the opportunity of the current review of the Food Regulations 1985 to eliminate or modify 
the current minimum / maximum percentage of alcohol content for liquor and wines, or otherwise 
explain the legitimate reasons why such minimum / maximum percentage are in  place.  
 
Answer:  There is no policy change in relation to alcoholic beverages. The minimum/ maximum 
percentage of alcohol content in alcoholic beverages under the FR 1985 are existing regulations that 
are being enforced since its gazettement. Inspections a re conducted as part of routine enforcement 
activities, and not as a new procedure. Based on the Customs (Prohibition of Import) Order 2017, 
the importation into Malaysia of goods specified under Part I of the Third Schedule (in this case 
Item 35, Chapter 22, Alcoholic Beverages) is prohibited except that the import is approved by the 
Food Safety and Quality Division, Ministry of Health Malaysia. It is the importer's responsibility to 
ensure that all conditions on the importation of goods have been complied  with prior to the 
importation. Meanwhile, the approved permit (AP) does not overrule other laws including FR 1985 
since it is issued under other jurisdiction .   
 
EU Question 4:  How does Malaysia implement the obligation of WTO Members to apply 
regionalisa tion measures according to available guidance of the World Organisation for Animal Health 
(WOAH) in the event an outbreak of a livestock disease? (Article  6 of the WTO  Agreement  on 
Sanitary and Phytosanitary Measures)  
 
Answer : Malaysia as a member of WTO and WOAH, is committed to comply with the guidelines of 
regionalization measures according to available guidance of WOAH in the event of an outbreak of 
livestock diseases.  
 
EU Follow -up question to Question 4 : We have however understood that in practice M alaysia 
intends to implement the WOAH guidelines in a stricter manner. Is this understanding correct and if 
so what is the justification of this approach?  
 WT/TPR/M/436/Add.1  
 
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Answer:  Malaysia as a member of WTO and WOAH, is committed to comply with the guidelines of 
regionalization measures according to available guidance of WOAH in the event of an outbreak of 
livestock diseases.  
 
EU Question 8: Could Malaysia please provide further information as to its offset policy? What does 
this consist of?  
 
Answer : Offset Program involves activities that strengthen local competitiveness by giving priorities 
to the technology development and knowledge -based economy.  
It enhances the capacity and  capabilities of the local companies to enable their competitiveness in 
the global markets. The offset program is applicable to foreign companies that receive Government's 
contract subject to the Minimum Threshold Value of MYR 50 million . 
 
EU Follow -up que stion to Question 8:  Could Malaysia further  explain under which conditions  the 
offset program is applicable to foreign companies? Could Malaysia further clarify whether the offset 
program could apply to any government contract above MYR 50 million ?  
 
Answe r: Yes, the offset programme can apply to government contracts above MYR 50 million . 
 
The offset programme is applicable to foreign companies under the following conditions:  
 
1. Principal Procurement Contract for Foreign  
Companies (including companies where the major equity is owned by Foreign 
Companies):  
 i. Contract Value for Non -Covered Procurements Not Covered by CPTPP: 
MYR 50 million  and above; and  
ii. Contract Value for Covered Procurements by CPTPP: MYR 50 million  and above.  
 
2. Princi pal Procurement Contract for Joint Ventures:  
i. Contract Value for Non -Covered Procurements Not Covered by CPTPP:  
 
a) The foreign companies' equity is more than the domestic companies' equity; 
and the value of the contract is MYR 50 million  and above.  
b) The foreign companies' equity is less than the domestic companies' equity; 
and the value of the contract is MYR 100 million  and above.  
 
ii. Contract Value for Covered Procurements by CPTPP: MYR 50 million  and above.  
 
EU Question 18:  In the opinion of Malay sia, what could be the reasons that no cases have ever 
been brought before the Copyright Tribunal?  
 
Answer : The Copyright Tribunal has not heard any cases due to a lack of agreement between the 
disputing parties to refer the case to the Tribunal. Some of the disputing parties prefer to request 
government intervention to settle the dispute instead of bringing the case to the Tribunal.  
 
EU Follow -up question to Question 18 : Could Malaysia provide with examples of such 
government interventions?  
 
Answer:  'The Copyright Tribunal has not heard any cases thus far. The Copyright Tribunal will assist 
interested persons to seek application for certain uses of copyrighted works and claim relief by any 
operator of copyright licensing schemes.  
 
EU Question 20:  Could Mal aysia provide figures concerning complaints received, as well as  
information on the outcomes of the following investigations?  
 
Answer : In 2022, MDT has received a total of 79 complaints regarding trademark infringement and 
83 complaints regarding copyrig ht infringement. However not all the complaints will result in a case 
because only complaints which are complete with the required documentation of ownership and 
authorisation of Trademarks or Copyright will be investigated under the Trademarks Act 2019 or  the 
Copyright Act 1987.  
 WT/TPR/M/436/Add.1  
 
- 59 - 
 
EU Follow -up question to Question 20 : Could Malaysia provide with figures concerning the 
number of cases that result from these complaints?  
 
Answer:  In 2022, there were total of 367 cases taken under Trademarks Act 2019 and 49 ca ses 
under Copyright Act 1987 throughout the country.  
 
EU Question 30:  What are the market access requirements for foreign investors for the four sectors 
enumerated in paragraph 3.24, in particular with regard to manufacturing and energy and power?  
 
Answer : Market access requirements vary between various multilateral or bilateral trade agreements 
including CPTPP, RCEP and WTO. The market access requirements can be accessed at: 
https://fta.miti.gov.my/index.php/pages/view/4?mid=23   
 
EU Follow -up question to Question 30 : Could you give an example of an agreement that contains 
market access requirements in the sect or of manufacturing citing the current requirements in your 
national legislation?  
 
Answer:  Market access requirements vary between various multilateral or bilateral trade agreements 
including CPTPP, RCEP and WTO. The market access requirements can be accessed at:  
https://fta. miti.gov.my/index.php/pages/view/4?mid=23   
 
EU Question 26:  Will private enterprise also be able to transfer such information across borders?  
 
Answer:  In Malaysia, Personal Data Protection Act 2010 (Act 709) regulates the processing of 
personal data in com mercial transactions and related matters. Section  129 (3) of Act 709 provides 
that a data user (including private enterprise) may transfer any personal data to a place outside 
Malaysia subject to a number of conditions. Kindly refer to the Act which is acc essible at:  
https://www.pdp.gov.my/jpdpv2/laws -of-malaysia -pdpa/personal -data-protection -
act2010/?lang=en  
 
EU Follow -up question to Question 26 : Will the conditions set out in Section  129(3) of the 
Personal Data Protection Act 2010 (Act 709), under which personal data can be transferred to places 
outside Malaysia that have not been specified under Section  129(1), be tightened under the review 
of the Act?  
 
Answer:  The Personal Data Protection Act 2010 (Act 709) is still under rev iew, has yet to be finalized.  
 
Title 4.3, Trade and Environment, page 27.  
EU Question (not answered):  Will the different policies and initiatives of Malaysia mentioned in 
this paragraph be further developed to ensure that the social dimension of sustainability as outlined 
in the United Nations Sustainable Development Goals is included at an equal footing compared to 
other dimensions of sustainability?  
 
Answer : Malaysia has always promoted sustainable development by balancing societal well -being 
with economic growth and environmental protection.  
 
  WT/TPR/M/436/Add.1  
 
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HONG KONG, CHINA  
Banking and Insurance Services  
(WT/TPR/S/ 436: Page 102, Para. 4.97)  
 
Bank Negara Malaysia (BNM) uses several criteria in the consideration of an application for a banking 
licence under the Financial Services Act (FSA) and the Islamic Financial Services Act (IFSA), including 
whether the application  is in the "best interest of Malaysia", notably (i)  the effect of the investment 
on the level and nature of economic activity in Malaysia, including the effect on productivity, 
efficiency, and quality of financial services; (ii)  the contribution towards en hancing international 
trade and investment linkages between Malaysia and other countries; (iii)  the effect of the 
investment on the stability of the financial system, including on conduct and behaviours that could 
pose a risk to the financial system; or (i v) the degree and significance of participation of Malaysians 
in the financial sector.  
 
(WT/TPR/S/ 436: Page 106, Para. 4.106)  
Foreign insurance companies must be incorporated in Malaysia, and all business operations of local 
and foreign institutions require a licence issued by the Ministry of Finance upon recommendation 
from BNM. The issuance of licences to new insurance and takaful business is governed by the same 
prudential and "best interest of Malaysia" criteria as those applicable to  banks.  
 
Question:  
1. Are there any objective and quantitative criteria to assess whether a foreign service provider 
could meet the four criteria of "best interest of Malaysia" in the consideration of banking/insurance 
licence applications?  
 
Answer : The prudential requirements and the key considerations in applying the best interest of 
Malaysia (BIOM) criteria in assessing all applications for new licenses and acquisitions of interest in 
shares in financial institutions are published in the Financial Serv ices Act (FSA) 2013 and Islamic 
Financial Services Act (IFSA) 2013, which can be accessed at: www.bnm.gov.my . Direct 
engagements with applicants are also held as a normal part of the assessment process to determine 
if the applicant has met the BIOM criteria.  
 
The BIOM considerations are similar to foreign investment practices observed in other member 
countries. Laws governing financial institutions in other member countries similarly provide for the 
authority to conside r the best interests of the financial system in assessing an application to 
incorporate a new financial institution.  
 
2. In view that factor (iv)  the degree and significance of participation of Malaysians in the 
financial sector of the "best interest of Ma laysia" criteria tends to favour domestic service providers, 
are there any plans for Malaysia to relax the criteria to encourage more foreign participation? Could 
Malaysia share with us the current market share of foreign participation in the banking and i nsurance 
markets?  
 
Answer:  Malaysia has no immediate plans to review the "best interest of Malaysia" criteria at this 
juncture. In assessing factor (iv)  of the criteria, the assessment may have regard to the overall 
degree and significance of pre -existing  Malaysia's participation in the sub -sector of financial services. 
Therefore, this does not necessarily accord preference to domestic service providers in the 
consideration of individual applications.  
 
As of January 2023, 24 out of 43 locally incorporated commercial and Islamic banks are majority 
foreign -owned, whereas 26 out of 51 insurance companies and takaful operators are majority 
foreign -owned.  
 
3. During the reporting period, how many applications from foreign service providers were 
rejected based on  the ground of "best interest of Malaysia"?  
 
Answer:  This information is confidential and not published.  
 WT/TPR/M/436/Add.1  
 
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Securities Services  
(WT/TPR/S/ 436: Page 108, Para. 4.114)  
 
The Capital Markets and Services Act (CMSA) introduced a single licensing regime for capital market 
intermediaries. This new licensing framework is premised on the concept of a single licence where a 
capital market intermediary will only need one licence to carry on any one or more regulated activity, 
i.e. securities dealing, dealing in de rivatives, clearing of securities or derivatives, fund management, 
dealing in private retirement schemes, advising on corporate finance, investment advice, and 
financial planning.  
 
Question:  
4. Are foreign service providers eligible to apply for this single licence? If yes, we are interested 
to know if there are any differences in the application procedures and considerations between local 
and foreign service providers.  
 
Answer : The 'single licensing regime' cited in this paragraph refers to the consol idated list of 
regulated activities that an intermediary is licensed to carry out. This approach applies to all licensed 
intermediaries, both foreign and local.  
 
For example, intermediary A is licensed to carry out the regulated activities of 'dealing in s ecurities', 
'dealing in derivatives' and 'fund management'. This list of regulated activities will appear on a single 
license, rather than three separate licenses.  
 
All licensing requirements for both local and foreign service providers are contained in th e Securities 
Commission's Licensing Handbook.  
 
Telecommunications  
(WT/TPR/S/ 436: Page 111, Para. 4.123)  
 
Since the last Review, there have been no changes to the legislation. According to the authorities, 
the Communications and Multimedia Act (CMA) 1998 an d the Malaysian Communications and 
Multimedia Commission Act (MCMCA) 1998 are currently under review; the proposed amendments 
in general are intended to strengthen the function, power, and governance of the Commission, in 
tandem with the evolution and grow th of the communications and multimedia industry.  
 
Question:  
5. Please share with us more details of the proposed amendments to both Acts and the review 
progress. We would like to know if the review will involve any proposed amendments affecting 
foreign p articipation in the market.  
 
Answer : The proposed amendments of the Communications and Multimedia Act (CMA) 1998 
[Act 588] and Multimedia Commission Act (MCMCA) 1998 [Act 589] is in progress and MCMC is in 
the midst of reviewing the proposed amendments in order to be consistent with the current policy.  
 
Maritime Transport  
(WT/TPR/S/ 436: Page 117, Para. 4.149 ) 
 
The Merchant Shipping Ordinance (Part II B, Subsection 65KA(1)), as amended with effect from 
1 January 1980, reserves domestic shipping for Malaysian -flagged vessels holding a domestic 
shipping licence. To obtain such a licence, the vessel must be owned by a Malaysian citizen or an 
enterprise with minimum 51% Malaysian ownership. The Domestic Shippi ng Licensing Board 
regulates and controls the licensing of ships engaged in shipping between ports in Malaysia. A foreign 
registered vessel may be granted a temporary domestic shipping licence if it is demonstrated that 
no Malaysian registered vessel is av ailable for a particular shipment or industry. As noted in previous 
Secretariat reports, foreign vessels are permitted to transport cargo or undertake transshipment of 
containers on selected domestic routes. There has been no enlargement of this permitted route 
network since 2018.  
 
Question:  
6. Given a temporary domestic shipping licence would only be granted to a foreign registered 
vessel when there is no Malaysian registered vessel available for a particular shipment or industry, WT/TPR/M/436/Add.1  
 
- 62 - 
 
we are interested to know  the number of such licence granted to foreign registered vessels during 
the review period. Are there any plans to relax the current restrictions?  
 
Answer:  The Cabotage Policy exist in order to reduce the country's dependence on foreign ships by 
building capacity of local industry and thus increasing the level of local participation in shipping 
industry. During the review period from 2017 – 2021, there has b een a total of 9,070 Domestic 
Shipping License granted to foreign registered vessels. The Cabotage Policy in Malaysia is reviewed 
periodically and exemptions are granted based on industry needs and direction of national policy.  
 
7. What are the considerat ions in selecting certain domestic routes for foreign vessels to 
transport cargo or undertake transshipment of containers? Are there any plans to authorise more 
such routes?  
 
Answer:  The exemption of the domestic route were made after careful consideration s on the short 
term and long term impact of the exemption based on several objectives including:  
 
a. Driving transshipment traffic to Port Klang and Tanjung Pelepas thus making them prominent 
transhipment hubs in Malaysia  
b. Allowing foreign vessel to carr y large amount of cargos to these hubs and providing local 
feeder ships with job opportunity to transport the transhipment cargo to local ports in Peninsular 
Malaysia as well as Sabah, Sarawak and Labuan.  
 
Authorisation of more of such routes may be planne d if there are long term benefits to the local 
shipping industry.  
 
  WT/TPR/M/436/Add.1  
 
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ICELAND  
Questions : 
 
- What is the participation of women in the economy of Malaysia?  
 
Answer : Labour Force Partcipation Rate (LFPR) for women stands at 55.5%. Statistics on women 
empowerment in selected domains in 2022 can be obtained from:  
https://www.dosm.gov.my/v1/inde x.php?r=column/cthemeByCat&cat=444&bul_id=ZklSZ1c1cFFT
MEhTaUw1dW16VEZOQT09&menu_id=L0pheU43NWJwRWVSZklWdzQ4TlhUUT09   
 
- Have specific barriers that limit women 's participation in trade been identified?  
 
Answer : Malaysia is committed in placing women in trade by creating opportunities and 
implementing specific efforts by helping women cope with the double burden of paid professional 
activities and unpaid care responsibilities.  
 
- Has Malaysia implemented any specific measures to encourage women 's participat ion in trade 
and promote women 's entrepreneurship, or are such measures being developed?  
 
Answer : Assistance offered to encourage women 's participation in trade and entrepreneurship are 
credit assistance, capacity building programs, consultations and other  assistance. These include 
skills training opportunities focusing on management, finance and self -leadership, business matching 
and exposure to the changing business landscapes.  
 
- Are the effects of trade policy on women and men measured and monitored, and if so, how?  
 
Answer:  Malaysia advocates gender mainstreaming and via the appointment of Gender Focal Point 
in government ministries and agencies, it aims to integrate gender perspective in policies, programs 
and projects implemented.  
  WT/TPR/M/436/Add.1  
 
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INDIA  
Questions base d on Secretariat Report (WT/TPR/S/436)  
WT/TPR/S/436, Pg. 8, Para 8  – Malaysia's regional integration efforts are anchored in ASEAN. 
The member States established the ASEAN Economic Community (AEC) in 2003, and the AEC 
Blueprint 2025 provides a framework fo r ongoing strategic measures. Trade facilitation is embedded 
in the Blueprint, and the ASEAN Trade in Goods Agreement (ATIGA) was amended in 2019 to simplify 
rules of origin requirements through self -certification by the operators. Negotiations to upgrade 
ATIGA may include new elements such as digital trade. The ASEAN Trade in Services Agreement, in 
force since April 2021, has become the new legal instrument for further integration of services 
sectors, and the ASEAN Comprehensive Investment Agreement aims a t the creation of a free and 
open investment environment through progressive liberalization. The ASEAN Agreement on 
Electronic Commerce, in force since December 2021, is intended to facilitate e -commerce 
transactions within ASEAN.  
Question 1:  
India requests Malaysia to share its experience in implementing the agreement, particularly for 
e-commerce:  
a) What has been its experience with Japanese -led Industrialisation efforts taken up in 
early 2000 and the later establishment of the ASEAN Economic Commu nity? 
 
Answer : For decades, Japan played an integral role in Malaysia's industrialization where in the 1980s 
and 1990s, Japan was amongst the biggest investor in Malaysia and the region. Japan's investment 
was concentrated in the manufacturing sector such as electrical and electronic products; and 
machinery. These investments have helped the Malaysian economy to grow tremendously.  
 
With the establishment of AEC, Malaysia and ASEAN countries collectively are able to source goods 
and services at a competitiv e cost due to the liberalization of tariffs and tax, which has helped 
Southeast Asia become a major manufacturing and trade hub, and also one of the fastest -growing 
consumer markets in the world. The development of AEC Blueprint 2025 was aimed towards maki ng 
ASEAN a single market with a free flow of goods, services, investment, skilled labour and capital. 
The AEC Blueprint has helped the economic integration by eliminating tariffs,facilitating investment 
and promoting the development of regional framework a nd strengthening ASEAN's relationship with 
its external parties.  
 
b) Has the integration with e -commerce led growth caused some challenges?  
 
Answer : Some of the challenges faced by ASEAN in integrating with e -commerce led growth include 
different levels of development in infrastructure, regulatory requirements, tax regime, etc.  
 
WT/TPR/S/436, Pg. 8  Para12; Pg. 39 Para 2.47:  
12. Limitations on foreig n investment, to the extent that these persist, are sector -specific and upheld 
by the supervisory authorities for the sectors in question. Some regulatory agencies may have 
absolute discretion in rejecting or approving transactions. Restrictions on foreign  ownership remain 
in education, communication and multimedia, freight forwarding and shipping, financial services, 
and oil and gas.  
2.47. Foreign investment is not regulated by general legislation, regulations, or guidelines in 
Malaysia. Limitations, to th e extent that they exist, are sector -specific and upheld by the supervisory 
authorities for the sectors in question. Some regulatory agencies may have absolute discretion in 
rejecting or approving transactions. Restrictions may take the form of equity caps  and/or local 
representation requirements such as membership on the board of directors or the hiring of Malaysian 
workers. For example, companies that provide transportation services to third parties in Peninsular 
Malaysia must obtain a Carrier Licence A f rom the Land Public Transport Agency (APAD) under the 
Ministry of Transport, and APAD is required to ensure that the company has minimum 51% Malaysian 
equity, of which 30% must be in indigenous (Bumiputera) ownership.  
Question 2:  
a) The name of agencies and sectors where the authorities have absolute discretion in rejecting 
or approving the transaction of FDI may be mentioned.  
 
Answer : The services sectors in Malaysia are under the purview of various ministries/agencies. The 
informati on is available at the respective ministries/agencies' websites.  
Information regarding investment in services sectors in Malaysia can be accessed at: 
https://www.miti.gov.my/index.ph p/pages/view/4218?mid=880   WT/TPR/M/436/Add.1  
 
- 65 - 
 
b) There are restrictions on foreign ownership in education; communication and multimedia; 
freight forwarding and shipping; financial services; and oil and gas. What are other sectors where 
100% FDI allowed?  
 
Answer : Effective 17  June 2003, foreign investors could hold 100% equity in all investments in new 
projects in the manufacturing sector, as well as investments in expansion/diversification projects by 
existing companies, irrespective of the level of exports and without exclud ing any product or activity.  
 
On the other hand, in 2009 and 2012, Malaysia has liberalised selected services sectors to attract 
more FDI and strengthen its economy. 27 services sub -sectors have been liberalised since 
22 April 2009, with no equity conditi on imposed. Lists of the sub -sectors can be accessed through 
MIDA's Booklet on General Policies, Policies and Guidelines, Chapter 1: Getting Started, page 11 
and 12 at: https://www.mida.gov.my/wp -content/uploads/2021/04/BOOKLET -1-GENERAL -
POLICIES -FACILITIES -AND-GUIDELINES -Chapter1 -Getting -Started -Services.pdf   
 
WT/TPR/S/436, Pg.17, Para 1.5  – During the review period, Malaysia's unemployment rate 
remained relatively stable until it rose to 4.5% in 2020 and 4.6% in 2021 (Table  1.1) as a result, 
inter alia, of pandemic -prompted lockdowns in most sectors particularly those with the lowest ability 
to work from home (least tele workable). However, since restrictions, including the closure of 
Malaysia's international borders, have been lifted and economic activity picked up, the 
unemployment rate was expected to decline further; as of June 2022, it st ood at 3.8% of the labour 
force. As from 2015, employment in the informal sector declined from 10% of the labour market to 
8.3% in 2019; own account workers and employees accounted for 71.7% and 17.1% of the informal 
sector, respectively, in 2019.  
Question  3:  
What are the initiatives adopted by the Malaysian government to increase employment in the formal 
sector?  
a) Has it initiated an increase in employment under the formal mode with long -term contracts 
with social securities and benefits or increased pub lic sector employment?  
 
Answer : Initiatives adopted by the Malaysian Government to increase employment are as follows:  
 
i. Providing a job search platform - MYFutureJobs portal. MYFutureJobs is a job portal using 
state-of-the-art AI technology for swift an d accurate matching. MYFutureJobs performs job 
matching based on multiple factors such as job title, education level, skills and work 
experience, professional certifications, salary range, and office location. In order to increase 
the level of job matching , the Ministry has collaborated with several ministries, bodies and 
agencies such as the Ministry of Rural Development, the Ministry of Youth and Sports, the 
Ministry of International Trade and Industry and the Ministry of Higher Education.  
ii. The government also continuously organising the Career Carnival or Job Carnival throughout 
the country to facilitate recruitment process for employers as well as job seekers such as new 
graduates, school leavers and youth.  
iii. SOCSO's Employment Insurance  System (SIP) also provides programs to increase human 
capital and employees marketability such as career counseling services, skills profiling, 
resume writing, mock interviews, language and presentation skills as well as training and job 
seminars for job seekers.  
 
WT/TPR/S/436, Pg. 17, Para 1.6 – During the review period, headline inflation, as measured by 
the consumer price index, dropped gradually, partially as a result of the 2017 -19 policies on retail 
fuel prices, the zero -rating of the Goods and Servi ces Tax (GST) in 2018, and modest global cost 
pressures in 2019, and then turned in to deflation in 2020 primarily due to the decline of global oil 
prices. In 2021 it rose to 2.5% due to the sharp rise of commodity prices, including global food and 
oil pri ces, driven by the recovery in economic activity and adverse weather conditions (Table  1.1); 
as of July 2022, inflation stood at 4.4%. According to the authorities, headline inflation was to 
average between 2.2% and 3.2% in 2022 amid higher core inflation.  According to the IMF, in 2022 
the outlook for core inflation remained benign, and headline inflation was to remain broadly 
unchanged.  
Question 4:  
India seeks details of the retail fuel price policy 2017 -19 and provide an indicative list of sectors it 
impacted (positive and negative). It would like Malaysia to detail the market access provided for the 
fuel sector.  
 WT/TPR/M/436/Add.1  
 
- 66 - 
 
Answer : Currently, information regarding investment in services sectors in Malaysia can be accessed 
at: https://www.miti.gov.my/index.php/pages/view/4218?mid=880   
 
Question 5:  
India also a sks to provide the detailed information on the zero -rating of the GST?  
a) Was it targeted toward any particular activity to facilitate GVCs in a particular sector, can 
Malaysia provide details of the same.  
b) Did it also target the interests rates offered for manufacturing and services?  
 
Answer : During the transition of GST to Sales Tax and Service Tax (SST), all taxable supplies that 
are subject to standard rate i.e. 6% became zero -rated (0%) for 3 months, beginning 1  June 2018 
until 31  August  2018. It is applied across the board and to all industries. However, tax exempted 
goods and services remained exempted and did not change to zero -rated.  
 
WT/TPR/S/436, Pg. 19, Para 1.13  – During the review period, tax reforms included efforts to 
broaden the tax base; the introduction of taxes concerning imported taxable services (2019) and 
digital services purchased through foreign service providers (2020) and excise duty on electronic 
cigarettes (2021); the expansion of the tourism tax to accommodation services booked through 
online platforms (2021);and the enhancement of the progressivity of the personal income tax by 
introducing a new bracket of above MYR  2 million  per annum subject to a 30% tax rate (before 28%) 
(2020).  
Question 6:  
Malaysia is requested to pro vide the details of tax provisions on digital services purchased through 
foreign service provider.  
a) What services are included in the definition of digital services and how are the taxes 
calculated?  
 
Answer : Legislation on the implementation of service tax on digital services was made via the Service 
Tax Act (Amendment) 2019 (Act A1597). Provisions for the imposition, registration, taxable period 
and accounting for service tax and others were further explained in the Part IXA of Act A1597 and 
subsidiary legislations such as Service Tax (Digital Services) Regulations 2019 and Service Tax (Rate 
of Digital Services Tax) Order 2019.  
 
Section  56 A, Part IXA of Act A1597 stated that service tax shall be charged and levied on any digital 
service provided by a f oreign registered person to any consumer in Malaysia.  
All services that fulfil the digital service definition under Section  2 of Act A1597 will be taxed.  
 
WT/TPR/S/436, Pg. 25, Para 1.26 & 1.27 – Since the previous Review, merchandise trade has 
remained almost entirely dependent on manufactures (Chart  1.1, and Tables A1.1 and A1.2). As 
of 2021, the share of all items (e.g. machinery and electrical equipment, precision equipment, base 
metals and articles thereof, chemicals, and plastics and rubber ) in total exports had risen except for 
the share of petroleum and mineral products, which registered a drop related to global oil prices 
developments. Machinery and electrical equipment and petroleum and mineral products continued 
to account for more than  half of total imports. [Chart  1.1 Product composition of merchandise 
trade by main HS section, 2017 and 2021].  
At the same period, Malaysia's more than 70% dependence on merchandise trade with economies 
in the region remained unchanged, with shares varying on annual basis for both imports and exports 
(Chart  1.2, and Tables A1.3 and A1.4). Notwithstanding some fluctuation in trade shares, as of 2021, 
25.9% (27.2% in 2018) of total merchandise trade was conducted with trading partners from the 
Associat ion of Southeast Asian Nations (ASEAN) (Section  2.3.2.1). Malaysia's main individual trading 
partners remain China, Singapore, the European  Union  (EU-27), and the United  States .[Chart  1.2 
Direction of merchandise trade, 2017 and 2021]  
 
Question 7:  
Compari ng the charts 1.1 and 1.2 it is evident that India -Malaysia FTA did not yield the expected 
benefits. Therefore, India requests Malaysia for the listing of additional measures needed for the 
facilitation of its mutual trade -based market access for both part ners, specifically in the following:   
 
a. In the automobile sector, as Malaysia is a big producer and exporter of transportation 
fragments, as well as of additional car buyers, what are the possibilities for developing 
collaborations? What is the strategy  of the EU -based auto manufacturers?  WT/TPR/M/436/Add.1  
 
- 67 - 
 
b. In agro -food processing what could be the areas of cooperation that would benefit both 
countries?  
 
Answer  a & b: In the context of MICECA, Malaysia welcomes India renewed commitments to engage 
in market access openin gs, in order to further strengthen the Agreement. As it is, India only 
liberalised 75.3 % of its tariff lines, while Malaysia's elimination of duty has reached 82.8 % of its 
total tariff lines. Specifically, in automotive sector, more than 180 tariff lines o f parts and 
components remain dutiable at 5.8%, for export purposes to India. Thus, revision of tariff 
commitments is necessary to level the unbalanced liberalisation commitments by the Parties under 
MICECA.  
 
WT/TPR/S/436, Pg. 39, Para 2.49:  
Policies to e ncourage Bumiputera ownership have been in place for decades, but there is no 
exhaustive or indicative list of Bumiputera requirements that affect foreign direct investment. 
Approval must be sought if an acquisition leads to dilution of Bumiputera or gover nment agency 
ownership, which may not be less than 30% of the equity or MYR  250,000 in paid -up capital. Joint 
ventures between Malaysian and foreign investors are encouraged, particularly for the bidding on 
government procurement contracts.  
 
Question 8:  
Is it a mandatory requirement for all government procurement projects? What are the areas of 
government procurement where Malaysia provides a preference to joint venture rather than totally 
non-Malaysian ownership company on Malaysian land?  
 
Answer : Malaysia provides preference to joint venture through its Industrial Collaboration 
Programme (ICP), an offset policy which contributes to the development of technology, industrial 
and economic growth as well as export potential. Joint ventures throu gh ICP encourages the Transfer 
of Technology from foreign expertise to scale and build up local expertise and capabilities.  
For procurements that are not covered under the CPTPP, joint ventures are provided preference 
under two circumstances:  
i) The foreig n companies' equity is more than the domestic companies' equity; and the value of 
the contract is MYR 50 million  and above.  
ii) The foreign companies' equity is less than the domestic companies' equity; and the value of 
the contract is MYR 100 million  and above.  
 
WT/TPR/S/436, Pg.46,  Para: 3.20:  
Malaysia continues to apply TRQs to satisfy the needs of small and medium domestic producers, 
affecting approximately 0.2% of total tariff lines (Table  3.2). TRQs apply to certain agricultural 
products, mainly live swine and poultry, poultry meat, liquid milk and cream, eggs, and round 
cabbage. The allocation of TRQs is determined by the Ministry of Agriculture and Food Industries 
and allocated to importers on a first -come, first -served basis. The in -quota rates aver aged 15.2% 
in 2022, whereas the out -of-quota rates averaged 43%. In -quota rates ranged from 0% to 25% 
while out -of-quota rates varied between 20% and 90%.  
Question 9:  
How is the transparency maintained in allocation of TRQ as it is determined on a first -come, first 
served basis?  
 
Answer : The information on in -quota tariff and volume are provided on the import permit that is 
issued by MAQIS for every consignment. Further information on the remaining quota may be 
requested from the Department of Veterinary S ervices. The information on TRQ for round cabbage 
is available at the Department of Agriculture's website.  
 
WT/TPR/S/436, Pg.51, 52,53 Para: 3.37,3.42:  
Import licence/import permit requirements may be automatic or non -automatic, depending on the 
product. Licences are also utilized to allocate TRQs (Section  3.1.3.3). According to the authorities, 
automatic licence/import permit is implemented to collect da ta or for monitoring purposes. Products 
subject to automatic licence/import permit include sugar; passenger and commercial motor vehicles; 
motorcycles; bodies (including cabs) of motor vehicles; chassis and parts thereof for motor vehicles; 
ships' derricks ; semi -finished products of iron and steel, including slab, bloom, and billets; and 
flat-rolled products of iron or non -alloy steel.  
In addition to import requirements regulated by the 2017 Order, Malaysia continues to maintain its 
AP system for the automo bile industry. A company must obtain APs to import foreign -built or WT/TPR/M/436/Add.1  
 
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assembled cars, trucks, and motorcycles as part of the National Automotive Policy. The system does 
not set a maximum number of APs that a company may obtain. The approval for AP is based o n the 
performance, business plan, and financial capability of the company. The MITI introduced a New 
Open AP policy on 1  January  2019. The new policy is intended to provide opportunities for qualified 
Bumiputera automotive entrepreneurs to be involved in the industry.62 The stated purpose of the 
Franchise AP Policy is to monitor and collect data, as well as to facilitate the participation of 
Bumiputera in the automotive supply chain.  
Question 10:  
a) There is automatic import licensing for comm ercial motor vehicle. However, there is Approval 
Permits (AP) for automobile industry. Is the AP system for automobiles affecting the meaningfulness 
of automatic import licensing system for automobiles?  
 
Answer : Imposition of AP is for monitoring purpose t o ensure orderly development of the automotive 
sector of the country. Companies with AP approval can apply for import licenses which will be 
processed automatically within five (5) working days.  
 
b) Is there any limit for number of application for AP for a  particular Completely Build Units (CBU) 
in a year?  
 
Answer : Importation of CBU motor vehicles into Malaysia is currently allowed without any limitation, 
subject to compliance to conditions imposed by the Government of Malaysia. Information regarding 
the procedures is publicly available at MITI's Portal:  
https://www.miti.gov.my/index.php/pages/view/3796?mid=84   
 
WT/TPR/S/436, Pg.53,  Para: 3.43:   
The Countervailing and Anti -Dumping Duti es Act 1993 and the Countervailing and Anti -Dumping 
Duties Regulations 1994 constitute Malaysia's basic legal framework for the investigation, 
imposition, and revocation of anti -dumping and countervailing measures. The legislation is 
administered by the MI TI. 
Question 11:  
a. Is there any law / measure under which anti -circumvention and anti -absorption actions are 
investigated and/or imposed in Malaysia? If yes, please give details, such as title, of the law / 
measure.  
 
Answer : Malaysia is currently reviewing the existing Countervailing and Anti -dumping Duties 
Act 1993 and Countervailing and Anti -dumping Duties Regulations 1994 to include detailed 
provisions on anti -circumvention.   
 
b. Please explain the organizational structur e of MITI.  
 
Answer : The Trade Practices Section  (TPS) or the Investigating Authority concerning Trade Remedies 
is under the Multilateral and Trade Policy Negotiations Division (MTPN), in MITI.  
 
c. Are there different divisions/bodies within the MITI that  separately conduct the dumping and 
injury analysis?  
 
Answer : TPS conducts both, the investigation on trade remedies as well as the injury analysis in the 
investigation.  
 
d. Does Malaysia apply Lesser Duty Rule (LDR )? If yes, please give details of the law / measure 
under which LDR is applied? Please explain how Malaysia calculates the 'injury margin' and the 'non -
injurious price'.  
 
Answer : Malaysia does not practice LDR in the current investigations of trade remedie s as it is not 
part of the domestic legislation.  
 
WT/TPR/S/436, Pg.53,  Para: 3.44:   
In some cases, the duties had been extended as a result of the outcome of sunset reviews 
investigations. Malaysia terminated anti -dumping measures relating to 15 cases duri ng the review 
period.  WT/TPR/M/436/Add.1  
 
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Question 12:  
a. In Sunset Review Investigations, what are the parameters that the MITI considers to 
determine whether cessation or revocation of duty is likely to lead to continuation or recurrence of 
dumping and injury?  
 
Answer : In a Sunset Review investigation, TPS would take into consideration the injury suffered by 
the domestic industry and the dumping with the imposition of anti -dumping duties in place to assess 
whether the continued imposition on the anti -dumping duty is necessa ry to offset dumping, and 
whether the injury would be likely to continue to recur if the duty were removed or varied.   
 
b. In Sunset Reviews, does MITI extend the original duty, or does MITI compute a new duty? If 
a new duty is computed, please provide th e details of the method for calculating the revised duty.  
 
Answer : In a Sunset Review, MITI normally extends the original duties.  
 
WT/TPR/S/436, Pg. 54, Para. 3.45  
The Safeguards Act 2006 and the Safeguard Regulations 2007 regulate the procedures for 
investigation, imposition, and revocation of safeguard measures. The MITI is responsible for 
conducting investigations. In 2020, Malaysia notified to the WTO Committee on Safeguards that it 
had initiated a safeguard investigation on imports of ceramic floor and wall tiles.67 The investigation 
was terminated on 11  January  2021 based on the negative preliminary determination since the 
investigation was not able to ascertain any causal link between the increase in imports and a serious 
injury of  the domestic industry.  
Question 13:  
a. Is MITI only responsible for conducting the investigation or is MITI also responsible for 
implementing the results of those investigations (such as the imposition of a safeguard duty)?  
 
Answer : MITI is responsible for conducting the safeguard investigation, and any findings of the 
investigation, whetehr for the purpose of a preliminary or final determination, or a review, shall be 
forwarded to the Minister of MITI.  
 
b. If MITI is not responsible, which authority imp lements the results of the investigation 
conducted by MITI?  
 
Answer : The Minister of MITI shall make a recommendation to the Minister of Finance to impose a 
definitive safeguard measure.   
 
c. What are the types of safeguard measures applied by MITI?  
 
Answer : MITI normally applies safeguard measures in the form of duties, nevertheless, the 
Safeguard Act 2006 allows for a definitive safeguard measure in the form of a safeguard duty; or a 
quota on imports; or a safeguard duty and a quota on imports.   
 
d. Under what circumstances is a safeguard duty applied?  
 
Answer : A safegu ard duty is applied if there is evidence of serious injury or threat thereof caused 
by increased imports.   
 
e. Which authority does the consultation before the imposition of a safeguard measure? Is it 
possible that the quantum / form of a safeguard measur e can be changed after consultation?  
 
Answer : TPS, MITI provides adequate opportunity for consultation with Members having substantial 
interest as exporters of the product under investigation before a definitive safeguard duty is applied. 
The quantum / for m of the safeguard measure may or may not change depending on the outcomes 
of the consultation.   
 WT/TPR/M/436/Add.1  
 
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WT/TPR/S/436, Pg. 57, Para. 3.58   
Claims for drawback of import duty and excise tax paid on goods subsequently exported may be 
submitted to the RMCD  in accordance with Section  93 of the Customs Act 1967 and Section  19 A of 
the Excise Act 1976, as amended. The rules were tightened through amendment Acts A1593 and 
A1594 with effect from 1  January  2020. The period of eligibility from the date of importat ion and 
re-exportation was shortened from 12 months to 3 months, and the minimum amount of paid duty 
or excise tax to be reclaimed was raised from MYR  50 to MYR  200 per consignment. The RMCD 
subsequently ruled that the earlier conditions were still applica ble for goods imported before 
31 December 2019 and re -exported in the course of 2020.  
Question 14  
a. Please explain the system or procedure in place to confirm that the inputs over which drawback 
is claimed are consumed in the production of the exported pr oduct.  
 
Answer : One of the condition for claim of drawback on import duty and excise tax paid on goods 
subsequently being exported accordance to Section  93 of the Customs Act 1967 and Section  19 A 
of the Excise Act 1976 are the goods have not been used af ter the importation. There is no system 
or procedure used to determine the quantity of raw materials consumed in the manufacture of 
finished goods that are exported. Any imported goods are not allowed to go through any 
manufacturing process to comply with requirements under the act.  
 
b. Please describe the verification mechanism that the Government of Malaysia has established 
to ensure that there is no 'excess remission' of duty drawback'?  
 
Answer : Under Section  93 of the Customs Act 1967 and Section  19 A of the Excise Act 1976 Custom 
Officer will verify drawback application through Customs Information System. In addition, Customs 
Assessment Officer (Import/Eksport) will assess to determine import duty and excise duty being 
paid complies with all rules and regulation accordingly.  
 
WT/TPR/S/436, Pg. 59, Para. 3.65   
Table  3.10 More favourable tax incentives – manufacturing  
Malaysia has listed some tax incentives schemes for various manufacturing sectors.  
Question 15  
a. Please state whether the access to the listed tax incentives are restricted to only certain 
enterprises? Please give details of the law / measure under which entities can access each of the 
listed schemes?  
b. Please state whether the Government of Malaysia grants the tax incentives to all e nterprises 
that meet the eligibility criteria? Please give details of the law / measure under which entities are 
granted each of the listed tax incentives.  
 
Answer  a & b:  Two (2) major tax incentives for companies investing in the manufacturing sector are 
the Pioneer Status and the Investment Tax Allowance under the Promotion of Investments Act (PIA), 
1986.  
 
Under the PIA 1986, the main criteria for a company to enjoy tax incentives is that the company 
must be 'desirous' of establishing or participating in  a promoted activity or producing a promoted 
product and has not started production.  
 
Eligibility for Pioneer Status and Investment Tax Allowance is based on certain priorities, including 
the level of value -added, technology used and industrial linkages. E ligible activities and products are 
termed as "promoted activities" or "promoted products".  
 
The applicant must incorporate a company under the Companies Act 2016 and the project to be 
implemented in Malaysia.  
 
Details can be obtained from:  
https://www.mida.gov.my/wp -content/uploads/2020/07/Chapter -2-Incentives -for-New-
Investments.pdf   
https://www.mida.gov.my/wp -content/uploads/2022/11/GD_Incentive_General_03112022.pdf   
https://www.mida.gov.my/setting -up-content/promoted -activities/   
 WT/TPR/M/436/Add.1  
 
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WT/TPR/S/436, Pg. 71, Para 3.112  - Copyright legislation also comes under the authority of the 
Minister of Domestic Trade and Consumer Affairs. The Copyright Act 1987 is under the p urview of 
MyIPO and the Director General of MyIPO is the Controller of Copyright. However, investigation, 
seizure of infringing copies, prosecution, and other enforcement -related actions are under the 
Ministry's Enforcement Division based on the delegation  of authority given by the Controller of 
Copyright. The Copyright Tribunal, an alternative forum for interested persons to apply for certain 
uses of copyrighted works or claiming relief, is administered by MyIPO. However, the Copyright 
Tribunal has not hea rd any cases thus far. IP cases are under the purview of the Judicial Body. Rights 
under the New Plant Varieties Act 2004 are administered by the MAFI.  
Question 16:  
Is there any specific reason why copyright owners have not yet taken recourse to administ rative 
enforcement by Malaysia's Copyright Tribunal?  
 
Answer : The Copyright Tribunal has not heard any cases due to a lack of agreement between the 
disputing parties to refer the case to the Tribunal. Some of the disputing parties prefer to request 
governm ent intervention to settle the dispute instead of bringing the case to the Tribunal.  
 
WT/TPR/S/436, Pg. 71, Para 3.113 –  
Except for utility models, non -residents account for the majority of applications and registrations of 
industrial property (Table  3.16). The United  States , China, and Japan are leading home countries of 
the entities filing for IP protection in Malaysia. Applications for protection of literary and artistic 
works dominate as they constitute more than 90% of the total number of filings. Tra nsition to a new 
IT system in 2019 caused a decline in the number of patent registrations. As for copyright, nearly 
40,000 applications for voluntary notification were recorded between 2012 and 2020. The rising 
trend in filings was broken in 2020 when MCOs  required MyIPO's staff to work from home. MyIPO 
used this opportunity to set up a special taskforce to increase productivity in issuing patent grants.  
Question 17:  
Is the Malaysian government taking any measures to encourage IP filing by residents in order to 
become a net IP exporter as opposed to a net IP importer as it currently is?  
 
Answer : The Malaysian government has taken the following steps to encourage IP filing among its 
residents:  
 
(i) introduced an IP Filing Fund under the 11th and 12th Malaysian Plans to help SMEs register 
their IP;  
(ii) organised awareness programmes targeting SMEs , entrepreneurs, universities, colleges and 
schools;  
(iii) collaborates with WIPO to establish a Technology and Innovation Support Center (TISC) with 
participation by universities, colleges and research institutions; and  
(iv) becoming a member of the Paten t Cooperation Treaty (PCT) and the Madrid Protocol to 
facilitate Malaysians to protect their IP abroad through the patent and trademark international filing 
system administered by WIPO.  
 
WT/TPR/S/436 Pg. 72, Para 3.116  – Initiatives taken by the Ministry t o protect IPRs include 
(i) the establishment of a Cyber Copyright Enforcement platform (CYCore) to collaborate with local 
film copyright owners to combat digital piracy distribution via the Internet (since 2020, 219 links 
have been blocked under this progr amme in relation to 26 films); (ii)  Landlord Liability, a preventive 
measure whereby warning notices are issued to landlords and building management to ensure that 
their premises are not used as sales and distribution centres for counterfeit and pirated go ods (more 
than 400 notices were issued in 2022); and (iii)  the Basket of Brands (BOB), a collaboration with 
registered trademark owners to expedite enforcement actions and assist in the completion of 
investigations. In all, 176 brands comprising 733 tradem ark details have been registered under BOB. 
In 2021, 295 cases were established as a result of raids by the Enforcement Division. The value of 
the seized counterfeit products was MYR  10.6 million .  
 
Question 18:  
What are the substantive standards for IP p rotection in the digital environment in Malaysia? 
Specifically, what regime does Malaysia have concerning intermediary liability in the digital 
environment?  
 
Answer : Malaysia is currently adopting two regimes in enforcing a copyright owner's rights:  WT/TPR/M/436/Add.1  
 
- 72 - 
 
(i) the administrative site -blocking provided under the Communications and Multimedia Act 
(CMA) 1998; and  
(ii) judicial site -blocking under the current safe harbour provision enshrined under Part VIB of the 
Copyright Act 1987.  
 
WT/TPR/S/436, Pg. 84, Para 4.33 & 4.34 –  
Padiberas NasionalBerhad (BERNAS), a state trading enterprise, is responsible for ensuring reliable 
supplies of rice on behalf of the Government.  
BERNAS carries out various activities, including the provision of p rice support as it acts as the buyer 
of last resort for paddy farmers. It set the guaranteed Minimum Price at MYR  1,200 per ton.  
In this context.  
Question 19:  
a. What are the factors taken into consideration while determining the Guaranteed Minimum 
Price?  
 
Answer : The Guaranteed Minimum Price is determined by the following factors:  
i. Price schedule determined by the Ministry of Domestic Trade and Cost of Living;  
ii. The price variations in each state;  
iii. Rice grade; and  
iv. Purchasing power of the rice millers.  
 
b. What is the total production of rice in 2021 and what percentage of total production was 
purchased by the BERNAS for the same year?  
 
Answer : The total production of rice in Malaysia for 2021 was 1,773,425.063 MT and 12% was 
purchased by BERNAS for the same year.  
 
c. Can Malaysia provide information on how the stock of rice purchased by BERNAS is 
distributed?  
 
Answer : The rice purchased by BERNAS  is distributed by the registered wholesalers and retailers.  
 
WT/TPR/S/436, Pg.  84, Para 4.35  -The Government provides several support measures for rice 
producers to ensure food security and to encourage farmers to increase yields. These measures 
include p rice subsidies, fertilizer subsidies, and paddy production incentives. In 2020, the 
Government spent MYR  (Malaysian ringgit) 1.6  billion  on rice subsidies and incentives, or about 50% 
of the budget allocation of the (Ministry of Agriculture and Food Indust ries) MAFI.  
 
Question 20:  
In G/AG/N/MYS/53  for 2015, Malaysia notified rice -specific domestic support measure: Paddy Price 
Subsidy Income Support (497  million  Malaysian ringgit) as a decoupled income support in 
Supporting Table  DS: 1.  Malaysia noted that payments are "based on the context of poverty 
redressal and upliftment of the socio -economic well -being of paddy farmers".  In this regard India 
would like to know the following:  
 
d. Can Malaysia share more details on the Paddy P rice Subsidy Income Support?  
 
Answer : The domestic support measure is used as an income support measure for resource -poor 
farmer, rural development, and food security. The measure does not have trade distorting effects or 
effects on production and is consi stent with Annex  2 of the AoA.  
 
e. What is the eligibility criterion for the farmers to receive payment under this measure?  
 
Answer : All registered paddy farmers and owners of the land are eligible for the support.  
 
f. The expenditure on the Paddy Price Subsidy Income Support has increased from 480  million 
Malaysian ringgit ( G/AG/N/MYS/43 ) to 497  million  Malaysian ringgit (G/AG/N/MYS/53); in this 
regard, India would like to know the reason behind this increment?  
 
Answer : The increase in allocation in 2015 was due to higher production.  
 WT/TPR/M/436/Add.1  
 
- 73 - 
 
WT/TPR/S/436,  Pg. 84, Para 4.35, Table  4.7 -In addition to the Paddy Price Subsidy, the 
Malaysian Government provides subsidies on the inputs for Rice cultivation in the form of Fertilizer 
subsidies and Hill rice fertilizer subsidies. In 2020, the Government spent MYR  (Malaysian ringgit) 
395 million  on fertilizer subsidies.  
 
Question 21:  
In its notification G/AG/N/MYS/53  for 2015, Malaysia has notified this measure under the 
development box in its Supporting Table  DS:2. Malaysia noted that payments are "based on the 
conte xt of poverty redressal and upliftment of the socio -economic well -being of paddy farmers. In 
this regard, India would like to know the following:  
a. What is the definition of the low -income and resource -poor Farmers availing the fertilizer 
subsidy scheme f or rice?  
 
Answer : The fertilizer subsidy scheme for rice is offered to paddy farmers who cultivate paddy in 
land area of 10 hectares and below. This segment of paddy farmers are defined as the low -income 
group.  
 
b. Could Malaysia provide more information o n the Hill rice fertilizer subsidy (WT/TPR/S/436)?  
 
Answer : The hill rice fertilizer subsidy is an input -based subsidy designed to uplift the socio -economic 
well-being of the hill paddy farmers by reducing their production cost.  
 
c. It has been noted from Table  4.7 of WT/TPR/S/436, that no expenditure is incurred on the Hill 
rice fertilizer subsidy in the years 2019 and 2020. What are the reasons for the discontinuation of 
this subsidy?  
 
Answer :There was no government expenditure for this subsidy in 2019 an d 2020.  
 
WT/TPR/S/436, Pg. 84, Table  4.7:  
As per Table  4.7, Government expenditures on rice and paddy subsidies from years 2017 to 
year 2020 account for MYR  million  1,555; 1,808; 1,498 and 1,550 respectively which consist of 
following types of subsidies:  
I. Paddy price subsidy  
II. Fertilizer subsidy  
III. Paddy production incentive  
IV. Certified seed incentive  
V. Hill rice fertilizer subsidy  
 
Question 22:  
a. When will  Malaysia submit its pending DS:1 notifications as the latest submitted DS:1 
notification is for the calendar year 2015, dated 8  August  2022.  
b. Under which box, does Malaysia notify the above mentioned subsidies/incentives?  
 
Answer  a & b : Malaysia is in the process of updating other outstanding notifications.  
 
WT/TPR/S/436, Pg. 97, Para 4.78  - The product categories machinery, electrical equipment, 
and precision equipment alone made up 47% of Malaysia's exports in 2021  
The Malaysian authorities are reques ted to provide the following details:  
Question 23:   
Against the current uncertainty in the global outlook, 47% of exports accrue from machinery and 
equipment alone, how do the authorities plan to mitigate the risk of overdependence emerging from 
these pro ducts in the context of Industrial revolution driven and digital trade and 3D additive 
manufacturing?  
 
Answer : Based on data from Department of Statistics Malaysia, the Electrical & Electronics (E&E) 
and Machinery & Equipment (M&E) contributed 40.7% share to Malaysia's total exports in 2021.  
The importance of these industries as reflected in the export figure is due to the fact that Malaysia 
is one of the top 10 critical global hubs for semiconductors and electronics, accounting for 7% of 
total global semi conductor trade and 13% of global semiconductor testing & packaging.  
 
The Malaysian E&E companies assume an important role to support MNCs with value -added services 
as well as precision machinery and tools. By supporting the MNCs, local Malaysian SMEs hav e WT/TPR/M/436/Add.1  
 
- 74 - 
 
acquired the experience and know -how and have progressed to form spin off companies providing 
the same value -added services targeting not only the electronics sector but also the automotive and 
healthcare sectors as well.  
 
WT/TPR/S/436, Pg. 97, Para 4.80  - Towards embracing the Fourth Industrial Revolution (4IR), 
the Malaysian Investment Development Authority (MIDA) offers facilitation to companies investing 
in 4IR -enabling technologies such as artificial intelligence, robotics, virtual reality, big data analytics, 
the Internet of Things, and software engineering  
Malaysia is requested to share the following details:  
Question 24:   
Please elaborate on how Malaysia envisages the role of the state in embracing the 4th Industrial 
Revolution?  
 
Answer : The Government through the Industry4WRD policy focuses on creating the right ecosystem 
to support SMEs in the manufacturing sector and its related services to embrace the 4IR 
technologies. Details on the Government's assistance can be obtained from:  
https://www.mida.gov.my/forms -and-guidelines/   
 
WT/TPR/S/436, Pg.98, Para 4.86   
The AP system for importation of cars and motorcycles was modified in January 2019 with the 
introduction of the New Ope n AP Policy. The policy provides wider opportunities for Bumiputera 
entrepreneurs to be involved in the importation of second -hand passenger vehicles and motorcycles. 
Buyers must be provided minimum one -year warranty and maintenance (in collaboration with the 
original equipment manufacturer). The import fee amounts to MYR  10,000 per vehicle for the first 
35,000 units imported by all Open AP holders per calendar year, and MYR  20,000 for each additional 
vehicle. A Franchise AP policy is continued for monitori ng and data collection purposes. The current 
AP system effectively caps imports of motor vehicles at 10% of the domestic market. Moreover, the 
National Automotive Policy distinguishes between "national" and "non -national cars". The latter 
includes imports as well as vehicles assembled or manufactured in Malaysia by non -Malaysian 
automakers. Traffic restrictions and noise standards restrict the use of large motorcycles.  
Question 25:  
The importation fee is very high and needs to be curtailed. There should not  be any difference 
between national and non -national cars, once it is imported and entered after paying all the Tax, 
the provision is discriminatory and it has to be dropped. Would Malaysia adhere to the national 
treatment principle?  
 
Answer : Imposition of  the Open AP Fee is regulated under the Customs (Import License Fee for 
Motor Vehicle) Regulations of the Customs Act, 1967. The fee is imposed on importation of used 
passenger vehicles and all Open AP companies are required to comply to the Regulation.  
 
In general, import duty for a motor vehicle is divided into two categories, CBU and CKD. Both 
national and non -national motor vehicles are subjected to the same import duty rates of CBU or 
CKD. 
 
 
WT/TPR/S/436, Pg. 9, 79, 80, Para 17, 4.16, 4.20 and Table  4.4 
Malaysia levies export taxes on 123 tariff line items (at the 10 -digit level). Most duties are ad valorem 
rates ranging from 5% to 20%. Exports of crude palm oil were fully exempted from export duty from 
1 July 2020 to 31  December  2020 to allevia te the impact of the COVID -19 pandemic.  
 
CPO production declined by 5.4% during 2020 -21 due to lower processed fresh fruit bunches (FFB) 
arising from lower FFB yield caused by the shortage of foreign labour in the oil palm plantations 
during the pandemic. 25 The pandemic also affected Malaysia's capacity to export palm oil and other 
related products. However, as the CPO price jumped more than 60% from 2020 to 2021, the 
exported value reached a record MYR  108.5  billion  in 2021.  
 
CPO is also subject to export  duty fixed monthly based on its average market price. Taxes are 
imposed when export prices exceed MYR  2,250 per tonne and may range from 3.0% to 8.0% 
(Table  4.4). Higher market prices resulted in export duties on CPO increasing from 5.5% in 
September 2017  to 8.0% in November 2022  
 WT/TPR/M/436/Add.1  
 
- 75 - 
 
Question 26:  
Malaysia has an export tax duty structure on export of Palm Oil. During 2021 and 2022, the palm 
oil prices are consistently high.  Palm oil is consumed by our mass population and  India is a major 
importer of palm oil  from Malaysia. A consistent high price along higher slab of export duty is 
distorting edible oil prices in India. India is having consistently trade deficit with Malaysia, will 
Malaysia consider any decrease in  export duty structure of palm oil export in view of  distortion in 
the prices of edible oils in India?  
 
Answer : Malaysia imposes export tax on Crude Palm Oil (CPO) with the main objective to ensure 
sufficient supply of raw material to the domestic processing sector namely the refineries and 
oleochemi cal plants and also to increase the production and export of higher value added products 
(not only depending on the export of CPO).  
 
WT/TPR/S/436, Pg. 112, Para 4.127  – The Government introduced the Malaysia Digital 
Economy Blueprint initiative in February 2021 to support national development plans such as the 
SPV 2030 and the Twelfth Plan and streamline key policies to facilitate the development of the digital 
economy in  Malaysia. The EPU provides leadership and policy direction. Malaysia Digital Economy 
Blueprint sets out the consolidated initiatives and targeted outcomes related to the rakyat, business, 
and the Government through the Malaysia Digital Economy Blueprint a nd the National 4IR Policy 
(N4IRP) (Table  4.22) . 
Question 27:  
Malaysia is requested to provide the status of MSMEs engaged in e -commerce, and the detail of 
schemes or policy specifically adopted for the digitalization of MSMEs.  
 
Answer : Under the National E-Commerce Strategic Roadmap (NESR), as of 31  December  2022, 
1,126,047 MSMEs have adopted e -commerce in their business operation.  
Supporting the MyDigital initiative, the Ministry of Entrepreneur and Cooperatives Development 
(MECD) provides training and c apacity building programmes related to e -commerce for MSMEs such 
as:  
i. Online Sales Guidance Programme (e -Board) by Institut Keusahawanan Negara (INSKEN) - 
Programme that aims to improve capacity and capability of MSMEs in utilising e -commerce platform 
to market and sell product and services through training, guidance and intensive handhold.  
ii. Angsana Virtual Mall by UDA Holdings Berhad (UDA) - Providing an e -commerce platform 
called Angsana Virtual Mall to support MSMEs among UDA retailers.  
iii. TEKUN Online Marketing by TEKUN Nasional - Training programme that guide micro 
enterprises on how to on board e -commerce platform including managing online businesses.  
iv. Pybli Onboarding by Perbadanan Nasional Berhad (PERNAS) - a portal and digital application  
to support MSMEs in franchising to access market through e -commerce.  
 
Policies adopted for digitalisation specifically for MSMEs is Strategic Thrust 5 of National 
Entrepreneurship Policy (NEP) 2030 which aimas to strengthen Entrepreneurial Capabilities a nd 
Performance of Micro, Small and Medium Enterprises (MSMEs).  
 
QUESTIONS ON GOVERNMENT REPORT  
WT/TPR/G/436, Pgs. 4 - 6, Para 2.1, 2.15 & 2.16 -The Malaysian economy was on its targeted 
growth trajectory, expanding by 4.6% over the period 2018 -2019 mainly driven by strong private 
consumption and net exports. In 2020, Malaysia's GDP contracted by 5.6% (2019: 4.3%) following 
the outbreak of COVID -19 pandemic. However, the economy continued to expand by 3.1% in 
2021 due to improving domestic demand and robust exports performance.  
Malaysia recorded a higher current account of the balance of payments surplus in 2021 at 
MYR 53.5 billion or 3.5% of GDP co mpared to MYR  38.3 billion  or 2.8% of GDP in 2017. This is 
attributed to the sizeable surplus in the goods account, which more than offset the continued deficit 
in the services and income accounts. During the 2018 -2021 period, gross exports grew by 7.3% pe r 
annum, mainly supported by manufactured goods, which accounted for 86.1% of total exports 
in 2021. Gross imports expanded at an average annual rate of 4.2% driven by intermediate and 
consumption goods as well as re -exports during the same period. The def icit in the services account 
reflected continued net payments for transportation, professional and technical services as well 
asintellectual property. The travel account recorded a deficit in 2020 and 2021, particularly 
due to the international travel rest rictions following the COVID -19 pandemic . In addition, 
the income accounts remained in deficit following continued repatriation of profits and dividends by 
foreign investors as well as outward remittances by foreign workers in Malaysia.  WT/TPR/M/436/Add.1  
 
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Malaysia's labour f orce has increased from 15.3  million  persons in 2018 to 15.8  million  persons in 
2021 while the number of employed persons has increased from 14.8  million  in 2018 to 15.1  million  
in 2021. The increment was relatively small as the labour market has been impa cted by the 
COVID -19 pandemic. The unemployment rate remained low at 3.3% in 2018 and 2019 but increased 
to 4.5% and 4.6% in 2020 and 2021, respectively. The highest unemployment rate was recorded 
in May 2020 when it hit 5.3%. The unemployment rate has dec lined to 3.8% in June 2022, the 
lowest since the COVID -19 pandemic hit the country. The three main contributors of 
employment in 2021 were services sector (61.1%), manufacturing sector (17.1%) and 
agriculture sector (12.3%).  
Question 28:  
India requests Ma laysia to explain how it overcame the negative sentiments associated with the 
COVID -19 pandemic and achieved a growth of 3.1% in 2021. While the Malaysian economy is open 
and heavily dependent on exports with the service sector accounting for 61.1 % of empl oyment and 
with international travel suggesting a deficit in 2020 and 2021:  
 
a. What targeted macro and microeconomic policies (Monetary and Fiscal) have been undertaken 
by the Malaysian economy for this robust recovery?  
 
Answer : Malaysia's economy expanded by 3.1% in 2021, supported mainly by the improvement in 
domestic demand and robust exports performance. To strengthen economic recovery and emerge 
stronger from the COVID -19 pandemic, the Government introduced several strategie s and initiatives 
as follows:  
 
i) Allocating a total of eight economic stimulus packages worth MYR 530 billion  in 2020 and 2021 
to ensure business continuity and ease the burden of Malaysians affected by the pandemic.  
ii) Implementing the National COVID -19 Immunisation Program (PICK), a key enabler for 
Malaysia's reopening and to curb the spread of the pandemic.  
iii) Boosting the growth of digital economy through the Malaysia Digital Economy Blueprint, which 
was launched in 2021.  
iv) Setting up the Nationa l Employment Council to coordinate initiatives on new job creation, skills 
enhancement and employee training.  
v) Catalysing strategic and high -impact industries to boost economic growth with focus on eight 
strategic industries, namely electrical and electr onics, global services, aerospace, creative, tourism, 
halal, smart farming and biomass.  
vi) Promoting Research, Development, Innovation & Commercialisation (R&D&I&C) by reviewing 
the Intellectual Property (IP) policies, strengthening its patent assessment  capabilities and 
promoting fair competition.  
 
WT/TPR/G/436, Pg. 10, Para 2.45  - The National Cyber Security Agency (NACSA) launched 
Malaysia Cyber Security Strategy 2020 –2024 (MCSS) to govern cybersecurity planning and 
implementation. MCSS aims to have a secure, trusted and resilient cyberspace. While advancing the 
economy and wellbeing, its mission is to fortify the local capabilities to predict, detect, deter and 
respond immediately to cyber threats. MCSS introduces the "Whole -of-Nation Approach" concept  
where everyone is included in the national cybersecurity agenda, through structured governance, 
competent talent, best practices and effective technology.  
Question 29:  
The above para . notes that Malaysia introduces the "Whole -of-Nation Approach" concept where 
everyone is included in the national cybersecurity agenda . Malaysia is requested to provide the 
details of the " Whole -of-Nation Approach " concept and share the experience regarding its 
implementation.  
 
a) How does this apply in the context o f digital economy and trade?  
 
Answer : As cybersecurity is a cross -cutting issues, MCSS introduces the "Whole -of-Nation Approach" 
concept where everyone is included in the national cybersecurity agenda. MCSS was designed with 
tools to provide trust in Malay sia's cyber environment not only for national security, but also support 
the government agenda in the digital economy, Industry 4.0 and the adoption of other disruptive 
technologies. MCSS is more inclusive and comprehensive in covering the protection of cr itical 
national information infrastructure (CNII), businesses, industries and also citizen.  
 
Recognising the importance of digital economy where Malaysia also moving towards the digitalisation  
to improve the standard of living and prosperity, the government has also included Trade, Industry WT/TPR/M/436/Add.1  
 
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and Economy as one of the CNII sectors and Ministry of International Trade and Industry (MITI) has 
been identified as the Sector Leads for this sector and a ll the agencies/organisations under MITI's 
jurisdiction. The roles of MITI is to look into the policy, strategic measure and actions to strengthen 
the country's cybersecurity on the aspects of international trade and industry.  
 
WT/TPR/G/436, Pg. 12, Para 2 .55 – One of Malaysia's key drivers to maintain trust in the digital 
environment and international trade is balancing open data flows and data protection. The Digital 
Economy Blueprint has charted the pathway forward to increase public confidence in the 
management of personal data and data privacy in all trade agreements by incorporating cross -border 
data protection. This has led to the development of the National Data Sharing Policy in 2022 and the 
review of the Malaysian Personal Data Protection Act (PD PA) to improve cross -border data transfer 
provisions and implementation mechanisms by 2025.  
Question 30:  
Malaysia is requested to elaborate on the scope and provisions of the National Data Sharing Policy. 
What are the changes made to the Malaysia Personal  Data Protection Act? How do these changes 
impact cross border data flows with other countries as the current PDPA was not applicable to data 
processed outside of Malaysia?  
 
Answer : The Personal Data Protection Act 2010 (Act 709) is still under review, and  has yet to be 
finalized. The Malaysian Government is concerned about increasing public confidence in the 
management of personal data and data privacy in commercial transactions within the Malaysian 
boundaries and across borders. Efforts are currently bein g made to expedite the review of Act 709.  
 
WT/TPR/G/436, Pg. 19, Para 3.27 - The SME Masterplan (2012 –2020) provides policy direction 
for SMEs development in Malaysia.During the Plan period, the average annual growth of SMEs GDP 
was at 5.4% which outperform ed the overall GDP growth of 3.8% and non -SME growth of 3.0%.  
Question 31:  
What are Malaysia's concerns about the European  Union 's plans to implement its Carbon Border 
Adjustment Mechanism (CBAM) proposal by 2026, and the transition period will kick in f rom 2023?  
 
Answer : From the angle of climate change, the implementation of CBAM is misaligned with the 
UNFCCC principles which stated that parties should cooperate with each other to promote a 
supportive and open international economic system that will con tribute towards sustainable 
development as per paragraph 5 under Article  3 of the UNFCCC.  
 
As per UNFCCC principles, unilateral measure taken should not constitute as a means of arbitrary or 
unjustifiable discrimination or as disguised restriction on inter national trade. As such, paragraph 5 
under Article  3 of the UNFCCC should be interpreted and embraced by all UNFCCC parties.  
 
Malaysia is also of the view that since the purpose of CBAM is to meet EU's climate ambition under 
UNFCCC, the EU is obliged to p rovide financial support, capacity building including technical support 
and technology transfer to developing countries in line with the spirit of the UNFCCC and the Paris 
Agreement.  
 
a) Against this background, how do the authorities plan to proceed to ai d its SMEs in complying 
with such onerous commitments?  
 
Answer : Malaysia's efforts to assist SMEs does not focus specifically to meet CBAM  commitment. For 
Malaysia, effort to grow its green economy mainly centered on encouraging SMEs to adopt green 
practices and offer local green products and services through platform such as MyHIJAU and 
Entrepreneur Development Programme. The aim of these p latform is to increase the participation of 
companies to successfully incorporate the best green practices and applications into their operations 
by the end of the programme.  
 
These efforts are complemented by government tax reliefs, incentives and discou nt such as Green 
Investment Tax Allowance and Green Investment Tax Exemption to promote green initiatives among 
SMEs. Financial institutions in Malaysia are also expanding support in terms of green financing for 
SMEs.  
 
Malaysian government with the coopera tion from organization such as Capital Markets Malaysia is 
also conducting sustainability initiatives to SMEs to enable Environmental, Social and Governance 
(ESG) adoption in their business operation. Among activities conducted under this initiative are on  WT/TPR/M/436/Add.1  
 
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sustainability efforts planning, implementation, and reporting and facility level greenhouse gases 
(GHG) reporting.  
 
b) What is the composition of Malaysian exports to EU in Automobiles, Electrical Machinery, Non 
electrical machinery and others which are targeted for use of carbon intensive manufacturing?  
 
Answer : The initial 5 sectors, categorised by the EU, as most carbon intensive industries are 
electricity, iron & steel, fertilisers, aluminium and cement. Based on Malaysia's exports to the EU in 
2022, it is likely that CBAM will affect about 42% of Malaysia's exports to the EU. The list of sectors 
are non -exhaustive though, as more industry segments will be added gradually.  
 
WT/TPR/G/436, Pg. 20, Para 3.29  - Two areas are identified as catalysts to promote growth 
namely (i)  value chains in high impact industries, with focus on linking SMEs with larger firms and 
(ii) internationalization of SMEs, with focus on developing targeted market and strategic alliances 
for SMEs' participation in the global val ue chains.  
Question 32:  
There has been a significant increase in non -trade barriers, especially standards, how do the 
authorities plan to internationalize SMEs with a focus on developing targeted markets  against the 
prevalence of such onerous commitments?  
 
Answer : Malaysia acknowledges the importance of internationalising the SMEs to overcome the 
significant increase in the non -trade barrier and has made substantial efforts to increase the growth 
and competitiveness of MSMEs. MECD through its agency SME Co rp, uses a diagnostic tool called 
the SME Competitiveness Rating for Enhancement (SCORE) to analyse an SME's performance whch 
can later be used to analyse and match suitable support programs, helping the SME to further 
enhance its business performance and capabilities. The tool not only prepares the SMEs for 
internationalisation but also helps to match the SMEs for better market access and export financing.  
 
Business Matching Programme (PADANIAGA) is aimed at assisting MSMEs to make critical 
connections an d conduct necessary meetings with potential business anchors and multinational 
companies (MNC) to widen the MSMEs' market access. MSMEs will be guided with the necessary 
consultation and advisory on standards and requirements needed to explore both the loc al as well 
as the international markets. The programme could also set up important networking opportunities 
which would later help the MSMEs to expand their market to the targeted countries.  
 
Other programmes for MSMEs include two which were implemented by  the Ministry of International 
Trade and Industry (MITI) through its agency SIRIM Berhad namely the Conformity Assessment 
Programme with the objective to assist MSMEs in complying with national/international standards 
and penetrate global market; and the C alibration and Measurement Services with the aim to ensure 
comprehensive and diverse range of measurement services are competent and products tested are 
globally recognised.  
 
WT/TPR/G/436, Pg. 26, Para. 4.12  – Malaysia undertook the following steps to redu ce the 
burden of conformity assessment bodies and organizations, as well as enable businesses to operate 
smoothly: i. allowed assessments to be conducted remotely; ii. allowed assessments to be postponed 
for up to six months; and iii. extended the validity  period of accreditation certificates which expire 
between 1  March  2020 and 31  March  2021 for up to three months.  
Question 33:  
The above paragraph notes that in response to the COVID -19 pandemic, Malaysia allowed 
assessments to be conducted remotely. Mala ysia is requested to provide information about the kind 
of products (for example, on the basis of risk) for which remote assessment was allowed, and if it 
still allows remote assessments.  
 
Answer : During the beginning of the pandemic, and due to the Moveme nt Control Order, Malaysia 
conducted a risk analysis and determined that accreditation services need to continue using remote 
methods. On 17  March  2020, Accreditation Circular 1:2020 was published allowing for remote 
assessment.  
 
The assessments conducted remotely were not based on products but rather the schedule 
determined in the accreditation cycle for each accredited CAB. Beginning 1  January  2022, JSM limits 
the remote method based on type of assessment as below:  
 WT/TPR/M/436/Add.1  
 
- 79 - 
 
A. The following assessment types shall be conducted onsite:  
a) Compliance assessment  
b) First Surveillance after Award of Accreditation  
c) Re-assessment  
d) Extension of Scope  
 
B. The following assessment types may be conducted remotely:  
a) Adequacy Audit/Documentation Review  
b) Pre-Assessment  
c) Surveillance (except for First Surveillance after Award of Accreditation)  
d) Verification Assessment  
 
The circular is available in JSM website: https://w ww.jsm.gov.my/accreditation/resources -
accreditation/general   
 
WT/TPR/G/436, Pg. 27, Para. 4.14  As an outcome of these measures, Malaysia was able to 
provide uninterrupted accreditation services to CABs that were part of essential services, such as 
those in  the manufacturing of food and medical device, as well as healthcare. These measures 
enabled the continued recognition of services by customers and regulators, especially for those 
involved in the import and export of goods.  
Question 34:  
The above paragraph notes that as a result of various measures, Malaysia was able to provide 
uninterrupted accreditation services to CABs that were part of essential services, such as those in 
the manufacturing of food and medical device, as well as healthcare. Mala ysia is requested to explain 
whether such measures were applicable only in case of CABs that were part of essential services or 
to CABs in other sectors as well.  
 
Answer : Such measures were applicable to all CABs regardless of the sectors, not limiting to those 
that were part of essential services.  
 
WT/TPR/G/436, Pg. 32, Para 5.20  
The National Agrofood Policy 2021 -2030 (NAP 2.0) is a continuity of Malaysia's food security and 
agrofood sector transformation agenda in the decade of 2021 -2030. The formulation of the NAP 2.0 
considers current challenges including global climate change, resource scarcity, population growth, 
labour force competency as well as the need for food system transformation and national socio -
economic development. The policy supports the a spirations of the agrofood sector to be more 
sustainable, resilient and technology -driven to propel economic growth while prioritizing national 
food security and nutrition.  
 
Question 35:  
a. What are the different steps taken in NAP 2.0 for protecting the Malaysian agricultural sector 
from challenges like climate change, resource scarcity, population growth, labour force etc.?  
 
Answer : To tackle issues related to climate change, the Ministry has outlined three (3) important 
strategies:  
(i) Increase adoptio n of technology and automation including climate -smart agriculture approach 
through creating conducive ecosystem for the industry;  
(ii) Strengthen data on food security to assess and monitor the level of food security including 
climate change impact on ag riculture sector; and  
(iii) Intensifying Research and Development, Commercialization, and Innovation (R&DCI) on 
potential alternative agriculture practices for food production to adapt to climate change.  
 
b. Also specify the measures taken to make agrofood sector to be more sustainable, resilient and 
technology -driven which complements national food and nutritional security of Malaysia.  
 
Answer : Measures taken to make the subsectors of agrofood to be more sust ainable, resilient, and 
technology -driven are:  
 
Paddy and rice  
Moving forward, the subsector is focusing on enhancing productivity through better efficiency of 
natural resource use, along with improving income level of industry players across the value ch ain. 
Key strategies for the subsector are to boost productivity via better land and water management; WT/TPR/M/436/Add.1  
 
- 80 - 
 
capitalizing on the potential of local specialty rice varieties; encourage young generation to 
participate in the subsector; enhancing financial support; and involvement of private sector along 
the evolving value chain.  
 
Fruits and vegetables  
By 2030, the fruits and vegetables subsector are projected to achieve 83% and 80% self -sufficient 
level. Currently, key strategies for the subsector includes focusing  on gene editing research; 
improving land management; promoting sustainable development; and supporting the growth of 
high value fruits and vegetables.  
 
Livestock  
The strategies and action plans for livestock subsector were formulated to facilitate the de velopment 
of livestock production in the country. These includes, increasing growth and sustainability in the 
poultry industry; assisting market access especially in the ruminant industry for new entrepreneur; 
growing the number of ruminant livestock; miti gate and control diseases; and reducing the 
dependency on imported feed.  
 
Fisheries and aquaculture  
It is crucial to look into sustainable measures in managing the fisheries and aquaculture subsector 
in order to maintain and increase existing fish stock w hile at the same time have continuous supply 
to the market. Main strategies to further develop and improve the fisheries and aquaculture includes 
ensuring sufficient, affordable, and safe fisheries produce; good governance across the subsector; 
and enhanci ng fisheries resource sustainability.  
 
c. How is NAP 2.0 different from National Agrofood Policy (NAP) 2011 -2020?  
 
Answer : NAP 2011 -2020 was focused on Industrial Transformation while NAP 2021 -2030 focuses on 
Agrofood modernization ensuring the future of n ational food security.  
 
The formulation of the NAP 2.0 considers current challenges including climate change, resource 
scarcity, population growth, labor force as well as the need for food system transformation and 
national socio -economic development. The policy supports the aspi rations of the agrofood sector to 
be more sustainable, resilient, and technology -driven to propel economic growth while prioritizing 
national food security and nutrition.  
WT/TPR/G/436, Pg. 34, Para 6.7  –The Trademarks Act 2019 which entered into force on 
27 December  2019, among others, allows Malaysia to implement trademark international filing 
system under the Madrid Protocol, expands the scope of trademark protection to include non -
traditional marks, collective marks and certification marks as well as str ingent penalties for 
infringements.  
Question 36:  
Which non -traditional trademarks are covered under the new Amendment of 2019? Does Malaysia 
require graphical representation as a prerequisite for the registration of non -traditional marks? To 
what extent has Malaysia codified the Sieckmann criteria under its law on the protection of non -
traditional marks?  
 
Answer : The non -traditional trademarks covered under the Trademarks Act 2019 (TMA 2019) are 
shape of goods or their packaging, colour, sound, scent, hol ogram, positioning and sequence of 
motion.  
Upon filing an application, the applicant is required to provide a clear indication of the nature of the 
trademark; graphical representation of the trademark; and for trademark relating to colour, the 
limitation as to the colour of the trademark. The representation of trademark must be clear and 
durable which is sufficiently show the particulars of the trademark.  
 
WT/TPR/G/436, Pg. 34, Para 6.8  – The new Geographical Indications Act 2022 has entered into 
force on 18  March  2022 to provide a better protection for registered geographical indications 
including stringent penalties for infringement, to allow electronic filing for geographical indications 
applications and to provide clearer grounds for refusal.  
Question 37:  
To which product classes does Malaysia provide GI protection under its sui generis legislation? In 
particular, does Malaysia provide or intend to provide GI protection to non -agricultural goods like 
handicrafts through its sui generis GI legi slation?  
 WT/TPR/M/436/Add.1  
 
- 81 - 
 
Answer : The GI protection in Malaysia is provided under sui generis legislation, the Geographical 
Indications Act 2022. There are five categories of goods protected under the Act, that are wine and 
spirit; prepared foodstuff and beverages; agricu ltural, aquacultural, horticultural products; 
handicraft; and textiles (other than handicraft).  
 
WT/TPR/G/436, Pg. 34, Para 6.9  –With the amendments to the Patents Act 1983, Malaysia 
(i) adopts the Article  31bis of the TRIPS  Agreement , (ii) introduces third -party observation and 
(iii) introduces post -grant opposition.  
Question 38:  
With the introduction of amendments to Malaysia's Patent Act, 1983, what is the procedure for third –
party observations? Is there any provision for pre -grant opposi tion as well?  
 
Answer : Procedures for third -party observations is provided under Reg 28  A of the Patents 
Regulations 1986 as follows:  
 
(i) submit application form together with payment of prescribed fee ( MYR 150) within the period 
of 3 months from the dat e of the application is published under Section  33 D (Publication of 
Application) or 3 months from the date of the international application entering the national phase 
under Section  78O or 78OA (Reinstatement);  
(ii) for patent, the ground is limited to no velty and inventive step and for certificate of utility 
innovation, the ground is limited to novelty;  
(iii) the application shall be accompanied by an explanation on the ground of the observation; and 
a documentary evidence by of statutory declaration to s upport the explanation on the grounds of 
the observation.  
 
There is no provision for pre -grant opposition under the Patents Act 1983.  
 
  WT/TPR/M/436/Add.1  
 
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INDONESIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
SUMMARY  
Page 8 Para 11  
Regarding the business environment, entrepreneurs are required to register with the Companies 
Commission of Malaysia for starting a business, but other federal and state agencies are also 
involved in the process of issuing licenses, tax registration, and s ocial security arrangements. The 
MalaysiaBiz Portal was launched in 2020 as a one -stop Centre for business registration 
and licensing.  The Malaysian Investment Development Authority is the principal agency overseeing 
and driving investment into manufacturi ng and selected industries in the services sector. The 
National Investment Aspirations, approved by the Cabinet in April 2021, provides a program for 
comprehensive reform of the investment agenda to attract high -quality investments creating high -
income job s. 
 
Question:  
1. Based on WTO Secretariat Report, Malaysia has launched "The MalaysiaBiz  Portal" in 2020 as 
a one -stop Centre for business registration and licensing. Could Malaysia elaborate more regarding 
the differences and changes compared to the previous policy?  
 
Answer : The MalaysiaBiz Portal is a single window for both business registr ation and licensing to 
encourage the formation of businesses. Before the development of the Portal, there were 
two separate systems that have been initiated, namely:  
i. Malaysia Corporate Identity Number (MyCoID) which refers to the company registration 
number with the Companies Commission of Malaysia (CCM) and;  
ii. Business Licensing Electronic Support System (BLESS) for licensing  
 
The aim of the MalaysiaBiz Portal is to further enhance the ease of doing business by integrating the 
two systems into a singl e window to facilitate starting a business. In addition, it also aims to reduce 
cost and time taken to start a business. To date, six registration bodies and 66 licensing authorities 
have been integrated through Portal MalaysiaBiz.   
 
Page 11 Para 30  
Tourism plays an important role in the economy, including as a major earner of foreign exchange. 
In 2019, travel services generated MYR  82.1 billion , equivalent to 48.3% of total services exports. 
However, the Government's movement control orders provoked by the outbreak of COVID -19 led to 
a sharp drop in international visitors in 2020 and 2021. The Visit Malaysia 2020 campaign was 
cancelled. The Government introduced various measures to alleviate the adverse impact of the 
COVID -19 pandemic on the tourism sector. These measures included a wage subsidy programme, 
exemption from the tourism tax, income tax relief for domestic tourism expenses, and financial 
assistance for Malaysian SMEs and micro enterprises . Foreign equity participation is restricted  
in certain tourism activities.  
Question:  
2. According to the Secretariat Report, certain tourism activities are restricted to foreign equity 
participation. Could Malaysia explain which tourism activities are restricted and why?  
 
Answer : Currently, tourist  guide services are not opened to foreign investors. Under the Tourism 
Industry Act 1992 (Malaysia), tourist guide needs to be attached to the tour agency.  
 
2.4 Investment Regime  
Page 39 Para 2.48  
Since June 2003, foreign investors have been allowed 100% o wnership in new projects in the 
manufacturing sector, as well as investments in expansion or diversification projects by existing 
companies, irrespective of the level of exports and without excluding any product or activity. Some 
45 services subsectors wer e liberalized in 2009, and foreign investment restrictions have 
subsequently been removed for unit trust management companies (2014), quantity surveying 
services (2016), credit rating agencies (2017), and investment banks. Restrictions or limitations 
on fo reign ownership remain in education, communication and multimedia, freight 
forwarding and shipping, financial services, and oil and gas.  
Questions:  
3. According to the WTO Secretariat Report, Malaysia has placed restrictions on foreign 
ownership of educati on services. Could Malaysia elaborate on the type of sub -sector and restrictions WT/TPR/M/436/Add.1  
 
- 83 - 
 
imposed on foreign education service providers? Given that Malaysia already has a large number of 
foreign education service providers operating within the country.  
 
Answer : Malaysia allows 100% foreign equity for Public High Education Institute (PHEIs) under the 
University category.  
Further information on foreign equity requirements for the education sector can be found at:  
www.mohe.gov.m y  
 
4. Please also include a brief description of the foreign ownership restrictions in each sector.  
 
Answer : Malaysia allows 100% foreign equity for Public High Education Institute (PHEIs) under the 
University category.  
Further information on foreign equity requirements for the education sector can be found at:  
www.mohe.gov.my   
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requ irements  
Page 41 -42 Para 3.7 -3.8 
Indonesia notes that Malaysia has been implementing the ASEAN Customs Transit System (ACTS) 
since 2  November  2020 in order to improve the efficiency of moving goods across land transport 
routes, reduce transaction costs and  movement time for the trading community, and improve 
smuggling and fraud prevention and detection. All traders are eligible to use the system, but must 
first register with the Customs Administration of the participating member State as a transit trader 
(i.e., to become an Authorized Transit Trader). However, as of October 2022, no trader had been 
designated as an Authorized Transit Trader.  
Questions:  
5. What criteria are used to determine which traders can be designated as Authorized Transit 
Traders? What conditions must the trader meet?  
 
Answer : Malaysia has established certain requirements in order for a trader to apply and be 
recognized as ATT under ACTS procedure:  
(i) Has registered office, headquarters or permanent company adress in the country where the 
application is made;  
(ii) Trader is a regular user of ACTS which had made at least two (2) transit movement per month 
under ACTS procedure;  
(iii) Trader has no record of offence under Customs law for the last five (5) years;  
(iv) Trader has been in ope ration at least for the past three (3) years; and  
(v) Trader has high standard of risk management.  
 
6. What is the process or mechanism for becoming an Authorized Transit Trader?  
 
Answer :  
(i) The Principal (Trader) need to submit a complete application to the AEO Unit to obtain the 
approval for ATT status in order to enjoy simplified procedure under ACTS.  
(ii) Application will be processed by AEO Unit to verify that the trader fulfill all the r equirements 
and condition specified to bean ATT under ACTS.  
(iii) ATT application would be considered through an AEO panel meeting for approval. A written 
notification on the approval of ATT status would be issued by AEO Unit after the panel meeting.  
(iv) Information on ATT status in Malaysia would be shared with the rest of ASEAN member state 
for their record.  
 
7. Why has no trader been granted Authorized Transit Traders status up to this point? Please 
elaborate.  
 
Answer : ATT status is a simplified procedure provided under the ACTS for any regular transit traders 
which have fulfilled the specified requirements and criteria. Currently, no application received from 
a regular ACTS transit trader to be recognized as ATT. Malaysia is in the mid st of intensifying efforts 
to increase the number of traders to be registered for utilizing ACTS for transit movement in the 
region. In addition, Malaysia continuously encourages active traders to apply for ATT status to enjoy 
the simplified procedure as l ong as all requirements are fulfilled.  
 WT/TPR/M/436/Add.1  
 
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3.1.5 Import prohibitions, restrictions, and licensing  
Page 50 Para 3.36  
The First Schedule of the Customs (Prohibition of Imports) Order 2017 lists products that may not 
be imported or transited through Malaysia, m ainly for the protection of human health or safety, the 
environment, or on religious grounds (Table  3.6). One product group – mixed waste and scrap of 
miscellaneous paper or paperboard – was added to the list in early 2022. The authorities note that 
this a mendment is to ensure the importation of the product into the country is controlled by relevant 
government agencies and does not contribute to negative externalities to the environment in the 
long term.  
Questions:  
8. Could you please elaborate with scienti fic evidence on why the Malaysian government prohibits 
certain products imported or transited through Malaysia?  
 
Answer : Prohibition on certain products imported or transited through Malaysia is imposed based on 
the national or international standard requi rements as well as national security, safety, 
environmental protection, health protection, social interest and other considerations.  
 
9. Could you ensure that the regulations are in accordance with GATT  1994 Articles XI.1, XI.2, 
and XX? Please provide spec ifics. 
 
Answer : Malaysia undertakes periodical review on the regulations with various stakeholders, taking 
into account the national socio -economic, safety, health and environment interests, as well as 
ensuring consistency with WTO commitments.  
 
Page 46 an d 51 Para 3.20 and 3.37  
According to the Secretariat Report, the Malaysian authorities mentioned that automatic 
license/import permit is implemented to collect data or for monitoring purposes. The TRQs applied 
by Malaysia affecting approximately 0.2% of to tal tariff lines which covered agricultural products, 
mainly live swine and poultry, poultry meat, liquid milk and cream, eggs, and round cabbage.  
While Indonesia also notes that products subject to automatic license/import permit include sugar; 
passenger and commercial motor vehicles; motorcycles; bodies (including cabs) of motor vehicles; 
chassis and parts thereof for motor vehicles; ships' derricks; semi -finished products of iron and 
steel, including slab, bloom, and billets; and flat -rolled products of iron or non -alloy steel.  
Questions:  
10. What kind of data that will be gathered to implement automatic licensing, particularly for 
products made in factories?  
 
Answer : Importation of new or used motor vehicles into Malaysia is currently allowed subject to 
Import License (AP) given to companies who comply to conditions imposed by Malaysia.  
Information regarding the procedures is publicly available at MITI's Portal 
(https://www.miti.gov.my/index.php/pages/view/3796?mid=84 ) 
 
11. Why is the product subject to automatic licensing different from the list of products subject to 
Tariff Rate Quota (TRQ) if the goal of automatic licensing is to use TRQ?  
 
Answer : Malaysia ende avors to improve its TRQ administration whereby quotas are allocated on first 
come first serve basis and the information are presented on relevant websites (e.g., MAFS and its 
Agencies' websites and Malaysia National Trade Repository webpage). Other improv ements are 
being considered and will be implemented in due time.  
 
3.3.2 Standards and other technical requirements  
Page 61 Para 3.71  
The Department of Standards Malaysia (JSM ) is Malaysia's national standardization and accreditation 
body, established under the Standards of Malaysia Act 1996 (Act 549) as amended. The Act also set 
up a Standards and Accreditation Council to advise the Senior Minister of International Trade and 
Industry on relevant matters. MSAC is guided by inputs from 26 National Standards Committees 
(NSCs) and the National Accreditation Committee. The NSCs are sectoral standards committees set 
up by JSM to carry out the technical work related to standardization  in each specific industrial sector. 
JSM represents Malaysia in regional and international activities related to standardization and 
accreditation.  WT/TPR/M/436/Add.1  
 
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Questions:  
12. Has Malaysia conducted a Regulatory Impact Assessment (RIA) on its standards and technical 
requirements?  
 
Answer : Yes. In Malaysia, all regulatory measures introduced by ministries and government agencies 
that businesses are required to comply with must undergo RIA, including technical requirements 
that businesses are mandatory to comply with.  
 
13. Is it governed by a single regulatory body or by multiple regulatory bodies?  
 
Answer : Mandatory standards are governed by multiple regulatory bodies. The list of mandatory 
standards are available in JSM website - https://www.jsm.gov.my/about -us/statistics/standards -
statistics/mandatory -standards . 
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
Page 84 Para 4.34 and 4.35  
BERNAS  carries out various activities, including (i)  provision of price support as it acts as the buyer 
of last resort for paddy farmers (the Guaranteed Minimum Price is set at MYR  1,200 per tonne); 
(ii) managing the National Rice Stockpile (under new concession  agreement, BERNAS is required to 
raise the stockpile volume up to 290,000 tonnes by the end of 2023); (iii)  managing the National 
Paddy Seed Stockpile (supply of seed by licensed producers is based on demand set by the 
government); (iv)  managing the disbu rsement of subsidies to paddy farmers; (v)  managing the 
Bumiputera rice millers scheme and Bumiputera wholesalers; (vi) managing the supply of farm 
machinery; developing and managing large -scale farming in paddy fields and local special rice 
varieties; (vi i) contributing to the natural disaster fund; and (viii) supporting the paddy and rice 
industry development information system, and supporting the development of soil nutrients.  
In addition to the Guaranteed Minimum Price, the Government provides several support measures 
for rice producers to ensure food security and to encourage farmers to increase yields. These 
measures include price subsidies, fertilizer subsidies, and paddy production incentives  
(Table  4.7). In 2020, the Government spent MYR  1.6 billion on rice subsidies and incentives, or 
about 50% of the budget allocation of the MAFI.  
Question:  
14. Could you clarify and explain if the intended domestic support policies (i.e., minimum price, 
price subsidies, fertilizer subsidies, and paddy production i ncentives) complies with the Agreement 
on Agriculture.  
 
Answer : The domestic support measure is used as an income support measure for resource -poor 
farmer, rural development, and food security. The measure does not have trade distorting effects or 
effects on production and is consistent with Annex  2 of the AoA.  
 
Page 88 Para 4.47  
Supports to the fisheries sector include fuel subsides, living allowances, catch incentives, and loans 
to fishers. The Government spent MYR  2,633  million  on fisheries subsidies ove r the review period, 
at least MYR  500 million  per year, except for in 2020, mainly due to the impact from the COVID -19 
pandemic (Table  4.11). Fuel subsidies accounted for more than 70% of the total 
(MYR 1,902  million ), followed by living allowances (24%) designed as income support to fishers 
affected by adverse weather conditions. Catch incentives vary by fishing zone. In all, 
MYS 84.5 million  was given to fishers as catch incentives in the period 2017 -21. 
Questions:  
15. Please explain the Malaysian government's living allowance scheme and provisions for 
fishermen, including their compliance with the Agreement on Subsidies and Countervailing.  
 
Answer : The Fishermen's Living Allowance is aimed at holding up the income of fishermen  and 
improving their living standards by reducing the impact of the increased cost of living.  
 
16. According to our findings, Malaysia implemented a temporary ban on the export of live chicken 
from 1 June to 11  October  2022, including live poultry, whole c arcasses, chilled and frozen meat, 
chicken parts, and chicken -based products. If so, please explain in detail the reasons, scheme, and 
impact of the aforementioned export ban.  
 WT/TPR/M/436/Add.1  
 
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Answer : Since October 2022, Malaysia has relaxed the export restriction on live  broilers (except 
coloured birds and village chicken) in phases by allowing 1.8  million  live broiler birds to be exported 
per month. This amount is determined based on the surplus quantity of domestic supply. In 2023, 
Malaysia is considering to fully uplif t the export restriction once the domestic supply can meet both 
domestic and export demand.  
 
17. Indonesia also notes the temporary export ban mentioned above due to a shortage of chicken; 
could you kindly clarify if the Malaysian government is implementin g a policy to accelerate the 
importation of the chicken product?  
 
ANSWER:  Malaysia has not implemented any policy to accelerate the importation of chicken product.  
 
4.3 Manufacturing  
Page 98 Para 4.86  
The AP system for importation of cars and motorcycles w as modified in January 2019 with the 
introduction of the New Open AP Policy. The policy provides wider opportunities for Bumiputera 
entrepreneurs to be involved in the importation of second -hand passenger vehicles and motorcycles. 
Buyers must be provided m inimum one -year warranty and maintenance (in collaboration with the 
original equipment manufacturer). The import fee amounts to MYR  10,000 per vehicle for the 
first 35,000 units imported by all Open AP holders per calendar year, and MYR  20,000 for each 
additional vehicle. A Franchise AP policy is continued for monitoring and data collection purposes. 
The current AP system effectively caps imports of motor vehicles at 10% of the domestic market. 
Moreover, the National Automotive Policy distinguishes betwe en "national" and "non -national cars". 
The latter includes imports as well as vehicles assembled or manufactured in Malaysia by 
non-Malaysian automakers. Traffic restrictions and noise standards restrict the use of large 
motorcycles.  
Questions:  
18. Explain  in detail the New Open AP Policy mentioned above, taking into account Malaysia's 10% 
restriction on motorized vehicle imports.  
 
Answer : The 10% restriction is no longer applicable. Companies are free to import vehicles from any 
sources. In addition, the c ompanies are also eligible for additional APs allocation if the companies 
meet the sales performance set by MITI.  
Further information regarding the New Open AP Policy is publicly available at MITI's Portal:  
(https://www.miti.gov.my/miti/resources/Approve%20Permit/Motor%20vehicle/Lampiran_A_ -
_DASAR_BAHARU_AP_TERBUKA.pdf ) 
 
19. Please also explain the implications of the policy of distinguishing between "national" and 
"non-national" vehicles.  
 
Answer : In general, import duty for a motor vehicle is divided into two categories, CBU and CKD. 
Both national and non -national motor vehicles are subjected to the same import duty rates of CB U 
or CKD.  
 
20. How can Malaysia ensure that the intended policy is consistent with GATT 94 Article  III: 
National Treatment?  
 
Answer : Malaysia undertakes periodical review on the policy to facilitate trade and industry  while 
taking into account the national socio -economic, safety and health interests, as well as ensuring 
consistency with WTO commitments.  
 
4.4.3 Telecommunications  
Page 114 Para 4.130  
Foreign individuals and companies may not apply for individual or class licenses under the current 
licensing regime. They must be locally incorporated in Malaysia. There are no foreign equity 
restrictions on class licenses, whereas applications for individual licenses are assessed on a 
case-by-case basis. The Minister may decide to grant a license based on the MCMC's 
recommendations under the CMA. According to the authorities, assessing an application for 
non-foreign equity restriction for a network facility or network service provider license, the MCMC 
would take into account factors, inter alia: i nvestments made in Malaysia by the applicant and their 
economic impact; employment of Malaysians (number employed and key positions held) and job 
opportunities; transfer of technology and skills; the unique or exclusive nature of the business; and WT/TPR/M/436/Add.1  
 
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contribu tions to the socio -economic development of Malaysia. The authorities underline that these 
factors are not exhaustive, and applications received will be evaluated on a case -by-case basis.  
Questions:  
21. What is the basis for foreign individuals' and compani es' obligations to Malaysian legal entities 
when applying for a telecommunications license?  
 
Answer : Under the current framework, it is a requirement for a license applicant to be locally 
incorporated. The Minister has the power to impose any special licen ce condition, including 
compliance to shareholding requirement.  
 
22. What are the fair and non -discriminatory criteria referred to?  
 
Answer : It refers to facilities and/or services that must be of at least the same or more favorable 
technical standard and quality as the technical standard and quality provided for itself on the access 
provider's facilities and/or services. The details can be referred to Section  4 (General Principle's) of 
the Mandatory Standard on Access which is available on MCMC's website.  
 
4.4.2.3 Insurance and takaful  
Page 106 Para 4.107  
Foreign professional reinsurers, international takaful operators, and retakaful operators may conduct 
business in Malaysia through a branch office. However, licensed general insurers and takaful 
operators should first seek reinsurance/retakaful from licensed insurers/ reinsurers/takaful 
operators/retakaful operators, or insurers/ reinsurers/takaful operators/retakaful operators based in 
the LBIFC, before obtaining foreign reinsurance/retakaful support. Furt hermore, licensed general 
insurers are required to cede (reinsure) 2.5% for all classes of business (with no cession limits) and 
15% for Auto Treaties and Auto Facultative (with 20% retrocession) to Malaysian Reinsurance 
Berhad.  
 
Questions:  
23. Could Malay sia please confirm, if our interpretation of this paragraph is correct, that foreign 
branch reinsurers are still considered outward reinsurance despite having open and located branches 
in Malaysia?  
 
Answer : Licensed foreign reinsurers and retakaful operato rs operating in Malaysia in the form of 
branch offices are accorded the same priority as domestic service providers to supply reinsurance 
and retakaful services for insurers and takaful operators licensed in Malaysia.  
In this regard, general reinsurance or  retakaful cover provided by foreign insurers, reinsurers, 
takaful operators and retakaful operators licensed in Malaysia and Labuan is not considered as 
outward reinsurance or retakaful.  
 
24. In terms of the obligation to seek reinsurance services in Labu an, is it necessary for the 
insurance company to inquire about all reinsurances in Labuan? And, if all reinsurance companies in 
Labuan are unable to provide the services, can they be reinsured to foreign branches?  
 
Answer : Licensed general insurers and takaful operators in Malaysia must demonstrate that they 
have made reasonable efforts to first accord priority to insurers/reinsurers/takaful 
operators/retakaful operators (both domestic and foreign -owned) licensed in Malaysia, followed by 
those in Labuan,  before seeking reinsurance or retakaful cover from insurers/reinsurers/takaful 
operators/retakaful operators abroad.  
 
Foreign service providers are also accorded the same priority to provide coverage for licensed 
insurers and takaful operators in Malaysia, provided that the foreign service providers are licensed 
in Malaysia or Labuan.  
 
25. Regarding retrocession, are Malaysian and Labuan reinsurance companies permitted to seek 
retrocession abroad (from companies not registered and supervised by BNM )? 
 
Answer : The requirement to first accord priority to insurers, reinsurers, takaful operators and 
retakaful operators licensed in Malaysia and Labuan only applies to direct general insurers and 
takaful operators in Malaysia for the purpose of reinsurance  or retakaful placements.  
 WT/TPR/M/436/Add.1  
 
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PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
3.2.2 National Policy on Good Regulatory Practice  
Page 16 Para 3.9 and 3.10  
The Malaysia Productivity Corporation (MPC) is being given the responsibility to act as an oversight 
body to promote, support, and facilitate GRP and Regulatory Impact Analysis (RIA) implementation 
by the regulators. RIA is an essential GRP component in proposing new regulations or 
amendments to existing regulations, aims to improve the quality of regulati ons through a 
robust and thorough analysis of regulatory proposals. RIA is intended to provide assurance 
that problems are adequately identified and addressed through regulatory or non -regulatory 
measures and ensure that specific policy solutions have been  drafted to enhance the public interest.  
Regulatory Impact Statements (RIS) is a document prepared by the regulator in support of a 
proposal for a new regulation or an amendment to a regulation following consultation with affected 
parties. It contains a de scription of the RIA undertaken and its analysis, recommended option and 
implementation strategy. RIS is presented to the decision -maker to enable informed decisions to be 
made based on a balanced assessment of the best available information. Additionally,  when a 
proposed regulation has a direct bearing on trade, a trade impact assessment should be 
incorporated into RIS. From the period of 2014 until July 2022, a total of 992 Regulatory 
Notifications (RN) and 186 RIS have been received from the regulators.  
Questions:  
26. Could Malaysia clarify whether RIA is required for all new regulations or amendments in all 
sectors, including financial services?  
 
Answer : RIA is required for all sectors that affect the economy, social and environment. However, 
RIA is not applicable to financial services since they have their own governance set out under the 
Policy Development Framework (PDF).  
 
The financial services regulators are required to ensure monetary and financial stability and policy 
formulation process in certain  circumstances (including during a crisis) which may require a different 
and appropriate approach.  
 
27. What mechanism is in place to ensure that the new regulation or changes do not affect 
Malaysia's previous commitments under international trade agreements?  
 
Answer : As part of the RIA process, regulators are required to measure the impact on trade and 
conduct public consultations, including inter -agency consultations, to ensure that the proposed 
regulation does not overlap with existing regulation s or affect Malaysia's previous commitments 
under international trade agreements.  
 
PART III: GENERAL QUESTIONS  
Cosmetics Product  
Questions:  
28. How does the Malaysian government regulate and control the importation of cosmetics, 
including hand -carried impo rtations?  
 
Answer : The Malaysian government regulates and controls the importation of cosmetics using the 
Cosmetic Notification Note.  
Cosmetic products in Malaysia are regulated under the Control of Drugs and Cosmetic Regulations 
(CDCR ) 1984 which were promulgated under the Sale of Drugs Act 1952. Under the CDCR 1984, 
Regulation 18A (1), no person shall manufacture, sell, supply, import, possess any cosmetics unless 
the cosmetic is a notified cosmetic. It is an offence for anyone to con duct such activities without 
prior notification to the Director of Pharmaceutical Services (DPS).  
 
In agreement with the harmonisation of cosmetic regulation through the ASEAN Cosmetic Directive 
(ACD), cosmetic products in Malaysia are controlled through a  notification procedure starting from 
1 January  2008. The Cosmetic Notification Holder (CNH) is required to comply with all requirements 
stated in the Guideline to Cosmetic Products in Malaysia and to make a declaration upon notification 
to the DPS through  National Pharmaceutical Regulatory Agency (NPRA). Regulatory action will be 
taken in the event of false declaration and/or product found to be non -compliant to the stipulated 
regulations and guidelines.  
 
CNH may manufacture or import the cosmetic product upon receipt of authorisation given in the 
Cosmetic Notification Note from the DPS. CNH may generate the Notification Note immediately from WT/TPR/M/436/Add.1  
 
- 89 - 
 
the QUEST system after confirmation of payment by NPRA subject to meeting all notification 
requirements.  
 
Cosmetic i mportation through all customs main entrances including ship ports and airports requires 
the Cosmetic Notification Note for entrance into Malaysia.  
 
29. What are Malaysia's market prospects for imported halal cosmetics? Please describe the 
procedures, mech anism, and requirements.  
 
Answer : The growing market size of Muslim consumers domestically as well as in the region provided 
prospects for halal cosmetic products. For further information on import requirements for halal 
cosmetics referring to the followin g guideline which is MS 2634:2019 which could be purchased.  
 
30. Does Malaysia have regulations and a monitoring system in place for the cosmetic refill that 
address environmental concerns? Please elaborate.  
 
Answer : Malaysia does not have any specific regulations or monitoring system for cosmetic refill 
activities. Refillable cosmetic products are subject to cosmetic notification requirements as like any 
other cosmetics.  
 
Dairy Product  
Questions:  
31. As of June 2023, only 2 of the 16 Indonesian  dairy product business units that undertook a 
Review and Compliance Audit were permitted to export dairy products to Malaysia. The other 
business units are awaiting the audit results from the Malaysia Department of Veterinary Services 
Team. Could the Mala ysian government provide an explanation as to why the other 14 business 
units' audit results have not yet been released?  
 
Answer : Department of Veterinary Services is still in the process of finalizing the audit results and 
the results would be informed i n due course.  
 
32. Please provide a brief information of the procedures and requirements for exporting dairy 
products to Malaysia.  
 
Answer : For further inquiries on export requirements of dairy products, the authority may contact 
DVS through skie@dvs.gov.m y. The list of approved dairy establishments can be accessed via 
https://www.dvs.gov.my/index.php/pages/view/1941 .  
 
  WT/TPR/M/436/Add.1  
 
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JAPAN  
Trade Policy Review of Malaysia  
8, 10  February  2023  
Written Questions from Japan  
Report  by the Government  (WT/TPR/S/436)  
3 TRADE POLICY DEVELOPMENTS  
3.3 Multilateral Trading System  
3.3.2 Malaysia's Involvement at the WTO  
(Question 1: Paragraph 3.38 page 21)  
According to the report, Malaysia has fully implemented it s TFA commitments and has notified the 
full commitments of Article  7.8 on Expedited Shipment on 1  June 2021, ahead of initial notification 
deadline of 22  February  2022. Malaysia also requested for commencement of its commitments under 
Article  4.15 Express Consignments in Chapter 4 of RCEP agreement to be postponed until 
22 February 2022. It would be appreciated if Malaysia confirms it has fully implemented the 
commitments under Chapter 4 of RCEP as well.  
 
Answer : Malaysia has fully implemented Article  4.15 Express Consignment under RCEP on 
28 February 2022 as stated in Annex  4A (Period of Time to Implement the Commitments).  
 
Report  by the Secretariat  (WT/TPR/S/436)  
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
(Question 2: Paragraph 2.47 page 39)  
Regulations on foreign investment restrictions in the service industry are not clearly stipulated, and 
in some cases multiple guidelines coexist and it is hard to grasp to entire content (e.g., in the field 
of education). In addition, one has no choice but to confirm with the officer in charge from the 
Ministry in order to seek clarification on specific regulation. Is it possible to issue a unified document 
on foreign investment regulations in the service industry?  
 
Answer : The services sectors in Malaysia are under the purview of various ministries/agencies. The 
information is available at the respective ministries/agencies' websites.  
Currently, information regarding investment in services sectors in Malaysia can be accessed at 
https://www.miti.gov.my/index.php/pages/view/4218?mid=880   
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
(Question 3: Paragraph 3.28 page 48)  
According to the report, a sales tax exemption for passenger vehicles of 100% of the purchase price 
on domestically assembled passenger cars and 50% on imported passenger cars has been in place 
since 15  June 2022. It would be appreciated if Malaysia could explain how to justify the sales tax 
exemption for passenger vehicles introduced on 15  June 2022 in the context of Article  3 of GATT, 
Article  2.3 of CPTPP and RCEP.  
 
Answer : Full sales tax exemption on locally assembled and 50 % sales tax exemption on imported 
passenger vehicles was given starting June 2020 until 30  June 2022 as a temporary measure. It is 
intended to boost sales in the automotive sector that was affected by the pandemic.  
 
3.3 Measures Affecting Production and Tr ade 
3.3.4 Competition policy and price controls  
(Question 4: Paragraph 3.91 page 65)  
The Price Control and Anti -Profiteering (PCAP) Act, under the jurisdiction of the Ministry of Domestic 
Trade and Cost of Living (MDTLC, formerly known as MDTCA), was enact ed in 2011 to prevent 
companies from raising prices unfairly.  
With the change from Goods and Services Tax (GST) to Sales and Services Tax (SST) in 2018, the 
scope of this law has been expanded from daily necessities to all goods and services. If the cost 
price of the same product has not risen in the past three years, it is prohibited to raise the retail 
price, and even if the cost price has risen, it is forbidden to raise the price beyond the past gross 
profit rate. In particular, due to recent high price s, unclear definition of the "same goods", and as 
the price increase regulation for all products only exist in Malaysia, we think that the existence of WT/TPR/M/436/Add.1  
 
- 91 - 
 
this law is one of the major obstacles to the healthy development of the retail industry. Could you 
let us know the status of revisions, including amendments to the scope of application?  
 
Answer : Price Control and Anti -Profiteering Act 2011 is an Act to control prices of goods and charges 
for services and to prohibit profiteering.  
 
The Ministry through the E nforcement Division is enforcing the Price Control and Anti -Profiteering 
Act 2011 to tackle the issue of sellers who take excessive profits on goods or services through the 
enforcement operation on every chain of business which consists of manufacturing/ i mporting/ 
distributing, wholesaling and retailing sectors across the country whereby if the sellers commit 
profiteering offense, action will be taken pursuant to the above Act.  
 
3.3.6 Government procurement  
(Question 5: Paragraph 3.96 page 66)  
While Malays ia is not a party to the World Trade Organization (WTO) Agreement on Government 
Procurement (GPA), we understand that it is the first time for Malaysia to commit to the Government 
Procurement chapter under the CPTPP. Malaysia has excluded the Sub -Central G overnment Entities 
from the scope of this chapter; however, in reality, we learned that there is no state government -
level project. Is it correct to assume that all government procurements in Malaysia are conducted 
only at the federal level?  
 
Answer : Appro ximately 70 % of government procurement in Malaysia is conducted at the federal 
level which includes hospitals, schools, polytechnics, community college, tourism, police force, 
defence and other relevant sectors.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.5 Tourism  
(Question 6: Paragraph 4.146 page 122  
Malaysian GATS schedule of commitments reserves a third mode for tourism services in the 
limitations on market access. It states that foreign shareholding in the joint -venture corporation 
shall not exceed 30 %. According to Table  4.29 "Foreign equity limits in tourism sector" on page 122 
of the Secretariat's report, investment in one - and two -star hotels and in tour operators and travel 
agents (outbound) is restricted to 0%. If there is any reservation in the Malaysian GATS Schedule 
of Commitments regarding this limitation, we would like to know the reservation.  
 
Answer : Information regarding foreign equity participation in one -star and two -star hotels can be 
found in the National Tourism Policy 2020 -2030, whic h can be accessed via MOTAC's website.  
  WT/TPR/M/436/Add.1  
 
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KAZAKHSTAN  
1) Paragraph 3.72. of the Secretariat Report  
Please explain if Malaysia provided an appropriate comment period under the WTO TBT  Agreement  
to the 496 standards which have become mandatory.  
 
Answer:  Yes, Malaysia provided an appropriate period for comments. The appropriate comment 
period is applicable for both voluntary and mandatory standards and is in line with the WTO 
TBT Agreement , partic ularly Annex  3 Code of Good Practices for The Preparation, Adoption and 
Application of Standards, provision L.  
The policy is  available in JSM's website:  
https://www.jsm.gov.my/standards/r esources -standards   
 
2) Paragraph 3.56 of the Secretariat Report  
Please explain how a provision "Manufacturers established in the free industrial zones must export 
at least 80% of their production, unless a lower export requirement (minimum 60%) has been 
approved by Ministry of International Trade and Industry. Import duty exemptions also depend on 
the value of local content; if this is less than 40%, then non -originating raw materials must have 
undergone substantive transformation during the manufacturing process " comply with the norms of 
Article  3 of the WTO  Agreement  on Subsidies and Countervailing Measures on the non -use of 
import -substituting and export subsidies and WTO  Agreement  on Trade -Related Investment 
Measures.  
 
Answer:  A Free Zone is an area in any part of Malaysia that is declared by the Minister of Finance 
under the provision of Section  3(1) of the Free Zones Act 1990, as a Free Commercial Zone or Free 
Industrial Zone. The activities and industries therein are subject to minimal customs formali ties as 
it is deemed under Section  2 (1 A) of the Customs Act 1967 to be a place outside the Principal 
Custom Area except in respect of Prohibition of Imports and Exports under Section  31 of the Customs 
Act 1967. Hence, products from companies located in t he Free Industrial Zones (FIZ) destined for 
Malaysian domestic market are considered as imported products and subjected to import duty at 
MFN/applied rates. However, effective 1  January  2011, products produced in the FIZ  destined for 
the Malaysian market are eligible to enjoy ASEAN or ATIGA duty rates if they complied with the 
origin criteria, i.e. local content or substantial transformation.  
  WT/TPR/M/436/Add.1  
 
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KOREA, REPUBLIC OF  
PART III: Other Questions  
 
Question 1  : the issues on Malay sian government's regulation and procedure regarding 
importation of alcoholic beverages into Malaysia  
 
1. In Malaysia, the Food Regulations 1985 stipulates the permitted alcohol content range for 
each type of alcoholic beverages, however, it is unclear on what grounds the permitted level of 
alcohol is set by the Malaysian government. And it is our understanding that this regulation could 
pose as unnecessary obstacles to international trade by creating unfair standards that restrict 
customs clearance and sal es of foods that have no safety and quality problems. Against this 
background, Korea would like to request Malaysia to explain the purpose and basis of setting the 
alcohol content level for alcoholic beverages including rice wine (current regulation 12~20% , 
proposed revision 7~20%) and sochu(not less than 16%).  
 
Answer : The requirement for standard and labelling compliance for alcoholic beverages under the 
Malaysian Food Regulations 1985 is an existing regulation that has been enforced since its 
gazettement . It is not a new regulation, including the minimum percentage of alcohol content 
specified for each type of alcoholic beverages. The alcohol content is important parameter to 
differentiate the types and specification of alcoholic beverages.  
 
2. Malaysia's  Ministry of Health impounded imported Korean alcoholic beverages for violating the 
alcohol content level standards of Malaysia's Food Regulation even though importers imported the 
alcoholic beverages after receiving import permit from the Royal Malaysian Costumes Department. 
Korea would like to know the reason why the issue related to the Food Regulations was not examined 
during the import permit review process and the regulation was enforced only after importers had 
imported alcoholic beverages into Malay sia.  
 
Answer : It is the importer's responsibility to ensure that the imported goods comply with all the 
requirements of alcohol content standards of Malaysia's Food Regulation from the relevant agency 
before importing the goods.  
  WT/TPR/M/436/Add.1  
 
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NEW ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/436)  
SECTION 2.3.1 WTO  
WT/TPR/S/436, page 32, paragraph 2.12  
Background  
Section  2.3.1, paragraph 2.12 states that "Malaysia welcomes the outcomes of the 12th Ministerial 
Conference  … and continuing the moratorium on customs du ties on electronic transmissions." 
Malaysia is also a member of the CPTPP which has a commitment to not impose customs duties on 
electronic content and transmissions.  
 
Question(s):  
• Could Malaysia please share any experiences implementing the commitment to continue the 
moratorium on customs duties on electronic transmissions?  
 
Answer : As a member of WTO, Malaysia adheres to the decision of the 12th Ministerial Conference 
adopted on 17  June 2022 to maintain the current practice of not imposing c ustoms duties on 
electronic transmissions until MC13.  
 
SECTION 4.1.1.3 Domestic support  
WT/TPR/S/436, page 76, para . 4.9 
Background  
Section  4.1.1.3, paragraph 4.9 refers to Malaysia's domestic support according to notifications made 
covering the period 201 2-15. 
 
Question:  
• Can Malaysia provide an update on when it intends to provide its outstanding notifications 
under the Agreement on Agriculture, including for domestic support, where the most recent 
notification is for the calendar year 2015?  
 
Answer : Malaysia has submitte d notifications on:  
 
• export subsidy commitments (Table  ES:1 and ES:2) for 2016 in January 2018;  
• imports under tariff quotas (Table  MA:2) for 2016 in January 2018;  
• domestic support (Table  DS:1) for 2012, 2013 and 2014 in December 2018;  
• export subsid y commitments (Table  ES:1 and ES:2) for 2017, 2018 and 2019 in September 2021;  
• imports under tariff quotas (Table  MA:2) for 2017 and 2018 in September 2022; and  
• domestic support (Table  DS:1) for 2015 in August 2022.  
Malaysia will continue to update out standing notifications in order to provide accurate information 
to Members.  
 
SECTION 4.2.2 Energy  
WT/TPR/S/436, p.91, para . 4.59 
Background  
Section  4 of the Secretariat's Report, at paragraph 4.59, page 91, notes that "the National Energy 
Policy 2022 -2040's progressive Low Carbon Nation 2040 Aspiration should ensure that the energy 
sector will take full advantage of opportunities arising from the ener gy transition".  
 
Question:  
• In light of Malaysia's efforts to pursue a low -carbon economy, including transitioning to gas 
and renewables and halting the construction of new coal -fired power plants, has Malaysia considered 
using the APEC Template for Vol untary Self -Identification of Inefficient Fossil Fuel Subsidy Measures 
as a transparency mechanism for assisting the design of a targeted and comprehensive fossil fuel 
subsidy rationalisation programme with well -designed transitional policies? New  Zealand also 
encourages Malaysia to consider the work being advanced in the World Trade Organization on reform 
of inefficient and environmentally harmful fossil fuel subsidies, including a 47 -member Ministerial 
Statement seeking concrete action on this issue.  
 
Answer: In 2021, Malaysia has set a target to reach 31% of RE share in the national installed capacity 
mix by 2025. This target supports Malaysia's global climate commitment to reduce its economy -wide 
carbon intensity (against GDP) of 35% in 2030 compared to  2005 level. Malaysia Power Development 
Plan 2021 -2030 has set a no new coal power plant policy, while the operation of existing power WT/TPR/M/436/Add.1  
 
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plants will cease according to the existing Power Purchase Agreement. Currently, Malaysia has no 
plans to use the APEC Te mplate for Voluntary Self -Identification of Inefficient Fossil Fuel Subsidy 
Measures.  
 
Section  3.3.6 Government procurement  
WT/TPR/S/436, page 68, para . 3.106  
Background  
Section  3.3.6, paragraph 3.106 refers to an assessment that is to be carried out by Malaysia on the 
implementation of government procurement chapter obligations under international agreements 
involving market access offers.  
 
Question:  
• Can Malaysia provide an update on when this assessment is likely to be carried out and what 
internatio nal agreements with government procurement chapter obligations will be included in this 
assessment?  
 
Answer : Malaysia has no specific timeline to undertake the assessment on the implementation of 
government procurement chapter obligations and will do so ba sed on continuous consultation with 
relevant stakeholders.  
 
  WT/TPR/M/436/Add.1  
 
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PAKISTAN  
SECRETARIAT REPORT  
Page 55, paragraphs 3.2.2  
 
Taxes, charges and levies  
Question  
The Export Duty is being levied on a number of tariff lines primarily on Crude Palm Oil. Does the 
Government of Malaysia plan to review its policy of levying Export Taxes primarily on Crude Palm 
Oil (CPO) (since the measure might constrain availability of Crude Palm Oil to the countries which 
are trying to establish their domestic Palm Oil Refining bas e). 
 
Answer:  Malaysia imposes export tax on Crude Palm Oil (CPO) with the main objective to ensure 
supply availability of raw material to the domestic processing sector, namely the refineries and 
oleochemical plants and to enhance the production and export  of higher value added products, rather 
than merely exporting in the crude form. Malaysia does not restrict or prohibit the export of CPO. 
The exporting country of CPO is liable to pay the export duty imposed on the product.  
 
GOVERNMENT REPORT  
Page 16, pa ragraphs 3.2.1  
 
Reviewing Non -Tariff Measures  
Question  
It is appreciated if the Malaysian Government could provide details of the sectors for which NTMs  
have been reviewed (under the Malaysia productivity blueprint – MPB) and uploaded into ASEAN 
trade repository and whether the same (reviewed NTMs) will also be applicable to Malaysia's bilateral 
FTA partner countries?  
 
Answer:  Malaysia's Non -Tariff Measur es (NTMs) in the ASEAN Trade Repository (ATR) cut across all 
sectors namely agriculture, manufacturing and natural resources. The NTMs are the same NTMs 
notified to the World Trade Organization (WTO) and are applicable to all trade partners of Malaysia.  
 
  WT/TPR/M/436/Add.1  
 
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PHILIPPINES  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
I. ECONOMIC ENVIRONMENT  
Para 1.2.3.1 (Page 18)  
1.7. During the review period, the objective of monetary policy remained to maintain price stability 
while giving due regard to the developments in the economy from the de jure independent central 
bank of Malaysia (Bank Negara Malaysia (BNM)), which uses an overnight policy rate (OPR) as its 
main policy instrument; BNM does not set a specific inflation target. According to the IMF, monetary 
policy decisions continued to be data -driven and guided by the evolving balance of risks surrounding 
the outlook for domestic growth and inflation. During the review period, the BNM continued its 
accommodative monetary policy stance to inter alia respond to the p andemic, with its OPR gradually 
reduced from 3.25% (January 2018) to 3% (May 2019), 2.75% (January 2020), 2.5% (March 2020), 
2% (May 2020), and 1.75% (July 2020), until it was raised to 2% in May 2022 and subsequently to 
2.25% in July 2022. According to th e IMF, the current accommodative monetary policy stance 
remains appropriate, and Malaysia is well prepared to face a gradual increase in global interest rates 
although a sharp tightening of global financial conditions and risk -off investor behaviour could lead 
to surges in capital outflows.  
 
Questions:  
1. How does the BNM balance the trade -offs between accommodative policy stance to aid 
pandemic recovery and ongoing policy normalization amid inflationary pressures?  
 
Answer : Bank Negara Malaysia's decision to begin reducing the degree of monetary accommodation 
in May 2022 was premised on the continued positive growth prospects for the Malaysian economy. 
The unprecedented conditions that necessitated extraordinary monetary policy support during the 
pandemic crisis have since abated and domestic growth remains on a firm path to recovery. The 
policy rate adjustments would also pre -emptively manage the risk of excessive demand on price 
pressures, consistent with the recalibration of monetary policy setti ngs that balances the risks to 
domestic inflation and growth.  
 
Bank Negara Malaysia has also signalled that the monetary policy normalisation will be measured 
and gradual, so as to not disrupt the economic recovery.  
 
Information on Bank Negara Malaysia's monetary policy decisions in 2023 is made available on Bank 
Negara Malaysia website following each Monetary Policy Committee meeting 
(https://www.bnm.gov.my/monetary -stability/opr -decisions). 
 
2. How did the BNM respond to the successive monetary policy tightening by the US Federal 
Reserve? To what extent could the Malaysian economy tolerate the widening interest rate differential 
between the US and Malaysia?  
 
Answer:  The aggressive mon etary policy tightening in the US has affected movements in capital 
flows, exchange rates and global financial markets across all developed, emerging and developing 
economies, including Malaysia.  
 
Despite bouts of heightened volatility in the global financ ial and foreign exchange markets, these 
developments were not expected to derail Malaysia's growth. External spillovers to domestic financial 
markets and domestic financial intermediation activities are expected to be manageable, supported 
by the more domi nant role of domestic and ringgit -based financing in Malaysia.   
 
The flexible ringgit exchange rate continues to be the first line of defense  for Malaysia, playing the 
role of a shock absorber by facilitating adjustments in the external sector and cushioning the 
domestic economy from adverse global shocks. Bank Negara Malaysia will continue to utilise a wide 
array of liquidity tools available, including foreign exchange intervention, in ensuring financial market 
adjustments remain orderly.  
 
With regard to the conduct of monetary policy in Malaysia, it will continue to be premised on 
achieving price stability and sustainable growth in Malaysia. G lobal factors, such as other central 
banks' monetary policy adjustments, are assessed through the lens of whether they affect the 
balance of risks on inflation and growth outlook for Malaysia.  
 WT/TPR/M/436/Add.1  
 
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Para 1.2.3.1 (Page 18)  
1.8. Malaysia's de jure and de facto ex change rate arrangements have been floating  
(i.e., floating exchange rate system) since September 2017. According to the IMF, the exchange 
rate should continue to serve as a shock absorber, with foreign exchange intervention limited to 
episodes of disorde rly market conditions as Malaysia has a mature and multi -pronged monetary 
policy framework and its relatively liquid FX market lacks strong evidence of FX mismatches that 
pose systemic risk to the broader financial system. The BNM introduced a series of me asures to 
improve the functioning of the foreign exchange market; resident exporters were inter alia exempted 
from the requirement to convert export proceeds into local currency below MYR  200,000 per 
transaction, among other measures, and the conversion re quirement was finally removed in April 
2021, liberalizing the foreign exchange market further.  
 
Question:  
3. Given Malaysia's relatively liquid FX market and limited evidence of FX mismatches that could 
pose systemic risk to the broader financial system, w hat are the key considerations for continued 
use of capital flow measures (CFMs)?  
 
Answer : Malaysia does not view its foreign exchange policy (FEP) measures as CFMs according to 
the IMF's classification. These FEP measures are generally prudential in natur e and serve as part of 
the broad policy toolkit to preserve financial stability and uphold the non -internationalisation of the 
ringgit.  
 
Nonetheless, over the years, Bank Negara Malaysia has continued to liberalise its FEP measures 
gradually to enhance th e private sector's foreign exchange risk management and deepen onshore 
financial markets. In particular, the export conversion rule was uplifted in April 2021.  
 
Any further liberalisation of the remaining measures will be guided by risk assessment on the balance 
of payments and financial market stability.  
 
II.  TRADE AND INVESTMENT REGIMES  
Para 2.12 (Page 32)  
As a strong supporter of multilateral cooperation, Malaysia participates actively in the WTO. Over 
the last two years, Malaysia has chaired the Commi ttee of Participants on the Expansion of Trade in 
Information Technology Products as well as the Working Groups on Trade and Transfer of Technology 
and Trade, Debt and Finance. Malaysia has joined the Joint Statement Initiatives on electronic 
commerce, inv estment facilitation for investment, and micro, small, and medium -sized enterprises. 
For Malaysia, the WTO with its principles of non -discrimination and transparency provides stability, 
security, and predictability to the conduct of trade. Malaysia welcome s the outcomes of the 12th 
Ministerial Conference towards the curbing of harmful fisheries subsidies, responding to the 
COVID -19 pandemic, facilitating purchases by the World Food Programme, and continuing the 
moratorium on customs duties on electronic tra nsmissions.  
 
Question:  
4. What are the considerations of Malaysia in joining the Joint Statement Initiative on Services 
Domestic Regulation?  
 
Answer : Consultations with the relevant stakeholders are being undertaken to assess Malaysia's 
readiness to join the WTO JSI SDR, including the obligations that need to be fulfilled.  
 
Para 2.15 (Page 32)  
… Moreover, Malaysia's obligations under Article  III:3 of the GATS to notify "any new, or any changes 
to existing laws, regulations or administrative guidelines whic h significantly affect trade in services" 
remain unfulfilled.  
 
Question:  
5. What are the main barriers/difficulties in fulfilling such obligation under the GATS?  
 
Answer : Malaysia is committed to fulfill  its obligations under all WTO  Agreement s and will continue 
to take measures to meet the notification requirements.  
 
Further information on Malaysia's initiative in the services sector is accessible at www.miti.gov.my  
and www.mida.gov.my  website.  WT/TPR/M/436/Add.1  
 
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Para 2.3.3.2 (Page 36)  
2.32 The CPTPP is a separate treaty that incorporates, by reference, the provisions of the original 
Trans -Pacific Partnership (TPP) Agreement. Certain provisions of  the TPP remain suspended until the 
CPTPP partners agree, by consensus, to remove their reservations. Malaysia was among the 
11 countries that signed the CPTPP in March 2018, and it has concluded bilateral arrangements (side 
letters) with some its partners  in the context of the CPTPP. Malaysia submitted its instrument of 
ratification to New  Zealand  (the CPTPP's depositary) on 30  September  2022. Malaysia was the ninth 
signatory to ratify the CPTPP, and the Agreement officially took effect for Malaysia on 
29 November  2022.  
 
Question:  
6. What specific domestic difficulties did Malaysia encounter in ratifying the CPTPP? How did 
Malaysia address them?  
 
Answer:  Malaysia's main challenge was to educate stakeholders on the benefits of the CPTPP. The 
Government of Malaysia maintains a transparent approach in addressing issues raised regarding 
CPTPP which facilitated the resolution of most domestic concerns through continuous dialogue with 
stakeholders.  
 
Para 2.49 (Page 39)  
Policies to encourage Bumiputera ownership  have been in place for decades, but there is no 
exhaustive or indicative list of Bumiputera requirements that affect foreign direct investment. 
Approval must be sought if an acquisition leads to dilution of Bumiputera or government agency 
ownership, which  may not be less than 30% of the equity or MYR  250,000 in paid -up capital. Joint 
ventures between Malaysian and foreign investors are encouraged, particularly for the bidding on 
government procurement contracts.  
 
Question:  
7. According to the Secretariat Report, while policies to encourage Bumiputera ownership have 
been in place for decades, joint ventures between Malaysia and foreign investors are encouraged, 
particularly of the bidding on government procurement contracts. Could Malaysia explain its existing 
measures, including the challenges, in enco uraging foreign investments in government 
procurement?  
 
Answer : Malaysia encourages foreign investments in government procurement through the following 
measures:  
a. joint venture company establishment as stated in Government Procurement Treasury Circular 
1.5 and 1.7; and  
b. foreign investments in government procurement through Tender Invitation as determined in 
Government Procurement Treasury Circular 2.2  
 
One of the challenges Malaysia faces in encouraging foreign investment in government procurement 
is the unavailability/limitation of expertise among domestic suppliers.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
Para 3.97 (Page 66)  
The Financial Procedure Act 1957 (as revised in 1972), which provides for the control and 
management of public finances, is the main legal instrument regulating government procurement. 
Other pieces of legislation, such as the Government Contract Act 1949 ( as revised in 1973), the 
Ministerial Functions Act 1969, and the Delegation of Powers Act 1956, are also relevant, as they 
define the powers of ministers to enter into contracts on behalf of the Government or delegate their 
authority to government officers . Treasury instructions stipulate the specific financial and accounting 
procedures to be followed in the management of public funds, and treasury circular letters are issued 
on occasion to clarify or improve policies, rules, and procedures. In particular, the 1Treasury 
Circulars (1Pekeliling Perbendaharaan (1PP)) detail government procurement procedures and 
conditions. The Government Green Procurement Guideline 3.0, published in October 2020, consists 
of 40 groups of selected green products and services.  
 
Question:  
8. The Secretariat Report mentioned that the Government Green Procurement Guidelines 3.0, 
published in October 2020, consists of 40 groups of selected green products and services. Could the 
Malaysia please expound on the obstacles and best practic es in implementing this Guidelines?  WT/TPR/M/436/Add.1  
 
- 100 - 
 
Answer:  Among the obstacles that Malaysia faces in implementing the Government Green 
Procurement Guidelines include the domestic market not being ready, whereby demand is 
overwhelmingly more than the available supplies, as well as procurement officers from the respective 
government agencies not being sufficiently upskilled to have the necessary skillset or knowledge on 
conducting green procurement.  
 
Best practices in implementing the Guidelines include, among others, prov iding sufficient training 
for procurement officers in implementing the Guidelines and understanding insights as well as 
providing information to the market, ensuring sufficient training from the relevant authority which 
is the Malaysian Green Technology an d Climate Change Corporation (MGTC), who is in charge of 
providing awareness and training to both the market and suppliers.  
 
Para 3.98 (Page 66)  
Although price considerations may be important in concluding a government contract, the "value for 
money" conce pt includes non -price factors as well as broader policy considerations such as the 
acceleration of economic growth through procurement, maximum use of local materials and 
resources, the promotion of local freight and insurance, transfer of technology, and incentives for 
indigenous entrepreneurs (Bumiputera). Bumiputera suppliers benefit from a preference margin of 
2.5% to 10%, inversely proportional to value, for goods and services contracts valued at 
MYR 100,000 to MYR  15 million , while they receive no pre ferences for contracts above 
MYR 15 million . For goods made locally by Bumiputera manufacturers, the preference margin is 10% 
for contracts below MYR  10 million , up to 5% for contracts between MYR  10 million  to 
MYR 100 million , and 3% above MYR  100 million . International tenders are only opened if the goods 
or services are not available in the local market.  
 
Question:  
9. Based on the Secretariat Report, while price considerations may be important in concluding a 
government contract, the "value for money" c oncept includes non -price factors as well as broader 
policy considerations such as the acceleration of economic growth through procurement, maximum 
use of local materials and resources, the promotion of local freight and insurance, transfer of 
technology, and incentives for indigenous entrepreneurs. Could Malaysia confirm if these non -price 
factors include the application of "life cycle costing analysis" (LCCA) in the award of government 
contracts? What are the other criteria that Malaysia uses to ensure th e best possible purchase in 
government procurement?  
 
Answer:  Yes, non -price factors including the application of life cycle costing analysis (LCCA) are 
considered in the award of government contracts.  
 
Other criteria that Malaysia uses to ensure the best p ossible purchase include environmental impact, 
labour considerations, good governance, social considerations, innovation, delivery time, delivery 
period, past performance of the company as well as quality of goods besides ensuring the required 
technical sp ecifications are fulfilled and lowest offered cost from the bidders are offered to the 
procuring entity at a value for money.  
 
Para 3.99 (Page 66)  
All individuals and enterprises intending to do business with the Government must register with the 
relevant authorities, i.e. the MOF for goods and services and the CIDB for works, to obtain their 
Contractor Registration Certificate (PPK) and Government Procurement for Works Certificate (SPKK). 
In addition, enterprises may apply for Bumiputera status with the Wo rks Contractors Services Centre 
(PKK), if necessary. Construction and electrical contractors are registered separately for works. 
Penalties for non -compliance or substandard performance include the suspension of registration for 
up to five years, thus effe ctively barring opportunities to compete for government contracts as long 
as the suspension lasts. Exemption from registration exists under certain circumstances, subject to 
approval of MOF/CIDB, but the provision of tender deposits may not be waived for i nternational 
bidders. While registered local suppliers and contractors are exempted from the tender deposit 
requirements, these range from MYR  60,000 to MYR  1 million  for foreign bidders. In addition, 
successful bidders will need to provide performance bon ds issued by financial institutions licensed 
to operate in Malaysia.  
 
Question:  
10. The Secretariat Report provides that: "Penalties for non -compliance of substandard 
performance include the suspension of registration for up to five years, thus effectivel y barring WT/TPR/M/436/Add.1  
 
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opportunities to compete for government contract as long as the suspension lasts." Could Malaysia 
please share the grounds, effects, and procedure, including appeals, and challenges on the 
suspension/exclusion/blacklisting of suppliers from parti cipation in government procurement for a 
period?  
 
Answer : There are various grounds for the suspension/exclusion/blacklisting of suppliers from 
participating in government procurement. These may include:  
i. Offences for violating registration requirements such as falsifying documents in a suppliers' 
application process;  
ii. Offences for violating tender requirements/contractual obligations such as price collusion for 
the purposes of guaranteeing certain suppliers are awarded the contract; and  
iii. Criminal offences and civil liabilities.  
 
The effects of these offences would prohibit suppliers from participating in government procurement 
opportunities for a stipulated duration depending on the type and severity of the offence committed.  
 
Procedures for the suspension/exclusion/blacklisting of suppliers from participation can include:  
i. Issuance of warning letter;  
ii. Revocation of the product classification code;  
iii. Suspension of registration from future government procurement opportunities;  
iv. Revocatio n of Bumiputera status or manufacturer status; or/and  
v. Blacklisting of shareholders/equity owners/Board of Directors.  
 
Among the challenges that Malaysia faces in determining the suspension / exclusion / blacklisting of 
suppliers from participation incl ude:  
i) the proof of fake documentation;  
ii) declaration of false information;  
iii) determination of acts of corruption, malpractices and abuse of powers in government 
procurement; and  
iv) determination of collusion of prices and cartels.  
 
More informat ion on this matter can be found in Government Procurement Treasury Circular 8.  
 
Para 3.102 (Page 67)  
Integrity Pacts, i.e. commitments between the procuring authorities and the bidders to respect the 
integrity of the procurement process, were introduced in  2010 to strengthen the procurement 
framework at federal and state levels. Integrity Pacts include sanctions for non -compliance, but 
there is no overall monitoring system. Various model Integrity Pacts exist, including for 
procurements of GLCs. Integrity P acts are implemented to increase an agency's level of awareness 
about corruption among the parties involved in government procurement. For monitoring purposes, 
agencies are currently required to submit monthly reports to the MOF to be coordinated before 
submission to the National Governance, Integrity and Anti -Corruption Centre.  
 
Question:  
11. The Secretariat Report mentioned that Integrity Pacts include sanctions for non - compliance 
with the commitment to respect the integrity of the procurement process. These Integrity Pacts exist 
to increase an agency's level of awareness about corruption among the parties involved in 
government procurement. Could Malaysia expound on how it determines those practices which 
undermine competition, especially those involvin g conflict of interest or beneficial ownership in 
government procurement and the corresponding penalties imposed and share its existing measures 
to minimize or prevent collusion in the conduct of government procurement?  
 
Answer:  Malaysia ensures that condu cts which undermine competition are mitigated through the 
Competition Act 2010 (Act 712). Companies which are directly or indirectly involved in government 
procurement are subject to this Act. This Act prohibits anti -competitive activities.  
 
Section  4(2)(d ) of Act 712 specifically prohibits bid rigging or collusive tendering amongst bidders. 
Procuring agencies are required to pay serious attention on cartels and bid riggings in government 
procurement and report any suspicious or malicious practices to the M alaysia Competition 
Commission (MyCC) if there are indications that lead to these bid riggings and cartels. MyCC 
investigates companies that are suspected of committing these offences based on complaints and 
public tip -offs. WT/TPR/M/436/Add.1  
 
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Government Procurement Treasury  Circular 1.6 and 8, regarding conflict of interest, requires 
procurement officials to ensure that they do not have any conflict of interest with the procurement 
made.  
 
Procuring agencies must take action on companies/firms based on the terms and requirem ents 
stipulated in the contractual agreement. Complaints from agencies can only be submitted to the 
Ministry of Finance after an agency has taken action based on the contractual agreement. Agencies 
are responsible to immediately report to the Ministry of F inance regarding companies/firms that 
have violated the contractual requirements for remedial action to be taken.  
 
IV. TRADE POLICIES BY SECTOR  
Para 4.1.1.3(Page 76)  
4.8. Development programmes and incentives are provided for rice, oil palms, and rubber and 
various agricultural activities. Development of rural communications through commodity 
development programmes received the most support (MYR  2.50 billion ), followed by rice production 
(MYR 1.53 billion )  
 
Question:  
12.  What are the different capacity building programmes/trainings for farmers and fisherfolks 
being implemented by the Malaysian government?  
 
Answer:  Among the training and capacity building programmes carried out by the Department of 
Fisheries (DOF) includin g on the safety and survival at sea, fish handling methods, as well as 
technology transfer for fishing methods.  
 
Department of Agriculture (DOA) Malaysia implemented capacity building programs for farmers 
comprised of knowledge skills, and adoption of tech nologies along the value chain of agro -food 
production.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
3 Trade Policy Developments  
Para 2.3.3 (Page 9)  
2.37. The Malaysia Digital Economy Blueprint was introduced in February 2021 to transform Malaysia 
into a digitally -driven and high -income nation and ultimately become a regional leader in digital 
economy. The Blueprint is aligned with the digital initiatives under the Twelfth Malaysia Plan. 
Through the Blueprint, Malaysia defines digital economy as econ omic and social activities that 
involve the production and use of digital technology by individuals, businesses and government.  
 
Questions:  
13. What measures are being undertaken by the Malaysian government to ensure that its digital 
economy remains compli ant with international trade laws and regulations? What are the current and 
future projects in terms of enabling infrastructure and in ensuring sustainable digital development?  
 
Answer : Malaysia has introduced and implemented various development plans in m oving towards 
Digital Economy and Facilitating Trade. Malaysia is active in multilateral engagements through the 
various free trade agreements. Among the FTAs ratified by Malaysia include the ASEAN -Australia -
New Zealand  FTA (2010), ASEAN Agreement on Elect ronic Commerce (2019), Regional 
Comprehensive Economic Partnership (2022), Comprehensive and Progressive Agreement for Trans -
Pacific Partnership (2022) which include commitments on e -commerce, in view of the importance of 
cross border collaboration in enha ncing the opportunities for digital economy in international trade.  
 
14. On (payments) digitalization, what is the current share of e -payments to all retail 
transactions? Does the government target a certain percentage of total retail payments volume to 
be digital?  
 
Answer : In 2021, the share of e -payments transactions out of total non -cash retail payment 
transactions was 99.3%. As part of the desired outcomes and targets for 2026, Malaysia aims to 
further accelerate digital payments adoption, by increasing  e-payment transactions per capita at a 
compounded annual growth rate of higher than 15%.  
 
This was outlined in Malaysia's Financial Sector Blueprint 2022 -2026, which can be accessed at 
www.bnm.gov.my/documents/20124/5915429/fsb3_en_book.pdf . WT/TPR/M/436/Add.1  
 
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Para 3.1 (Page 15)  
The Malaysian business community has remained resilient despite global uncertainties and concerns 
during the review period. Trade grew by 18.3% to MYR  2.228  trillion  (USD  537.50  billion ) compared 
to MYR  1.883  trillion  (USD 466.65  billion ) in 2018.  
 
Question:  
15. In 2020, Malaysia reported that its GDP contracted by 5.6% due to the outbreak of the 
COVID -19 pandemic. Notwithstanding resiliency mentioned, were there other sectors apart from the 
tourism industry affected by the pandemic and constituted as part of GDP contraction for the same 
year?  
 
Answer:  In 2020, Malaysia's GDP contracted by 5.5% (2019: 4.4%) due to the various Movement 
Control Order (MCO) phases imp lemented since 18  March  2020 to curb the outbreak of COVID -19. 
All economic sectors registered a contraction.  
 
The services sector contracted by 5.4% (2019: 6.2%) as the pandemic and containment measures 
disproportionately affected domestic consumer -oriented industries. In addition, international border 
and mobility restrictions significantly disrupted tourism -related activities. This was also reflected in 
the net services account in the balance of payments, which registered higher deficit of 
MYR 47.2 billion in 2020 (2019: - MYR 10.9 billion ). The manufacturing sector contracted by 2.7% 
(2019: 3.8%) as restriction on operations, supply -chain disruptions and subdued demand conditions 
weighed on production activities. The decrease was also mainly attributed by a contraction in refined 
petroleum products by 9.6% (2019: 2.8%) while chemicals & chemical products and pharmaceutical 
products declined 4.6% (2019: 2.1%).The construction sector decreased by 19.3% (2019: 0.4%), 
as activities were constrained by operat ing capacity limits. The agriculture sector declined by 2.4% 
(2019: 1.9%), mainly due to weaker oil palm output while the mining & quarrying sector decreased 
by 9.7% (2019: -0.6%), attributed to the decline in production of crude & condensate and natural 
gas due to the lower market demand. The mobility restrictions as a result of the imposition of 
lockdowns result in quantity reduction in farm labour that translated to overall reduction in 
agricultural output. Reduced agricultural production is also caused by farmers' limited access to farm 
inputs and to markets to sell produce, which results in profit losses and wastage of farm produce. 
In the long run, the loss of income and the economic slowdown also result in decrease in demand. 
The restrictions caused b y COVID -19 during the first quarter of year 2020 translate to 1.4% drop in 
labor supply. This has caused an overall decrease in GDP and the percentage growth of agricultural 
sector declined 2.2% from 2.0% in the previous year. The decline was due to the co mmodity 
sub-sector, especially oil palm, which recorded a negative growth of 3.6% (2019: 1.5%). Although 
the growth rate of oil palm showed a decline, it was the main contributor to the value added of the 
agriculture sector with MYR 36.9 billion  or 37.1%.  
 
In 2021, the economy expanded by 3.1%, reflecting a continued recovery trajectory, supported by 
a comprehensive and complementary policy response, including the implementation of stimulus 
packages in cushioning the economic impact of the COVID -19 pandemi c and supporting a growth 
recovery.  
 
The economy is expected to accelerate further in 2022, underpinned by positive momentum in the 
domestic economy and strong exports of goods and services, as well as continued improvement in 
the labour market. Overall, the Malaysian economy expanded by 9.3% in the first three quarters 
of 2022.  
 
  WT/TPR/M/436/Add.1  
 
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SAUDI ARABIA, KINDGOM OF  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 60 (Para 3.69)  
Following the Move ment Control Order (MCO) of March 2020, the Government introduced several 
packages to mitigate the economic impact of lockdowns and restrictions in the fight against the 
COVID -19 pandemic.85 Among the measures taken, Bank Negara Malaysia (BNM) is administe ring 
various financing facilities (credits and guarantees) to sustain business operations with emphasis on 
SMEs, including microenterprises. By end -December 2021, its Fund for SMEs had reached 
MYR 31.1 billion , which was being distributed through various s chemes depending on the needs of 
the recipients (Table  3.11). Overall, funds available as at end -December 2021 amounted to 
MYR 10.3 billion . The BNM has also been assisting SMEs and microenterprises with rescheduling of 
loan repayments, and a dedicated Fin ancial Management and Resilience Programme has been set 
up to assist vulnerable borrowers with cash flow difficulties.  
 
Question:  
1. Could the Government of Malaysia provide data on the percentage of small and medium -sized 
businesses who benefitted from th e Private Sector Financing Support Program, including the Funding 
for Lending Program and the Loan Guarantee program as the list in 3.11 table gives a consolidated 
figure that includes all kinds of industries under the specific sector?  
 
Answer : Data availa ble on report by BNM ( https://www.bnm.gov.my/sme -financing ) 
 
3.3.4.2 CONSUMER PROTECTION AND PRICE CONTROLS  
Page 65 (Para 3.91)  
The Price Control and Anti -Profiteering (Mechanism to Determine Unreasonably High Profit) 
Regulations were revised in 2018, extending its scope from food, beverages, and household goods 
to any goods or services sold or offered for sale. The Regulations provide a specific formula to 
determine unreasonably high margins. The obligation of retailers to display their sales prices 
appropriately were tightened through the Price Control and Anti -Profiteering (Price Marking for 
Goods and Charges for Services) Order 2020, which entered into force on 15  November  2020.  
 
Question:  
2. Could you please elaborate more on the specific formula to determine unreasonably high 
margins and the system in general?  
 
Answer : The regulation have specified the method used to determine the unreasonably high profit 
of the goods or services either by using mark -up percentage or margin percentage. According to the 
regulations, any price determination and profits of goods or services must not exceed the value of 
percentage profit determined by the prescribed formula in the regulations. However, the profi t 
calculation is determined according to the respective businesses for the specified period.  
 
4.4.4.1 AIR TRANSPORT  
Page 115 (Para 4.137)  
Malaysia has 6 international airports, 19 domestic airports, and 17 short take -off and landing 
airports. These are al l state -owned, and nearly all of them are managed by the government -linked 
company Malaysia Airports Holdings Berhad (MAHB). The Senai International Airport (in 
Johor  Bahru) is managed by Senai Airports Terminal Services Sdn Bhd under a 50 -year concession 
agreement that commenced in 2003.  
 
Question:  
3. Are there any Investments partnership programs for airports in Malaysia if yes please 
elaborate?  
 
Answer:  
Malaysia Airports Holdings Berhad (MAHB) has undertaken several partnerships in the development 
of air port lands/off terminal which include partnerships with local and foreign parties such as 
joint-ventures (JVs) with:  
 
1. WCT Berhad for the Gateway@klia2 mall which started its operations in 2014;  WT/TPR/M/436/Add.1  
 
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2. Mitsui Fudosan for the Mitsui Outlet Mall, Kuala Lumpur International Airport (KLIA) which 
launched in 2015; and  
3. Cainiao HK for the Cainiao eHub (e -commerce business) which started its operations in 
November 2020 at KLIA.  
 
Besides that, MAHB is also participating in JVs with local companies in providing vari ous airport 
infrastructure services such as with:  
 
1. Petronas Dagang Berhad and Malaysia Airlines in Kuala Lumpur Aviation Fuels System Sdn 
Bhd for fuel infra services at KLIA;  
2. TNB Engineering Corp (TNEC) in ACES Sdn Bhd for the development and operati on of a district 
cooling plant to klia2 and surrounding facilities; and  
3. TNEC in Cooling Energy Supply Sdn Bhd for the operations and maintenance of a co -gen 
district cooling plant at KLIA.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
2.3.2 Strengthening Infrastructure and Connectivity  
Page 8 (Para 2.33)  
In terms of air transport, the efficiency and effectiveness of the aviation industry will be continuously 
improved through upgrading of the airport infrastructure and improving system to enhance capacity 
of airport services and aircraft. The installation of the simple approach light system for Kuching 
international Airport, the completion of the new Kuala Lumpur Airport Traffic Control Centre, the 
construction of a new Mukah airport in Sarawak, the upgrading of the Air Traffic Management System 
in Kota Kinabalu Flight Information Region and the upgrading of Sandakan Airport in Sabah will 
further increase the efficiency of airport service s and air traffic management.  
 
Question:  
4. Could you elaborate on slot management process in Malaysian airports?  
 
Answer:  Slots in Malaysia are allocated based on the principles as laid out in the Worldwide Airport 
Slot Guidelines. All slot requests are s ubmitted using IATA's Standard Schedule Information Manual 
format. The National Slot Coordination Malaysia conducts the Seasonal Schedule (Winter & Summer) 
Slot Coordination based on the IATA's coordination calendar.  
 
3.2.8 SME Masterplan 2012 -2020  
Page 20  
Two areas are identified as catalysts to promote growth namely (i)  value chains in high impact 
industries, with focus on linking SMEs with larger firms and (ii)  internationalization of SMEs, with 
focus on developing targeted market and st rategic alliances for SMEs' participation in the global 
value chains.  
 
Question:  
5. Could the Government of Malaysia provide examples of policies and programs being 
implemented to increase the growth and competitiveness of SMEs through internationalization  of 
SMEs?  
 
Answer:  Malaysia has made substantial efforts to increase the growth and competitiveness of MSMEs 
through internationalisation programmes. A total of 24 programmes were implemented in 2022 
which benefitted 63,738 MSMEs. Among others, the program mes were designed to assist SMEs in 
their export -related activities including capacity building, IP and commercialisation initiatives.  
 
Most of the programmes were conducted by Malaysia External Trade Development Corporation 
(MATRADE). In addition, to fur ther facilitate Malaysian MSMEs' access to markets, the Glocal 
Linkages SME Programme (GLOSMEP) has been curated by SME Corp. Malaysia as an integrated 
platform for MSMEs and business partners to initiate business discussions and potential deals in 
accessi ng the domestic market as well as the global supply and value chain. The following activities 
were organised to meet GLOSMEP's objectives:  
 
i. Sharing of information on market opportunities in Malaysia and international markets through 
outreach seminars or  webinar activities with MSME companies  
ii. Development of virtual networks and business -matching platform to help MSMEs promote 
their products and services to large companies.  WT/TPR/M/436/Add.1  
 
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iii. The organization of networking and business matching activities to enhance  the potential of 
MSME products and services to become part of the supply chain of large companies.  
 
The MatchME platform is one of the main components under GLOSMEP which has been introduced 
in June 2021 in a bid to continue to facilitate MSMEs' access to  markets in the new norm. With the 
aim of connecting worldwide business through networking and business matching virtually, MatchME 
has three main features namely showcase of products or services; access to an active database of 
businesses locally and glob ally; and one -to-one networking and business meeting.  
 
Additionally, SME Corp. Malaysia also implements the National Mark of Malaysian Brand (NMMB) 
which is a certification programme that facilitates SMEs in maintaining the quality, excellence and 
distinct ion of their products and services with the aim to create globally competitive companies by 
encouraging them to recognise the value of branding for differentiated market positioning.  
 
4.3.6 Guidelines for Scrap Metal Importation  
Page 30 (Para 4.35)  
The Government has introduced a new import regulation for all wastepaper and scrap metal intended 
to be imported into Malaysia to ensure a more sustainable production of the steel and paper industry. 
The importation of all wastepaper and scrap metal is now subjected to inspection process and 
issuance of Certificate of Approval (COA) as per the Customs (Prohibition of Imports) (Amendment) 
(No. 2) Order 2022 which came into effect on 10  January  2022. The COA process is prescribed under 
the Guideline for Importation and Inspection of Scrap Metal and The Guideline for Importation and 
Inspection of Wastepaper respectively.  
 
Question:  
6. Could the Government of Malaysia provide Full elaboration on t he applied measures and 
requirements for the importations of the wastepaper and scrap metal.  
 
Answer:  Waste paper under HS 4707.90 (Other, including unsorted waste and scrap) is absolutely 
prohibited to be imported into Malaysia. Meanwhile, the importation  of waste paper products under 
HS 4707.10, HS 4707.20 and HS 4707.30 and metal scrap products under HS 7204, HS 7404 and 
HS 7502 shall be accompanied by a COA by or on behalf of SIRIM Berhad as defined in the Guidelines 
for Importation and Inspection of Wa ste Paper and the Guidelines for Importation and Inspection of 
Metal Scrap, respectively, as gazetted under the Customs (Prohibition of Imports (Amendment) 
(No. 2) Order 2022.  
 
The Guidelines which outlines the requirements and procedures for importation o f waste paper and 
scrape metal can be accessed via https://www.sirim -qas.com.my/our -
services/inspection/importation -of-scrap -metal -and-waste -paper/  
  WT/TPR/M/436/Add.1  
 
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SINGAPORE  
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
QUESTION:  
4.4.4 Transport  
Page 115 (Para 4.137)  
 
1. The WTO Secretariat Report notes that "Malaysia has 6 international airports, 19 domestic 
airports, and 17 short take -off and landing airports". Could the WTO Secretariat confirm the number 
of "international airports" that Malaysia has, and provide the names of the 6 international airports 
identified?   
 
Answer : Malaysia has 6 international airports, namely Kuala Lumpur International Air port, Penang 
International Airport, Langkawi International Airport, Senai International Airport, Kuching 
International Airport and Kota Kinabalu International Airport.  
 
PART II:  QUESTIONS REGARDING THE GOVERNMENT REPORT  
QUESTION:  
3.2.1 Reviewing Non -Tariff Measures  
Page 16 (Para 3.7)  
 
2. The Malaysian Government Report notes that a total of 62 legislation and 80 subsidiary 
legislations were reviewed, while a total of 412 NTMs were identified and uploaded onto the ASEAN 
Trade Repository as per commitment under the ASEAN Trade in Goods Agree ment (ATIGA). We 
would like to confirm if details on state specific requirements are included in the uploaded NTMs. If 
they are not, could Malaysia share more details on the other publicly available platforms which would 
allow importers to access informati on on the technical regulations for different states and for specific 
sectors (e.g. medicinal products)?  
 
Answer :  
(a) The NTMs uploaded in the ASEAN Trade Repository (ATR) encompass Federal laws and 
technical regulations including for specific sectors an d are applicable for all states. Whereas, state 
and local Government regulations are most often by -laws which are designed mainly for businesses 
to operate.  
 
(b) Importers may also access information on the technical regulatory requirements via 
https://globaltradehelpdesk.org/en   
 
5.2 Agriculture Sector  
Page 32 (Paras 5.2.3)  
 
3. The Malaysian Government Report notes the 18 strategies and 58 plans under the National 
Agrofood Policy 2021 -2030 (NAP 2.0) to increase the nation's food security and income of food 
producers. Could Malaysia share more details on how these strategies and plans support will support 
the agrifood sector in food production for both national consumption and exports?  
 
Answer : The strate gies and action plans support the aspirations and future directions to drive 
economic growth and improving the well -being of the people while prioritizing the national food 
security agenda. The strategies and action plans also outlined the importance of co llaboration and 
actions that need to be implemented between federal government agencies, state governments as 
well as the support of industry players. The strategies and action plans are expected to produce 
desired outcome to develop the sector to be more sustainable, resilient and highly technology driven 
that can benefit the country.  
 
7 Way Forward  
Page 38 (Paras 7.3 and 7.4)  
 
4. The Malaysian Government Report notes Malaysia's efforts to build supply chain resilience, 
such as developing "a resilient supp ly chain framework for manufacturing and manufacturing -related 
services" and "supply chain mapping" for "six essential sub -sectors". Could Malaysia elaborate on 
what the resilient supply chain framework entails, such as how Malaysia identified the six esse ntial 
sub-sectors, as well as the type of risks, vulnerabilities and strategies that Malaysia would be looking WT/TPR/M/436/Add.1  
 
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at for these sectors? How is Malaysia planning to undertake the supply chain mapping effort and are 
there plans to collaborate with international  partners to strengthen the supply chain resilience 
network?  
 
Answer:  Malaysia is currently working to ensure that the national supply chain remains resilient and 
strong when faced with future supply chain disruptions. This includes identifying risks, addr essing 
disruptions, and developing strategies to ensure the supply chain remains resilient towards achieving 
business continuity.  
 
Following the lesson learned during the Movement Control Order (MCO) and engagements with 
industry associations, chamber of c ommerce and industry players, six (6) essential sectors were 
identified to develop the Supply Chain Mapping, i.e., Personal Protective Equipment (PPE); 
Pharmaceuticals; Medical Devices; Food and Beverages (F&B); Electrical & Electronics (E&E); and 
Automoti ve. Nevertheless, in ensuring the essential sectors remain up -to-date, continuous 
engagements are conducted with industries to ensure the government remain alert with emerging 
supply chain issues.  
 
However, differences in policies, procedures and standards ; competency in managing borders; fluid 
flow of information; agility in adapting technology; efficiency of transport and logistics services; 
infrastructure availability and business environment can disrupt or break the supply chain. 
Nonetheless, it is unde niable that a resilient supply chain cannot be achieved in silo. With that in 
mind, as a strategy, Malaysia looks forward to further regional and global collaboration and 
cooperation in these areas.  
 
Continuous efforts are undertaken to develop domestic ca pacity and skills training through various 
collaborations at domestic, regional and international level. With this objective, a Memorandum of 
Cooperation on Semiconductor Supply Chain Resilience (MoC) was signed on 10  May 2022 between 
Malaysia and the Unit ed States  of America. Malaysia is also currently involved in the Indo -Pacific 
Economic Framework (IPEF) negotiations where supply chain resilience is discussed in detail.  
 
  WT/TPR/M/436/Add.1  
 
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SINGAPORE – ADDITIONAL QUESTIONS  
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
QUESTION:  
6.2 Competition Act 2010  
Page 34 (Para 6.4)  
 
4. The Malaysian Government Report states that Malaysia has embarked on an amendment 
exercise for the Competition Act 2010, which includes the introduction of a merger control regime . 
What is the status of the amendment exercise and the introduction of a merger control regime?  
 
Answer : The MyCC started the law amendment exercise in 2019 to strengthen its existing legislation, 
particularly on the enforcement power as well as appeal pro visions, taking into account 
developments in the digital economy and introducing the merger control regime as a third pillar of 
the Malaysian competition law.  
 
The review exercise is on -going and is expected to be completed by 2023.  
 
 
  WT/TPR/M/436/Add.1  
 
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CHINESE  TAIPEI  
PART  I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/436)  
I.  3 TRADE POLICIES AND PRACTICES BY MEASURE  
II.  3.3.7  INTELLECTUAL PROPERTY RIGHTS  
Page 72 (Para 3.116)  
3.116 Initiatives taken by the Ministry to protect IPRs include (i)  the establishment of a Cyber 
Copyright Enforcement platform (CYCore) to collaborate with local film copyright owners to combat 
digital piracy distribution via the Internet (since 2020, 219  links have been blocked under this 
programme in relation to 26 films) ; (ii) … 
 
Question(s):  
Regarding curbing online copyright infringement, what are the specific measures of cooperation 
between the Cyber Copyright Enforcement platform (CYCore) establishe d by the Ministry of Domestic 
Trade and Consumer Affairs and the copyright owners? Further elaboration on the specific efforts 
and actions undertaken would be helpful and very much appreciated.  
 
Answer:  The Cyber Copyright Enforcement (CyCORE ) is a program created as a joint collaboration 
between the Ministry and strategic partners such as Malaysian Communications and Multimedia 
Commission (MCMC), Internet Service Providers (ISP) and e -commerce platforms. This program was 
created with the aim of combating the distribution of new local films in digital form through the 
internet medium on websites. Local film copyright owners who are interested to join the CyCORE 
program have to make an offcial application to the Ministry by providing the necessa ry 
documentation proving copyright ownership seven (7) days prior to the launch of the film on Over 
the Top (OTT). The duration of monitoring will be for 14 days of the first launch of the film on OTT 
platform. Upon receiving a complaint on any websites un der the CyCORE program, site blocking will 
be done by the service providers within 48 hours.  
 
4.TRADE POLICIES BY SECTOR  
4.2.2 ENERGY  
Page 92 (Para 4.63)  
In 2018, Malaysia set a target for renewables to account for 20% of installed capacity by 2025. The 
initial target was revised, in 2020, to 31% by 2025 and 40% by 2035. The fulfilment of the targets 
relies to a large extent on private investment in solar power, thus maintaining incentives through 
the Green Technology Financing Scheme, the Green Investment Tax Allowance, and the Green 
Income Tax Exemption, as well as introducing other schemes. The Net Energy Metering programme, 
introduced in late 2018, allows private installations of solar panels to exchange excess energy 
generated with the grid.  
Question(s) : 
1. Did Malaysia revise the renewable targets after 2020? If yes, could Malaysia please provide 
the updated timeline achieving the targets?  
 
Answer:  The current renewable energy target in the installed capacity mix is 31% by 2025 and 40% 
by 2035.  
 
2. Could Malaysia please provide details on measures taken to promote renewable energy 
deployment?  
 
Answer:  Various government programmes have been introduced to promote and increase the 
generation of renewable energy (RE) in the country, including Large -Scale Solar, Net Energy 
Metering, and Corporate Green Power Programme which focused on solar. Malaysia has also 
implemented the Feed -in Tariff programme, which focuses on developing energy projects from 
biogas, biomass, and mini -hydro sources.  
 
The Government also conducted a study on the technical potential of RE in the country, and the 
Malaysia Renewable Energy Roadmap (MyRER), was introduced to guide Malaysia's pursuit of energy 
transition in the power sector. MyRER outlines strategic framework for increasin g the share of four 
key technology specific pillars, namely solar, bioenergy, hydro, and new energy technologies in 
Malaysia's electricity supply system through a balanced yet sustainable approach.  
 WT/TPR/M/436/Add.1  
 
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3. Could Malaysia please elaborate on whether foreign inv estors are allowed to join the solar 
photovoltaic sector in Malaysia? If yes, please further elaborate on what specific requirement or 
qualification are (if any) for foreign participants.  
 
Answer:  Unless otherwise specified, the Malaysian Government allow s any investor to participate in 
RE programme with the equity condition of 51% Malaysian and 49% foreigner.  
 
  WT/TPR/M/436/Add.1  
 
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THAILAND  
I. WT/TPR/G/436  
5. Sectoral Policies  
5.2 Agriculture Sector  
5.2.3 National Agrofood Policy 2021 -2030  
Paragraph 5.21 (Page 32 -33)  
Question  
1. Could Malaysia please provide more details about the 18 strategies and 58 action plans to 
increase Malaysia's food security and income of the food producers for the four su bsectors of the 
agrofood sector comprising paddy and rice, fruits and vegetables, livestock and fisheries and 
aquaculture?  
 
Answer : 
Paddy and rice  
Key strategies of the subsector are to boost productivity via better land and water management; 
capitalizing  on the potential of local specialty rice varieties; encourage young generation to 
participate in the subsector; enhancing financial support; and involvement of private sector along 
the evolving value chain.  
Fruits and vegetables  
By 2030, the fruits and ve getables subsector are projected to achieve 83% and 80% self -sufficient 
level. Key strategies for the subsector includes focusing on gene editing research; improving land 
management; promoting sustainable development; and supporting the growth of high valu e fruits 
and vegetables.  
Livestock  
The strategies and action plans for livestock subsector were formulated to facilitate the development 
of livestock production in the country. These includes, increasing growth and sustainability in the 
poultry industry; a ssisting market access especially in the ruminant industry for new entrepreneur; 
growing the number of ruminant livestock; mitigate and control diseases; and reducing the 
dependency on imported feed.  
Fisheries and aquaculture  
Main strategies to further develop and improve the fisheries and aquaculture includes ensuring 
sufficient, affordable, and safe fisheries produce; good governance across the subsector; and 
enhancing fisheries resource sustainability.  
 
2. Thailand would like to seek clarifica tion of the refines sugar importation of Malaysia under 
ATIGA as well as the relevant laws and regulations. Could Malaysia provide the said laws and 
regulations?  
 
Answer : Malaysia through MDT issues sugar import approved permit (AP) to traders and F&B 
producers. Sugar import activities are carried out by F&B producers and local sugar traders for the 
distribution to local F&B producers.  
 
The procedure for importation of refined sugar:  
1) Application in writing to MDT Putrajaya with supporting documents; an d 
2) Online AP application via ePermit system.  
 
The information on procedures and conditions for import and export of sugar and its by -products is 
available at the following link:  
https://www.kpdn.gov.my/en/trade/business/business/business/business/licensing -
management/management -licences -import -and-export -of-sugar   
 
6. Other domestic policies  
6.10 Women and Youth Empowerment  
Paragraph 6.30 - 6.32 (Page 37)  
Question  
3. Does the government of Malaysia provide any financial support measures to empower women 
in the business sector? If so, please clarify such measures,  e.g., targeting sectors, amount of support 
and effective time period.  
 WT/TPR/M/436/Add.1  
 
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Answer : Information on measures to empower women in business sector is available at 
https://www.smecorp.gov.my/index.php/en/programmes1/2015 -12-21-09-57-03/women -
netpreneur -programme   
 
4. Apart from the above measures, are there any other supportive measure or assistance? If so, 
please provide some examples.  
 
Answer : Supp ortive assistance offered to empower women to participate in the economy are 
capacity building programs, consultations and other assistances. These include skills training 
opportunities, focusing on financial strength, placing importance on the aspect of b alance and giving 
priority to efforts towards achieving equality and self -leadership, business matching and exposure 
to the changing business landscapes. Other than that, Malaysia also offers tax exemption to 
encourage women to return to work, child care f ee subsidy to ease the burden of working parents 
and social security scheme tailored for housewives and self -employed women as a safety net.  
 
II. WT/TPR/S/436  
1. ECONOMIC ENVIRONMENT  
1.2 Recent Economic Development  
1.2.4 Structural Policies  
1.2.4.5 Labo r Market Policies  
Paragraph 1.20 (Page 22)  
 
Question  
5. According to the report, the statistics show that during the review period, the number of 
migrant workers in Malaysia dropped, partially as a result of the C OVID -19 situation. As the global 
economy  is entering its recovery process, is there a tendency of policy changes regarding migrant 
workers under the new government of Malaysia?  
 
Answer : Supportive assistance offered to empower women to participate in the economy are 
capacity building programs, consultations and other assistances. These include skills training 
opportunities, focusing on financial strength, placing importance on the aspect of balance and giving 
priority to efforts towards achieving equality and self -leadership, business matching a nd exposure 
to the changing business landscapes. Other than that, Malaysia also offers tax exemption to 
encourage women to return to work, child care fee subsidy to ease the burden of working parents 
and social security scheme tailored for housewives and s elf-employed women as a safety net.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standard and other technical requirements  
Paragraph 3.71 – 3.78 (Page 61 -63)  
Question  
6. Does Malaysia establish a WTO TBT enquiry point and notification authority? If so, it should 
be clearly stated in section 3.3.2 that which agency is designated as the enquiry point and 
notification authority.  
 
Answer : Yes, Malaysia has established a WTO T BT enquiry point and notification authority. The 
designated agency is SIRIM STS Sdn Bhd.   
 
Paragraph 3.72 (Page 61 -62)  
Question  
7. Please clarify the term "indigenous standards" and how it differs from the Malaysian 
standards? Are international standard s considered when developing indigenous standards?  
 
Answer : 
1. There are 3 categories of Malaysian Standards (MS) developed:  
a) Identical adoption (IDT).  
b) Modified adoption (MOD).  
c) Indigenous.  
 
2. Indigenous standards are those that are created based on data gathered from industry, 
associations, surveys or data received through research and technological progress as well as a WT/TPR/M/436/Add.1  
 
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variety of references including literature. Such standards are usually unique to local conditions in 
Malaysia.  
 
3. Development o f indigenous MS may use International Standards as a basis or reference.  
 
8. Please provide additional information on the procedures to ensure that Malaysia's national 
standards are in line with international standards, and whether there are any course of  actions to 
ensure compliance with international standards in the case that they are inconsistent?  
 
Answer : 
1. The objectives of Malaysia's policy and procedures on the development of MS are to ensure 
that: 
a) MS developed are in line with established bes t practices, in conformity with international and 
bilateral agreements and effective in serving all national stakeholders.   
b) actions taken are consistent with the obligations as a member of the World Trade Organization 
(WTO) with regard to the Technical Barriers to Trade (TBT) Agreement.  
 
2. The normative references for this policy and procedures, among others are:  
a) ISO/IEC Guide 59 Code of good practice for standardization.  
b) Annex  3 to the WTO/TBT  Agreement -Code of Good Practice for the Pre paration, Adoption and 
Application of Standards.  
c) ISO/IEC Guide 2 Standardization and related activities – General vocabulary.  
d) ISO/IEC Guide 21 - 1 Regional or national adoption of International Standards and other 
International Deliverable−Part 1: Adoption of International Standards.  
e) ISO/IEC Guide 21 - 2 Regional or national adoption of International Standards and other 
International Deliverable − Part 2: Adoption of International Deliverables other than International 
Standard s. 
 
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
Paragraph 3.111 (Page 70 -71)  
Question  
9. Please elaborate on how Malaysia encourages domestic companies to acquire intellectual 
property from foreign right holders by us ing tax policies?  
 
Answer : Malaysian IP laws recognise IP as a property in the same way as personal property or other 
movable property that can be transferred, assigned or sold.  
 
Fees for requests to register assignment, transfer, or security interest tra nsactions, as well as other 
fees required under Malaysia's IP laws and regulations, are tax exempted.  
  WT/TPR/M/436/Add.1  
 
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THAILAND – ADDITIONAL QUESTIONS  
I. Malaysia's Government Report  (WT/TPR/G/4 36) 
2. Economic Development  
2.3 Economic Development Plans  
2.3.1 Twelfth Ma laysia Plan  
Paragraph 2.22 – 2.24 (Page 6 -7) 
Question  
• Please elaborate on the policies implemented by Malaysia to support small businesses to 
transform for advancing green growth under the twelfth plan.  
 
Answer  
Under the 12th Malaysia Plan (2021 -2025), the Government aims to transform SMEs into a new 
growth driver, with focus on driving innovation to increase their resilience, competitiveness, and 
sustainability. Hence advancing sustainability and green growth em erged as one of the themes to 
spear continuous economic growth and to enhance the quality of life, while protecting the 
environment, conserving natural resources, and ensuring planetary health.  
 
Towards this end, SME Corp. Malaysia has initiated the PKSle stari Programme to assist SMEs embark 
the sustainability journey. PKSlestari encompasses SME sustainability ecosystem of (i)  awareness 
and education; (ii)  SME ESG Assessment; (iii)  policy support; (iv)  market access; (v)  standards and 
compliance; and (vi) financing and incentives.  
 
Additionally, necessary support is provided for relevant R&D on innovative and sustainable projects. 
Financing is also available, such as the Green Technology Financing Scheme (GTFS) administered 
by the Malaysian Green Technolog y Corporation (MGTC) to help SMEs to develop greener products 
or implement green processes in their business operation. It will allow them to participate in the 
Government Green Procurement (GGP), where the Government has set to achieve 25% of its 
governme nt procurement to be sourced sustainably.  
 
Malaysian Industrial Development Finance Berhad (MIDF) has introduced the Sustainable and Green 
Biz Financing (SGBF) to encourage and increase utilisation of green technology and energy efficiency 
among local indu stry players, focusing on energy conservation, power generation and distribution, 
renewal energy technologies and reduction of carbon emission. In 2023, a total of MYR 15 million  is 
allocated to benefit a total of 10 SMEs.  
 
Malaysia also introduced the Malaysia Plastics Sustainability Roadmap (MPSR) 2021 – 2030 to 
complement Malaysia's Roadmap towards Zero Single Use Plastics 2018 – 2030 and the 12th 
Malaysia Plan with the main go al to reduce the impact of single -use plastics on the environment. 
The Roadmap takes a phased and holistic approach to drive the country's agenda for a sustainable 
plastic economy based on the principles of circularity.  
 
In addition, the Social Entreprene urship Blueprint (SEMy) 2030 promotes a more ESG -conscious 
business model and growth through validation (accreditation) and provide targeted assistance to 
help the SMEs to expand their businesses.  
 
2.3.3 Digital Economy  
Paragraph 2.48 (Page 11)  
Question  
• Regarding the National E -Commerce Strategies Roadmap 2.0, please elaborate the policies to 
support SME to catch up with the opportunities and uplifts their competitiveness under the plan. 
Please share with us more details of the plan if possible.  
 
Answer  
During the COVID -19 pandemic, many MSMEs has shifted to e -commerce platform to stay 
sustainable and resilient. In this regard, the Government has taken a more inclusive approach 
through the National E -Commerce Strategies Roadmap (NeSR) 2.0 to include indi viduals from the 
informal sector as well as focusing more on micro -sized enterprises.  
 
The implementation of NESR 2.0 is guided by 3 Guiding Principles via 6 Strategic Thrusts with 
17 Programmes. More details on NESR 2.0 and programmes thereunder are avail able at 
https://mdec.my/static/nesr/e -book.html   WT/TPR/M/436/Add.1  
 
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Paragraph 2.55 (Page 12)  
Question  
• Regarding improving data protection for strengthening cross -border data, please share with 
us your plan for encouraging SMEs to adjust their action into this plan.  
 
Answer  
The Personal Data Protection Act 2010 [Act 709] provides an adequate level of cross  border data 
transfer subject to fulfillment of the requirements set under subsection 129(3).   
The Department of Personal Data Protection (JPDP) actively engages with the industry including 
SMEs to increase their awareness and compliance to Act 709. Sched uled outreach programmes as 
well as workshops by invitation of the SMEs are conducted throughout the country. Periodical 
inspection are also carried out to gauge the level of compliance to the Act by SMEs.  
 
To further facilitate cross border data transfer,  especially by SMEs, the Department has disseminated 
information about Model Contractual Clauses (MCCs) developed by ASEAN working group on Digital 
Data Governance and endorsed by ASEAN Digital Ministers' Meeting in 2020. MCCs are templates 
setting out res ponsibilities, required personal data protection measures and related obligations of 
the parties when transferring personal data across borders. SMEs are encouraged to include these 
clauses into their binding business agreements for a smoother, safer cross  border data transfer.  
 
• Please share further information/clarification about National Data Sharing Policy (ex. the 
scope, details and etc.)  
 
Answer  
The National Data Sharing Policy (NDSP) is a long -term strategy document and a continuous effort 
designed to create a holistic, conducive and inclusive data ecosystem to support Malaysia's 
socioeconomic development agenda.  
This policy also realizes the desire to make Malaysia a data -driven nation, which means using data 
to make decisions. Data -driven decision  making will be able to support the development of 
innovation, improve the standard of living and the quality of the people's way of life.  
 
Malaysia is at the early stage in data sharing. In order to achieve the vision of becoming a 
data-driven nation, thi s policy sets five (5) missions, four (4) objectives, six (6) principles and four 
(4) pillars to foster the implementation of data sharing in Malaysia. In the formation of this policy, 
sixteen (16) strategies are outlined taking into account the interests of all parties involved in the 
public sector, the private sector and the people.  
 
The policy book is published only in Bahasa Malaysia and available for download at:  
https://www.kkd.gov.my/media -kkmm/penerbitan/dasar -perkongsian -data-nasional . 
 
3. Trade Policy Developments  
3.2 Initiatives to facilitate Trade  
3.2.8 SME Master Plan 2012 -2022 and 3.2.9 National Entrepreneurship Policy 2030  
Paragraph 3.25 – 3.32 (Page 19 - 21) 
Question  
• Please provide more information on how the Malaysian government would encourage 
research  & development and innovation among SME and support new entrepreneurs.  
 
Answer  
Malaysia offers a range of support options to MSMEs with regard to funds for enhancing 
entrepreneurship development and promoting innovation -driven entrepreneurs. In 2022, a total of 
45 programmes were implemented focusing on innovation and technology adop tion with financial 
expenditures of MYR 387.81  million  which has benefitted more than 53,000 MSMEs. Among the 
programmes include Public - Private Research Network (PPRN), Brand Development and Premium 
Design Packaging Programme (REKA), Women Entrepreneurs Empowerment Program (PUAN), New 
Gen Entrepreneur Online Bootcamp (N -GENE), the Graduate Capacity and Employability (GRACE), 
the Inclusive SME Ecosystem (i -SEE) programme and the Tunas Usahawan Belia Bumiputera (TUBE) 
programme. Details on these programmes are available at:  
https://www.smeinfo.com.my/msme -development -programmes/development -programmes/   
 WT/TPR/M/436/Add.1  
 
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• Does the SME masterplan have a specific mechanism to encour age and improve the potential 
of MSMEs/SMEs?  
 
Answer  
Encouraging and improving the growth potential of MSMEs were the key elements of the SME 
Masterplan (2012 -2020) which had staged the direction for SME development and created an SME 
development framework  that covered four strategic goals, six focus areas and 32 measures under 
the Action Plan, including six High Impact Programmes (HIPs) as well as institutional support to 
drive these plans.  
 
• Does Malaysia plan to set up special economic measures to suppo rt Social Entrepreneurship 
growth?  
 
Answer  
In order to support the growth of social entrepreneurship in Malaysia, five Strategic Thrusts, 
20 Strategies and 45 Initiatives have been outlined under the Malaysia Social Entrepreneurship 
Blueprint 2030 (SEMy20 30). Among the strategies are improving access to financial support and 
enhancing market access.  
 
Under improving access to financial support, one of the initiatives is to provide tailored funding for 
social enterprises. Aside from that, under the 2022 Bu dget, it was announced that a special tax 
exemption for three assessment years will be given to social enterprises that have been accredited 
by Ministry of Entrepreneur and Cooperatives Development (MECD). This move is to encourage the 
growth of social ent erprises and subsequently make them sustainable and capable to help their 
beneficiaries.  
 
MECD is also in the midst of drafting a policy on social procurement for social enterprises in 
government procurement. This will increase the market size for social e ntrepreneurs specifically in 
government procurement which will contribute to their business growth.  
 
3.4 Free Trade Agreement  
Paragraph 3.43 – 3.44 (Page 22)  
Question  
• Please provide more details on how the Malaysian government supports the domestic supp ly 
chain when transforming to the new FTAs?  
 
Answer  
In support to the domestic as well as international supply chain, Malaysia is always looking forward 
to cooperation and collaboration in streamlining any challenges of the supply chain particularly on 
policies; standards; border management efficiency; data sharing; knowledge and technology 
transfer; efficiency of transport and logistics services.  
 
With this objective in mind, Malaysia and the United  States  of America on 10  May 2022, entered into 
the Memo randum of Cooperation (MoC) on Semiconductor Supply Chain Resilience. Similarly, 
Malaysia is also a partner country in the Indo - Pacific Economic Framework for Prosperity (IPEF) 
where supply chain resiliency is elaborately discussed.  
 
4. Challenges and Opportunities of External Environment   
4.2 C OVID -19 Response Measures  
4.2.2 Economic Responses to COVID -19  
Paragraph 4.7 (Page 25 -26) 
Question  
• Could Malaysia please elaborate more on the 6R National Economic Recover Strategy including 
the measures under this strategy?  
 
Answer  
The 6R strategy comprising six stages, Resolve, Resilience, Restart, Recovery, Revitalise and 
Reform, was devised to mitigate the impact of the COVID -19 pandemic on the people, business and 
the economy.  
 
The first 4Rs ("Resolve", "Resilient", "Restart" and "Recovery") were implemented to contain the 
outbreak and aimed at softening the impact of the pandemic. The last two stages, "Revitalise" and WT/TPR/M/436/Add.1  
 
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"Reform", which we are currently at, aim to revitalise post -crisis economic growth towards a more 
sustainable and resilient economy.  
 
II. Secretariat Report  (WT/TPR/S/ 436) 
1. EC ONOMIC ENVIRONMENT  
1.2 Recent Economic Development  
Paragraph 1.3 – 1.5 (Page 15 - 16)  
Question  
• Please elaborate on how the Malaysian go vernment would solve the problem of poverty 
alleviation, economic inequality, and unskilled labors.  
 
Answer  
 
Malaysia has managed to address poverty and inequality in its socioeconomic development policies 
and programmes. Among the related initiatives are  to increase income and improve the quality of 
life of the poor through poverty alleviation and capacity -building programmes as well as providing a 
social safety net for the poor and vulnerable. The social safety net is a collection of programmes 
designed to protect the livelihood and wellbeing of the poor and vulnerable. It entails programmes 
such as welfare assistance, employment assistance, cost of living assistance, unemployment 
benefits, workers' compensation, subsidised healthcare and education, and l ow-cost housing.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade   
3.3.1 Incentives  
Paragraph 3.62 – 3.70 (Page 58 - 61)  
Question  
• Please provide more details on how the government set up priorities for businesse s that get 
affected by the new economic policy or industrial changes?  
 
Answer  
As part of strategic response to the global economic policies, crisis and industrial changes, Malaysia 
is also focusing on measures to restore long -term growth. These include:  
 
• improving the infrastructure (e.g. roads, mass transit, information and comm unication 
technologies [ICT])  
• Support for science, research and development (R&D) and innovation.  
• Investment in human capital, education/training  
• Promoting the investment in and uptake of green technologies and innovations to foster 
energy -efficienc y and sustainable economic growth.  
• Support for innovation and entrepreneurship.  
 
3.3.4 Competition Policy and price controls  
3.3.4.1 Competition Policy   
Table  3.12 (Page 65)  
Question  
• Are there any cross -border redress or Online Dispute Resolution which allow Thai people to 
access the consumer protection system as Malaysian national? If so, is it free of charge?  
 
Answer  
'There are two main channel of cross -border redress in Malaysia that handles the consumer dispute 
which are the ACCP Onl ine Complaint Management and the e -Aduan Portal / ezAdu smartphone 
application.  
 
The ASEAN Committee on Consumer Protection (ACCP) Online Complaint Management is a complaint 
handling system developed by the ASEAN Secretariat in accordance to the initiative s under the ACCP. 
It is a system that caters the online cross -border consumer complaint for business transaction 
involving 10 ASEAN Countries. The ACCP Focal point of each country will disseminate the complaint 
received through the system to relevant agenc ies for further action or resolution by and update the 
status in the system. Complaint can be made through https://aseanconsumer.org/consumer -
complaint . 
On the other hand, the e -Aduan 2.0 Portal and ezAdu KPDN smartphone application are systems 
created to facilitate users in submitting complaints related to consumer issues under the supervision WT/TPR/M/436/Add.1  
 
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of KPDN. However, it is only applicable for business transaction (consumer to business / C2B) that 
happe n within Malaysia with valid proof of transaction.  
 
These two channels are free of charge and consumer may use their passport for the identification 
purposes.  
 
• Is there any system that ensures consumer confidence when shopping online with Malaysia?  
 
Answ er 
The Consumer Protection Act 1999 provides for the protection of consumers in Malaysia. It applies 
in respect of all goods and services including any trade transaction conducted through electronic 
means.  
 
4. Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.3 Domestic Support  
Paragraph 4.9 (Page 76)  
Question  
• According to the notification of Malaysia, during the review period 2012 -2015, all domestic 
support was noti fied either as having no or minimal distortive effect on trade (Green Box Support) 
or expenditures on development programmes (Article  6.2 programmes), i.e. input subsidies to 
resource -poor farmers. About 70% of all notified Green Box support over the four -year period related 
to a price subsidy for paddy rice described as decoupled income support. Could Malaysia please give 
more information and clarify the price subsidy programme for paddy rice, and explain if it 
corresponded to Green Box in WTO?  
 
Answer  
The domestic support measure is used as an income support measure for resource -poor farmers, 
rural development, and food security. The measure does not have trade distorting effects or effects 
on production and is consistent with Annex  2 of the AoA. The suppo rt is eligible to all registered 
paddy farmers, with a minimum age of 18 and owners of the land.  
 
4.1.1.6.2 Rubber  
Paragraph 4.24 (Page 81)  
Question  
• As the paper mentioned, Malaysia, as a main exporter of rubber products, has increased its 
importation of natural rubber to serve local downstream demand because of the decline of rubber 
plant areas. Does Malaysia have a long -term plan or solution for this problem?  
 
Answer  
To ensure sufficient supply of rubber for domestic needs and export marke t, the Government has 
introduced a few initiatives particularly to encourage the smallholders to maintain the rubber area 
and continue tapping. Rubber price is the important factor and most implemented initiatives to 
increase smallholders' household income  and uplift their livelihood. Among the initiatives are:  
 
a) Rubber Production Incentive (IPG) with the objective to reduce the economic burden on 
smallholders during low rubber prices and encourage them to continue tapping.  
b) Latex Production Incentives (IPL) to encourage the smallholders to switch from producing 
rubber cup lump to latex grade with better prices and higher domestic demand.   
c) National Rubber Industry Transformation Programme (TARGET) where smallholders are 
involved in the processing and  producing a higher -value rubber.  
d) Rubber Replanting Aid for smallholders to sustain the rubber area.  
e) Encourage R&D activities and automation to produce high -quality and value -added rubber 
products which are sustainable and environmentally friendly t hat meet the stringent environmental 
regulation.  
 WT/TPR/M/436/Add.1  
 
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4.2 Mining and Energy  
4.2.2 Energy  
4.2.2.1 General  
Paragraph 4.58 – 4.63 (Page 91 - 92)  
Question  
• What is Malaysia's opinion about the production and use of Sustainable Aviation Fuel in the 
future?  
 
Answer  
Malaysia recognise the importance of utilising Sustainable Aviation Fuel (SAF) as SAF gives an 
impressive reduction of carbon emissions compared to traditional jet fuel. However, the current 
market price of SAF is expensive as compared to c onventional fossil jet fuel, and is not economically 
feasible to be implemented by aircraft operators.  
 
Hence, Malaysia would like to reiterate ICAO's assembly resolution A40 -18 which acknowledges the 
need for SAF to be developed and deployed in an econom ically feasible, socially and environmentally 
acceptable manner. The use of SAF will mainly be driven by CORSIA due to aircraft operators' ability 
to claim for emissions reduction from its offsetting obligations. Nonetheless, Malaysia recognises 
that the u se of SAF also goes beyond CORSIA compliance and is important in supporting the aviation 
industry's global aspirational goal in environmental protection.  
 
• Are there any policies and opportunities of the Thai private sector for investment or 
co-investment  in renewable energy?  
 
Answer  
Unless otherwise specified, the Malaysian Government allows any investor to participate in RE 
programme with the equity condition of 51% Malaysian and 49% foreigner.  
 
4.4 Se rvices  
4.4.3 Telecommunications  
Paragraph 4.131 (Pa ge 114)  
Question  
• In the case of individual license consideration for foreign companies (4.131, page 114), we 
would like to know the condition applied for CASP because the text only mentioned about NFP and 
NSP. Does it use the same condition as NFP and N SP? If not, please clarify.  
 
Answer  
CASP license does not contain similar provisions. The access obligation is not applicable to CASP.  
  WT/TPR/M/436/Add.1  
 
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TÜRKYIE  
THE GOVERNMENT REPORT (WT/TPR/G/436)  
2.3.3. Digital Economy, 2.51, p. 11  
 
On page 11 of The Government Report, it is stated that " The Government continues the momentum 
in growing the e -commerce ecosystem in Malaysia into the next phase, by implementing the 
NESR  2.0 for the period from 2021 to 2025 as a key component of Malaysia Digital Economy 
Blueprint. The NESR 2.0 sets the strategic direction and provides a holistic and coordinated approach 
at the national level in formulating and implementing relevant interventions towards ensuring a more 
inclusive outcome by aligning diverse stakeholders towa rds a common vision to make e -commerce 
as the engine for catalytic growth for businesses in Malaysia. By year 2025, NESR 2.0 aspires to 
grow the e -commerce market size to reach MYR 1.65 trillion and to empower 1,148,000 MSMEs in 
adopting e -commerce."  
 
Ques tion: Could Malaysia kindly elaborate on  National E -Commerce Strategic Roadmap 2.0 in the 
sake of the relationship between Malaysia Digital Economy Blueprint and empowering MSMEs in 
adopting e -commerce?  
 
Answer:  The Malaysia Digital Economy Blueprint sets out the strategies and initiatives in achieving 
the aspirations of MyDIGITAL. MyDIGITAL is a national initiative by the Government to transform 
Malaysia into a digitally -driven, high -income nation and a regional leader in the digital economy. 
This blueprin t plays an important role to chart the path of e -commerce and the digital economy's 
contribution to the nation's economy. It also drives digitalisation across the country, including 
bridging the digital divide.  
 
E-commerce through the National E -Commerce S trategic Roadmap is a key component of 
MyDIGITAL, aligned to MyDIGITAL's Thrust 2 (Boost Economic Competitiveness Through 
Digitalisation), and the 2 services subsectors (Wholesale & Retail Trade and Food & Beverages), to 
contribute to MyDIGITAL's target of  875,000 MSMEs adopting e -commerce by 2025.  
 
 
THE SECRETARIAT REPORT (WT/TPR/S/436)  
2.3.2.1 Association of Southeast Asian Nations (ASEAN), 2.21, p. 33  
 
On page 33 of the Secretariat Report, it is stated that "The ASEAN Agreement on Electronic 
Commerce, si gned on 22 January 2019 and in force since 2 December 2021, is intended to facilitate 
e-commerce transactions within ASEAN. It includes elements such as harmonized consumer rights 
and protection laws, a harmonized legal framework for online dispute resolut ion, e -identification and 
authorization (electronic signature) schemes, and a framework for personal data protection."  
 
Question : Could Malaysia provide with detailed information regarding The ASEAN Agreement on 
Electronic Commerce in terms of facilitation  of e-commerce transactions within ASEAN?  
 
Answer:  The ASEAN Agreement on Electronic Commerce which has entered into force on 
2 December  2021, aims at establishing common principles and rules to promote growth of 
e-commerce in the region and to strengthen capacity to implement them.  
 
This Agreement has been observed by Malaysia to be a pivotal starting point in aligning our national 
policies with the ASEAN ambition, especially in facilitating seamless trade, data pr otection, digital 
payment, development of MSMEs and digital talent. The Agreement forms part of the integral 
initiatives that paves way to other ASEAN key digital trade and digital economy policies, such as the 
Bandar Seri Begawan Roadmap (BSBR). Among oth ers, BSBR includes the potential of ASEAN 
negotiating Digital Economy Framework Agreement by 2025.  
 
To ensure successful implementation of the ASEAN Agreement on Electronic Commerce, ASEAN has 
agreed on the Work Plan for the implementation of this Agreemen t in 2021, which draws upon 
existing ASEAN work across various sectoral bodies, with targeted approaches for multisectoral 
implementation from 2021 to 2025. For trade facilitation and e -commerce logistics, the Work Plan 
specifically aims at:  
- identifying and quantifying impact of customs procedures on efficient cross -border e -commerce;  WT/TPR/M/436/Add.1  
 
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- support establishment of the ASEAN Authorised Economic Operator Mutual Recognition 
Arrangement (AAMRA); and  
- improving collaboration among Public -Private e -commerce facil itators.  
 
In addition, the Work Plan also outlines the initiatives to promote paperless trading in the region, by 
driving Single Windows interoperability across ASEAN and beyond.  
 
 
  WT/TPR/M/436/Add.1  
 
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UNITED  KINGDOM  
Secretariat Report (S436)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directing Affecting Imports  
3.1.4  Other charges affecting imports  
Paragraph  3.31.  
UK Question 1 : Could Malaysia please outline whether an assessment has been made by the 
Malaysian government on the impact which high excise  duties have on trade in illicit counterfeit 
spirits?  
 
Answer : Currently, there is no specific assesment conducted by the Government to review the impact 
of excise tax rates on the percentage of counterfeit alcohol beverages. However, continuous effort 
to curb the illicit trade activities remain a priority for the Government. A multi -agency taskforce has 
been established as a joint platform to identify the market vulnerabilities, enforcement challenges 
and mitigation to the risk of ilicit trade.The taskfor ce comprise of representatives from relevant 
Ministries and enforcement agencies as well as the relevant industry players.  
 
UK Question 2:  Could Malaysia please explain for what reason are some beverages (e.g., rice wine, 
samsu, arrack and bitters) taxed m ore lightly than imported wine and spirits (e.g., whiskies, brandy, 
gin, vodka, and rum)?  
 
Answer : Excise tax structure for alcoholic beverages has been reviewed in 2016 from hybrid to 
specific tax system which is in line with international best practices and method of taxation. The 
imposition of the tax rate varies based on the alcohol content, consumer segment as well as the 
market niche.  
 
Secretariat Report (S436)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade    
3.3.3  Sanitary and phytosanitary requirements  
Paragraph  3.80.  
UK Question 3 : The Malaysian Ministry of Health (MOH) initiated in 2019 a review of the Regulations 
on alcoholic beverages in Malaysia's Food Regulation s 1985.  Could Malaysia please confirm that the 
use of plain caramel is permitted for colouring purposes in whisky?  
 
Answer : The deletion regarding food additive provisions in the amendment is a result of the 
harmonisation of food additives provisions in Fo od Regulations 1985 with the Codex standard in 
accordance to in accordance with subregulation 19(2). As such, the permitted food additives can be 
directly referred to Codex standards.  
 
Plain caramel (INS150a) can be used in whisky at maximum GMP level as it is accordance to food 
category 14.2.6 of GSFA Standard.  
 
Secretariat Report (S436)    
3 TRADE POLICIES AND PRACTICES BY MEASURE     
3.3 Measures Affecting Production and Trade    
3.3.5  State trading, state -owned enterprises, and privatization  
Paragraph  3.93.  
UK Question 4 : Paragraph 3.93. of the Secretariat Report states that "Malaysian GLCs are present 
in utilities, banking and finance, and telecommunications".  Could Malaysia please provide a list of 
the GLCs responsible for operating public utilities?  
 
Answer : The Keretapi Tanah Melayu Berhad (KTMB), is a GLC responsible with the operation of 
railway in Peninsular Malaysia. Another instance is Indah Water Konsortium Sdn. Bhd. (IWK), which 
is responsible for the management of national wastewat er and sanitation.  
  
UK Question 5 : Could Malaysia please clarify whether these GLCs subject to the provisions of the 
Financial Procedure Act 1957 – as cited in paragraph 3.96. on page 66 – as the main legal instrument 
regulating government procurement?  
 WT/TPR/M/436/Add.1  
 
- 124 - 
 
Answer : As the GLC's are corporate entities established under the Companies Act, they are not 
subjected to the provision under the Financial Procedure Act (1957).  
  
Secretariat Report (S436)    
3 TRADE POLICIES AND PRACTICES BY MEASURE     
3.3 Measures Affect ing Production and Trade    
3.3.5  State trading, state -owned enterprises, and privatization  
Paragraph  3.94.  
UK Question 6 : Paragraph 3.94. of the Secretariat Report states that "Ten initiatives were launched 
under the GLC transformation programme, includin g enhancing the effectiveness of GLC boards, and 
improving the regulatory environment and procurement best practices". Could Malaysia please 
provide details additional detail regarding the improvements to regulatory environment and 
procurement best practic es as cited?  
 
Answer : The Minister of Finance on 15  April 2022 has launched the Principle of Good Governance for 
Government -Linked Investment Companies (PGG) as the sole reference for governance baseline and 
sustainability practices of all Government Linke d-Investment Companies (GLICS). PGG is founded 
on 3 main principles, leadership and board effectiveness; ensuring an optimal, qualified board 
composition and supporting the effective handling of investment.  
  
Secretariat Report (S436)    
3 TRADE POLICIES AN D PRACTICES BY MEASURE     
3.3 Measures Affecting Production and Trade    
3.3.6  Government procurement  
Paragraph  3.98.  
UK Question 7 : Paragraph 3.98. of the Secretariat Report states that "For goods made locally by 
Bumiputera manufacturers, the preference m argin is 10% for contracts below MYR 10 million, up to 
5% for contracts between MYR 10 million to MYR 100 million, and 3% above MYR 100 million. 
International tenders are only opened if the goods or services are not available in the local market". 
Could Ma laysia please confirm to which goods and services this domestic preference applies?  
 
Answer : All goods produced by Bumiputera manufacturers are entitled to this domestic preference 
policy unless stated otherwise under international trade agreements.  
  
UK Question 8 : Could Malaysia please explain whether this measure apply to contracts covered by 
Malaysia's international trade agreements and is it subject to specific contract value thresholds?  
 
Answer : Similar measure also applies to procurement covered by CPTPP with specific contract value 
thresholds.  
 
Secretariat Report (S436)    
3 TRADE POLICIES AND PRACTICES BY MEASURE     
3.3 Measures Affecting Production and Trade    
3.3.6  Government procurement  
Para graph  3.99.  
UK Question 9 : Paragraph 3.99. of the Secretariat Report states that, "Exemption from registration 
exists under certain circumstances, subject to approval of MOF/CIDB, but the provision of tender 
deposits may not be waived for international bid ders. While registered local suppliers and contractors 
are exempted from the tender deposit requirements, these range from MYR  60,000 to MYR  1 million 
for foreign bidders. In addition, successful bidders will need to provide performance bonds issued by 
financial institutions licensed to operate in Malaysia". Could Malaysia please clarify the following:  
 
A. Why are tender deposit requirements exclusive to foreign bidders?  
 
Answer : Foreign bidders are required to submit tender deposit to ensure their commitme nt on 
bidding for the contract is legitimate and as an indication that they are financially stable.  
 
B. Is the requirement to provide performance bonds also exclusive to foreign bidders?  
 
Answer : The requirement to provide performance bonds is applied to a ll foreign and domestic bidders 
that are awarded the contract.  
 WT/TPR/M/436/Add.1  
 
- 125 - 
 
C. Do these measures apply to contracts covered by Malaysia's international trade 
agreements and are they subject to specific contract value thresholds?  
 
Answer : These measures apply to contra cts covered by Malaysia's international trade agreements. 
Domestic bidders and bidders from FTA members who are registered with the MOF and CIDB are 
exempted from tender deposits while performance bond is applied to all foreign and domestic bidders 
that ar e awarded the contract.  
 
Secretariat Report (S436)    
3 TRADE POLICIES AND PRACTICES BY MEASURE     
3.3 Measures Affecting Production and Trade    
3.3.6  Government procurement  
Paragraph  3.101.  
UK Question 10 : Paragraph 3.101. of the Secretariat Report states that tendering specifications 
are 'purchased' by prospective bidders. Could Malaysia please explain why it is a requirement for 
prospective bidders to purchase tender documentation?  
 
Answer : Procurement for goods and services is done through an onli ne platform (ePerolehan), and 
all tender documents are unchargeable.  
 
As for procurement for work construction which currently is done manually, the prospective bidders 
are required to purchase tender documentation due to the cost of preparing tender docum entation 
for the procurement.  
 
GOVERNMENT REPORT (G436)  
 
Government Report (G436)  
2 ECONOMIC DEVELOPMENT  
2.3 Economic Development Plans  
2.3.4  National Fourth Industrial Revolution Policy  
Paragraph  2.60.  
UK Question 11 : Under the National Fourth Industrial Revolution (4IR) policy, education is set out 
as one of the priority sectors. Could Malaysia please explain how enabling greater access to 
transnational higher education is being incorporated as part of this strategy?  
 
Answer : "Under Policy Thru st 1: Equip the rakyat with 4IR knowledge and skill sets of the National 
4IR Policy, one of the identified initiatives is to enhance 4IR related courses in higher education 
institutions and technical and vocational education and training (TVET) institution s through better 
programme design and delivery. As such, e -Learning platforms and mirco -credentials will be 
increasingly used to deliver 4IR programmes such as cyber security, data analytics, machine learning 
in business etc to expand the reach of these 4I R education programmes.  
 
To further assist the education sector in embracing 4IR technologies, the National 4IR policy has 
also identified 6 sector -specific initiatives, namely:  
 
(1) upskill and reskill educators to harness 4IR technologies  
(2) expand 4IR technical and humanistic soft skills courses and programmes  
(3) harmonise and streamline policies, legislations and processes for efficient education delivery, 
while ensuring a collaborative approach and agile governance  
(4) promote a centralised and open education database  
(5) ensure fit -for-future, 4IR -ready education delivery through focused support  
(6) develop change management programmes to instil humanistic soft skills  
 
Government Report (G436)  
4          CHALLENGES AND OPPORTUNITIES OF EXTERNAL ENVIRONMENT  
4.3       Trade and Environment  
4.3.1    Initiatives of Sustainable Palm Oil  
Paragraph  4.17.  
UK Question 12 : We note that the Malaysia Sustainable Palm Oil Certification Scheme was made 
mandatory from 1  January  2020, with an aim to ensure that the industry produces Certified 
Sustainable Palm Oil in line with the requirements of international consumers. Could Malaysia please 
outline how they are ensuring that this mandatory scheme is upheld b y all members of the supply WT/TPR/M/436/Add.1  
 
- 126 - 
 
chain which fall under it? And, how do Malaysia plan to work with international consumers in the 
future to further develop ambition of sustainable production of palm oil?  
 
Answer : The cooperation between Malaysian Palm Oil Board  (MPOB) and Malaysian Palm Oil 
Certification Council (MPOCC) towards stringent enforcement of the MSPO is enshrined under 
Article  21(1) of the MPOB (Licensing) Regulations 2005. MPOCC participates in some of the MSPO 
audits to identify the shortcomings tha t hinder an entity from being certified. Subsequently, MPOCC 
is able to apply this knowledge to assist entities seeking to obtain MSPO certification. The 
accreditation of certification bodies are carried out by an independent body, ie, Department of 
Standa rds Malaysia.  
 
Plans are underway to help eligible entities which are located outside of Malaysia to be certified with 
MSPO certification to be able to produce or process MSPO certified products without any gaps in the 
supply chain. MSPO certified entitie s utilising the MSPO logo on their product labelling are able to 
raise awareness of sustainable palm oil production.  
 
Government Report (G436)  
4          CHALLENGES AND OPPORTUNITIES OF EXTERNAL ENVIRONMENT  
4.3       Trade and Environment  
4.3.1    Initi atives of Sustainable Palm Oil  
Paragraph  4.18.  
UK Question 13 : Could Malaysia please expand on how MSPO Trace provides  "assurance on the 
sustainability of Malaysian palm oil" ? 
 
Answer : MSPO Trace is a tool for verifying the transparency and traceability o f MSPO certified 
products. The origin of each MSPO certified products with MSPO logo can be traced back to its 
sources here in Malaysia via MSPO Trace. MSPO Trace also holds the information on the certification 
and audit summary reports for each MSPO certi fied entities. Please find the MSPO Trace website as 
follows: https://mspotrace.org.my/   
 
  WT/TPR/M/436/Add.1  
 
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UNITED  STATES  
Part I.  Questions based on the Secretariat Report (WT/TPR/S/436)  
 
Page 10, Summary Section, Paragraph 26 : According to the Secretariat report, Industry 4WRD: 
National Policy on Industry 4.0  summarizes the Fourth Industrial Revolution as the application of 
advanced digitization, advanced manufacturing technologies, and efficient resource allocatio n to 
infuse higher value -added manufacturing processes.  
 
Question 1 : Does " The Industry 4WARD: National Policy on Industry 4.0 " contain any support 
systems (infrastructure, funding, etc.) for the focus sectors under Industry 4.0?   
 
Answer : Industry4WRD policy focuses on creating the right ecosystem to support SMEs in the 
manufacturing sector and its related services. The programmes cover upskilling and reskilling 
existing and future labour pools for Malaysia's transformation; focused funding  support for SMEs to 
kickstart the adoption and complement private sector investments; and promotion of innovation 
capabilities and collaboration platforms to foster the development of and access to cost -effective 
technologies.  
 
Page 31, paragraph 2.10:  According to the Secretariat report, The Ministry of International Trade 
and Industry (MITI) is responsible for the development of the halal sector with associated agencies 
including the Halal Development Corporation.   
 
Question 2 : What is the approval proc ess for imports of Halal products and how is this coordinated 
among MITI, the Department of Islamic Development Malaysia (JAKIM), or other government 
agencies?  
 
Answer : For meat and meat based products, it has to be sourced from a dedicated halal 
abattoir s/establishments certified by a Foreign Halal Certification Body (FHCB) in the country of 
origin and the FHCB itself has to be recognized by Malaysia. Prior to the approval/recognition, the 
abattoirs/establishments in the exporting country has to submit th eir application to the Department 
of Veterinary Services (DVS) Malaysia through the Competent Authority in their country. While for 
other halal product, halal certification is not a requirement. However, if the product is halal certified, 
it has to be cert ified by the FHCB which is recognized by Malaysia.  
 
HDC is an agency under the Ministry of International Trade and Industry (MITI), serves as the central 
coordinator that promotes participation and facilitates growth of industry players in the development 
of Malaysia's halal ecosystem to increase Malaysia's halal exports and direct investment into halal 
industrial parks.  
 
Page 51, paragraph 3.39 : The Secretariat report mentions that Malaysia maintains a Second 
Schedule non -automatic import licensing system for rice.  
 
Question 3 : Please explain the purpose of import licenses for rice and what alternatives Malaysia 
has considered.  
 
Answer : Issuance of import license for rice is for monitoring and data collection purposes. It is in 
line with the Import Licensi ng Agreement under WTO. Malaysia will continue to review the import 
licensing requirements to facilitate trade and industry while taking into account the national socio -
economic, safety and health interests.  
 
Page 53, paragraph 3.44 : According to the Secre tariat's Report, Malaysia has a number of 
antidumping measures in place. We have the following questions as a result:  
 
Question 4 : What mechanisms does Malaysia have in place to ensure that those antidumping 
measures are or will not be evaded?   
 
Answer : Malaysia is currently reviewing the existing Countervailing and Anti -dumping Duties 
Act 1993 and countervailing and Anti -dumping Duties Regulations 1994 to include more detailed 
provisions on anti -circumvention.  
 WT/TPR/M/436/Add.1  
 
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Question 5 : Does Malaysia have any cooperati ve arrangements in place with other WTO Members 
that will assist Malaysia in investigating antidumping evasion allegations from its domestic industry?   
 
Answer : No. 
 
Question 6 : Does Malaysia have the authority to investigate evasion suspicions ex officio?  
 
Answer : No. 
 
Pages 56 -57, paragraphs 3.52 -3.59:   
The Report identifies several export -related or export -contingent incentives that Malaysia has not 
previously notified to the Subsidies Committee, including:  
 
• Market development grants, which as sist exporters with promoting goods globally.  
• Free zones incentives, including exemptions from customs duties, sales tax and excise tax 
on specific raw materials and equipment.  
• Income tax reductions up to 70% of statutory income for exporters contingen t on the 
value of increased exports.  
• Export Excellence Awards equal to 100% of the value of increased exports.  
 
Question 7 : Please explain these incentives in light of the export subsidy prohibition under 
Article  3.1(a) of the Subsidies Agreement?  
 
Answer : The Market Development Grant (MDG) is a support initiative in the form of a reimbursable 
grant, subject to the availability of the government funds, which has been suspended effective 
1 October 2022. The MDG was  introduced in 2002 with the objective of assisting exporters in their 
efforts to promote Malaysian made products or services globally. The lifetime limit of MDG is 
MYR 300,000 and it is specifically formulated for Malaysian SME Companies, Professional Ser vice 
Providers, Trade and Industry Associations, Chambers of Commerce, Professional Bodies and 
Co-operatives.  
 
A Free Zone is an area in any part of Malaysia that is declared by the Minister of Finance under the 
provision of Section  3(1) of the Free Zones Act 1990, as a Free Commercial Zone or Free Industrial 
Zone. The activities and industries therein are subject to minimal customs formalities as it is deemed 
under Section  2 (1 A) of the Customs Act 1967 to be a place outside the Principal Custom Area 
except in respect of Prohibition of Imports and Exports under Section  31 of the Customs Act 1967. 
Hence, products from companies located in the Free Industrial Zones (FIZ) destined for Malaysian 
domestic market are considered as imported products and subjected  to import duty at MFN/applied 
rates. However, effective 1  January  2011, products produced in the FIZ destined for the Malaysian 
market are eligible to enjoy ASEAN or ATIGA duty rates if they complied with the origin criteria, i.e. 
local content or substan tial transformation.  
 
Question 8 : Please explain why these incentives have not been notified pursuant to the notification 
obligations under Article  25 of the Subsidies Agreement?  
 
Answer : The Market Development Grant (MDG) is a support initiative in the fo rm of a reimbursable 
grant, subject to the availability of the government funds, which has been suspended effective 
1 October 2022. The MDG was introduced in 2002 with the objective of assisting exporters in their 
efforts to promote Malaysian made products  or services globally. The lifetime limit of MDG is 
MYR 300,000 and it is specifically formulated for Malaysian SME Companies, Professional Service 
Providers, Trade and Industry Associations, Chambers of Commerce, Professional Bodies and 
Co-operatives.  
 
A Free Zone is an area in any part of Malaysia that is declared by the Minister of Finance under the 
provision of Section  3(1) of the Free Zones Act 1990, as a Free Commercial Zone or Free Industrial 
Zone. The activities and industries therein are subject to  minimal customs formalities as it is deemed 
under Section  2 (1 A) of the Customs Act 1967 to be a place outside the Principal Custom Area 
except in respect of Prohibition of Imports and Exports under Section  31 of the Customs Act 1967. 
Hence, products fro m companies located in the Free Industrial Zones (FIZ) destined for Malaysian 
domestic market are considered as imported products and subjected to import duty at MFN/applied 
rates. However, effective 1  January  2011, products produced in the FIZ destined fo r the Malaysian WT/TPR/M/436/Add.1  
 
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market are eligible to enjoy ASEAN or ATIGA duty rates if they complied with the origin criteria, 
i.e. local content or substantial transformation.  
 
Pages 58 -60, paragraphs 3.65 -3.69:   
The Report identifies several production incentives that Malaysia has not previously notified to the 
Subsidies Committee, including:  
 
• Beyond the incentives provided under Malaysia's pioneer status and investment tax 
allowance programs (which Malaysia has notified), enhanced production incentive s are 
available for specific projects and activities, e.g., 100% income tax exemption for 
enterprises in selected mechanical and electrical industries, high -technology projects, and 
priority production lines in the automotive sector.  
• Domestic Investment Strategic Fund grants on a 50/50 matching basis for eligible 
expenditures related to technology upgrading, outsourcing by multinational corporations 
active in Malaysia, and gaining international certification in strategic industries.  
• Automation Capital A llowance grants equal to 200% of approved expenditures incurred 
within 5 years of assessment for investments in automation of operations.  
• Industry 4WRD Readiness Assessment and Intervention Fund grants equal to 70% of 
incurred eligible expenditures relat ed to implementing changes that affect the deployment 
of labor, technology and production processes.  
 
Question 9 : Please explain why each of these incentives have not been notified pursuant to the 
notification obligations under Article  25 of the Subsidies Agreement?  
 
Answer : Malaysia is committed to fulfill its notification obligations and will continue to strive to 
update the outstanding notifications.  
 
Page 62, paragraph 3.74:  
According to the Secretariat Report, the importation of all waste paper and sc rap metal is now 
subjected to an inspection process and issuance of Certificate of Approval (COA). While the measure 
was notified to the WTO TBT Committee, the guidelines were implemented three days after the 
notification, raising questions about how comme nts received during the comment period could be 
taken into account before the guidelines entered into force. The stated overarching objective of the 
new policy measure is to facilitate genuine importation of scrap metal and waste paper, while 
protecting th e environment from any hazardous contaminants. We have the following questions 
regarding the inspection process and issuance of COAs:  
 
Question 10 : How did Malaysia determine the allowable tolerances for off -specification material?  
 
Answer : SIRIM has esta blished two guidelines to cater for Importation of Metal Scrap and Waste 
Paper:  
1. Guideline for Importation and Inspection of Metal Scrap (JANUARY 2022 EDITION NO: 1). The 
criteria for Metal Scrap and allowable for off -specification materials are availabl e in Clause 3.2(a), 
3.2(b) and 3.2(c).  
2. Guideline for Importation and Inspection of Waste Paper (JANUARY 2022 EDITION NO: 1). 
The criteria for Waste Paper and allowable for off -specification materials are available in Clause 4.6.  
The documents can be dow nloaded from https://www.sirim -qas.com.my/our -
services/inspection/importation -of-scrap -metal -and-waste -paper/   
 
Question 11 : Does Malaysia inte nd to continue relying on the internationally recognized Institute 
of Scrap Recycling Industries (ISRI) guidelines in the ISRI Scrap Specifications Circular, with which 
the majority of exports from the U.S. comply?  
 
Answer : The objective of the Guidelines is to guarantee the absence of scheduled waste (including 
e-waste) and hazardous substances in the importation of metal scrap and waste paper. The shipment 
will be deemed acceptable if it meets ISRI specifications and adheres to the aformentioned 
requireme nts. The guidelines were establised after multiple consultations with various stakeholders 
taking into account the importation activities from countries such as the US, UK, Indonesia, 
Brunei  Darussalam , Singapore, Thailand, Ireland, Canada, Japan, South Am erica, Republic of Korea, 
Chinese Taipei , Hong Kong,  Chian,  Australia, New  Zealand , UAE, The Netherland, Belgium, Germany, 
France, Spain, Crotia, Switzerland, Colombia, Italy and Greece. Both guidelines for Metal Scrap and 
Waste Paper are now recognised an d accepted worldwide.  WT/TPR/M/436/Add.1  
 
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Question 12 : Please provide details on how it is determined that test samples are representative 
of the composition of the shipment?  
 
Answer : For samping  plan, please refer to these relevant clauses in both guidelines:  
 
1. Clause 4.6 of Guideline for Importation and Inspection of Metal Scrap (JANUARY 2022 EDITION 
NO: 1).  
2. Clause 4.7 of Guideline for Importation and Inspection of Waste Paper (JANUARY 2022  
EDITION NO: 1).  
 
Page 63, paragraph 3.83:  The Secretariat Report notes that it has been a member of Codex since 
1971.  
Question 13 : Please provide the rationale for deviating from Codex procedures, and why Malaysia 
has obligated countries under audit to pa y for the audit or inspection when Codex guidelines state 
that the burden of cost should fall on the country operating the audit or inspection.   
 
Answer : The terms and conditions for the implementation of the inspection for foreign abattoir/ 
processing pl ants has been notified by DVS to the WTO in 2010.  
 
Malaysia will continue to review the audit process for improvements.  
 
Question 14 : We understand that Malaysia plans to conduct an audit of U.S. plant, beef and poultry 
imports by June 2023. What is Malays ia's current plan to transition its audit payment scheme to 
align with Codex guidance?  
 
Answer : The terms and conditions for the implementation of the inspection for foreign abattoir/ 
processing plants has been notified by DVS to the WTO in 2010.  
 
Malaysia  will continue to review the audit process for improvements.  
 
Page 63, paragraph 3.83 : Malaysia notes that it is a member of World Organization of Animal 
Health (WOAH).   
Question 15 : Please provide a rationale for Malaysia's implementation of measures, su ch as its  ban 
on U.S. poultry imports, that deviate from WOAH guidance.  
 
Answer : Malaysia as a member of WTO and WOAH, is committed to comply with the guidelines of 
regionalization measures according to available guidance of WOAH in the event of an outbreak of 
livestock diseases and continuously engaging with interested members on the matter.  
 
Page 68, Para 3.107: The Secretariat Report notes, "Regarding membership in the International 
Union for the Protection of New Varieties of Plants (UPOV), Malay sia's Protection of New Plant 
Varieties Act 2004 (Act 634) is undergoing amendments to make it compatible with the 1991 Act of 
the UPOV Convention."  
Question 16 : What is the timeline for Malaysia to accede to the 1991 Act of the UPOV Convention?  
 
Answer : Malaysia is in the process of completing the domestic requirements before acceding to the 
1991 Act of the UPOV Convention.  
 
Page 71, para.  3.112:  The Secretariat's Report states that "[t]he Copyright Tribunal, an alternative 
forum for interested persons to apply for certain uses of copyrighted works or claiming relief, is 
administered by MyIPO. However, the Copyright Tribunal has not heard any cases thus far."  
 
Question 17 : We understand that the current Copyright Tribunal came into operation in 2012 and 
that the Copyright (Amendment) Act 2020 empowered the Tribunal to hear royalty disputes between 
a CMO licensing body and any of its members. Could Malaysia provide its opin ion as to why there 
have been no cases heard by the Copyright Tribunal?  
 
Answer : All cases referred to the Malaysian Copyright Tribunal have been settled amicably between 
parties involved.  
 WT/TPR/M/436/Add.1  
 
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Page 72, paragraph 3.117 : The Secretariat Report states that the R oyal Malaysian Customs 
Department (RMCD) "…  does not maintain data on seizures of counterfeit goods at the border. The 
Ministry has not received or taken cases involving counterfeit goods at the border in recent years."  
 
Question 18 : As RMCD does not maint ain data on seizures of counterfeit goods at the border in 
Malaysia, are there alternative means or mechanisms in place to track and document counterfeit 
seizures at the border?  
 
Answer : Yes. All seizures made by the RMCD will be handed over to the Ministr y of Domestic Trade 
and Cost of Living. Therefore, the data is captured by the Ministry.  
 
Question 19 : Have there been any changes in priorities or reasons for the absence of reported 
cases received or taken by the Ministry of Domestic Trade and Consumer A ffairs involving counterfeit 
goods at the border in recent years?  
 
Answer : The Ministry of Domestic Trade and Cost of Living has not received or taken any cases 
involving counterfeit goods at the border in recent years due to border closure during COVID -19 
pandemic. Notwithstanding this, the Ministry has established a network of cooperation with IP 
owners and among enforcement agencies such as the Royal Malaysia Police (RMP), Malaysian 
Communication and Multimedia Commission (MCMC), local councils and Royal  Malaysia Custom 
Department (RMCD) to fight against counterfeiting and piracy. The Ministry has always been 
cooperating with RMCD and is ready to take on any cases from RMCD relating to IPR infringement 
at the border for further investigations.  
 
Page 76, T able 4.1: Malaysia's most recent domestic support notification to the WTO is 
G/AG/N/MYS/53 for calendar year 2015. The Secretariat Report lists the following Malaysian 
government rice support programs: rice price subsidy, rice fertilizer subsidy, rice seed  subsidies, 
bukit/huma rice fertilizer subsidy, and rice production incentives. Several of these programs do not 
appear in G/AG/N/MYS/53 and have never been notified.  
 
Question 20 : Please explain how these programs are classified according to the domestic  support 
criteria in the Agreement on Agriculture.  
 
Answer : The domestic support measure is used as an income support measure for resource -poor 
farmers, rural development, and food security. The measure does not have trade distorting effects 
or effects on  production and is consistent with Annex  2 of the AoA. The support is eligible to all 
registered paddy farmers, with a minimum age of 18 and owners of the land.  
 
Question 21 : When Malaysia will submit its outstanding domestic support notifications?  
 
Answer : Malaysia is in the process updating other outstanding notifications.  
 
Page 76, Paragraph 4.9:  The Secretariat report notes that Malaysia has reported all of its 
agricultural support as Green Box, including a price subsidy for paddy rice described as deco upled 
income support. According to the Malaysian Parliament website ( here), the subsidy is given per 
metric ton, suggesting that it is not decoupled income support.  
 
Question 22 : Please explain how the price subsidy for paddy rice is structured.  
 
Answer : The PPS is used as an income support measure for resource -poor farmers, rural 
development, and food security. The measure does not have trade distorting effects or effects on 
production and is consistent with Annex  2 of the AoA.  
 
The PPS is to ensure farmers receive a reasonable income. The eligible prod ucers are determined by 
clearly defined criteria based on the status of the recipient as low income and resource -poor paddy 
farmers and registered with BERNAS.  
 
Page 80, paragraph 4.18 : The Secretariat report indicates that 97.3% of the total planted area of 
palm oil plantations in Malaysia were certified with the Malaysian Sustainable Palm Oil (MSPO) 
Certification Scheme, and that the MSPO standards have been revised to be more stringent.  
 WT/TPR/M/436/Add.1  
 
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Question 23:  What factors did Malaysia take into account when deve loping the framework for the 
environmental sustainability component of the MSPO Certification Scheme?  
 
Answer : The following factors were considered for the development of the framework for the 
environmental sustainability components of the MSPO Certifica tion Scheme:  
 
a) National Policy on Biological Diversity 2016 -2025;  
b) National commitment for the reduction of 45% Green House Gas emission by 2030;  
c) Preservation of the High Conservation Value Areas;  
d) Waste reduction; and  
e) Pollution prevention.  
 
Page 84, Paragraph 4.34 : The Secretariat report mentions that Padiberas Nasional Berhad 
(BERNAS) is required to raise the National Rice Stockpile volume by up to 290,000 tons by the end 
of 2023.  
 
Question 24 : Please clarify what is to be raised by the Nat ional Rice Stockpile (i.e., Milled Production 
or Reserves)? Why should the volume be raised by up to 290,000 tons?  
 
Answer : The National Rice Stockpile target for 2022 was 250,000 metric tons and the volume shall 
be raised to 290,000 metric tons by the end  of 2023. The increase of the stockpile is in line with 
Malaysia's food security objectives.  
 
Page 102, paragraph 4.97:  The paragraph describes the "best interest of Malaysia" test in 
evaluating applications for banking licenses.  
 
Question 25 : What percent age of applications for a banking license by foreign -based institutions in 
the past four years have been rejected on the basis of the "best interest" test?  
 
Answer : Information on unsuccessful applications is not published. Any approval or rejection of 
licensing applications takes into account prudential and the best interest of Malaysia considerations, 
and such other matters that Bank Negara Malaysia considers relevant.These considerations are 
applicable to both domestic and foreign applicants.  
 
Question 26: What percentage of applications by Malaysian entities have been rejected over the 
same time period on the basis of the "best interest" test?  
 
Answer : Information on unsuccessful applications is not published. Any approval or rejection of 
licensing applications takes into account prudential and the best interest of Malaysia considerations, 
and such other matters that Bank Negara Malaysia considers rele vant.These considerations are 
applicable to both domestic and foreign applicants.  
 
Question 27 : Are companies that are denied a license on the basis on the best -interest test 
informed as to the reasons it did not pass the test?  
 
Answer : Bank Negara Malaysi a (BNM) adopts an iterative process in which it communicates regularly 
with the applicant on the details of information submitted by the applicant as part of its assessment 
of licensing applications. Significant gaps in the application against the licensin g criteria are surfaced 
as part of this process. Pursuant to Section  10 of the FSA and IFSA, in assessing an application to 
carry on any licensed business under the respective Act, BNM shall consider all the factors set out 
in Schedule 5 of the FSA or IFSA , and such other matters that BNM considers relevant. A 
recommendation to the Minister of Finance to grant a licence, with or without conditions, can only 
be made where BNM is satisfied that an applicant may be granted a licence. If BNM does not make 
such recommendation to the Minister, BNM will notify the applicant in writing.  
 
Question 28 : Does BNM make public the reasons for denying an application on the basis of a the 
best-interest test?  
 
Answer : Information on unsuccessful applications is not publishe d. Any approval or rejection of 
licensing applications takes into account prudential and the best interest of Malaysia considerations, 
and such other matters that Bank Negara Malaysia considers relevant. These considerations are 
applicable to both domestic  and foreign applicants.  WT/TPR/M/436/Add.1  
 
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Page 106, paragraph 4.106:  The paragraph describes the "best interest of Malaysia" test in 
evaluating applications for insurance licenses.  
 
Question 29 : What percentage of applications for a license by foreign -based institutions in  the past 
four years have been rejected on the basis of the "best interest" test?  
 
Answer : Information on unsuccessful applications is not published. Any approval or rejection of 
licensing applications takes into account prudential and the best interest of  Malaysia considerations, 
and such other matters that Bank Negara Malaysia considers relevant. These considerations are 
applicable to both domestic and foreign applicants.  
 
Question 30 : What percentage of applications by Malaysian entities have been reject ed over the 
same time period on the basis of the "best interest" test?  
 
Answer : Information on unsuccessful applications is not published. Any approval or rejection of 
licensing applications takes into account prudential and the best interest of Malaysia considerations, 
and such other matters that Bank Negara Malaysia considers relevant. These considerations are 
applicable to both domestic and foreign applicants.  
 
Question 31 : Are companies that are denied a license on the basis on the best -interest test 
informed as to the reasons it did not pass the test?  
 
Answer : Bank Negara Malaysia (BNM) adopts an iterative process in which it communicates regularly 
with the applicant on the details of information submitted by the applicant as part of its assessment 
of licensing applications. Significant gaps in the application against the licensing criteria are surfaced 
as part of this process. Pursuant to Section  10 of the FSA and IFSA, in assessing an application to 
carry on any licensed business under the respective Act, BNM shall consider all the factors set out 
in Schedule 5 of the FSA or IFSA, and such other matters that BNM considers relevant. A 
recommendation to the Minister of Finance to grant a licence, with or without conditions, can only 
be made where BNM is satisfied that an applicant may be granted a licence. If BNM does not make 
such recommendation to the Minister, BNM will notify the applicant in writing.  
 
Question 32 : Do the regulators make public the reasons for denying an application on the basis of 
a the best -interest test?  
 
Answer : Information on unsuccessful applications is not published. Any approval or rejection of 
licensing applications takes into account prudential and the best interest of Malaysia considerations, 
and such other matters that Bank  Negara Malaysia considers relevant. These considerations are 
applicable to both domestic and foreign applicants.  
 
Part II. Questions based on the Government Report (WT/TPR/G/436)  
Page 9, Section  2.3.3, Paragraph 2.36:   
 
Question 33 : How does Malaysia plan to implement the Digital Economy Blueprint in connection 
with the Twelfth Malaysia Plan and related programs?  
 
Answer : The Malaysia Digital Economy Blueprint and the Twelfth Malaysia Plan, 2021 - 2025 (12MP) 
are aligned in driving  the goal towards becoming a high income and advanced nation. The Malaysia 
Digital Economy Blueprint is one of the key initiatives of the 12MP, with the goal of driving Malaysia's 
digital economy and promoting the adoption of digital technology across vari ous sectors of the 
economy. The implementation and coordination of this Blueprint is governed by a Council chaired 
by the Prime Minister, serves as the highest authority to monitor the progress of digital economy 
and 4IR technology in the country.  
 
Questio n 34: Will specific sectors be focal points of that effort?  
 
Answer : The main agency overseeing the overall implementation of the Malaysia Digital Economy 
Blueprint is MyDIGITAL Corporation under the Ministry of Economy. However, there are also specific 
secretaratiats for each of the six clusters overseeing the implementation of specific initiatives in the 
Blueprint. They are:  
1) Government - Malaysian Administration and Modernisation Planning Unit, Prime Minister's 
Department  WT/TPR/M/436/Add.1  
 
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2) Digital Talent - Ministry of Human Resource  
3) Digital Infrastructure and Data - Ministry of Communications and Digital  
4) Emerging Technology - Ministry of Science, Technology and Innovation  
5) Economy - Ministry of International Trade and Industry  
6) Society - Ministry of Women , Family and Community Development  
 
Question 35 : If so, will there be opportunities for stakeholder engagement and/or public 
consultation?  
 
Answer : Yes. Public and stakeholder engagement will always be a vital component of the Ministry of 
Economy's efforts  to implement the Malaysia Digital Economy Blueprint. To this end, the Ministry 
has organised several initiatives to gather views and suggestions from stakeholders. For instance, 
the MyDIGITAL Engagement Day provided an opportunity for stakeholders to shar e their 
perspectives on the implementation of the Blueprint. In addition, roundtables involving trade 
organisations and chambers of commerce were held to engage stakeholders in discussions related 
to policy formulation and economic development.  
 
The Minist ry of Economy on 10  February  2023 hosted the Strategic Dialogue Focusing on Economic 
Empowerment of the Industry to Drive the Era of the Fourth Industrial Revolution (4IR) and also 
engaged with various stakeholders to gather views, comments, and feedback o n various aspects 
related to policy formulation, strategy implementation, and economic development initiatives. The 
goal of these initiatives is to develop a range of programmes and projects to empower local industries 
to drive economic growth under 4IR.  
 
Moving forward, the Ministry of Economy will continue to organise such dialogues to engage 
stakeholders and ensure that their views are incorporated into policy decisions and economic 
development initiatives.  
 
Page 9, Section  2.3.3., Paragraph 2.39:  
 
Question 36 : Does the Malaysia Digital program plan to have sectoral focus areas?  
 
Answer : The Malaysia Digital initiative introduced nine (9) promoted sectors as focus areas to 
accelerate Malaysia's Digital Economy ecosystem forward:  
 
1. Digital Trade  
2. Digital Services  
3. Digital Cities  
4. Digital Finance  
5. Islamic Digital Economy  
6. Digital Tourism  
7. Digital Agriculture  
8. Digital Health  
9. Digital Content  
 
Please refer to the link below for more information on Malaysia Digital:  
https://mdec.my/malaysiadigital   
 
Question 37 : Will there be opportunities for stakeholder engagement and/or public consultation?   
 
Answer : Malaysia Digital Economy Corporation (MDEC), Malaysia's leading digital economy a gency, 
regularly conducts engagements and consultations with relevant stakeholders with the key 
objectives of:  
 
a) Attracting high value digital investments;  
b) Growing local technology companies; and  
c) Driving digital adoption.  
 
Page 17, Section  3.2.4: Paragraph 3.16 :  
 
Question 38 : How do the Export Promotion Committee and 10 Sectoral Task Force work together?  
 WT/TPR/M/436/Add.1  
 
- 135 - 
 
Answer : The Sectoral Task Force (STFs) led by MATRADE acts as the working group for individual 
focus sectors with regards to trade promo tion programmes as well as to communicate the issues 
and proposals for promotion of the sectors.  
 
Individual STF bring together focal points from Ministries and Agencies to discuss issues pertaining 
to collaborations in similar market or trade events. STF s conduct regular meetings to gather 
information, update and propose new programmes. The STFs encourage collaborations among 
Ministries and Agencies to undertake export promotion programmes for greater synergy and 
stronger nation branding.  
 
Through the JK -X, STFs are able to align and consolidate initiatives within the scope of the National 
Trade Blueprint (NTBp) to avoid redundancy and to provide a micro perspective of initiatives by 
Ministries and Agencies as well as their progress.  
 
STFs s erve as an important platform for the development of exports, by ensuring the implementation 
of JK -X's approved programmes are according to the endorsed budget and that their KPIs are 
achieved.  
 
Question 39 : How do these groups make funding/prioritization decisions in relation to sectoral 
export support?  
 
Answer : The STFs hold regular meetings and consultations to discuss their action plans with regards 
to export promotions. This includes collaboration programmes that provide cost savings and avoid 
wastage  of resources. The STFs will also deliberate export promotion programme proposals as well 
as funding of the programmes according to priorities. All recommendations will be tabled at the JK -X 
Working Committee (JWC) meeting for endorsement and subsequently at the JK -X meeting chaired 
by Chief Secretary to the Government of Malaysia for approval.  
 
Ministries and Agencies will propose programmes and budget funding according to their mandates, 
for instance, the development of MSMEs by the Ministry of Entreprene urs and Development of 
Cooperatives, food and Halal products by Ministry of Agriculture and Food Security, education 
services by Ministry of Higher Education, and creative content by Ministry of Communications and 
Digital. The Ministry of International Tra de and Industry (MITI) promotes multiple sectors including 
high value sectors (automotive, aerospace, transport & logistics, E&E) in line with the Government 
aspirations outlined in the 12th Malaysia Plan.  
 
Question 40 : Where does the funding for these gro ups come from?  
 
Answer : Funding for JK -X programs are mainly from the Government. Hoeever, some 
programmes  by the Ministry of Plantation and Commodity are funded by the cess fund. There are 
also 'zero -cost' programmes where Ministries and Agencies collabor ate with private sector, state 
governments, trade associations and chambers to promote Malaysian  products and services.  
 
Page 38, Section  7, Paragraph 7.4:   
 
Question 41 : Which ministries are in charge of the supply chain mapping/resilience program?  
 
Answer : 'The Ministry of International Trade and Industry (MITI), Malaysia is currently developing 
the supply chain mapping focusing on manufacturing sector for six essentia l sectors identified by 
MITI.  
 
Question 42 : Will there be specific leads within the ministries for the "six essential sub -sectors?"  
 
Answer : This initiative is a cross -cutting exercise driven by MITI, involving focal points from relevant 
ministries, agenci es, and stakeholders.  
 
Page 32 -33, paragraph 5.21 : The Government Report states that the NAP 2.0 framework includes 
18 strategies and 58 action plans across four subsectors (paddy/rice, fruits/vegetables, livestock, 
fisheries/aquaculture).  
 
Question 43 : Please explain what requirements the NAP 2.0 framework includes for monitoring and 
evaluation of the results of these agriculture industry strategies and action plans.  WT/TPR/M/436/Add.1  
 
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Answer : The progress of NAP2.0 is monitored and reported quarterly to specific committees  under 
Ministry of Agriculture and Food Security (MAFS).  
 
6.3 Protection of Intellectual Property Rights  
Page 34, para.  6.10: Malaysia's report states that the 2022 Copyright Act amendments "improves 
provision relating to CMO to ensure transparency, accountability and good governance."  
We note that these legislative changes included a provision that grants authority to the Con troller 
of Copyright to "issue guidelines on any matter relating to the declaration and operation of a 
collective management organization."  
 
Question 44 : Has the Controller of Copyright issued  such guidelines?  
 
Answer : Currently, there are no guidelines on the declaration and operation of a collective 
managament organisation (CMO) that have been issued by the Controller.  
 
Question 45 : How would such guidelines differ from the Copyright (Collective Management 
Organizati on) Regulations 2022?  
 
Answer : Currently, there are no guidelines on the declaration and operation of a collective 
managament organisation (CMO) that have been issued by the Controller.  
 
Page 34, para.  6.11: The Government Report notes that it "deposited t he instrument of accession 
of … the Marrakesh Treaty on 31 March 2022" and this Treaty entered into force in Malaysia on 
30 June 2022.  
We understand that the 2022 Copyright Act amendments included provisions intended to facilitate 
Malaysia's accession to t he Marrakesh Treaty and that Malaysia later issued copyright orders and 
regulations that implemented the Treaty.  
 
Question 46 : Could Malaysia explain the substance of these implementing orders and regulations, 
and in particular describe how entities autho rized to import and export books in accessible format 
are operating?  
 
Answer : The Authorised Entities (AE) shall be gazetted under the Copyright Order (Authorized Entity) 
2022 in order to operate as AE for the proper and legal functioning of the representi ng beneficiary 
persons. Once they have been gazetted, they may function as legal AEs by following the guidelines 
issued by the Minister, which can be referred at: https://www.myipo.gov.my/wp -
content/uploads/2022/06/Copyright -Authorized -Entity -Guidelines -2022-1.pdf. 
 
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