WT/TPR/M/366  
18 April 2018  
(18-2395) Page: 1/58 
Trade Policy Review Body  
14 and 16 February 2018   
 
  
TRADE POLICY REVIEW  
MALAYSIA  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Juan Carlos González (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F MALAYSIA  ................................ ... 4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  9 
4  STATEMENTS BY MEMBER S ................................ ................................ ........................  11 
5  REPLIES BY THE REPRES ENTATIVE OF MALAYSIA  AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  49 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  57 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Malaysia  are reproduced in document WT/TPR/M/ 366/Add.1  and will be available 
online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/366  • Malaysia  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The seventh Trade Policy Review of Malaysia was held on 14 and 16 February 2018. The 
Chairperson, H.E. Mr. Juan Carlos González (Colombia) welcomed the delegation of Malaysia 
headed by H.E. Mr. J. Jayasiri, Secretary General of the Ministry of International Trade and 
Industry (MITI) of Malaysia; the rest of the delegation; and the discussant, H.E. Ambassador 
Claudio de la Puente  (Peru) . 
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Malaysia  was co ntained in document WT/TPR/G/366  
and that of the  WTO Secretariat in WT/TPR/S/366 . 
1.3.  Question s by the following delegations had been submitted in writing before the deadline: 
Chile; Mexico; Brunei Darussalam; European Union; Ecuador; Ukraine; United States; 
New Zealand; Chinese Taipei; Singapore; Australia; Oman; Hong Kong, China; Switzerland; 
Norway; and Costa Rica . The following delegations submitted written questions after the deadline: 
Colombia; Argentina; Brazil; Indonesia; Thailand; India; Japan; Kingdom of Saudi Arabia; Canada; 
Republic of Korea; and China . 
1.4.  During the previous TPR meeting in  2014, Members had praised Malaysia for its resilience in 
weathering the global financial turbulence. Some Members had noted the rebalancing of the 
economy with domestic demand offsetting weak external demand. Several Members had 
welcomed Malaysia 's fiscal consolidation and tax reform plans, as well as its efforts to improve the 
business environment and remove or reduce foreign investment restrictions. Malaysia had been  
encouraged to continue to undertake further trade policy and structural reforms to improve its 
overall efficiency, productivity, and competitiveness, and to maintain an open WTO -consistent 
trade and investment regime.  
1.5.  Coming up to the current review period, as noted in the Secret ariat's report, trade and 
trade -related reform initiati ves had  been undertaken in several areas, particularly the replacement 
of the sales tax by a goods and services tax of 6% from 2015, and the modernization of Malaysia 's 
business licensing system including making the procedures accessible online. Malaysia had also 
issued or amended a number of laws, in particular the Companies Act which introduced provisions 
to simplify the procedure to start a company and to reform corporate insolvency mechanisms. As 
indicated by the advanced written questions, Members were looking forward to learning more 
about Malaysia 's reform agenda in these areas.  
1.6.  With regards to Malaysia 's participation in the multilateral trading system, Malaysia had been 
the fifth Member to ratify the Trade Facilitation Agreement in May 2015. Malaysi a notified that it 
had designated all provisions under Category A with some exceptions. Malaysia had also ratified 
the Protocol Amending the TRIPs Agreement in 2015.  
1.7.  At the time of the previous review, Members had commended Malaysia for actively pursuing 
increased trade openness, through unilateral reforms, regional and bilateral negotiations, and 
multilateral rule -making, to achieve its development objectives. However, they had also expressed 
some concerns about a number of trade policy measures such as t he complexity of Malaysia 's tariff 
structure, tariff quotas and the persistence of non -ad valorem tariffs, especially in agriculture, the 
prevalence of export taxes, and the relatively large number of unbound tariff lines. Members had 
also raised concerns about the use of non -tariff measures such as the non -automatic import 
licences, and posed questions relating to customs valuation, export and import prohibition and 
restrictions, export subsidies, excise duties, taxes and incentives, local content conditio ns, and 
certain SPS certification. Other issues of interest to Members at the time of the previous review in 
2014 had included: IPR enforcement; GPA participation; subsidies; government linked companies; 
and sectoral issues relating to services, agricultur e, mining, and car manufacturing. The advance 
written questions for this TPR cover ed many of the same issues.  
1.8.  The Chairperson drew Members ' attention to some other issues they had raised in their 
advance written questions for this TPR. These include d: steps taken to improve the investment 
framework; the increase in the simple average applied MFN tariff rate and the increase in the 
number of different tariff rates; export performance related tax measures and local content 
requirements for firms in free zone s; plans to reform copyright protection; domestic support and WT/TPR/M/366  • Malaysia  
 
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  border measures on agriculture, the sustainable palm oil scheme; fossil fuel subsidies, renewable 
energy; further liberalization of services sectors; and the e -commerce strategic roadmap.  
1.9.  This m eeting would  be a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to th e multilateral trading system. The Chairperson 
looked forward to a fruitful exchange.  
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F MALAYSIA ( H.E. MR. J. JAYASIRI ) 
Introduction  
2.1.  Let me begin by thanking you, Mr. Chairman, for your words of welcome and elaboration as 
well as an overview of issues raised on Malaysia 's trade policies.  
2.2.  I also wish to express Malaysia 's appreciation to Ambassador Claudio de la Puente for kindly 
agreeing to be the discussant. I look forward to your insightful thoughts and assessment of 
Malaysia 's trade policies and investment regime since the last TPR in 2014.  
2.3.  Our th anks also go to the Secretariat for their hard work in producing an in -depth and very 
exhaustive report on Malaysia.  
2.4.  I am heartened to note the number of delegates present here today as well as the wide range 
of questions submitted to us. To date, we have received a total of 440 questions from 27 WTO 
Members , of which 16 Members submitted by the deadline of 17 January 2018. I am also glad to 
inform you that Malaysia has provided replies to all the questions, including those received after 
the deadline from 11 other Members, with the exception of questions we just received yesterday 
from one Member.  
2.5.  These questions cover ed a number of areas mainly on intellectual property r ights and 
competition policy, foreign investment regime, import licencing procedures, t ariff structure, 
sanitary and phytosanitary measures, services sector in partic ular for finance and energy 
sub-sectors, and e -commerce.  
2.6.  Before addressing some of the key issues raised by Members, let me share with you an 
overview of Malaysia 's economic dev elopments since our last TPR exercise .  
Malaysia and multilateral trading s ystem  
2.7.  Being a major developing trading nation with a small domestic market, the Malaysian 
economy is very much dependent on international trade. As such, Malaysia attaches great 
importance to the multilateral trading system. This has been exemplified by being th e fifth Member 
to ratify the Trade Facilitation Agreement (TFA) and acceptance of the Protocol Amending the 
TRIPs Agreement (Para 6 System). We are also Members of ITA2 which have undertaken the most 
significant tariff liberalization after the formation of  the WTO. It is our view that the multilateral 
trading system has provided stability to international trade and ensuring that world trade is 
conducted in an open, fair and transparent manner.  
Economic and trade p erformance  
2.8.  The Malaysian economy recorded a  commendable growth despite various shocks that hit the 
economy during the period under review. From 2014 to 2016, Malaysia 's GDP grew by 5.1%. As 
announced today, Malaysia 's GDP growth for 2017 was a commendable 5.9%. Overall , growth was 
driven mainly by stronger domestic demand, p articularly private expenditure and g rowth was 
further supported by continued expansion in the global economy , as well as  Malaysia 's major 
trading partners. Meanwhile, for 2018, the Malaysian economy is expected to remain on a st rong 
growth trajectory and is projected to expand between 5.0 and 5.5%.  
2.9.  Unemployment and inflation have remained low. During the period under review, 
unemployment rate was below 3.5%  while inflation stood at 2.5% during the same period.  
2.10.   On the external f ront, Malaysia 's trade registered stellar performance in 2017, growing at 
the highest rate in 13 years. Total trade surged by 19.4% to reach RM1.774 trillion compared to 
RM1.486 trillion in 2016. Exports grew significantly by 18.9%, the strongest growth si nce 2004 to 
reach a new high of RM935.39 billion. Imports also recorded the highest value of RM838.14 billion, 
expanding by 19.9%. This remarkable performance was contributed by higher trade with 
Malaysia 's main trading partners , namely  ASEAN; China; the E U; the United States; Japan; 
Chinese Taipei; India; Hong Kong; and Australia.  WT/TPR/M/366  • Malaysia  
 
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  2.11.   During the period under review, Malaysia has been able to attract a steady inflow of foreign 
direct investments (FDI) into the country. After record -high inflows in 2016 (RM47.2 billion), 
Malaysia continued to attract foreign investments amounting to RM39. 2 billion in 2017.  
2.12.   Direct investments abroad (DIA) by Malaysian corporations have also expanded rapidly. This 
reflects the growing maturity and capability of domestic firms to compete on a global and regional 
scale. Average DIA between 2010 and 2017 amoun ted to RM42.7 billion per annum, exceeding the 
average FDI inflows of RM36.8 billion during the same period. In terms of stock, as at end -2017, 
the direct investment assets owned by Malaysian companies abroad amounted to RM522.5 billion, 
compared to outsta nding foreign direct investments in Malaysia of RM565.0 billion. This rapid 
expansion of direct investment abroad has been facilitated by key regulatory and policy 
developments in the country. The policy challenge now is to ensure that Malaysia stands to reap 
the maximum benefits from these investments in creating quality jobs, developing economic 
interlinkages, improving liquidity and raising our value added.  
2.13.   To set the stage for the next horizon of growth, Malaysia has launched the Eleventh 
Malaysia Plan  2016-2020 ( 11MP) in 2015. The 11MP outlines  six strategic thrusts, not only 
focusing on economic development but also on the need for greater inclusiveness. The key thrusts 
of inclusivity and sustainability in the 11MP are also reflected in the United Nat ions' Sustainable 
Development Goals (SDGs) launched in 2016.  
2.14.   In accelerating the implementation of Malaysia 's vision towards becoming a high income 
nation by shifting policy focus towards building an economy that is driven by high -value and 
knowledge -intensive activities. Malaysia also implemented  the National Blue Ocean Strategy 
(NBOS) which has key features of high impact, low cost and rapid execution. In addition, the Good 
Regulatory Practices (GRP) introduced in 2013 is intensified with a view to reduce  unnecessary 
regulatory burden for businesses.  
Fiscal p olicy  
2.15.   Malaysia has demonstrated its commitment towards pursuing fiscal policy reforms and is on 
track to achieve a near -balanced budget by 2020, driven by its comprehensive mid -term fiscal 
framework ( MTFF). In 2017, the estimated fiscal deficit was 3.0% of GDP, and we are targeting it 
to be 2.8% in 2018. This underscores Malaysia 's success in managing its finances through efficient 
governance and prudent fiscal discipline. As a result, some internation al credit rating agencies 
have maintained their ratings on Malaysia as 'A-' with a stable prospect.  
Structural r eforms  
2.16.   During the period under review, the Malaysian Government has also introduced bold and 
practical measures to increase efficiency of the economy. One of the measures is the 
implementation of the Goods and Services Tax (GST) effective 1 April 2015 to replace the previous 
Sales and Service Tax (SST). The GST increased the effectiveness of Malaysia 's taxation system. 
Malaysia was able to increa se its tax revenue from RM18 billion in 2014 under the SST to 
RM41.2  billion in 2016 under the GST.  
2.17.   In line with reducing subsidies, Malaysia continued to improve its subsidy rationalization 
programme to provide assistance mainly to the low income and vul nerable groups.  
2.18.   Malaysia has  also set a target of 3.7% for labour productivity growth under the 11th 
Malaysia Plan. To achieve this, the Malaysia Productivity Bluepr int (MPB) was launched on 
8 May 2017. The private sector, in partnership with the Governmen t will be the key driver for this 
productivity agenda.  
2.19.   On education, the Government introduced the Malaysia Education Blueprint 2013 -2025 to 
improve the quality of school education through curriculum transformation, improving the quality 
of teachers and in creasing English proficiency. In addition, the Malaysia Education Blueprint 
(Higher Education) 2015 -2025 is focusing on enhancing the technical and vocational training 
programmes and improving the rankings of the public and private higher institutions.  
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  Services  
2.20.   During  the period under review, the services sector continued to account for the largest 
share of Malaysia 's GDP . In 2017, the sector accounted for 54.4% to the GDP and remains on 
track to meet the targeted goal of 56.5% by 2020 set under the 11th Malaysia Plan.   
2.21.   With the aspiration of becoming a high -income nation and transforming Malaysia into a 
knowledge -intensive and services -driven economy,  Malaysia launched the Services Sector 
Blueprint (SSB) 2015 -2020. The SSB is a set of horizontal strategi es and action plans covering 
internationalisation  of the services sector , effective investment incentives, human capital 
development and sectoral governance reform. It aims to address obstacles which may potentially 
hinder further growth of the services se ctor and provides  action items for implementation.  
Financial s ervices  sector  
2.22.   The financial sector continued to contribute positively to the GDP. The real value added of 
financial services to GDP stood at over RM75.3 billion in 2016, accounting for 6.8% of real GDP. 
There has been steady progress to increase the resilience, efficiency and competitiveness of 
Malaysia 's financial sector, as envisioned in the Financial Sector Blueprint (2011). Progress has 
been most notable in the areas of financial inclusion, regulation and supervision, regional financial 
integration and migration to electronic payments.  
2.23.   In embracing  new financial technology, Malaysia was one of the pioneers in implementing a 
Regulatory Sandbox Framework to enable the experimentation of Fintech  solutions in a live 
environment. Additionally, to promote Malaysia 's interest in onshore financial markets, the 
Financial Market Committee (FMC) was formed in 2016 and is responsible for formulating 
recommendations to foster the development of Malaysia 's financial market.  
Capital market s ector  
2.24.   Malaysia has undertaken a process of phased and pragmatic liberalization in the capital 
market to de rive maximum value from globaliz ation. With  the implementation of liberaliz ation 
measures, all existing foreign equ ity restrictions in the capital market have been removed.  
2.25.   Other measures undertaken during the period under review for the capital market sector 
include:  
i. the new Malaysian Code on Corporate Governance (MCCG) in 2017 to promote good 
corporate governance to ensure sustainability and resilience of the capital market;  
ii. introduction of equity -based crowdfunding (ECF) framework, Digital Investment 
Management (DIM) framework and Alliance of FinTech Community (aFINity) to 
catalyse greater interest and visibility tow ards nurturing the development of digital 
finance; and  
iii. launching of the Islamic Fund and Wealth Management Blueprint to further drive the 
development and growth of Malaysia 's Islamic Capital Market.  
Manufacturing  
2.26.   The manufacturing sector continued to be the mainstay of Malaysia 's economy during  the 
period under review, accounting for 82.2% of the country 's total export and 23% of the country 's 
GDP in 2016.  
2.27.   Under the 11th Malaysia Plan, emphasis has been given to energise the manufacturing sector 
in order  to sustain Malaysia 's resilience and long -term competitive ness, as well as to contribute to 
leading -edge, high -paying job opportunities for Malaysians.  The transition of the manufacturing 
sector towards creating more high -value, diverse and complex produc ts will be driven by electrical 
and electronics, machinery and equipment, chemicals, medical devices and aerospace sub -sectors.  WT/TPR/M/366  • Malaysia  
 
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  2.28.   The aerospace industry has been identified as a strategic industry that would further 
enhance Malaysia 's industrialisation and technological development. The Malaysian Aerospace 
Industry Blueprint 2030 was launched in 2015 to position Malaysia as the leading aerospace nation 
in Southeast Asia and as an integral part of the global market by 2030.  
Agriculture s ector  
2.29.   In the wake of i ncreased demand for sustainable palm oil, the Malaysian Sustainable Palm 
Oil (MSPO) Certification Scheme, which started in 2016 , will b e made mandatory by 
31 December  2019, covering  all smallholders, plantations and processing facilities.  
Intellectual pro perty r ights  
2.30.   Malaysia has focused on enhancing intellectual property rights and enforcement in tandem 
with international norms. In 2016, Malaysia collaborated with WIPO on the Technology and 
Innovation Support Center (TISC) to facilitate access to informat ion and improve understanding on 
IP among local communities and researchers. This collaborative project with WIPO and selected 
higher learning and research institutions has enabled a positive intellectual property environment 
in Malaysia.  
2.31.   The Government of  Malaysia strives to enhance access to affordable medicine to all layers of 
community in Malaysia. In this context, Malaysia is in the midst of incorporating the Doha 
Declaration on the TRIPs Agreement and Public Health into our domestic law. This will serve to 
enhance the access to medicine for the public.  
Trade f acilitation  
2.32.   Malaysia is committed to create more conducive and facilitative environment for trade and 
investment. In 2015, the Government launched the Logistics and Tr ade Facilitation Master Plan to 
provide the strategic framework and roadmap in improving overall productivity to better connect 
industries with their markets both locally and internationally. The Master Plan contains 21 action 
plans to overcome barriers in  the industry, stimulating domestic economic development and 
strengthen Malaysia 's position in the Asian region.  
2.33.   Malaysia also continues implementing initiatives that have been effective in facilitating 
businesses. These include:  
 the use of national and re gional single windows in facilitating customs procedures to ensure 
faster clearance and movement of goods;  
 an online national trade repository which provides trade related information on authorized 
economic operators, administrative rulings, best practice s in trade facilitation, national 
Customs laws and rules, non -tariff measures, preferential tariff, procedures and 
documentary requirements, rules of origin, and tariff nomenclature; and  
 a virtual One Stop Service Centre that provides information and facil ities for companies to 
apply licenses or permits to start operating business in Malaysia.  
2.34.   The new Companies Act 2016 has been enf orced since 31 January 2017. This a ct 
modernizes the corporate legal framework in Malaysia to facilitate and reduce the time an d cost 
taken in starting a business in Malaysia.  
2.35.   In addition, Malaysia also abolished import license requirements for various products such 
as motorhomes, motorcycle helmets and flour effective 1 September 2016 , and 181 tariff lines for 
iron and steel prod ucts in August 2017.  
Electronic commerce and d igital economy  
2.36.   I would like to reaffirm Malaysia 's continuing support  in ensuring the relevance of WTO by 
lending support to new areas of interest to WTO Members such as e -commerce and micro, small WT/TPR/M/366  • Malaysia  
 
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  and medium enterprises (MSMEs). Malaysia is part of the Like -minded Group of e -Commerce as 
well as Friends of MSMEs discussion groups at the WTO level.  
2.37.   At the national level, the National e -Commerce Strategic Roadmap (NeSR) was launched in 
October 2016 with the aim o f doubling e -commerce growth from 10.8% to 20.8% a nd to boost 
e-commerce 's contribution to GDP by 2020. The world 's first Digital Free Trade Zone (DFTZ) was 
launched in November 2017 to provide a platform for SMEs to sell their products and services to 
global markets. DFTZ includes physical and virtual zones that support SMEs to trade goods, 
provide services, innovate and co -create solutions.  
Way f orward  
2.38.   To position Malaysia as a top 20 nation in economic development, social advancement and 
innovation in t he next thirty years, the Government introduced the National Transformation 2050 
(2021 -2050) roadmap or TN50 in January 2017. TN50 adopts an inclusive and consultative 
approach which focuses on collective collaboration from all segme nts of society through a 
bottom -up syndication process to have clear, measurable goals and targets. The TN50 policy 
document is expected to be launched in September 2018.  
Conclusion  
2.39.   Despite Malaysia 's participation in numerous bilateral and regional trading arrangements, 
Malaysia still believes in the primacy of the rules -based multilateral trading system. Our trade 
policy is reflective of the principles and rules enshrined in the WTO Agreements.  We also ensure 
that all our regional trade arrangements respect the principle s and rules of the WTO.  
2.40.   Before I end my statement, I wish to reiterate Malaysia 's commitment to working closely 
with Members of this Organization in upholding the multilateral trading system , especially  in view 
of the rising anti -globalisation and protecti onist sentiments.  
2.41.   As we have already pro vided most of responses to the M embers ' advance written questions, 
we look forward to hearing constructive feedback from Members in line with the spirit of the TPRM.  
2.42.   Thank you.  
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Thank you  Mr Chairman, and greetings to all those present.  
3.2.  Let me begin by welcoming the delegation of Malaysia, headed by His Excellency Mr  Jayasiri, 
Secretary General of the Ministry of International Trade and Industry. I would also like to thank 
him for his open ing statement, which describes the significant progress made by Malaysia's 
economy, its continuous diversification, and the economic and trade policy measures that the 
country has adopted. Similarly, we are grateful to the Chairman of the Trade Policy Revi ew Body 
for his opening words, and to the Malaysian team and the Secretariat team for their reports for 
this Review, which were of great help to me in preparing this statement.  
3.3.  Before commenting on the content of these reports, I would like to say a few wo rds regarding 
the recent history of the Malaysian economy.  
3.4.  Ever since the World Bank began to record countries' annual growth in 1961, Malaysia has 
maintained high growth rates which only faltered occasionally as the result of economic crises 
affecting the  region or the global economy; and as Mr  Jayasiri pointed out to us today, the 
Malaysian economy grew by an impressive 5.9% in 2017. Since 1961, Malaysia's population has 
quadrupled to reach approximately 32  million in recent years, while during the same p eriod, its 
production has grown 25 -fold. 
3.5.  According to Zainal Yusof and Deepak Bhattasali1, one of the foundations of Malaysia's 
favourable economic development has been the country's ability to rely on income from its natural 
resources to engineer diversif ication of its production from a very early stage. Another reason for 
this success has undoubtedly been the government's commitment to eliminate structural poverty. 
According to the World Bank, hardcore poverty fell from 3% of the population in 1985 to 0.3 % by 
the end of 2010. Meanwhile, efforts to boost exports, which included laws in favour of the 
conclusion of regional trade agreements and the promotion of foreign direct investment, date back 
to the 60s and the early 70s.  
3.6.  These authors point to the impor tant role of these economic and trade policies in achieving 
the considerable progress that Malaysia has made since the 1960s. It is therefore with particular 
satisfaction that I am able to speak here of a country which has unquestionably been successful in  
achieving significant economic results and which stands as an interesting case study, particularly 
for developing country Members currently going through a similar process.  
3.7.  So much for Malaysia's recent economic history. Let me now turn to the period unde r review, 
namely 2014 to 2017.  
3.8.  The report prepared by Malaysia for this Review highlights the role of government planning in 
the country's economic development efforts, in which the emphasis was placed on inclusiveness, 
increased productivity and the promo tion of investment in high value added business. In line with 
the planned economic objectives, growth has continued to be driven by a variety of sectors. What 
stands out is the growing importance of services in the local economy, as well as the development  
of chemical and electronic hubs and the prominent role of the industrial manufacturing sector. 
Mr Jayasiri provided us with some impressive figures on the industrial manufacturing sector's 
share in the country's total exports. A clear sign of the success of Malaysia's economic 
diversification policies is the fact that growth was maintained in spite of the sharp fall in oil prices. 
The private sector responded positively to the overall economic situation, and there was a steady 
and significant increase in p rivate investment during the review period. Mr  Jayasiri also pointed to 
Malaysia's considerable and rapidly growing investment abroad.  
3.9.  Also worth noting is the importance Malaysia has given to regional trade agreements during 
the review period and in parti cular its membership in the Association of Southeast Asian Nations 
(ASEAN), in which it was able to increase the internal level of liberalization and successfully 
introduce a number of addenda to the Association's trade agreements with key partners. Simila rly, 
as part of ASEAN, Malaysia is laying the foundations for some interesting trade negotiations in 
                                                
1 "Economic Growth and Development in Malaysia: Policy Making and Leadership", Zainal Aznam Yusof 
and Deepak Bhattasali, 2008. The International Bank for Reconstruction and Development/The World Bank.  WT/TPR/M/366  • Malaysia  
 
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  connection with the so -called "Regional Comprehensive Economic Partnership (RCEP)", a draft 
agreement involving ASEAN's preferential trading partners. At t he same time, Malaysia is 
participating in the Trans -Pacific Partnership (TPP) negotiations, and more recently in the new 
initiative, the Comprehensive and Progressive Agreement for Trans -Pacific Partnership, 
the negotiation of which has just been complete d and which will be signed next month in Chile; 
and more generally, it has participated in different Asia -Pacific cooperation forums, notable APEC.  
3.10.   It should also be stressed that Malaysia has participated actively in this Organization, 
chairing important bodies and acting promptly to ratify the Trade Facilitation Agreement and the 
Protocol Amending the Agreement on Trade -Related Aspects of Intellectual Property Rights 
(TRIPS).  
3.11.   Within this favourable and promising context of Malaysia's economy and trade pol icy, 
I would like, with your permission, to raise a number of points.  
3.12.   One subject which pervades the reports is the coexistence of a tendency for the State to 
intervene and make itself  felt in certain sectors and a tendency towards liberalization and 
openness. To take an example, on one hand we observe a tendency to use State enterprises in 
certain sectors of the economy together with tax incentives and subsidies, while on the other han d 
we have tariff exemptions for many products, a high ranking in terms of ease of trading, and the 
recent authorization of 100% foreign ownership of companies in certain branches of the services 
sector. It would be useful if the delegation of Malaysia coul d explain how the Government expects 
these two tendencies to develop in the coming years in relation to the points I mentioned or to any 
points that may be raised by Members in their statements. It is important to note that one of the 
requests of WTO Membe rs at the last trade policy review of Malaysia concerned the rationalization 
of subsidies, an area in which the Government of Malaysia took a number of significant steps 
during the review period, such as the elimination of subsidies on diesel and petrol.  
3.13.   It would also be interesting to hear more details regarding the tax exemption based on the 
value of increased exports referred to in paragraph 15 of the Secretariat report.  
3.14.   Similarly, we would be grateful for clarifications from the Malaysian delegation on whether 
Government plans include any reductions in tariff quotas, in the use of export taxes, or in the 
number of products subject to import licensing, particularly since Members already commented on 
some of these issues during the last trade policy review  of Malaysia in 2014.  
3.15.   Finally, we note that there has been no improvement in Malaysia's ranking in the 
World  Bank's Ease of Doing Business Index, which remained the same throughout the period 
under review. While this fact would appear to a certain extent u nrelated to Malaysia's growing 
ability to attract private investment or to its investments abroad, it would be interesting to hear 
about any steps the Malaysian Government may have envisaged to resume the upward trend in 
that ranking, including the measure s adopted with the recent promulgation of the 
Companies  Act 2016, mentioned in the reports.  
3.16.   Mr Chairman, let me end my comments by thanking you for this opportunity to review 
Malaysia's highly interesting economic and trade system, and hope that my comment s will have 
served as a brief introduction to our discussions. My impression is that the Malaysian Government 
is making commendable efforts to achieve development that is both sound and inclusive, that its 
production is well integrated in the global econom y and that further integration is in the cards. 
Malaysia's commitment to an open and rules -based trading system seems clear, as testified by the 
fact that it received no requests for consultations under the WTO dispute settlement mechanism 
during the revie w period, and by its active participation in this Organization and in the negotiation 
of many regional trade agreements.  
3.17.   Finally, I would like to thank Malaysia for its prompt replies to the questions of the 
distinguished delegates, and to wish it every su ccess, with this review of course, but also in 
achieving the ambitious objectives it has set itself, including the aim of becoming a high -income 
nation by 2020.  
3.18.   Thank you.   WT/TPR/M/366  • Malaysia  
 
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  4  STATEMENTS BY MEMBER S 
CHILE  
4.1.  We submitted seven questions for this exercise, and we are grateful for the replies provided.  
4.2.  Diplomatic relations between our two countries date back to 1979. Relations with Malaysia 
have developed harmoniously, and have focused mainly on economic issues and cooperation in the 
international organizations.  
4.3.  Following the signature of the Free Trade Agreement between the two countries in 2010 
(in force since April  2012), trade relations with Malaysia have been good. This trade agreement is 
a fairly comprehensive one as regards trade in goods, covering rules of or igin, customs 
procedures, technical barriers to trade, sanitary and phytosanitary measures, trade remedies, 
safeguards, cooperation, transparency and dispute settlement. It also includes an evolving clause 
for the negotiation of chapters relating to trade in services and investment.  
4.4.  In 2017, Chilean exports to Malaysia increased by 53% from the previous year, reaching a 
total of US$188  million. Meanwhile, imports from Malaysia to Chile also increased by 7% compared 
to 2016, reaching a total of US$207  millio n. 
4.5.  In order to provide better market access, we have concluded with Malaysia an Air Services 
Agreement, an Agreement on Electronic Certification of Origin, and an Agreement on 
Halal Certification. We hope to expand our cooperation in other domains as well,  such as the 
Antarctic, energy, and academic activities.  
4.6.  In the trade integration area, despite the geographical distance that separates them Chile 
and Malaysia have taken steps which point to a common vision and common objectives. The 
importance which we attach to our relations with Asia is reflected in our decision to join the 
Treaty  of Amity and Cooperation of the Association of South East Asian Nations (ASEAN) to which 
Malaysia belongs. This took place at the ASEAN Summit of 2016.  
4.7.  The ten ASEAN member c ountries account for a fifth of the world's economy and now 
represent the third most important market for our country. Chile therefore recognizes that ASEAN 
plays a significant role, not only economic and commercial, but also strategic, in the Asia -Pacific  
region. Accession to the Treaty of Amity and Cooperation in South East Asia is the culmination of 
decades of rapprochement with each one of ASEAN's member countries and with the Association 
as a whole.  
4.8.  At the same time, Chile and Malaysia participate acti vely in other important supra -regional 
forums aimed at improving trade integration and stimulating free trade, such as APEC and, in the 
near future, the Comprehensive and Progressive Agreement for Trans -Pacific Partnership, better 
known as TPP -11, to be si gned by Chile, Malaysia and others on 8  March in Santiago.  
4.9.  We note as well  that, at the WTO , Chile and Malaysia have common views on agricultural 
liberalization, through the Cairns Group, and both belong to the Informal Group of Friends 
of MSMEs.  
4.10.   Turning t o the reports that have been submitted, we note that Malaysia continues to be 
an outward -looking, open, sound, competitive, and diversified economy geared to promoting 
investment.  
4.11.   Its pragmatic economic management and appropriately calibrated macroeconomic  policies 
have enabled Malaysia to sustain a sound annual economic growth of 5% over the past four years, 
in spite of internal and external contractions and disruptions.  
4.12.   The local government's efforts to modernize Malaysia's business licensing system are 
interesting. It is worth noting that Malaysia's ease of trading across borders remains highly ranked 
in international comparisons.  WT/TPR/M/366  • Malaysia  
 
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  4.13.   At the same time, we would like to see fewer restrictions on foreign investment in fisheries, 
energy, telecommunications, fina nce and transport services, and an increase in foreign ownership 
in public -private partnership projects.  
4.14.   Another source of concern is the fact that the average MFN applied tariff rose from 5.6% in 
2013 to 7.5% in 2017, and that there has been an increase i n both investigations and 
anti-dumping measures for certain products.  
4.15.   At Malaysia's sixth trade policy review, Chile expressed concern at the countries extensive 
use of subsidies. We are pleased to note that since the end of 2014, some of these subsidies h ave 
been eliminated, and we urge Malaysia to continue along that path and step up its efforts to 
reform and rationalize its subsidies regime.  
4.16.   We have every confidence that thanks to its stability and the implementation of various 
domestic reforms, as well as by following its national motto "Unity is Strength", Malaysia will 
continue to fulfil the economic policy goals set out in Vision 2020, which emphasizes the 
importance of productivity, innovation, and trade in achieving economic growth.  
4.17.   Finally, we wish  the delegation of Malaysia every success in this Review.  
MEXICO 
Introduction  
4.18.   Mexico warmly welcomes the delegation of Malaysia, headed by Mr  J. Jayasiri, Secretary 
General of the Ministry of International Trade and Industry, to whom I extend my personal 
greetings. My delegation would also like to thank Ambassador Claudio de la Puente (Peru) for his 
accurate analysis. I take this opportunity to highlight the active and commendable efforts of the 
Malaysian Mission team.  
General economic situation  
4.19.   Malaysia o ffers an excellent example of discipline and proper implementation of economic 
measures, not only to address past economic crises, but also to achieve sustained economic 
growth which, during the review period, stood at an impressive annual average rate of 5%. 
4.20.   This growth was accompanied by sound macroeconomic figures. From 2013 -2016, inflation 
and unemployment remained below 3% and 4% respectively, and the public debt remained below 
55% of GDP.  
4.21.   At the same time, the Malaysian economy is open to trade and di versified in terms of 
production and exports of raw materials, manufactures and services. Imports and exports of goods 
and services currently represent 130% of GDP. However, during the review period, the value of 
exports decreased by 17%, and of imports by  18%. Nevertheless, Malaysia's integration with other 
markets through ASEAN and other free trade agreements, such as the Regional Comprehensive 
Economic Partnership, has been steady and progressive.  
4.22.   Foreign direct investment has increased steadily, particu larly in the financial and 
construction services areas. Malaysia has decided not to limit the inflow of foreign investment to 
those sectors: since 2012, it has allowed 100% foreign ownership in 18 sectors, including 
health  care, professional services, and environmental services.  
Market access  
4.23.   As regards market access, 56.2% of tariff lines are duty free, and the average applied 
MFN tariff was 7.5% in 2017. However, there remain a few barriers when it comes to exporting 
products to Malaysia, for example:  
 a tariff exceeding 50% on some industrial and agricultural products, for example certain 
tobacco articles, round cabbages, and ceramic tiles;  WT/TPR/M/366  • Malaysia  
 
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   the non -automatic licensing requirement for the importation of certain products into 
Malaysia, such as land vehicles  and auto parts.  
 
4.24.   At the same time, the fact that 20% of tariff lines have yet to be bound could be a source of 
uncertainty for exporters.  
Export subsidies  
4.25.   My delegation would also like to express its systemic concern in relation to the subsidies 
Malaysia has granted to certain products on the basis of increased exports, since support of this 
kind could be inconsistent with the Agreement on Subsidies and Countervailing Measures.  
Legal reforms  
4.26.   At the same time, my delegation would like to congratulate Malays ia for implementing major 
legal and administrative reforms, such as:  
 the Companies Act, which applies a flat rate fee for incorporation instead of the 
ad valorem  incorporation fees previously applied;  
 automation of customs procedures and increase in the nu mber of authorized economic 
operators from 48 to 59 between 2014 and 2017;  
 creation of the IP Renewal One -Stop Centre, known as the IP Renewal Lounge;  
 banking legislation to strengthen business conduct and protect financial services 
consumers and different iated regulatory requirements reflecting the nature of financial 
activities and their risks.  
 
Bilateral relations  
4.27.   Mexico's business links and trade flows with Malaysia have been steadily increasing in recent 
years, as has the technical and political intera ction between the two countries with respect to trade 
and investment. This is illustrated by the successful conclusion of the TPP negotiations, which will 
give rise to a free trade area between our two countries and another nine economies in the 
Asia-Pacific region.  
Conclusion  
4.28.   In short, I would like to congratulate Malaysia on the sound management of its economic 
policies. This will undoubtedly help it to achieve its objective of acquiring the status of high -income 
nation by 2020.  
4.29.   I close by thanking Malays ia once again for its replies to my delegation's questions and wish 
it every success in this Review.  
BRUNEI  DARUSSALAM  ON BEHALF  OF ASEAN  
4.30.   ASEAN notes the commendable performance of Malaysia 's economy since its last Trade 
Policy Review. Trade plays a significant role in Malaysia 's economy, amounting to 130% of 
Malaysia 's GDP. Malaysia has maintained transparent and predictable trade policies, and has taken 
steps to continually improve its regulatory framework. We believe that these efforts will contrib ute 
to a sustainable and resilient economic growth.  
4.31.   Malaysia is a key trading partner for ASEAN member States. From 2014 to 2016, trade with 
ASEAN member States was 27% of Malaysia 's total trade with the world. ASEAN member States 
welcome Malaysia 's consis tent efforts in promoting trade liberalization and modernization. These 
efforts will certainly drive and improve intra -ASEAN trade, contributing to the regional economic 
integration objectives of the ASEAN Economic Community.  
4.32.   Malaysia plays an active role at the WTO. For instance, Malaysia was the fifth Member to 
ratify the Trade Facilitation Agreement in 2015. At the last Ministerial Conference in Buenos Aires, 
Malaysia contributed to the discussions on important and current t rade issues, such as Micro, WT/TPR/M/366  • Malaysia  
 
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  Small, Medium Enterprises, e -Commerce and Investment Facilitation. ASEAN applauds Malaysia 's 
contribution and commitment to preserving and strengthening the multilateral trading system.  
4.33.   Last but not least, on behalf of ASEAN col leagues, we express our appreciation to Malaysia 
for their written responses to the questions submitted by some of us. We wish Malaysia every 
success in their seventh Trade Policy Review.  
BRUNEI  DARUSSALAM   
4.34.   Malaysia is our closest neighbour, so we share a long history of friendship and along the 
way we have built a strong trade bond. For the past five years, Malaysia has always been our top 
10 trading partners, in which total trade valued to almost a billion in 2016.  
4.35.   Taking into account of our valuable econ omic interconnectedness, Brunei Darussalam is 
pleased to note the strong economic performance of Malaysia during the review period. The 
average GDP growth of 5.1% in 2014 -2015 and the anticipation of robust expansion in 2017 are 
impressive taking into acco unt of external shocks for the past years that we all feel. Brunei 
Darussalam welcomes various initiatives pursue by Malaysia, not only to improve their business 
regime, but also to further liberalize non -tariff measures, in particular, import licensing.  
4.36.   These progressive changes will not only benefit Brunei Darussalam, considering our dynamic 
trade and investments ties, but it will also lead by example to strengthen ASEAN economic 
cooperation. In ASEAN, Malaysia has played a proactive role in advancing ASE AN economic 
integration efforts.  
4.37.   In this regard, Brunei Darussalam welcomes the view of Malaysia in strengthening ASEAN 's 
work in further facilitating intra -ASEAN trade and looks forward to Malaysia 's leadership in pushing 
this agenda.  
4.38.   In the multilateral context, Malaysia is undoubtedly an invaluable Member of the WTO. Their 
commitment to the multilateral trading system is encouraging. On this note, Brunei Darussalam 
welcomes Malaysia 's latest notification for Category B of the Trade Facilitation Agreement  and 
overall, encourage with Malaysia 's dedication to fulfil notification obligation.  
4.39.   Before I conclude, let me take this opportunity to wish His Excellency Datuk Seri Jayasiri 
Jayasena and his team a productive day ahead, and with confidence, this is goin g to be another 
successful review of Malaysia.  
EUROPEAN  UNION  
4.40.   We are pleased to see the direction in which reforms are going in Malaysia. In 2010, the 
Malaysian Government presented the New Economic Model and  in 2015 launched the 11th 
five-year Malaysia Pl an to facilitate the transition towards becoming a high -income economy by 
2020. The model advocates for economic development based on an enhanced role of the private 
sector and a re -focus of the Government 's role in the economy as a facilitator and enabler , while 
paying due attention to guarantee sustainable growth that is socially inclusive and preserves the 
environment.  
4.41.   Malaysia is making progress towards its goals. Its economy has been on a continuous rise 
since the mid -1970s and its GDP per capita has m ore than doubled in only 15 years, to €8,472 in 
2016. Since the last review in 2014, Malaysia has experienced a positive economic performance, 
with a GDP growth above 4% in the past years, low unemployment and contained inflation.  
4.42.   Located at a strategic p osition in Asia, there are many good reasons for doing business in 
Malaysia. Malaysia 's strong economy, financial sector and well developed infrastructure all 
contribute to its attractiveness. The economy is diverse and export -oriented; its markets have a 
good degree of maturity and are supported by growing domestic demand and low operating costs 
for companies.  
4.43.   A word  on our bilateral relationship with Malaysia. Cooperation in trade and economic issues 
started back in the 80s, in the framework of the EC -ASEAN Agreement, and has been the driving WT/TPR/M/366  • Malaysia  
 
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  force for closer ties between the EU and Malaysia. Since then, we have negotiated a Partnership 
and Cooperation Agreement which is now awaiting signature.  
4.44.   In 2016, Malaysia was the EU 's second trade partner in goods and services within ASEAN, 
after Singapore. Our bilateral trade amounts to around €35 billion per year. In terms of foreign 
direct investment, the EU has consistently been the largest source for the last few years, allowing 
us to build an FDI stock of over  €20 billion in Malaysia. These figures speak of our solid, yet 
vibrant, bilateral trade and investment relations.  
4.45.   The EU has great interest in further intensifying the bilateral relations with Malaysia. We are 
currently exploring the resumption of the ne gotiations for a bilateral Free Trade Agreement that 
were paused in 2012, and would build on both parties ' existing WTO commitments to further 
enhance our close economic ties.  
4.46.   Despite these positive aspects, the EU has a number of issues we would like to r aise 
regarding Malaysia 's trade and investment policy -making.  
4.47.   The questions which the EU submitted to Malaysia as part of this review cover several areas 
of Malaysia 's economy. EU operators confirm that the issues we raised are obstructive to trade and 
investment between the EU and Malaysia. I will highlight a couple of them.  
4.48.   First, the EU notes a general lack of transparency in rules, both ex ante and ex post, which 
deters EU traders and investors from doing business with Malaysia. In our written questions, we 
insisted on this aspect as it affects several areas of Malaysia 's trade policy.  
4.49.   Second, we are concerned by the wide use of non -automatic import licensing, which  the 
Secretariat report confirms, as well as by the lack of predictability and transparency of the 
Malaysian licensing regime in general. In particular, we consider that the Approved Permit system 
in the automotive sector is a clear example of a quota regi me that is not in line with WTO rules. 
We would like to know more about Malaysia 's plans to ensure compliance with WTO rules and to 
further open up its national automotive policy to competition.  
4.50.   Third, although the EU recogniz es that Malaysia has moved in  the right direction in terms of 
reform and liberalization of its services sector, we think that further efforts are necessary. For 
instance, we would like to see Malaysia pursuing liberalisation in services sectors where foreign 
equity caps remain and imp roving the transparency and predictability of licensing procedures. 
Linked to this is a more general concern over a set of discriminatory domestic policies that 
negatively affect Foreign Direct Investment, but also other sectors.  
4.51.   Fourth, we are concerned a bout the discrimination EU companies face when trying to access 
Malaysia 's public procurement market. In some important sectors, such as civil engineering and 
infrastructure development, they are extremely rarely allowed to tender. Unlike several other 
Asian economies at a similar level of economic development, Malaysia is only an observer to the 
Government Procurement Agreement. The EU strongly encourages Malaysia to make its 
procurement market more open and transparent, and to consider joining the GPA.  
4.52.   Fifth, while we appreciate Malaysia 's ambition to become a hub for halal products, the EU 
encourages Malaysia to pursue this ambition whilst allowing EU operators to export non -halal 
products to Malaysia too and to compete with EU halal products on the Mal aysian halal market 
under clear and transparent rules equally applicable to EU and Malaysian operators.  
4.53.   The EU thanks Malaysia for the responses we have already received to the advance 
questions that we have previously submitted in writing and looks forwar d to the replies to the 
questions we have put forward today.  
4.54.   On behalf of the EU, I wish Malaysia a very productive and successful review.  
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  ECUADOR  
4.55.   In 1970, Malaysia had much in common with Ecuador, not only in economic terms, but also 
because both were m egadiverse countries with abundant natural resources, a multi -ethnic 
population and an export supply consisting essentially of primary agricultural products.  
4.56.   However, in the 1970s Malaysia undertook a major transformation thanks to which it 
developed from a country that essentially produced raw materials into an emerging economy with 
a variety of well -developed economic sectors.  
4.57.   The remarkable transformation of Malaysia's economy over the past decades has opened up 
enormous opportunities of considerable int erest to Ecuador.  
4.58.   Trade relations between Ecuador and Malaysia have been fruitful and continue to grow 
dynamically. Apart from coffee and seafood, Ecuadorian cocoa has also become more established 
in the Malaysian market where it is appreciated for its qua lity and purity.  
4.59.   Referring to the Secretariat report, we note Malaysia's commendable and efficient 
management of its economy, which has resulted in macroeconomic stability and steady 
GDP growth over the past few years in spite of internal and external diff iculties.  
4.60.   Since the last Review, there have been signs of liberalization and progressive opening up of 
Malaysia's economy. The Report highlights the growth in the number of RTAs to which Malaysia 
belongs, a network which is expected to continue expanding d ynamically.  
4.61.   A number of positive legislative changes have been introduced with a view to streamlining 
and reducing the cost of administrative procedures in connection with key activities, such as 
setting up and managing businesses, and this has clearly boo sted entrepreneurship and exports.  
4.62.   We welcome the transparency of Malaysia's tariff system, in which 99% of tariff lines are 
ad valorem . It stands as an example to many other Members that still need to work on simplifying 
their tariffs.  
4.63.   Also worth noting i s the system of tax incentives for companies, a system which promotes 
innovation and exports.  
4.64.   Similarly, the country is making a commendable effort to align its standards with 
international standards.  
4.65.   We note with satisfaction Malaysia's ratification in 2015 of the Protocol Amending the 
TRIPS  Agreement on Public Health.  
4.66.   We commend Malaysia for its measures to strengthen its financial sector, which is an 
international reference, particularly in the Islamic world.  
4.67.   Forecasts point to sustained economic growt h in Malaysia in the coming years, thanks 
largely to the country's sound management of its economic policy. We hope that the Malaysian 
economy will continue to gather strength in the sectors that require strengthening.  
4.68.   To conclude, we would like to thank t he delegation of Malaysia for its replies to our 
questions on certain specific aspects of its trade policy. Those replies were transmitted to our 
capital, and will help to strengthen our bilateral trade relations.  
4.69.   We wish Malaysia every success in this Rev iew and hope that it will continue to move 
forward towards the goals it has set itself for 2020, buoyed by the careful planning and the vision 
that have so characterized the country.  
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  UKRAINE  
4.70.   Our country attaches great importance to developing trade and e conomic cooperation with 
Malaysia, in particular within the WTO. Analysis of bilateral trade and economic relations between 
Ukraine and Malaysia demonstrates the availability of significant prospects for further development 
of bilateral cooperation and inc reasing investment.  
4.71.   Bilaterally, Ukraine is one of Malaysia 's major trading partners among the Central and 
Eastern Europe countries. The total turnover in goods between our country and Malaysia in 2017 
amounted to almost US$400 million, including import fr om Malaysia reached about 
US$230  million. The following main commodity groups provide a picture of international trade 
between Ukraine and Malaysia: oils and fats; grain crops; vegetables; milk and dairy products; 
ferrous metals; electrical machinery; indu strial machinery; rubber; cocoa and products thereof. 
The volume of trade in services between Ukraine and Malaysia in 2017 amounted to US$16 million.  
4.72.   The above -mentioned list of goods demonstrate Ukraine 's increased interest in access 
conditions to these c ommodities ' markets, as well as SPS and TBT regimes.  
4.73.   Within this TPR exercise, Ukraine has submitted a number of specific questions on a range 
of the following topics:  
 Investment regime.  
 Trade facilitation.  
 Government procurement policy.  
 Intellectual property rights.  
 Implementation of National Agricultural Plans and domestic support measures for selected 
agricultural goods.  
 Import licensing requirements.  
 Licensing of non -banking financial institutions.  
 Implementation of Good and Services Tax.  
 Functioni ng of the Malaysian Tourism Promotion Board.  
4.74.   We are also seeking clarification from Malaysia on the measures set out in the Economic 
Transformation Programme for improvement of investment climate.  
4.75.   We are grateful to Malaysia for the responses to Ukraine 's set of questions, which we are 
reviewing thoroughly. At the same time, our experts are interested in getting further clarification 
on functioning of SPS control system and implementation of measures within the programmes 
supporting industry sectors ' develo pment, including local content requirements.  
4.76.   In conclusion, I would like to express our appreciation to the delegation of Malaysia for their 
hard work I preparing for this TPR.  
4.77.   We wish Malaysia a successful TPR and look forward to further strengthening our  bilateral 
relations.  
UNITED  STATES  
4.78.   The United States is fortunate to have a strong trade dialogue with Malaysia, which has 
supported our work together bilaterally, here at the WTO, and in our regional engageme nts related 
to ASEAN and APEC. While this positive cooperation extends across the U.S. and Malaysian 
Governments, we wish to thank Secretary General Jayasiri personally for his many years of 
leadership in these efforts.  
4.79.   We congratulate Malaysia for its strong and steady economic growth during the time period 
of this review, and for the progress that it has made in ac hieving its Vision 2020 goals. We note 
the Vision 2020 goals are pursued in the context of the 11th Malaysia Plan, a five -year plan 
encompassing reforms to promote innovation , labor productivity, entrepreneurship, a nd 
infrastructure development. We are confident these initiatives,  aimed at fostering a 
knowledge -based economy, will have positive effects for the U.S. -Malaysia trade relationship and 
support Malaysia 's leadership role in regional bodies such as ASEAN and APEC.  WT/TPR/M/366  • Malaysia  
 
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  4.80.   The United States commends Malaysia 's ratification of the WTO Trade Facilitation Agreement 
in addition to the establishment of the National Single Window, the Malaysian National Trade 
Repository portal, the A SEAN Trade Repository Portal, and other t rade facilitation initiatives. We 
are confident these initiatives will lead to expanded trade and increased efficiencies for the benefit 
of Malaysia and its trading partners.  
4.81.   As we review the written responses provi ded by Malaysia, we offer the following initial 
observations.  
4.82.   On customs valuation, we note Malaysia 's update that it is reviewing the gazette price 
system with a view to adopting the transaction va lue method for passenger cars. The adoption of 
the transac tion value method would be a positive step in improving the transparency and 
openness of Malaysia 's trade regime. As it currently operates, the gazette price system appears to 
impose reference prices on imports that together with other policies – including  the approved 
permit system, high MFN tariffs on imports of up to 30 percent, and excise taxes of up to 125 % – 
create significant barriers to market acces s for automobiles.  We have expressed concern about 
these policies in previous TPRs and look forward to  further updates from Malaysia on automotive 
sector reforms.  
4.83.   On environment, we know Malaysia has had recent successes in interdicting shipments of 
trafficked wildlife products. During this review, we would be interested in learning more about 
Malaysian ef forts to improve enforcement including arrests and prosecutions of s uspected wildlife 
traffickers. Also, we would be interested to learn if the Parliament is still considering an update to 
the Wildlife Trafficking Act of 2010 to introduce increased penalti es and what steps are being taken 
to address the country 's CITES "primary concern " designation with regar d to the elephant ivory 
trade.  
4.84.   On financial services, we note Malaysia 's response that Bank Negara no longer imposes hard 
equity limits on foreign inve stment in banks and insurance companies. However, the lack of clarity 
in the general criteria provided in Schedule 5 and 6 of the 2013 Financial Services Act and the lack 
of transparency in how these criteria are applied continue to cause uncertainty that undermines 
Malaysia 's investment regime.  
4.85.   On subsidies, consistent with our discussions over the past several years, we urge Malaysia 
to review the full range of its subsidy policies and notify any additional programs that satisfy the 
requirements for notification under the Agreement on Subsidi es and Countervailing Measures.  For 
example, we understand that Malaysia provides an income tax exemption for high value -added 
exports of motor vehicles and parts based on the percentage increase  in the value adde d of 
exports.  Moreover, there appear to be a number of other subsidy programs, some of which appear 
to be contingent on export performance or on the use of domestic over imported goods, which 
Malaysia did not address in its 20 17 WTO subsidies notification.  We look forward to further 
discussions with Malaysia about these policies and further notifications by Malaysia to the 
Subsidies Committee.  
4.86.   On intellectual property, we welcome Malaysia 's efforts to review legislation as it considers 
acceding to the Madr id Protocol and Budapest Treaty. Taking these and other steps to ensure a 
robust intellectual property system would support creative and innovative industries and be an 
additional driver of Malaysia 's transformation into a knowledge -based economy.  
4.87.   With pri vate services contributing more than half of Malaysia 's GDP, we recognize Malaysia 's 
progress in reducing foreign investment restrictions in services sub -sectors such as medical 
services, education, and legal services. We encourage Malaysia to extend this progress to sub -
sectors where restrictions remain such as energy, telecommunications, and finance.  
4.88.   In closing, the United States wishes to thank the delegation of Malaysia for i ts attention to 
our questions. We look forward to further cooperation with Malaysia on trade matters bilaterally, in 
our regional work with ASEAN  and APEC, and here at the WTO.  We wish Malaysia a successful 
review.  
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  NEW  ZEALAND  
4.89.   New Zealand and Malaysia have a significant bilateral trading relationship, and Malaysia is 
one of our  top ten trading partners. This relationship is underpinned by the Malaysia New Zealand 
Free Trade Agreement, as well as the regional ASEAN Australia New Zealand Free Trade 
Agreement; and, together with 9 others, we have recently concluded negotiations for  the 
Comprehensive and Progressive Trans -Pacific Partnership which will further enhance our 
relationship going forward.  
4.90.   We appreciate that Malaysia shares New Zealand 's strong commitment to the rules -based 
multilateral trading system, which we see as essen tial to our collective future prosperity. New 
Zealand and Malaysia enjoy close collaboration across  a range of WTO work streams. New Zealand 
thanks Malaysia for its leadership in certain areas, including being among the first Members to 
ratify the  Trade Fa cilitation agreement.  New Zealand welcomes Malaysia 's role in several initiatives 
coming out of MC11, including on MSMEs, e -commerce and investment facilitation, and the 
Declaration on Women 's Economic Empowerment. We look forward to working with Malaysia on 
these issues going forward.  
4.91.   New Zealand continues to value Malaysia 's leadership in ASEAN on trade and economic 
issues, and we welcome Malaysia 's efforts to maintain  the momentum of trade liberaliz ation in the 
region, including through its participation  in the Comprehensive and Progressive Agreement for 
Trans -Pacific Partnership, the Regional Comprehensive Economic Partnership, and APEC. We look 
forward to Malaysia hosting APEC in 2020, which will come at a milestone time for the 
organisation, as the yea r for realising the Bogor Goals of free and open trade and investment in 
the Asia -Pacific.  
4.92.   Since its 2014 review, Malaysia has seen continued strong GDP growth, assisted by 
responsive macroeconomic policies and microeconomic reforms. Many positive reforms since the 
last Trade Policy Review are set out in this seventh Trade Policy Review and include reductions in 
the cost of doing business through the Companies Act, and liberaliz ation of foreign equity 
restrictions in a number of different services sectors. We welcome such initiatives and encourage 
Malaysia to continue its efforts in these areas.  
4.93.   Malaysia also continues to increase the value -added and knowledge -intensive contribution to 
its economy, including through initiatives which prompt and  facilitate di gital trade and 
e-commerce. This is an area where we look forward to working together in the future.  
4.94.   The removal of Malaysia 's subsidies on petrol and diesel is another positive example of 
reform. We encourage Malaysia to continue efforts to rationalise ga s prices in the power sector and 
work towards eliminating remaining subsidies on liquefied petroleum gas. In support of continued 
subsidy rationalisation, in addition to the 2011 APEC Peer Review on Energy Efficiency , we 
encourage Malaysia to build on this  and consider utilising the APEC Voluntary Peer Review for 
Reform of Inefficient Fossil Fuel Subsidies to further assist the design of transitional policies.  
4.95.   We thank Malaysia for its responses to our questions on its fisheries regime, and efforts 
towards combating subsidies that contribute to illegal, unreported and unregulated fishing and 
overfished fish stocks and overcapacity. We encourage Malaysia to further accelerate its efforts in 
this regard in order to fulfil Goal 14.6 of the Sustainable Developme nt Goals 14.6.  
4.96.   We welcome the additional information provided in the report on Malaysia 's agricul tural 
production and policies. We would note the systemic importance of maintaining the integrity of the 
Agreement on Agriculture and ensuring that market pric e measur es are properly accounted for. As 
such we look forward to up to date domestic support notifications from Malaysia which take due 
account of the different categories of support in Paragraph 6  and Annex 2 of the Agreement.  
4.97.   New Zealand welcomes Malays ia's commitment  to an open trading environment  which will 
benefit both Malaysia 's economy and the multilateral trading system as a whole. We look forward 
to continuing to work closely togethe r both bilaterally and in this Organiz ation, and look forward to 
seeing Malaysia achieve its stated goal of becoming a high -income nation by 2020.  
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  THE SEPAR ATE CUSTOMS  TERRITORY  OF TAIW AN, PENGHU,  KINMEN  AND  MATSU  
4.98.   Malaysia 's economy continued on a positive course over the period 2014 to 2016, with 
average GDP growth o f 5.1% per annum. In fact, Malaysia is to be congratulated on its recent 
record of economic growth, which has been impressive. These results can be seen as a successful 
outcome of its programme for liberalization of the manufacturing sector, which was laun ched a 
couple of decades ago. Malaysia, to its credit, is now trying to replicate this success story in other 
parts of its economy beyond manufacturing, through creating a free and fair trading environment 
in line with the Eleventh Malaysia Plan 2016 -2020.  
4.99.   Nevertheless, in our written questions submitted in advance, the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu felt the need to ask for further explanation and 
clarification of certain aspects of Malaysia 's trade policy direction and appr oach, and we thank 
Malaysia for its replies just received. I would like, if I may, to mention here just a few of the issues 
that we raised, and in which we have a particular interest.  
4.100.   Firstly, we notice that the Malaysian Government aims to create a hub fo r halal food 
products. We have requested more details of the Halal -Certification regime in order to explore the 
potential trade and investment opportunities.  
4.101.   Secondly, we recognize that the Malaysian Government is continuing to review the import 
licensing requirements, and has abolished the licence requirement for motorcycle helmets, and for 
181 tariff lines of iron and steel products as well. It would be appreciated if Malaysia could explain 
exactly how the mechanism works when the abolition of licences is  being considered for specific 
items.  
4.102.   Thirdly, and finally, Malaysia has introduced a One -Stop Centre to provide information on 
the procedures and fees relating to IP renewal. At the same time, efforts are also being made to 
improve its IPR enforcement. We  have asked for more information on relevant IP regimes in 
Malaysia, with a view to exploring the potential for new business opportunities in the future.  
4.103.   Malaysia is one of our  most important trading partners , in fact, currently our 8th largest, 
and we hav e a strong bilateral trade and investment relationship. The total value of the two -way 
trade between us in 2016 was some US$14.1 billion dollars. In addition to this, the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu is Malaysia 's 4th largest source of foreign 
investment.  
4.104.   However, while we already have a strong bilateral relationship, it is evident that a huge 
potential for further growth still exists. The Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu adopted "The New South bound Policy " as a crucial part of our economic and trade 
strategy. We will start up wide -ranging negotiation and dialogue with Malaysia, with an eye to 
establishing close cooperation and together achieving regional development and prosperity. We 
are convi nced that there are mutual benefits to be gained in the future by widening the scope of 
our bilateral cooperation into new and different areas, including trade, investment, culture and 
others.  
4.105.   In conclusion, I simply want to wish Malaysia a very successful  and constructive Trade 
Policy Review.  
SINGAPORE  
4.106.   Singapore associates itself with the ASEAN statement delivered by Brunei.  
4.107.   Singapore shares a warm and longstanding economic relationship with Malaysia, our 
closest neighbour. In fact, we are linked by a Causeway which is just over 1km. Our relations are 
underpinned by strong trade, investment and people -to-people ties. Malaysia is Singapore 's 
second largest trading partner. Last year, bilateral trade was S$108 billion, accounting for 11% of 
Singapore 's total trade. Bilateral investments have grown at a healthy pace. Singapore was the 
largest foreign investor in Malaysia in 2015, with stock FDI amounting to S$42.5 billion. Direct air 
links between Singapore and several cities in Malaysia, such as Ipoh, Ku ala Lumpur, Penang, Miri 
and Kuantan, have increased tourism and brought both sides even closer.  WT/TPR/M/366  • Malaysia  
 
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  4.108.   Singapore commends Malaysia 's efforts to maintain and enhance a pro -business 
environment. Malaysia has climbed the World Bank 's Ease of Doing Business ranks, f rom 37th place 
in 2013 to 24th place in 2017. Key reforms included (i) improvements made to import and export 
flows at ports, particularly that at Port Klang; (ii) the establishment of a modern collateral registry 
to facilitate businesses ' access to credit ; (iii) steps taken to enhance corporate transparency 
thereby improving investor confidence; and (iv) the 2016 companies Act, which introduced 
reforms to improve corporate governance.  
4.109.   We note that services, including e -commerce, and SMEs have been identifi ed as one of the 
focus areas under the Eleventh Malaysia Plan (11MP). We welcome initiatives such as the 
establishment of the Digital Free Trade zone and the National e -Commerce Council and hope to 
partner Malaysia in growing e -commerce trade bilaterally a nd in the region. In addition, Malaysia 's 
domestic experience to grow and integrate SMEs into the global market would certainly be 
valuable input to the MSMEs conversation at the WTO.  
4.110.   Malaysia has identified several external environment challenges in the h orizon. Malaysia 's 
response to these challenges, that is, promoting a transparent and liberal trade and investment 
environment, within the rules -based multilateral trading system of the WTO, is demonstrated 
through its actions. Malaysia has contributed act ively and constructively to the work of the WTO. 
Former Malaysian Ambassador to the WTO, Mariam Salleh, ably chaired the Trade Policy Review 
Body in 2014 and the Preparatory Committee on Trade Facilitation in 2015. Malaysia ratified the 
Trade Facilitation Agreement in 2015 and was party to the ITA2.  
4.111.   On the regional front, we commend Malaysia 's contributions towards the ASEAN Economic 
Community (AEC). Malaysia has implemented almost all of its AEC 2015 commitments, 
participated in the ASEAN Single Window ini tiative and improved its investment commitments. We 
count on Malaysia 's continued collaborations in deepening our regional economic integration.  
4.112.   There remain some areas for improvement. We urge Malaysia to fulfil its outstanding WTO 
notification obligation s, such as those concerning agriculture domestic support, quantitative 
restrictions and customs valuation. We encourage Malaysia to consider reforms to its government 
procurement regime and to be a Member to the WTO Agreement on Government Procurement. 
Finally, we note that anti -dumping investigations initiations and measures reached its peak in 
2015 and 2016. We encourage Malaysia to use trade remedy measures prudently.  
4.113.   My delegation has always enjoyed warm working relations with the capable team in the 
Malaysia Mission in Geneva. We hope to continue and deepen our excellent bilateral, regional and 
multilateral collaborations in Geneva and beyond. We wish Malaysia every success in its 7th Trade 
Policy Review.  
AUSTRALIA  
4.114.   Australia supports Malaysia 's goal of becoming a high -income economy by 2020, and its 
ambition to become a top 20 country in economic development, social advancement and 
innovation by 2050.  Malaysia 's efforts to reform its economy to help to achieve these goals are 
welcome. While challenges fa cing Malaysia 's economic reform efforts remain, our firm belief is that 
meaningful structural economic reforms will deliver a stronger economy an d increased prosperity.  
4.115.   Australia highly values the important role of foreign investment in encouraging economi c 
growth, and encourages  Malaysia to foster and maintain an o pen foreign investment climate.  We 
support Malaysia 's efforts to increase its long -term competiveness and economic growth potential, 
recognising that these outcomes are firmly linked to the reduction of barriers to trade and 
investment through Malaysia 's domestic reform process.  
4.116.   Removing or reducing the impact of affirmative action programs that apply to government 
procurement, foreign equity limits and restrictions on mergers with local firm s in certain sectors 
would assist Malaysia 's overall competitiveness and foster an environment conducive  to sustained 
economic growth. Such actions would lead to a better allocation of resources, help foster 
innovation and, stimulate Malaysia 's domestic in dustry - bringing it closer to realisin g its 2020 and 
2050 ambitions.  WT/TPR/M/366  • Malaysia  
 
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  4.117.   Australia 's bilateral relationship with Malaysia is strong and benefits from a broad network 
of linkages, including education, people -to-people links and enduring economic and trade 
cooperation. At almost $30 billion, two -way inv estment is strong and growing. Our bilateral trade 
architecture, including the Joint Trade Committee led by Ministers responsible for Trade, provides 
a valuable opportunity to share developments on bilateral trade  and economic issues.  
4.118.   The Malaysia –Australia Free Trade Agreement (MAFTA), which entered into force in 2013, 
is a significant milestone in our bilateral economic partnership and has provided additiona l impetus 
to the relationship. Tariff reductions under M AFTA are delivering new opportunities for  businesses 
in both countries. To continue this upward trajectory, Australia encourages Malaysia to tur n its 
attention to reducing non -tariff barriers to trade and investment, particu larly in relation to 
services.  
4.119.   Australia and Malaysia are active voices for trade liberalis ation globally and regionally. We 
appreciate working closely with Malaysia in the Cairns group t o promote agricultural liberaliz ation 
and look forward to Malaysia chairing APEC in 2020.  We are both  members of the 
ASEAN -Australia -New Zealand Free Trade Agreement (AANZFTA), and participate in the ongoing 
Regional Comprehensive Economic P artnership (RCEP) negotiations.  We value our close 
cooperation in moving forward the Comprehensive and Progressive A greement for Trans -Pacific 
Partnership (CP TPP) process, and welcome continuing engagem ent with Malaysia and other 
TPP-11 countries to bring this agreement into force expeditiously.  
4.120.   I'd like to thank Malaysia for its re plies to our written questions.  We ar e curr ently 
reviewing them carefully.  Australia wishes Malaysia a successful and constructive trade policy 
review.  
OMAN  
4.121.   Oman and Malaysia share longstanding historical ties and trade relations. Malaysia is an 
important trading partner for Oman and we coope rate closely in various sectors including in 
education and tourism. Since 2009 the total value of Oman 's exports to Malaysia has grown by 
circa 200%.  
4.122.   We are happy to note that Malaysia 's economy has shown resilience over the past few 
years despite a chall enging environment and that its GDP has grown steadily at an average rate of 
5%. This is due in large part to Malaysia 's diverse production and export base and general 
openness to trade, which has helped in overcoming the challenges caused by low commodity  
prices, particularly in the petroleum and gas sectors. We commend Malaysia 's policies that have 
gone a long way in furthering economic diversification.  
4.123.   The delegation of Oman compliments Malaysia on faithfully adhering to the multilateral 
trading system, which it considers to be an important feature of its overall trade and investment 
policy. Malaysia supports an open, fair and rules -based trading system. Malaysia is also an active 
participant in negotiations as well as in the regular work of the WTO.  
4.124.   We n ote that around 20% of Malaysia 's tariffs remain unbound and that the simple 
average applied MFN rate has increased during the past four years by almost 2% from 5.6% in 
2013 to 7.5% in 2017.  
4.125.   Vision 2020 aims to make Malaysia a high income country by 2020. This is an ambitious 
target and we wish Malaysia all the success in its plans and policies.   
4.126.   To conclude, the delegation of Oman wishes the delegation of Malaysia a very successful 
Trade Policy Review.  
HONG  KONG,  CHINA  
4.127.   Hong Kong, China (HKC) and Malaysia enjoy strong and dynamic trading relationships. Our 
bilateral trade in goods was worth US$15 billion in 2016, making Malaysia our 10th larges t trading 
partner in the world.  Malaysia was also our 13th largest tradin g part ner in services in 2015. We WT/TPR/M/366  • Malaysia  
 
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  look forward to even closer economic ties with Malaysia under the new ASEAN -HKC Free Trade and 
Investment Agreements.  
4.128.   Turning to Malaysia 's trade policies, we would like to, first of all, commend the country for 
its achie vements  in trade facilitation. Since the last Review, Malaysia has simplified document 
requirements; removed unnecessary regulatory requirements; established a National Single 
Window, and a Trade Facilitation Cluster Working Group, for implementation of th e Trade  
Facilitation Agreement.  Malaysia also runs an Authorised Economic Operator programme, with a 
Mutual Re cognition Arrangement with HKC.  All these measures have grea tly enhanced 
cross-border trade.  
4.129.   Trade and investment policies are, in general, becom ing more  liberal in Malaysia. 
Investment restrictions, for instance, are being relaxe d, although not in all sectors. The Malaysian 
Government remains very involved in the economy through government -linked enterprises and 
their subsidiaries, notably in businesses s uch as petroleum, electricity, telecommunications, postal 
services, air transport, public tran sport, and financial services. We encourage Malaysia to further 
open up its investment regime and promote competition.  
4.130.   This is particularly important for the services sector in view of its growing importance to 
Malaysia 's economy. We can see from the Eleventh Malaysia Plan 2016 -2020 that the services 
sector is expected to contribute to 56.5% of Malaysia 's GDP by 2020, a noticeable increase from 
51.7% in 2016. S ince the last Review, Malaysia has already lifted foreign equity restrictions in unit 
trust management companies and credit rating agencies; relaxed the licensing requirements to 
enable establishment of niche fund managers, and permitted the transport of c argo services by 
foreign  vessels on three more routes. We encourage Malaysia to continue with these kinds of 
progressive li beralisation in order to maximiz e its potentials in services trade.  
4.131.   On tariff, we appreciate that almost all of Malaysia 's tariff rat es are ad valorem.  However, 
1% of tariff lines are not, and these lines tend  to conceal high tariff rates. We would encourage 
Malaysia to turn all of them into ad valorem ones to enhance predictability.  
4.132.   We note that Malaysia has several outstanding notific ations, i ncluding those on agriculture. 
Submitting timely notifications is important for transparency; it also shows that the Member has 
effectively implemented its commitments in WTO Agreements. We hope to see Malaysia stepping 
up its efforts in this rega rd. 
4.133.   Finally, I would like to thank Malaysia for its re plies to our written questions.  We will 
review them carefully.  H ong Kong, China wishes Malaysia a very fr uitful Trade Policy R eview.  
SWITZERLAND  
4.134.   Striving to be an open economy inevitably entails an enh anced exposure to adverse 
external shocks. These shocks may come in the form of commodity price volatility, fickle external 
demand or – as in the present case – by way of turbulence in the financial markets.  
4.135.   We get a sense that Malaysia is relatively well -positioned to weather any such 
disturbances. Though still largely dependent on foreign trade, the impressive engine of growth of 
the Malaysian economy is increasingly propelled by domestic demand and investment. Fuels 
exports have become less important as  manufactured products such as telecommunication 
equipment and electrical machines assume a wider share of sales abroad. Fiscal prudence has put 
public finances on a path of consolidation. The current account maintains a comfortable surplus 
even though imp orts are on the rise. Foreign exchange reserves appear adequate and the 
development of the onshore foreign exchange market proceeds with care and in small stages. In 
short, Malaysia 's economy has evolved into being more  diversified and resilient.  
4.136.   Nevertheless, to achieve the target of becoming a high -income economy, we feel that 
Malaysia could make additional efforts to improve the business environment for foreign 
investments and enhance c ompetition across all sectors. The economy could benefit fro m a more 
open government procurement regime : an alignment with international standards would be in line 
with Malaysia 's endeavour to be an open and competitive economy; it would allow efficiency gains 
and help develop public infrastructure, which in turn w ould contribute towards improving lacklustre WT/TPR/M/366  • Malaysia  
 
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  productivity performance. In this respect, we would like to encourage Malaysia to explore further 
the idea of joining the GPA in the near future.  
4.137.   We highly value Malaysia as a staunch supporter of the multilate ral trading system. The 
fact that Malaysia was one of the first members to ratify the TFA and that it is a state party to both 
the ITA I and II is appreciated by many in this room. Switzerland recognizes Malaysia 's efforts in 
providing preferential treatme nt for LDCs ' service providers. Likewise, we commend Malaysia for 
having played a constructive role in the MSMEs initiative.  
4.138.   We very much appreciate Malaysia 's improvement in its notification practice, as they are 
an important instrument to enhance transp arency. We encourage the authorities to submit in a 
timely manner some additional notifications on domestic support in agriculture as well as on 
quantitative restrictions and customs valuation.  
4.139.   Now turning to the HS 2017 transposition exercise, Malaysia in dicated that - in general – it 
maintained the higher duty where tariffs were merged. Yet the Harmonised Systems Convention 
stipulates that an HS transposition should not have any impact on the level of duties as it is but a 
technical exercise.  
4.140.   But we are p leased to learn of Malaysia 's readiness to re -evaluate the increase in the 
number of tariff rates due to the ITA implementation with the view to easing the overall 
administrative process.  
4.141.   We also welcome Malaysia 's readiness to review an existing excise d uty exemption for 
locally produced cars.  
4.142.   The efforts of Malaysia to implement standards for sustainable palm oil production and to 
align the parameters of the different standards deserve positive mention. We are confident that 
Malaysia will continue to bri ng its palm oil production into line with the highest international 
standards of palm oil sustainability.  
4.143.   Moreover, we commend the reforms that Malaysia has undertaken to reduce fossil fuel 
subsidies. These efforts should continue, not least in light of AP EC's commitment to phase out 
inefficient fossil fuel subsidies.  
4.144.   Switzerland and Malaysia enjoy strong economic relations. Last year, our mutual trade 
flows grew by an additional 6.3 %. Malaysia is our 3rd largest trading partner in the ASEAN region, 
right after Singapore and Thailand. We are the 13th most important foreign direct investor in the 
country. Swiss FDI in Malaysia has contributed to the creation of 24 '000 jobs.  Yet there is room 
for an even more dynamic bilateral relationship. In 2012, Switzerl and and its EFTA partners 
launched negotiations for a comprehensive free trade agreement with Malaysia, a process to which 
we attach great importance.  
4.145.   We thank Malaysia for having provided comprehensive replies to all the questions 
submitted in writing. W e thank Malaysia in advance for the answer to the follow -up question 
concerning the planned study on merger and acquisition control by Malaysia.  
4.146.   In concluding, we wish Malaysi a a successful outcome of this Trade Policy R eview.  
NORWAY  
4.147.   Let me start by saying  that Norway is pleased to note that Malaysia 's economy is showing 
such impressive economic growth. We commend the Government for its continued commitment to 
encourage trade and foreign investments, and encourage you to continue these efforts. They are 
definitively important for your objective to become a high -income nation by 2020.  
4.148.   Norway values Malaysia 's contributions to the work of the WTO. We note with  appreciation 
point 4.9 in the G overnment 's report that states that Malaysia is committed to promoting  a 
transparent and liberal trade and investment environment, especially within the rules -based 
multilateral trading system of the WTO.  WT/TPR/M/366  • Malaysia  
 
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  4.149.   Let me now touch upon our bilateral trade with some comments that in fact reinforce the 
description of the positive devel opments in the Malaysian economy. Trade between Norway and 
Malaysia has over the past ten years shown a strong increase, but there is much potential for 
further growth in our mutual trade. Norway 's import from Malaysia amounted to US$427 million in 
2017, a n increase of US$160 million compared to 2014. We also are seeing a growing trend in 
exports from Norway to Malaysia, even though these are fluctuating a bit more due to the nature 
of the exports, with initial numbers showing a value of US$277 million for 2017.  
4.150.   More significantly, a number of large -scale Norwegian investments have taken place in 
Malaysia and this trend is continuing. New companies, within both established and new sectors, 
keep looking towards investing in Malaysia. This is a clear indication of the growing attractiveness 
of the Malaysian market and a testament to the Government 's policies to encourage FDI inflows. 
Norway recognizes measures taken to streamline the regulatory framework and the removal or 
reduction of equity and other  restrictions on foreign investment.  
4.151.   In this connection, we would like to thank the Malaysian delegation for the answers to our 
written questions. We hope that the positive indication that your government, and I quote, "is 
committed to take continuous bala nced measures in reducing restrictions and facilitating foreign 
participations in order to continue attracting high quality FDIs in fisheries, energy, 
telecommunications, finance and transport sectors " does mean constant review and openness to 
change in th ese important sectors.  
4.152.   We look forward to contributing towards finalizing the negotiations on a Free Trade 
Agreement between Malaysia and the EFTA States. The trade patterns between Malaysia and 
Norway are complementary, and a trade deal would be useful to  both countries as there is a great 
potential for increased trade if the parties manage to conclude such an agreement.  
4.153.   Now, moving to on to a couple of issues that we have been especially focused on for the 
past months here at the WTO:  
4.154.   Let me start with e -commerce. The expansion of the digital economy offers new 
opportunities for the promotion of inclusive economic growth. Norway hopes other WTO M embers 
will follow Malaysia 's example, with reference to point 6.5 in the government report,  and describe 
e-commerce and the digital economy in some detail in their national reports. We commend 
Malaysia for the development of a national e -commerce strategic roadmap, and would really like to 
hear Malaysia expand on how you would like to see the di scussions on e -commerce evolve in the 
WTO.  
4.155.   We will continue to have intensive negotiations regarding fisheries subsidies in the next 
few months. We note information in the report on subsidies, both subsidized loans through the 
Agrobank to modernize fleet etc. as well as other direct support. We applaud that fuel subsidies 
generally and also for fisheries have decreased. We also note that even though the Malaysian 
Government has the possibility to provide incentives to fishers ' associations to assist their 
members in acquiring deep -sea vessels, they do not yet do so. Given the emphasis the 
Government seems to have on sustainability and management of fishing capacity, we presume 
that the increase predicted in marine catch to 1.76 million tonnes by 2020 is bas ed on 
sustainability assessments. We urge Malaysia to be very careful so as not to make incentives that 
lead to overfishing.  
4.156.   This said, The Secretariat report describes among other things your fisheries management 
as such, with regulations, licensing of al l fishing boats and surveillance of all activities, and your 
National Plan of Action for the Management of Fishing Capacity 2015 -2020 as well as the National 
Plan of Action on illegal, unreported and unregulated (IUU) fishing. These descriptions are very 
useful background for the negotiations, being an example of how one developing country works in 
this area, and could usefully be expanded on in meetings in connection to the negotiations.  
COSTA  RICA 
4.157.   Costa Rica is pleased to participate in this review of Mal aysia's trade policy. It has been 
part of Costa Rica's trade policy to reach out to the Asiatic region, and in that context, Malaysia WT/TPR/M/366  • Malaysia  
 
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  has a key role to play as an important trading partner with which we have undertaken initiatives 
together and share common  interests.  
4.158.   Malaysia has played a constructive role in the WTO, and has been a staunch supporter of 
the multilateral trading system. Like Malaysia, Costa Rica has taken part in initiatives such as the 
expansion of the Information Technology Agreement (ITA) , and is part of the Cairns Group.  
4.159.   At the same time, Costa Rica shares Malaysia's interest in areas such as the promotion of 
e-commerce and MSMEs.  
4.160.   Turning specifically to the Review, we note Malaysia's objective of achieving high -income 
country status by 2 020 through productivity growth, innovation and trade.  
4.161.   During this review period, Malaysia has made considerable efforts to improve the country's 
business climate, such as new provisions in the Companies Act to simplify the procedures to start 
a company, t o reduce the cost of doing business, and to reform corporate insolvency mechanisms.  
4.162.   However, as indicated in the Secretariat report, State participation in the economy 
continues to be significant, and there are still restrictions on foreign investment in i mportant 
sectors such as fisheries, energy, finance, telecommunications and transport.  
4.163.   In the services sector, Malaysia has been autonomously liberalizing foreign equity 
restrictions, liberalizing 18 subsectors in 2012 in accordance with the Eleventh Malay sia Plan. We 
would like to know whether these liberalization efforts include audiovisual and advertising services, 
particularly as regards mode 1 limitations. We would also like to know whether the restrictions on 
issuing air service licences and permits e xtend to aircraft maintenance and repair services and 
whether there are limitations under mode 1 and 2 to providing such services.  
4.164.   Costa Rica asked Malaysia a few questions concerning the elimination of fossil fuel 
subsid ies and its renewable energy polici es. I would like to thank Malaysia for the attention it has 
given to these questions, and to end my statement by wishing it every success in this trade policy 
review.  
COLOMBIA  
4.165.   Four years after Malaysia's last trade policy review, we note the country's comm itment to 
the multilateral trading system. In the WTO, my country shares with Malaysia certain visions and 
common interests; for instance, we both participate in the Friends of the System group, we are 
both members of the Cairns Group, we are both parties to the Information Technology Agreement, 
we both belong to the Group of Friends of MSMEs, and as producers of palm oil, we have also 
joined forces to support trade in palm oil in the global context.  
4.166.   We note, as stated in the Secretariat Report, the opennes s of Malaysia's trade policies and 
the introduction, over the past four years, of reforms in areas such as technical regulation, 
simplification of customs formalities and the streamlining of procedures to start operating 
businesses.  
4.167.   The average annual grow th rate of 5% and the outstanding performance of trade 
indicators in a context of falling commodity prices are a reflection of Malaysia's sound economy 
and diversified production base coupled with robust domestic demand.  
4.168.   Trade between Colombia and Malaysia  underwent a positive development during the 
review period. Although the impact of the fall in commodity prices was certainly felt, trade in the 
agricultural and manufacturing sectors continued to grow and diversify.  
4.169.   Our economies unquestionably have room for a considerable increase in trade and 
investment flows. This is particularly true for the agricultural and agro -industrial sector, where the 
potential for increased mutual investment and sharing of experiences is considerable bearing in 
mind the strengt hs of each economy and their capacity to serve as regional platforms for 
third markets.  WT/TPR/M/366  • Malaysia  
 
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  4.170.   Colombia's foreign policy is seeking to broaden its focus and to diversify, with the 
Asian  continent in general and ASEAN in particular as priority objectives.  
4.171.   For Colo mbia, the Pacific Alliance has played an essential role in this respect: in addition to 
strengthening our ties with some of the most dynamic economies of Latin America which are 
leaders in Asia -Pacific integration, it has enabled us to operate a strategic,  comprehensive and 
forward -looking rapprochement with those markets.  
4.172.   It is in the Pacific Alliance context that we have been able to strengthen our ties with 
ASEAN in areas such as trade facilitation and the promotion of trade among small and medium 
enterprises, thus giving concrete expression to our interest in the region.  
4.173.   After examining the reports for this Review, Colombia submitted a number of questions to 
Malaysia on certain aspects that we consider worthy of attention.  
4.174.   Of particular interest is  the import licensing scheme and the number of tariff lines covered 
by requirements of this kind.  
4.175.   We also had questions regarding price control and stabilization policies with respect to 
products such as cooking oil and flour, which could affect trade perf ormance in those sectors.  
4.176.   Moreover, we wanted to take advantage of this trade policy review to discuss in more 
detail the system of free zones and the benefits available for companies established in those zones 
based on their export performance.  
4.177.   Finally, t he Secretariat report mentions that smuggling remains a concern and goes on to 
state that the Malaysian Government has introduced initiatives to mitigate the problem.  
4.178.   For Colombia, which has also been affected by smuggling and other activities associated 
with illicit trade, it would be particularly interesting to know what initiatives Malaysia and other 
WTO Members have undertaken in this area so that we can exchange experiences and strengthen 
our cooperation in the context of multilateral trade.  
4.179.   Let me conclude by wishing Malaysia and its distinguished delegation a successful 
trade  policy review.  
ARGENTINA  
4.180.   Argentina notes with great interest that over the past four years, Malaysia has experienced 
a real GDP growth rate of almost 5% annually. In 2016, the  economy grew by 4.2%. In 2017, 
improved demand from its main trading partners coupled with the international prices of Malaysia's 
export commodities pushed GDP growth up to 5.6% during the first quarter, and 5.8% in the 
second quarter.  
4.181.   For several years n ow, bilateral trade between our two countries has exceeded US$1  billion 
annually. Malaysia has become the third most important destination for Argentina's exports to the 
ASEAN countries. Its exports to Malaysia consist of manufactured products of agricultu ral origin, 
including soya flour, grain corn, soya bean oil, crude petroleum oils, and crude sunflower seed oil.  
4.182.   Argentina welcomes the actions taken by the Malaysian Government to curtail restrictions 
on foreign investment. Apart from the restrictions tha t still remain in the fisheries, energy, 
telecommunications, financial and transport sectors, the fact is that currently, there are no foreign 
equity restrictions in the capital market except for a 70% cap on investment banks. There have 
also been signific ant efforts to modernize the country's business licensing system and to review 
the sectoral regulations in an attempt to reduce the unnecessary regulatory burdens on business.  
4.183.   We note that during the review period, Malaysia ratified the Trade Facilitation Agreement 
(TFA) and notified that it designated practically all provisions under Category A.  Meanwhile, 
Malaysia continues to perform well in the international rankings on ease of trading across borders.  WT/TPR/M/366  • Malaysia  
 
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  4.184.   Another positive development is the progress made by  the Malaysian Department of 
Standards, which has managed to reduce the number of Malaysian standards from 6,381 to 5,284 
over the past five years. In 2017, 60% of Malaysian standards had been aligned with international 
standards, up slightly from 59.8% in  2014.  
4.185.   We would like to highlight Malaysia's efforts to promote the development and the creation 
of a proper regulatory framework for MSMEs, in particular the SME Masterplan 2012 -2020 aimed, 
among other things, at raising the SMEs' contribution to GDP as w ell as their share in the country's 
employment and total exports. The challenges facing the SMEs in Malaysia (access to financing, 
increased exports, regulatory framework) are shared by many WTO Members.  
4.186.   Argentina is closely monitoring the imposition of sp ecific duties on certain agricultural 
products and tariff quotas on products such as chicken, milk and meat. In connection with this 
Review, we submitted questions relating to the trade and investment regime, export incentives 
and subsidies on liquefied pe troleum gas. The replies to these questions will be carefully examined 
by our authorities.  
4.187.   Lastly, we not only reiterate our appreciation of this renewed opportunity to exchange 
information and comments on Malaysia's trade policies and practices, but also draw attention, 
once again, to the importance of this exercise in transparency from every point of view. We wish 
the Malaysian authorities every success in this review.  
BRAZIL  
4.188.   With sound fiscal and monetary pol icies, Malaysia has experienced a robust econo mic 
performance since its last TPR, with an impressive average annual growth of 5% between 2013 
and 2017. It can also be noted that the country benefits from a diverse economic basis. Under 
these conditions, the ambitious goals set in the "Vision 2020 " plan should be mostly achieved by 
Malaysia at the end of this decade.  
4.189.   International trade has contributed to the strong performance of the Malaysian economy. 
Liberalization efforts, including within the framework of ASEAN initiatives, have supported 
economic growth by facilitating the integration into global and regional value chains. Strengthened 
regional integration will undoubtedly generate additional benefits for the country; and so will the 
implementation of the Trade Facilitation Agreement and additional  improvements to the regulatory 
environment.  
4.190.   Now, turning to our bilateral relations: our strong commercial ties provide a solid basis for 
an enhanced partnership. Brazilian companies have important investments in Malaysia, in areas 
such as mining, constru ction services and meat processing. Brazil is Malaysia 's largest trading 
partner in Latin America; likewise, Malaysia is Brazil 's largest market among ASEAN countries. The 
bilateral trade flow amounted to US$3.92 billion in 2017, covering a range of produc ts from iron 
ore and sugar to automotive and microprocessors.  
4.191.   On the agricultural front, there are significant imports originating in Brazil in products such 
as sugar, corn, beef and poultry. However, Brazil would welcome further improvements regarding 
additional transparency and increased timeliness in the approval processes of foreign meat -
exporting establishments. The precise roles of the Department of Veterinary Services (DVS) and 
the Department of Islamic Development (JAKIM) in these processes could be nefit from further 
clarification as well. In particular, exports to the Sabah and Sarawak regions have opaque local 
requirements, resulting in obstacles to establishments interested in exporting to those regions. 
Procedures for the certification of halal p roducts should also be completed without undue delays.  
4.192.   We look forward to build upon our solid bilateral trade and investment foundations. Brazil 
will continue to attach priority to our close dialogue with Malaysian trade authorities on topics of 
mutual interest. In this context, Brazil also welcomes the MERCOSUR -ASEAN Ministerial Meeting 
held in New York last September, when Ministers agreed to further enhance economic relations 
between the two blocs.  WT/TPR/M/366  • Malaysia  
 
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  4.193.   We have submitted questions on measures related to SP S requirements, intellectual 
property rights, trade in services and e -commerce. We thank the Malaysian delegation for the 
answers provided, which will be conveyed to our capital.  
4.194.   Let me conclude by wishing the Malaysian delegation a very successful Trade P olicy 
Review.  
INDONESIA  
4.195.   Indonesia associates itself with the ASEAN statement made by Brunei Darussalam.  
4.196.   Indonesia applauds Malaysia for the good performance of its economy since the last 
review. As stated by ASEAN, real GDP growth has been strong, and the Malaysian economy 
demonstrated well it 's resilient towards external and internal shocks. Trade policy formulation has 
been efficiently conducted, as Malaysia attained good and services export expansion with no major 
changes to the legal and institutional f ramework in areas of trade and trade related aspects. 
Indonesia also commends the Malaysian Government for the significant structural reforms in 
improving all economy sectors including custom procedure, with all TFA provision notified under 
Category A, and  for simplifying taxation regime, as well as liberalizing 18 services sectors. 
However, the financial sector remains restricted.  
4.197.   In the last five years, in the period between 2012 and 2016, which covers the majority of 
time-frame for this review period, Ma laysia and Indonesia have been enjoying a good bilateral 
trade relationship. Average yearly trade within that five year period reached over US$19 billion, 
with trade surplus to Malaysia 's advantage.  
4.198.   This promising figure is, however, only being matched by unsustainable negative growth in 
bilateral trade. That is, over the same five year period from 2012 to 2016, average growth of 
bilateral trade value recorded a negative 11.27% growth per year.  
4.199.   Hence, Indonesia encourages Malaysia to work together with Indo nesia to deepen the 
scope of our existing trade relations; to cover new grounds and additional sectors in our bilateral 
trade activities, so as to reinvigorate positive trade growth performance. And let us benefit from 
the ASEAN and WTO rules -of-the-game i n exploring possible ways to embark on such a mutually 
beneficial quest.  
4.200.   We have addressed various concerns in our written questions, on issues related to tariffs, 
standards, IPR, and investment policy among others. We look forward to follow -up on the answ ers 
to our advanced written questions. For this, the Indonesian delegation will be in touch with the 
Geneva -based Malaysian delegation.  
4.201.   Lastly, Indonesia wishes much success to Malaysia in this seventh Trade Policy Review.  
THAILAND  
4.202.   In starting off, Thailand would like to associate ourselves with ASEAN 's statement delivered 
by Brunei Darussalam.  
4.203.   Thailand and Malaysia have maintained the close and strong bonds of the long -existing 
bilateral relations based on good understanding of each other. Last year  we celebrated the sixtieth 
Anniversary of the establishment of Thailand -Malaysia diplomatic relations.  
4.204.   Malaysia and Thailand have worked cooperatively at different levels and in different areas. 
In addition to ASEAN FTA and ASEAN Plus FTAs, both sides est ablished Joint Commission in 1987, 
Joint Trade Committee in 2000, and Thailand -Malaysia Committee on Joint Development Strategy 
for Border Areas in 2004. These partnerships have contributed not only to our two countries but 
also to the sustainable prosperi ty in ASEAN.  
4.205.   In view of bilateral trade, Malaysia has been Thailand 's fourth largest trading partner in the 
world and number one trading partner within ASEAN, which is a testament to the strong economic 
ties between both sides. In 2017, total trade between  the two countries amounted to over WT/TPR/M/366  • Malaysia  
 
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  US$22  billion increasing by 8% from 2016. Malaysia was Thailand 's seventh largest export 
destination, with total exports of US$10.3 billion, and the fourth largest supplying market, with 
total imports of US$11.8 billion.  Major exports and imports of the two countries are led by 
electrical machineries, automobiles, rubber, mineral fuel, and plastics.  
4.206.   We acknowledge the outstanding economic growth of Malaysia since its last trade policy 
review. The average GDP growth of 5% during the past four years put Malaysia among the fastest 
growing economies. The accelerated growth has been fuelled by domestic demand, diversified 
production and export base, flexible exchange rate, responsive macroeconomic policies, and strong 
financial  markets.  
4.207.   Malaysia has been an active Member of the WTO both in the regular work and in various 
negotiations. It was the fifth Member to ratify the Trade Facilitation Agreement in 2015, and it was 
one of the leading parties of ITA Expansion that implemente d tariff commitments and submitted a 
modification to its Schedule of Concessions by the agreed timelines in 2016. In addition, at the 
eleventh Ministerial Conference, Malaysia showed significant contribution to the discussions on 
Micro, Small, Medium Enter prises, E -Commerce and Investment Facilitation.  
4.208.   Thailand commends Malaysia 's continuous efforts in modernizing trade policies and 
promoting trade facilitation. For instance, the Government has continued to relax foreign 
investment restrictions, renovate bu siness licensing system, and align its standards with 
international ones. Malaysia 's ease of trading across borders remains highly ranked in international 
comparisons.  
4.209.   In this review, Thailand submitted a number of questions to Malaysia, covering the polic ies 
and measures of our interests such as import licensing, customs valuation, tariff quotas of 
agricultural products, the Draft National SME Development Bill 2016, the Performance 
Management and Delivery Unit, the National Policy on Biological Diversity 2 016-2025, and 
Malaysia Productivity Blueprint. We would like to thank Malaysia for the timely responses to our 
questions and will study them in detail with great interest.  
4.210.   In conclusion, Thailand would like to express our appreciation to Malaysia for the 
cooperation in every level and the friendly working relationship between our two Missions here in 
Geneva. We wish Malaysia every success in this Trade Policy Review.  
INDIA  
4.211.   Malaysia is a middle -income count ry with a diversified economy. During the period under 
review the real GDP growth of Malaysi a averaged around 5% annually. The growth was driven by 
domestic demand which is reflected in the buoyancy of the cons truction and services sectors. 
However, in contrast the agriculture sector contracted while the  mining and quarrying se ctor grew 
at a declining rate. The challenges for the Malaysian economy include a number of external and 
domestic factors. These include fall in global commodity prices, volatility of financial marke ts and 
weaker external demand. On the domestic front the risks are high government and household debt 
as well as certain vulnerabilities in the corporate sector.   
4.212.   We commend the Government of Malaysia for the measures undertaken with the objective 
of achieving high income country status by accelerating growth and labour productivity.  The 
Vision -2020 and the 11th Malaysian Plan has identified several goals and thrust areas which 
include enhancing inclusiveness, improving wellbeing, human capital development and  
strengthening infrastructure . Malaysia has also prepared a productivity blueprint in 2017 to 
address issues related to productivity and growth in  emerging areas in the future. The Government 
is also pursuing several innovative measures for promotion of investments and attracting fore ign 
direct investment.   
4.213.   India and Malaysia share close, warm and cordial relations.  In recent years there have 
been regular high -level exchanges between both countries with establishment of an e nhanced 
strategic partnership. Trade and economic ties are a  key pil lar of our bilateral relations.  Malaysia is 
India's third largest partner in ASEAN and India is Malaysia 's largest trading partner in South Asia.  
Trade between both countries ha s been growing and stood at US$11.72 billion in 2016 and 
US$13.12 bill ion for the peri od from January -November 2017. The India -Malaysia Comprehensive WT/TPR/M/366  • Malaysia  
 
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  Economic Cooperation Agreement covering goods, services, investment and other areas came into 
force on 1 July  2011 giving a boost t o our economic and trade ties. Both countries  also have a 
broadband institutional arrangement in place to strengthen economic ties.  
4.214.   Investments between both countries have also continued to grow in recent years.  There 
are several Malaysian investments in India mainly in the areas of roads and highw ays, 
telecommunications, power, oi l and gas and tourism sectors. Indian companies have also invested 
in Malaysia in areas like chemicals and chemical products, machinery and metals, transport 
technology, information technol ogy, education and healthcare.  
4.215.   Under the Look East Policy, India attaches great importance to its multifaceted and special 
relations with the ASEAN countries. Recently at the ASEAN -India Commemorative Summit in the 
Delhi Declaration our leaders highlighted the need to further strengthen A SEAN -India economic 
relations including through the full utilization an effective implementation of ASEAN -India Free 
Trade Area.  
4.216.   We had posed a number of questions to Malaysia for the TPR and are thankful for the 
responses, which would b e reviewed by our authorities. However, I wish to highlight some specific 
concerns which are undermining t he potential of our trade ties.  The stringent SPS measures 
applied by Malaysia sometimes not harmonised with CODEX and without scientific basis or risk 
assessment affec t the trade of food and agr icultural products from India. Greater cooperation 
between both countries for mutual recognition of qualifications and procedures for movement of 
natural persons is also an area which will boost our services trade. Another long -standing issue 
has been the cumbersome procedure for inspection of meat processing plants in India for export to 
Malaysia.  We hope the Malaysian authorities will look into these issues.     
4.217.   To conclude, we look forward to working closely with the authoriti es of Malaysia for further 
expanding and harnessing the potential of our trade and inves tment ties for mutual benefit. We 
wish the delegation of Malaysia a productive and successful TPR.  
JAPAN  
4.218.   Needless to say, Malaysia is one of the most important and clos est economic partners for 
Japan in Southeast Asia. Japan has continued to be one of the largest trade partners for Malaysia.  
4.219.   Our strong ties go beyond economic relations. Japan and Thailand have been developing a 
close cooperative relationship based on our  long history of cultural, personal and economic 
exchange. For example, according to the recent report, Malaysia was ranked first for Japanese 
people to want to stay long term. It is our sincere hope to further develop these strong ties 
between us.  
4.220.   The rep ort by the Secretariat notes that Malaysia 's economy is going well. The real GDP 
growth averaged nearly 5% annually, and is expected to be in excess of 5% in 2017. This resilient 
economic growth is mainly lead by strong domestic demand, the diversified pro duction and export 
base and sound macroeconomic policies, which we commend.  
4.221.   The Government of Malaysia has been implementing the 11th Malaysia Plan which aims to 
transform Malaysia into a productivity -driven and knowledge -based economy. From our 
understanding, the main target of this plan is reform of labor market. For example, increasing the 
female participation to the labor market is one of the important issues in this regard. Similar to 
Malaysia, Japan is now tackling work style reforms to help female and elderly workforce play more 
active roles in labor market. We believe that there are quite a few things we can learn each other 
in this area.  
4.222.   Before concluding, Japan would like to make a brief comment on a specific issue related to 
your foreign exchange administration rules.  
4.223.   As far as we understand, the Bank Negara issued a notice on December 2016, in which 
exporters are obliged to re convert at least 75% of their export earnings to ringgit. As the 
Government of Malaysia is well aware, there are many Japanese manufacturing companies which 
export their products, and the effect of this rule is significant. We heard that interpretation of this WT/TPR/M/366  • Malaysia  
 
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  rule is sometimes unclear by each bank. Japan would like to request the Government of Malaysia 
and the Bank Negara to provide clear explanation of this rule with our companies in Malaysia, at 
their requests.  
4.224.   In conclusion, I would like to express our strong wish for continued cooperation between 
Malaysia and Japan. We wish Malaysia a successful and fruitful TPR.  
KINGDOM  OF SAUDI  ARABIA  
4.225.   Despite the external and domestic challenges during the period of review, the Malaysian 
economy remained resilient; su stained by responsive macroeconomic policies; diversified 
production and export base, and strong financial markets. Malaysia is one of the most open 
economies in the world, with an Average annual real GDP growth of 5% in 2017.  
4.226.   Malaysia is to be commended for its Long -term economic policy set out in Vision 2020 
which includes the objective of carrying out key economic reforms and accelerating the country 's 
transition to high -income status. In addition, the Eleventh Malaysia Plan and other sectoral plans, 
such as the National Agrofood Policy 2011 -20 and the National Commodity Policy 2011 -20, confirm 
the importance of productivity, innovation, and trade in achieving economic growth.  
4.227.   The Kingdom of Saudi Arabia is happy to congratulate Malaysia for undertaking important 
trade and investment -related reforms such as the new Companies Act, the introduction of the 
goods and services tax, the aviation Act and reforms in financial services sector.  
4.228.   The Malaysian G overnment has been making efforts to modernize Malaysia 's business 
licensing system and to continue relaxing foreign investment restrictions. In 2017 's ease of doing 
business global rankings of the World Bank, Malaysia is ranked 24, maintaining its fourth place in 
Asia. 
4.229.   Malaysia and Saudi Arabia enjoy a brothe rly and substantive relationship, underpinned by 
commercial ties and supported by shared membership in the Organization of the Islamic 
Conference. Trade with Malaysia has increased dramatically in recent decades. The total bilateral 
trade surpassed US$3.5 billion in 2017. During the visit of the Custodian of the Two Holy Mosques, 
King Salman bin Abdul -Aziz to Malaysia in February 2017, several Memorandum of Understandings 
were signed between Malaysian and Saudi companies, covering areas such as construction , halal 
cooperation, aerospace and pilgrimage services.  
4.230.   The Kingdom of Saudi Arabia has submitted some questions to Malaysia about some of its 
reform plans, foreign trade, customs and taxation system. We thank Malaysia for answering these 
questions.  
4.231.   The Ki ngdom of Saudi Arabia believes the multilateral trading system is a key element for 
global development. We welcome Malaysia 's continued leadership with the example of its own 
economic development an d in the multilateral context.  
4.232.   I wish the Malaysian delega tion a very successful Trade Po licy Review.  
CANADA  
4.233.   Canada congratulates Malaysia on its trade performance improvements during the review 
period despite challenges, including uncertainty in global markets, weak aggregate demand, low 
commodity prices and vol atility in major financial ma rkets. The recent December 2017 IMF Article 
IV visit to Malaysia confirms that the Malaysian economy has shown resilience in recent years and 
continues to perform well. In November 2016, the OECD published its first Economic As sessment 
of Malaysia, which affirms that Malaysia is one of the most successful Southeast Asian economies 
and, is well positioned for future growth thanks to sound macroeconomic fundamentals and its 
success in transforming its economy into a well -diversifi ed and inclusive one. It is evident that 
Malaysia 's trade policy is aimed at creating a free and fair trading environment with a vision to 
make the country one of the most competitive trading nations by 2020.   WT/TPR/M/366  • Malaysia  
 
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  4.234.   This vision is demonstrated by Malaysia 's active participation at the WTO. Malaysia played 
a constructive role at MC11, endorsing the Buenos Aires Declaration on Women and Trade and 
signing on to joint statements on electronic commerce, investment facilitation and a work program 
for MSMEs. In this sp irit, Canada encourages Malaysia to engage similarly in upcoming work on 
services domestic regulation. We look forward to working with Malaysia to build a positive forward 
agenda for the WTO.  
4.235.   Canada commends Malaysia for its timely ratification of the Agre ement on Trade 
Facilitation. Canada has taken note of its recent notification of Category B commitments and 
congratulates  Malaysia for implementing the vast majority of the TFA upon entry into force. 
Canada encourages Malaysia to provide WTO Members with i ts transparency notifications as well 
as its definitive dates for Category B provisions as soon as possible.  
4.236.   Canada notes that Malaysia has recently submitted its notification to the WTO in the area 
of customs valuation. Canada encourages Malaysia to submi t its outstanding notifications in a 
timely manner, including in the areas of quantitative restrictions and domestic support for 
agriculture. Meeting transparency obligations is fundamental to the multilateral trading system, 
because provides WTO Members w ith an accurate and informed understanding of their partners ' 
trade policies and practises, which in turn promotes trading opportunities and  supports trade 
negotiations.  
4.237.   With this in mind, Canada positively notes Malaysia 's use of the alternative timelines  in 
their Trade Policy Review. This contributes to enhancing transparency and the overall usefulness of 
the trade policy review process and we encourage all Members to adopt this practice.  
4.238.   Regionally, Canada thanks Malaysia for its collaboration and pragma tic approach to 
concluding CPTPP negotiations and looks forward to signing the agreement with Malaysia and other 
CPTPP countries at the beginning of March. Canada also looks forward to exploring how best to 
further deepen the Canada -Malaysia trade and inve stment relationship as part of the exploratory 
discussions between Canada and ASEAN.  
4.239.   I wish the delegation from Malaysia a successful review, and I anticipate a constructive 
exchange of views on all aspects of Malaysia 's trade policy.  
REPUBLIC  OF KOREA  
4.240.   I am pleased that Korea and Malaysia have enjoyed an excellent bilateral relationship over 
the years. Bilateral trade volume between our two countries reached to US$15 billion and Korea 
was 7th largest trading partner of Malaysia last year. With the investmen t made by more than 
110 Korean companies including Samsung Electronics, Hyundai Motor Company, SK Network, 
POSCO, Korea is the 5th largest foreign investor in Malaysia last year.  
4.241.   Our economic relationship has been further enhanced since the entry into for ce of the FTA 
in goods between Korean and the ASEAN in 2007, FTA in Services and Investment in 2009.  
4.242.   We note that Malaysian economy has achieved steady growth and remained resilient 
despite the challenging global economic environment since its previous TP R in 2014. It is 
noteworthy that Malaysia 's diverse economic base and general openness to trade helped economy 
to continue to grow through difficult times as the Secretariat 's Report pointed out.  
4.243.   We also commend Malaysia for its active participation in WT O activities. We appreciate that 
Malaysia ratified the Trade Facilitation Agreement (TFA) in 2015. During the review period, 
Malaysia also ratified the Protocol Amending the TRIPS Agreement. We also note that Malaysia is a 
participant in the WTO Informatio n Technology Agreement (ITA).  
4.244.   Malaysia continues to pursue trade liberalization through regional trade agreements. 
During the review period, two new RTAs entered into force: ASEAN - India FTA in services, and 
Malaysia – Turkey FTA. On December 2015, the f irst phase of the ASEAN Economic Community 
(AEC) Blueprint 2015 was completed.  WT/TPR/M/366  • Malaysia  
 
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  4.245.   While it is fair to highlight Malaysia 's relatively liberal foreign investment regime and ease 
of doing business, I would like to take this opportunity to point out a concern re garding Malaysia 's 
commitment in trade agreements.  
4.246.   As reported in the last Review, 27 sub -sectors of services were liberalized for foreign 
participation up to 100% in 2009. A further 18 service sector were liberalized in 2012. I commend 
that this is meani ngful policy to liberalize services and investment for foreign investors, yet most 
of these services and investment liberalizations have not been committed in Malaysia ' RTAs 
including Korea -ASEAN FTA.  
4.247.   We are of the view that commitments of the liberalized services and investment to 
international agreements would further substantially enhance the predictability and stability of 
business environment for foreign investor, which would lead to increase of foreign investments to 
Malaysia.  
4.248.   At this TPR, Korea submi tted advance written questions on the Malaysia 's practice on 
anti-dumping investigation determining the duties on raw -materials which is not available from 
local producers and components used in the manufacture of goods for re -export, which should be 
excluded for anti -dumping duty.  
4.249.   We thank the delegation of Malaysia for providing answers to those questions, w hich we 
will review carefully.  
4.250.   Korea is pleased to note the steps Malaysia has taken since the last review to make the 
overall trading environment mor e efficient and we certainly encourage Malaysia to continue in the 
direction of facilitating trade, increasing investment, strengthening administrative capacity and 
enhancing the overall economic environment in a sustainable way.  
4.251.   Korea looks forward to wo rking with Malaysia to enhance opportunities for trade and 
investment, and hence promote the mutually beneficial economic cooperation between Korea and 
Malaysia.  
4.252.   In closing, we would like to express once again appreciation to the delegation of Malaysia 
for their hard work and wish them every success in this TPR.  
CHINA  
4.253.   We are pleased to learn the pro gress made by Malaysia during the period under review. 
We have noted a positive momentum of Malaysia 's economic growth despite external 
uncertainties, and its in tegration into the world economy continued to be reflected by the high 
ratio of its trade in goods and services to GDP, equivalent to about 130%. We appreciate 
Malaysia 's willingness to better integrate into the Global Value Chains and develop commercial t ies 
with new market. We also commend Malaysia 's emphasis of policy framework and unremitting 
efforts to implementation. With Malaysia 's continuous commitment, we have reason to believe that 
more progress will be made and the goal of achieving a high income  nation by 2020 will be 
fulfilled.  
4.254.   Malaysia is an active Member of the WTO and other international Organizations and 
forums, such as APEC. We commend Malaysia 's position as a strong advocate of the multilateral 
trading system. Malaysia also plays an import ant role in regional economic cooperation, such as 
ASEAN, and always commits to engage with all its dialogue partners actively.  
4.255.   China and Malaysia enjoy a long history of partnership in various fields, as stated in 
Malaysia 's Government report. China is Ma laysia 's second largest export market. In 2017, bilateral 
trade volume increased by 10.5% with a total amount of US$96 billion. The China -ASEAN FTA was 
upgraded in 2015 with a view to further enhancing economic cooperation. Last year, China and 
Malaysia si gned an MOU on Promoting Mutual Economic Development through the Belt and Road 
Initiative, which is expected to create and expand more business opportunities.  
4.256.   To further enhance the partnership between China and Malaysia, we would like to propose 
some sugg estions.  WT/TPR/M/366  • Malaysia  
 
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  4.257.   Firstly, strengthen cooperation on the renewed work of Five -Year Planning for 
China -Malaysia Trade and Economic Cooperation (2018 -2022), to promote bilateral economic and 
trade relations.  
4.258.   Secondly, deepen the cooperation and development of China -Malaysia Qinzhou Industrial 
Park and Malaysia -China Kuantan Industrial Park. These two industrial parks have been on the 
track of regulated mechanism, both governments support to implement policies and carry out 
investment project, with the aim of making th e "two countries and two parks " a demonstration 
park for China -Malaysia and China -ASEAN capacity cooperation.  
4.259.   Last but not least, we noted with concern that the number of definitive anti -dumping 
measures imposed by Malaysia remains an increasing trend sinc e the year 2014, imports from 
9 Members were thus affected including China. We hope that Malaysia impose trade remedy 
measures in a prudential manner, and abide by the WTO rules. China would like to make joint 
efforts with Malaysia to resolve trade frictio ns through dialogue and cooperation.  
4.260.   Finally, I wish this Trade Policy Review a great success.  
THE PHILIPPINES  
4.261.   The Philippines associates itself with the ASEAN Statement delivered by H.E Dato Mahdi 
Rahman recognizing Malaysia as a key trading partner of AS EAN Member States.  
4.262.   Malaysia ranks as the Philippines ' 3rd major trading partner in ASEAN and 10th trading 
partner in the world. It is the Philippines ' 11th export market and 9th import supplier in 2016, with 
total b ilateral trade amounting to US$ 4.6 billi on. It is also the Philippines ' 17th major source of 
foreign direct investments.  
4.263.   As a testament to the commitment to further strengthen the economic relationship 
between the Philippines and Malaysia, the Department of Trade and  Industry of the Philippines  
re-opened the Philippine Trade and Investment Center in Kuala Lumpur in December 2016.  
4.264.   It is worth noting that Malaysia 's economy is well integrated into regional and global value 
chains, thus, trade is vital to its growth and economic development. As sta ted in the WTO 
Secretariat 's report, Malaysia 's diverse economic base and general openness to trade helped the 
economy to continue to grow through a difficult period caused by low commodity prices which 
affected several sectors, particularly petroleum, gas , and palm oil.  
4.265.   The Philippines recognizes the importance of the 11th Malaysia Plan 2016 -2020 (11MP) 
which has identified small and medium enterprises as one of the target areas to be promoted to 
accelerate the growth of Malaysia 's new wave of exports. The  Philippines also appreciates the SME 
Masterplan 2012 -2020 to create Malaysia 's globally competitive SMEs.  
4.266.   In APEC, Malaysia co -led with the Philippines the project which integrates SME automotive 
suppliers into the original equipment manufacturer (OEM) gl obal value chains, and the GVC -SME 
Automotive Sector project which is a multi -year and 2 -phase project to be completed in 2019. It 
also contributed to the APEC SME O2O Initiative, which intends to facilitate the growth of SMEs 
through online -to-offline bus iness models.  
4.267.   The Philippines and Malaysia are among the first Members to support the Friends of MSMEs 
Group in the WTO recognizing the important role of Micro, Small and Medium Enterprises in 
achieving inclusive growth and sustainable development. The Gr oup, which is now c omposed of 
88 Members, aims to convene an informal working group on MSMEs at the WTO to address 
obstacles related to MSMEs participation in international trade.  
4.268.   The Philippines appreciates Malaysia 's support during our ASEAN Chairmanship  last year 
and we look forward to further strengthening the economic relations between our two countries 
through bilateral, regional, and multilateral fora.  
4.269.   In closing, the Philippines congratulates Malaysia 's Secretary General of the Ministry of 
International Trade and Industry, H.E. Datuk Seri Javasiri Jayasena, his delegation from Kuala WT/TPR/M/366  • Malaysia  
 
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  Lumpur, and their Mission in Geneva, particularly Ms. Fadzilah Abu Hasan and Mr. Salihin Mustafa, 
for Malaysia 's 7th trade  policy review. We also thank Ambassador Claudio de la Puente of Peru for 
his insightful comments as discussant, and the Secretariat for a comprehensive report.  
VIET  NAM 
4.270.   We would like to associate ourselves with the ASEAN joint statement to be delivered by  
Brunei Darussalam.  
4.271.   It is encouraging to know that Malaysia 's GDP growth has recorded nearly 5 % on average 
for the past four years. Particularly, improvement is witnessed in Malaysia 's trade performance 
despite uncertainty in the global market, weak demand , and low commodity prices.  
4.272.   Since Viet Nam and Malaysia upgraded our relations to a strategic partnership in 2015, 
bilateral trade has brought about positive results. In 2017, the two -way trade reached US$10.07 
billion, up 19.08 % compared to 2016. Of the t otal, Viet Nam 's export to Malaysia recorded 
US$4.2  billion, a year -on-year increase of 25.9 %. Import from Malaysia rose by 13.3 % year-on-
year to US$5.8 billion.  
4.273.   Viet Nam 's major export products to Malaysia are computers, electronic products and 
component s, mobile phones and components, crude oil and iron and steel. Viet Nam imported 
mainly petroleum, computers, electronic products and components and machines and spare parts.  
4.274.   With regard to investment, Malaysia is among Viet Nam 's top ten investors , out o f 
125 countries and regions having investment into our country, with a total registered capital of 
US$12.18 billion.  
4.275.   Viet Nam and Malaysia are strategic partners. We are making efforts to promote further 
our trade relationship. In this regard, continuous exchange of information on import and export 
policy and product quality control is highly appreciated. Cooperation and  experience sharing in 
developing production linkage model are also welcome.  
4.276.   I would like to conclude by putting on record our high appreciation for the constructive 
engagement and commitment to the multilateral trading system. Viet Nam wishes Malaysia ev ery 
success in its economic and social development and the Malaysian Delegation a fruitful trade policy 
review.  
MYANMAR  
4.277.   Myanmar strongly supports the WTO 's TPR mechanism which aims at enhancing 
transparency and understanding of the Member 's trading system in a comprehensive approach. It 
is also a great pleasure for us to associate ourselves with the statement delivered on behalf of 
ASEAN.  
4.278.   Myanmar and Malaysia are closely working together not only in the WTO 's multilateral 
trading system but also in regional  trade agendas including ASEAN and ASEAN plus. In terms of 
bilateral  relationship, Myanmar and Malaysia established the diplomatic relations in 1958. The two 
countries signed bilateral trade agreement on 9 June 1998.  
4.279.   According to our record, the two -way trade between Myanmar and Malaysia reached over 
US$980 million in 2016 -2017 Fiscal Year. Our major export products to Malaysia are raw rubber, 
mining products, clothes, pulses and beans, fishery products, and teak wood. Our major import 
products from Malay sia are petroleum products, palm oil, vegetable oil, plastic products, machine 
and machinery products, chemical products, iron and steel products.  
4.280.   Based on the Secretariat report, I would like to bring out some points on the progressive 
trade regime of Mal aysia. The real GDP of Malaysia has increased nearly 5% in average despite a 
number of external and domestic shocks during this review period.  
4.281.   The merchandise trade volume of Malaysia was US$357.8 billion in 2016 and there was 
trade surplus about US$21 bil lion in 2016. This trade performance of Malaysia is remarkable WT/TPR/M/366  • Malaysia  
 
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  although there were some changes to the structure of trade in goods. With a well -integrated and 
mature financial sector, this sector contributed 6.4% to GDP in 2016.  
4.282.   Since 2014, Malaysia has un dertaken no major changes to the institutions responsible for 
trade policy formulation. In areas of trade and investment regulations, Malaysia enacted new laws 
including the Companies Act, the Malaysia Aviation Commission Act, and amendments to the Food 
Regulations. During the review period, there have been no major changes in the Competition 
Policy and Intellectual Property Right (IPR) regime.  
4.283.   In terms of trade policy, the tariff is the main trade policy instrument and the average 
applied MFN tariff is 7.5 % in 2017. Export duties range from 5% to 30% and apply tariff lines 
mainly for crude oil, palm oil and wood. Export prohibitions and licensing requirements are 
regulated under the Customs Order 2017 which entered into force in April 2017.  
4.284.   Malaysia still h as restrictions on foreign investment in areas of fisheries, energy, 
telecommunications, finance, and transport services although relaxation on foreign investment 
restrictions has been continued by the Government.  
4.285.   We also noted that Malaysia notified to th e WTO that Padiberas Nasional Berhad (BERNAS) 
acts as a state trading enterprise for rice importation. BERNAS is the only company permitted to 
import rice into Malaysia and its exclusive right on ice importatio n was extended until 
10 January  2021. In addit ion, the Secretariat report showed that State involvement in the 
economy is considerable with government -linked investment companies.  
4.286.   We learned that Malaysia 's diverse economic base and general openness to trade helped 
the economy to continue to grow thro ugh a difficult period. We also well observed that Malaysia 
has long term economic policy with vision 2020 aiming at becoming high -income country status by 
2020.  
4.287.   Malaysia is actively playing in both regional and multilateral trading system. We want to 
see continuous and effective support of Malaysia to the WTO, especially in strengthening its 
rules-based trading system, enforcing global trade rules, and bringing the current WTO 's trade 
negotiation forward.  
4.288.   The delegation  of Myanmar is pleased to convey our sincere appreciation to H.E. Datuk 
Seri Jayasiri Jayasena, head of the delegation and his team for their constructive engagement 
throughout this TPR.  
4.289.   In conclusion, we wish the delegation of Malaysia every success in their 7th Trade Policy 
Review.  
SRI LANK A 
4.290.   During the review period, we note that Malaysia has made a moderate progress in 
reinstating its macroeconomic stability. Diverse economic base and general openness to trade are 
the two major factors that helped the economy to continue to grow through the  challenging period. 
Pragmatic government policies have also contributed this growth. We believe the comprehensive 
reform agenda to transform Malaysia into a productivity -driven and knowledge -based economy as 
laid down in the '11th Malaysia Plan ', would im mensely contribute in achieving the objective of 
high-income country status by 2020. We note with interest that Malaysia is one of the countries 
listed in the top of 'HS product diversification index '. 
4.291.   It is noteworthy that Malaysia 's ease of trading acros s borders which is also internationally 
well recognized. It remains top ranked in international comparisons in ease of trading across 
borders. Reaffirming this fact, Malaysia submitted its notification under the TFA, designating all 
provisions under catego ry-A except two provisions on Expedited Shipments and Advance filing and 
processing of transit documentation and data prior to the arrival of goods. Reiterating Malaysia 's 
commitment to the multilateral trading system, it became an early member of the TFA as the fifth 
country to deposit the instrument of ratification. We take this opportunity to recognize the role 
played by former Malaysian Ambassador to WTO, chairing the preparatory committee for Trade 
Facilitation.  WT/TPR/M/366  • Malaysia  
 
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  4.292.   Despite the low share in total tax reve nue to the GDP, we note that tariff is the main trade 
policy instrument for Malaysia. We also note that more than 50% of the tariff lines remain Zero. 
However, we observe the increase of average applied MFN tariff from 5.6% in 2013 to 7.5% in 
2017.  
4.293.   Let me  briefly reflect on the bilateral trade and other economic, political and religious 
relations between two countries. Although the two way trade between two countries does not 
demonstrate a persistent pattern, Malaysia continues to enjoy a  greater trade sur plus with 
Sri Lanka with export of diverse range of products. Sri Lanka 's export to Malaysia dominates by 
apparels with a share of nearly 20%, followed by edible preparations, Ceylon tea, crepe rubber 
and wheat flour. Sri Lanka imports petrol and crude oil , Palm oil, wooden and plastic articles from 
Malaysia.  
4.294.   Malaysia remains one of the largest investors in Sri Lanka, particularly in the 
telecommunication sector. The joint commission established in 2006 between the two countries 
also focuses on issues of mu tual interest especially on economic and commercial matters, technical 
and scientific co -operation and in areas such as tourism, culture, sports, immigration and human 
resources development. During joint venture negotiations, Malaysian investors were also invited to 
invest in high sea fishing and aquaculture as well as in port development and in power projects 
utilising biomass.  
4.295.   Malaysia and Sri Lanka as two friendly nations also share traditional cultural relations with 
each other that come from ancestor links. Population of Malaysian origin in S ri Lanka represents 
around 0.2%  while more than 30,000 Sri Lankans live in Malaysia. Last year the two friendly 
nations celebrated 60 -years of our diplomatic relations.  
4.296.   In concluding, my delegation appreciates Malaysia 's valued contribution to the multilateral 
trading system and its active engagement in the negotiations in the WTO. We also appreciate 
active contribution made by the Geneva based delegation of Malaysia in the WTL deliberations. We 
sincerely wish t he delegation of Malaysia a successful conclusion of its 7th Trade Policy Review.  
KYRGYZ  REPUBLIC  
4.297.   Since the beginning of its  Membership to the WTO, Malaysia has demonstrated highest 
dedication to WTO rules and as it has been said in the TPR of 2014, has co nvincingly shown its 
commitment to trade liberalization under the multilateral trading system centered on the WTO.  
4.298.   Among many other successful steps on the WTO platform are the Acceptance of Trade 
Facilitation Agreement and the Protocol Amending the TRIPS Agreement.  
4.299.   The diplomatic relations between the Kyrgyz Republic and Malaysia were established in 
1992. For the period of trade and economic relations, Malaysia became a reliable trading partner 
for the Kyrgyz Republic.  
4.300.   Regular official visits of high deleg ations of both countries on a mutual basis have created 
favourable conditions for discussions strengthening the potential of trade and investment 
cooperation between the two countries.  
4.301.   Our countries have discussed a wide range of issues on further expansio n of cooperation 
between the Kyrgyz Republic and Malaysia, where the Malaysian participants were informed about 
trade and economic opportunities of the Kyrgyz Republic, as well as actual issues of regional and 
international issues of mutual interest.  
4.302.   Our c ountries have established beneficial trade. For the last decade, Malaysia was mainly 
exporting specialized machinery, different types of oil, electrical appliances, and coffee and other 
goods items to the Kyrgyz Republic.  
4.303.   The Kyrgyz Republic and Malaysia h ave potential for further strengthening cooperation in 
trade of goods as well as trade in services.  WT/TPR/M/366  • Malaysia  
 
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  4.304.   During the last visit of the Minister of Foreign Affairs of Malaysia, H.E. Anif Aman with the 
President of the Kyrgyz Republic, the countries agreed to impl ement the potential of the relations 
and further activation of ties.  
4.305.   The Kyrgyz Republic has the capacity in export expansion of natural production such as 
honey, walnut, raisins, mushrooms, meat and others. Halal industry requirements of Malaysia 
would st imulate for improving the quality of exported goods.  
4.306.   The Kyrgyz Republic and Malaysia have entrenched ties in trade in services. Malaysia is 
one of the most attractive touristic destinations for Kyrgyz citizens. We do believe that the Kyrgyz 
Republic will find its own place for tourists from Malaysia. The integration in the educational sphere 
contributes a lot to the development of services. Financial sectors based on Islamic principles also 
attract interest of the Kyrgyz Republic.  
4.307.   The Kyrgyz Republic wishe s a very successful seventh Trade Policy Review to the 
delegation of Malaysia.  
GUATEMALA  
4.308.   Among the positive measures taken during the review period, we note the introduction of 
the Five -Year Plan and the New Economic Model, the focus of which is to achieve  the status of 
high-income nation by 2020. With the launching of the 11th Malaysia Plan in 2015, a number of 
firm strategies were introduced that contributed to the country's economic development and 
productivity and to the promotion of human capital and o f green growth for sustainability and 
resilience. The introduction of a new tax regime and the minimum wage policy encouraged the 
production sectors to create value chains that promote competitiveness.  
4.309.   Participation in ASEAN, APEC and the Maritime Silk Roa d Initiative have been instrumental 
in driving the economy by enabling Malaysia to play a prominent role in its regional trade 
environment.  
4.310.   In spite of these achievements, the Malaysian economy still faces major challenges, 
including the introduction of me asures to facilitate and maintain investment in the country; 
measures to improve land transport in order to enhance communication among the main 
commercial ports; and the further implementation of best practices and sustainability in the 
palm oil sector wi th a view to improving the sector's image. Here, we are pleased to say that we 
have been able to cooperate with Malaysia in the seminar organized during the WTO Public Forum, 
in which participants spoke of their own experiences with sustainability measures  in palm oil 
production and the problems currently encountered in marketing palm oil. These presentations 
proved to be of great interest to the participants.  
4.311.   Let me conclude by wishing the delegation of Malaysia every success in this seventh trade 
policy  review.  
RUSSIAN  FEDERATION  
4.312.   The Russian Federation follows with great interest the economic performance of Malaysia. 
Its economy was growing by an average annual rate of 5%, despite external shocks, including 
global commodity prices and financial markets vol atility. This enables us to give an overall positive 
assessment of the economic policies pursued by this country. Trade has greatly contributed to this 
performance, with exports and imports of goods and services equivalent to about 130% of its GDP.  
4.313.   Last year, our countries celebrated the 50th anniversary of the establishment of diplomatic 
relations. Our bilateral economic cooperation has considerably strengthened during the last five 
years. According to our data, in 2016 the total trade turnover increased  by 12% compared to 2015 
and amounted to US$2.2 billion. Russia 's export grew by 56% to reach US$972 million, and our 
imports from Malaysia decreased by 8.1% ($1.2 billion).  
4.314.   The main products of Russia 's exports to Malaysia are mineral fuels (72.3%), ferti lizers 
(13.8%), iron and steel (2.9%). Russia imports from Malaysia mostly electrical machinery and WT/TPR/M/366  • Malaysia  
 
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  equipment (24.5%), rubber and articles thereof (13.8%), coconut copra and palm oil (12%), 
machinery and mechanical appliances (10%) and cocoa (8.7%).  
4.315.   Our co untries are working on improvement of the legal basis for our economic, trade and 
investment relations. In November 2015, an agreement was signed in Kuala Lumpur to establish a 
Joint Russian -Malaysian Commission on economic, scientific, technical and cultu ral cooperation. 
Minister of industry and trade of Russia , Dmitry Manturov , was appointed  Chairman of the Russian 
part of the Intergovernmental Commission.  
4.316.   Malaysian firm "Rimbunan Hijau Group " has been successf ully investing for more than 
10 years in the development of the forest and timber industry in the Khabarovsk region. Its total 
annual volume of production of wood -fiber plates exceeds 600 thousand cubic meters of wood.  
4.317.   Since January 2014 , a joint venture of the Federal Agency for land development of 
Malaysia and the Russian joint -stock company "Uralkali " started to operate in Malaysia. It supplies 
potash fertilizers for local government plantations.  
4.318.   We also note productive work of another Russian joint -stock company "Kaspersky Lab " 
that provides up to  40% of all anti -virus software in the Malaysian market.  
4.319.   Malaysia is also one of the most popular tourist destinations in Russia. In 2015, more than 
40 000 Russian tourists visited that country.  
4.320.   During this TPR, the Russian delegation has not addressed any  written questions to 
Malaysia. Should the need arise, we will be ready to discuss bilaterally.  
4.321.   To conclude, we look forward to work with Kuala Lumpur in order to expand our trade and 
investment ties for mutual benefit. We wish the delegation of Malaysia a  successful Trade Policy 
Review.  
PERU  
4.322.   Peru commends Malaysia for the progress it achieved in its economic development during 
the review period, clearly acknowledged in the reports. This includes steady growth, 
macroeconomic stability, diversification of its production and careful economic planning. Also worth 
mentioning is the introduction of the minimum salary legislation, which should help to improve 
wealth distribution.  
4.323.   Bilateral trade relations are strong and their future looks promising. Total trade between 
our two countries passed the US$250 million mark in June 2016, and the upward trend continued 
in 2017. We are confident that the forthcoming entry into force of the Comprehensive and 
Progressive Agreement for the Trans -Pacific Partnership (CP -TPP) and our joint participation in 
APEC will help to boost our bilateral trade.  
4.324.   Although we did not submit any questions for this Review, we would like to repeat what 
our delegation said on the occasion of Malaysia's trade policy review in 2014 with regard to  the 
frequent use of fairly substantial subsidies in certain sectors of the economy and of non -automatic 
import licensing. We also note that the limits on foreign investment and the use of export 
subsidies could be questionable when it comes to promoting t he competitiveness of the Malaysian 
economy. However, it is also important to note that the Government of Malaysia has taken steps 
to scale back its intervention in the economy, such as the elimination of petrol subsidies and the 
opening up of certain area s of the services sector to foreign investment.  
4.325.   Before concluding, the Peruvian delegation would like once again to wish Malaysia every 
success in achieving the ambitious development objectives it has set itself. At the same time, 
we wish Malaysia a succes sful seventh trade policy review.  
REPUBLIC  OF TAJIKISTAN  
4.326.   Diplomatic relations between Tajikistan and Mal aysia were established on 11 March 1992. 
It is worth to note that the Republic of Tajikistan builds its relations with Malaysia taking into WT/TPR/M/366  • Malaysia  
 
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  account its  dynamically developing economy and its large financial resources, which create 
favourable conditions for mutually beneficial cooperation, primarily in the field of trade and 
investment.  
4.327.   The expansion of trade cooperation with Malaysia, as with one of the rapidly developing 
countries would be in the interests of both States. With this in mind, it is vital to find more ways 
and opportunities for the development of trade relations between Tajikistan and Malaysia. In 2017, 
Tajikistan 's foreign trade turnover w ith Malaysia amounted to US$4 million which cannot satisfy 
both countries and requires additional efforts to increase it.  
4.328.   The issues related to the development of friendly relations and cooperation between the 
two countries have been considered at the meet ing of President of Tajikistan Emomali Rahmon 
with Prime Minister of Malaysia Najib Abdurazzaq during the State visit of the President of the 
Republic of Tajikistan to Malaysia in June 2014.  
4.329.   Head of Tajik State Emomali Rahmon named the development of coope ration with 
developed countries of South East Asia and particularly Malaysia "among the important directions 
of foreign policy of Tajikistan ". 
4.330.   Constructive exchange of views was held on the expansion of political, economic, 
investment, trade, scientific, t echnical, and cultural cooperation.  
4.331.   Following the official negotiations, a number of documents were signed which have laid the 
foundation to legal treaty basis of cooperation between Tajikistan and Malaysia.  
4.332.   This seventh Trade Policy Review of Malaysia pro vides an excellent opportunity to improve 
our understanding of its trade and investment policies.  
4.333.   Malaysia 's trade performance continued to improve during the period under review despite 
the uncertainty in the global market, weak aggregate demand, low comm odity prices and volatile 
financial markets in major economies. Domestically, policies continue to focus on high value and 
knowledge -intensive industries. With the aim of becoming a high -income nation by 2020, 
emphasis has been placed on integrating Malays ian companies into Global Value Chains (GVC) and 
developing commercial ties with new markets. The Government is committed to ensure the 
nation 's economic growth despite external uncertainties. During the period under review, the 
Malaysian economy continued  on a positive trajectory, recording an average GDP growth of 5.1% 
for the period 2014 to 2016. Real GDP growth was 6.0% in 2014, 5.0% in 2015 and 4.2% in 2016. 
The positive momentum was supported by private investment and private consumption. In 2016, 
the per capita Gross National Income (GNI) of Malaysia increased to US$9,850. Despite the 
existing challenges, Malaysia remains externally competitive with its comparative advantage 
seemingly shifting from electrical goods and electronics manufacturing toward s processed 
commodities and natural gas. The direction of Malaysia 's trade policy remains focused on ensuring 
that Malaysia becomes a self -reliant and industrialized nation by 2020. Malaysia enters the final 
lap towards achieving a high income nation by 20 20 particularly through the realisation of the 
initiatives under the 11MP and NEM. While a lot of progress has been achieved, the Government 
will continuously monitor and undertake measures to achieve the set targets.  
4.334.   Malaysia is an active Member of the WT O, and grants at least MFN treatment to all trading 
partners. Malaysia is an observer to the plurilateral Government Procurement Agreement (GPA). 
Under the GATS, Malaysia made commitments in nine of the twelve sectors, and it is a signatory to 
the GATS pro tocols on telecommunications (Fourth Protocol) and financial services (Fifth Protocol). 
It ratified the Protocol Amending the TRIPS Agreement in December 2015. In May 2015, Malaysia 
became the fifth Member to ratify the Trade Facilitation Agreement; before  that, in July 2014, it 
notified the Preparatory Committee that Malaysia had designated all provisions under Category A, 
except Article 7.8 (Expedited Shipments) and Article 11.9 (Advance filing and processing of transit 
documentation and data prior to the  arrival of goods).  
4.335.   My delegation acknowledges Malaysia 's continued pursuit of trade liberation in a 
multilateral as well as regional and bilateral context. Malaysia 's contribution to and constructive 
involvement in various areas of the work and negotiatio ns of the WTO is also remarkable. We also WT/TPR/M/366  • Malaysia  
 
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  acknowledge the Malaysian efforts to improve the business environment and remove other 
restrictions to foreign direct investment.  
4.336.   As with others, Malaysia 's economy remains vulnerable to exogenous shocks to global 
growth or risk aversion through international trade and commodity prices. Equitable and 
sustainable growth depends on implementing diversification and improved total factor productivity 
– enhancing structural reforms. These and related reforms would increa se the flexibility of the 
Malaysian economy and its ability to respond to growing external competition.  
4.337.   We are confident that Malaysia continues to undertake further trade policy and structural 
reforms to improve its overall efficiency, productivity, and c ompetitiveness, and to maintain an 
open WTO -consistent trade and investment regime to secure sustainable growth and realize its full 
potential.  
4.338.   I wish you a very productive and successful Trade Policy Review exercise.  
NEPAL  
4.339.   It is appreciable that the econ omic fundamentals of Malaysia, including stable GDP growth, 
low unemployment and inflation and timely updated trade and investment policy regimes look 
favourable and conducive. The real GDP growth remained about 5% on average despite the 
existence of a num ber of external and domestic shocks, including global commodity price and 
financial market volatility, weak external demand, and domestic political environment.  
4.340.   Malaysia as a middle income country with diversified econom y is highly integrated into 
regiona l and global value chains with exports and imports of goods and services equivalent to 
about 130% of GDP.  
4.341.   Long-term economic policy as set out in Vision 2020 includes the objective of achieving 
high-income country status by 2020 through sharply accelerati ng the growth of labour 
productivity. In addition, the Eleventh Malaysia Plan and sectoral plans, such as the National 
Agrofood Policy and the National Commodity Policy 2011 -20, emphasize the importance of 
productivity, innovation, and trade in achieving e conomic growth.  
4.342.   Ever since the establishment of diplomatic relations in 1960, Nepal and Malaysia have been 
enjoying friendly and cordial relations.  Since the relations are based on the UN and NAM 
principles, both countries  hold similar views on major int ernational issues.  
4.343.   Nepal exports vegetable products, handicrafts, garments and apparels to Malaysia and 
imports machineries and vehicle -parts, vegetable oils, electrical equipment  and electronic 
appliances, furniture and parts, plastic and other chemical p roducts. Nepal suffers deficit in 
bilateral goods trade, it is heavily in favour of Malaysia.  
4.344.   The number of tourists visiting Nepal from Malaysia is still not very significant. However, in 
the recent years, there is an increasing trend of tourist flow. Co nsidering the importance of 
connectivity between two countries, the Air Service Agreement between Nepal and Malaysia was 
first signed in 2007 which has led to the increasing fl ow of tourists between two coun tries.  
4.345.   Malaysia has recognized Nepal as one of t he source countries for foreign workers. 
Currently, more than 400,000 Nepali migrant workers are working in Malaysia and are contributing 
to the economic growth and development of both countries. Mo st of the Nepali workers are 
employed in the manufacturing  sector, follo wed by service, agriculture and  construction sectors. A 
destination country for migrant workers, we request  the Government of Malaysia to con tinue 
reforms in the labour sector to ensure that foreign workers get fair and equal treatment at eve ry 
cycle of the migration process.  
4.346.   Similarly, we need to work together to achieve the SDGs which are shared goals and 
shared responsibilities, more part icularly Goal 8 that focuses on promoting inclusive and 
sustainable economic growth, employment and decent work for all.  
4.347.   Finally, we wish Malaysia  a very successful Trade Policy Review.  WT/TPR/M/366  • Malaysia  
 
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  CAMBODIA  
4.348.   Cambodia associates itself with the statement made by Brunei on behalf of ASEAN member 
States.  
4.349.   Cambodia wishes to congratulate Malaysia for maintaining remarkabl e economic growth 
and predictable trade policy framework as well as remaining active in the WTO multilateral trading 
system and regional trade arrangements, especially in the framework of ASEAN and bilateral trade 
with Cambodia.  
4.350.   Within the framework of the  multilateral trading system, Cambodia notes the important 
role that Malaysia has played in ratifying the new Trade Facilitation Agreement in 2015; it was the 
fifth Member who ratified this agreement. Within the ASEAN Framework, Malaysia has contributed 
a significant proportion of trade with ASEAN member States.  
4.351.   In terms of bilateral economic relation, Malaysia is an important trade and investment 
partner for Cambodia. In 2015, Malaysia was ranked the seventh largest trading partner for 
Cambodia. Malaysia i s a cornerstone investor in its financial sector. Currently, all major Malaysian 
banks have branches in Cambodia which include the Cambodian Public Bank (Campu Bank), 
Maybank, CIMB Bank, Hong Leong Bank and RHB Bank.  
4.352.   Malaysian investments in Cambodia are v ery important and diverse. The sectors include 
hotel, real estate and property development, power generation and transmission, 
telecommunication, construction, infrastructure, agriculture, manufacturing and other areas in the 
services sector such as bankin g and finance, information and communication technology (ICT) and 
logistics.  
4.353.   Products mainly traded between the two countries are textile, clothing, footwear, 
beverage, tobacco, processed food, rice, crude rubber, petroleum and electric products.  
4.354.   During th e bilateral meeting in August 2016 between Malaysia 's Minister of International 
Trade and Industry, Excellency Dato ' Sri Mustapa Mohamed and Cambodia 's Minister of 
Commerce, Excellency Pan Sorasak, the Ministers expressed strong commitment to boost bilater al 
trade to a higher level.  
4.355.   With this high -level commitment, I hope the two countries will explore more opportunities 
to expand trade in goods and trade in services and investment in upcoming years.  
4.356.   Finally, I wish Malaysia every success in their seventh T rade Policy Review.  
URUGUAY  
4.357.   Uruguay maintains friendly and constructive relations with Malaysia in the various spheres 
covered by our bilateral relationship, which include not only policy, the economy and trade, 
but also cooperation and culture.  
4.358.   Since Malaysia's last trade policy review in 2014, political and trade relations between our 
two countries have grown stronger.  
4.359.   On the occasion of the 11th WTO Ministerial Conference, the Uruguayan Minister for Foreign 
Affairs, Rodolfo Nin Novoa, held a meeting with the Secretary General of Malaysia's Ministry of 
International Trade.  
4.360.   He expressed the wish to export halal meat to the Malaysian market, and he invited 
Malaysia to audit the Uruguayan establishments concerned to see if there were any requirements 
that still needed to be met in order to achieve halal certification. He also spoke of the possibility of 
Malaysian entrepreneurs purchasing a local plant and supplying other Islamic countries with 
halal meat from their country.  WT/TPR/M/366  • Malaysia  
 
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  4.361.   Trade between Uruguay and Malays ia remained relatively stable between 2013 and 2016 
at approximately US$30 million. The overall trade balance with Malaysia was negative for that 
period, but the values varied.  
4.362.   Our main export product to Malaysia during 2017 was soya beans which, at US$4.3  million, 
accounted for 49% of total exports. Annual exports of the product increased over the last 
three  years. The second most important export is raw hides and skins without hair or wool, 
amounting to US$1.7 million and accounting for 19% of total expor ts. Sales of this product fell by 
76% in comparison to 2016.  
4.363.   Uruguay's third export was frozen fish, excluding filets, which at US$871,000 accounted for 
10% of total exports. Sales of this product remained relatively low throughout the period.  
4.364.   Exports to Malaysia from Uruguay's free zones were limited to a single product, cellulose, 
for a total of US$1.7 million, 33% less than in 2016.  
4.365.   In terms of Uruguay's imports, Malaysia ranked 28th, accounting for 0.42% of total 
imports. In 2016, it ranked 39th. The m ain products imported were diodes, transistors, articles of 
apparel, and inputs for the manufacture of furniture.  
4.366.   With regard to Malaysia's role in the WTO, Uruguay would like to highlight its work in the 
Cairns  Group and in the Group of Friends of MSMEs, and encourages it to continue its active 
participation in the informal working group on MSMEs.  
4.367.   Finally, we reaffirm the interest of our two countries in continuing to work towards a 
positive result at MC12 and in protecting the multilateral trading system based on predictable, 
transparent and balanced rules.  
4.368.   Uruguay wishes Malaysia every success in its seventh trade policy review.  
JORDAN  
4.369.   We congratulate Malaysia for the continuous improvement in its economy and trade 
performance in spite of the different challenges that is due to its development and trade policies, 
which aim at integrating its economy into the global market, mainly under the multilateral trading 
system.  
4.370.   We commend Malaysia 's commitment towards its WTO obligations, and its constructive role  
in the efforts to strengthen the multilateral trading system.  
4.371.   Malaysia and Jordan enjoy good bilateral relations and growing economic ties, which hold 
promising opportunities ahead for both countries. The bilateral trade between Jordan and Malaysia 
amount ed in 2016 around US$180 million and we are looking forward to increase it in the future.  
4.372.   Jordan is always keen to expand our good economic relations with Malaysia and to explore 
further areas of mutual interest, on bilateral and multilateral levels.  
4.373.   Finally, we wish Malaysia all prosperity and a successful Trade Policy Review.  
PAKISTAN  
4.374.   Pakistan and Malaysia enjoy very good bilateral relations, with bilateral trade standing at 
US$1.34 billion in 2016. Malaysia reported a total export to Pakistan at around U S$1.17 billion and 
imports from Pakistan at around US$ 172.1 million, with a balance of trade tilting heavily in favour  
of Malaysia.  
4.375.   Malaysia and Pakistan established the Malaysia -Pakistan Closer Economic Partnership 
Agreement (MPCEPA) on 8 November 2007. MPCEPA came into force on 1 January 2008. The 
MPCEPA encompasses liberalization in trade in goods and services, investment, as well as bilateral 
technical cooperation and capacity building in areas such as sanitary and phytosanitary measures, 
intellectual property protection, construction, tourism, healthcare and telecommunications.  WT/TPR/M/366  • Malaysia  
 
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  4.376.   Pakistan welcomes the recent Malaysian investment in Pakistan whereby a Malaysian 
telecommunication infrastructure services company, edotco, in collaboration with a local compan y, 
has acquired Pakistan 's largest mobile company 's 13,000 communication towers for 
US$940  million.  
4.377.   Malaysia has a diverse economy with exports and imports of goods and services equivalent 
to about 130% of GDP. For the past four years, real GDP growth has  averaged nearly 5% despite 
a number of external and domestic shocks. Growth has been based on diversified production and 
export base, a flexible exchange rate, responsive macroeconomic policies, and strong financial 
markets. Long -term economic policy is s et out in Vision 2020 which includes the objective of 
achieving high -income country status by 2020, by, sharply accelerating the growth of labour  
productivity.  
4.378.   Restrictions on foreign investment remain in fisheries, energy, telecommunications, 
finance, an d transport services, and foreign participation in public -private -partnership projects is 
limited to a ceiling of 25% of share capital. Pakistan has noted that the Government has continued 
to relax foreign investment restrictions. Currently there is no for eign equity restriction in the 
capital market except for a 70% cap on investment banks.  
4.379.   The Government has been making efforts to modernize Malaysia 's business licensing 
system, by reviewing licenses and making them accessible online. The Malaysia Producti vity 
Corporation (MPC) conducted sectoral regulatory reviews to reduce unnecessary regulatory 
burdens on business.  
4.380.   There has been no major change to customs procedures during the review period. Malaysia 
ratified the WTO Trade Facilitation Agreement (TFA) i n May 2015 and notified that it designated all 
provisions under Category A with some exceptions.  
4.381.   The tariff is the main trade policy instrument of Malaysia, despite its low share in total tax 
revenue (1.7%). Due to changes in nomenclature the average appl ied MFN tariff increased from 
5.6% in 2013 to 7.5% in 2017.  
4.382.   Regarding standards, Standards Malaysia, Malaysia 's national standardization and 
accreditation body, is focusing on establishing standards that have a high impact on the public, 
including industr ies, rather than on the number of standards. Malaysia continues to align its 
standards with international ones: in 2017, 60% of Malaysian standards were aligned with 
international standards, up slightly from 59.8% in 2014.  
4.383.   There have been no major changes  to the legal and institutional framework governing 
competition policy since the previous review. There has also been no significant change to the IPR 
regime in Malaysia during the review period. Pakistan appreciates that Enforcement has improved. 
Malaysia  ratified the Protocol Amending the TRIPS Agreement on Public Health in December 2015.  
4.384.   Petroleum and gas remain important to the economy, contributing about 10.5% to GDP 
and about 14% to government revenues in 2016. Although the value of both exports and i mports 
of petroleum products and natural gas has declined over the past few years, the volumes traded 
have increased significantly and investment continues.  
4.385.   Pakistan commends that in line with the Eleventh Malaysia Plan, 18 services subsectors 
were libera lized in 2012 and up to 100% foreign equity participation is now allowed for wholesale 
and retail trade, healthcare, professional services, environmental services, courier, and education 
subsectors. However, restrictions remain in several sectors including  telecommunications, 
transport, and investment banks.  
4.386.   Malaysia has a well -integrated and mature financial sector, which has undergone 
consolidation over a number of years. The financial sector, which is comprised of banks, insurance, 
and capital markets, c ontributed 6.4% to GDP in 2016 with increasing levels of cross border 
activity. Furthermore, Malaysia is at the forefront of the global Islamic finance industry and has a 
highly developed Islamic finance sector. Islamic banking has grown rapidly over the p ast ten years 
with its market share increasing from about 12% in 2007 to 28% at the end of 2016.  WT/TPR/M/366  • Malaysia  
 
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  4.387.   We want to mention here the efforts that the Malaysian Mission in Geneva has made for 
upholding of the multilateral trading system in these testing times.  
4.388.   In the end we want to wish the distinguished delegation from Malaysia a very successful 
and a fruitful TPR.  
BENIN 
4.389.   The delegation of Benin would like to pay tribute to the efforts made by Malaysia since the 
last Review in 2014.  
4.390.   In spite of the uncertainty of the world economic situation, Malaysia's performance during 
the review period was encouraging, and rested in particular on three sectors of the economy: 
services, manufacturing, and construction. These three sectors alone accounted for 81.8% of the 
country 's GDP. Malaysia's economic growth for the period 2014 -2016 is estimated at 5.1%.  
4.391.   In order to maintain these encouraging results, Malaysia introduced several reforms aimed 
at improving its tax system, raising the level of consumer spending by improving wa ges, and  
enhancing transport connectivity as a means of promoting the development of trade in services, in 
accordance with the 11th Malaysia Plan.  
4.392.   The value of Malaysia's trade grew by an impressive 3% in 2016 as compared to 2014. 
This positive trend cont inued in 2017, while the trade balance surplus rose from RM  82.5 billion 
to RM 87.3 billion in 2016.  
4.393.   Malaysia opted to assign international trade a key role in achieving its aim of becoming a 
high-income nation by 2020. To that end, several steps were taken to facilitate trade, including: 
the introduction of good regulatory practices to integrate and establish a standardized, structured 
and systematic way of reviewing business regulations; progressive liberalization of import licensing 
requirements; int roduction of a productivity blueprint; modernization of customs; export 
promotion activities; and finally, the SME Master Plan 2012 -2020.  
4.394.   While commending Malaysia for the efforts it has made, the delegation of Benin 
encourages Malaysia to continue its tra de facilitation reforms and initiatives.  
4.395.   We welcome the key role played by Malaysia and its major contribution to the multilateral 
trade negotiations under the Doha Round.  
4.396.   The delegation of Benin is also grateful to Malaysia for its constructive support to  the LDCs,  
promoting their interest and priorities in the ongoing Doha Round negotiations.  
4.397.   At the bilateral level, the delegation of Benin welcomes the cooperative ties between the 
two countries, which have led to steadily growing trade and the sharing o f experience and 
expertise in relation to productivity, particularly in the palm oil subsector, as well as technical 
assistance and training.  
4.398.   Benin hopes that this cooperation will continue to develop and that new areas will be 
explored and promoted.  
4.399.   Finally, the delegation of Benin would like to thank the WTO Secretariat and the 
Government of Malaysia for the very informative reports they have provided in connection with 
this trade policy review of Malaysia.  
4.400.   We wish Malaysia all the best, and a succes sful trade policy review.  
NIGERIA  
4.401.   We agree with the Government of Malay sia, in the introductory report  that trade has 
historically been an engine of growth and continues to play an important role in the Malaysian 
economy, including the fact that the Malays ia's trade policy is aimed at creating a free and fair 
trading environment, with a vision to make the country one of the most competitive tradi ng nation WT/TPR/M/366  • Malaysia  
 
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  by 2020. This vision  is also shared by Nigeria, given our circumstances, and similarity  in the level 
of development.  
4.402.   Nigeria also notes with encouragement  that Malaysia 's trade performance continued to 
improve during the period under review, despite the uncertainty in the global market, weak 
aggregate demand, low commodity prices, as well as volatile financ ial markets in major 
economies. The goal of becoming a high -income nation by 2020, and the focus on integrating 
Malaysian companies into Global Value Chains (GVC) and developing commercial ties with new 
markets, should be commended. We also note from the S ecretariat report that the Malaysia 's 
diverse economic base and general openness to trade helped the economy to continue to grow 
through a difficult period, caused by low commodity prices, which affected several sectors, 
particularly petroleum and gas, and  palm oil. In this regard, Nigeria, given our similarity, could 
benefit from the Malaysian experience of diversification, and how it was able to ove rcome the 
economic challenges. We also share the view as highlighted in the Secretariat report, that given 
Malaysia 's abundant resources, strategic location, including its pragmatic policies, the goal of 
becoming a high -income country by 2020, is achievable. Sharing the same vision like Malaysia, 
Nigeria aims to join the league of the world 's 20 leading ec onomie s by year 20120. Malaysia  
should be encouraged and supported to make the vision 2020 a reality, as  a long term 
development goal.  
4.403.   Nigeria would therefore like to further commend the Government of Malaysia, for its 
relentless efforts to facilitate and creat e an environment that is conducive to business through the 
regular review of its regulations and engagement with the private sector. We note from the 
Government report that the Services sector registered an average growth of 6.4% for the period 
2010 t0 201 6. The Services sector continued to account for the largest share of the GDP, 
accounting for 54.3% of the GDP in 2016 compared to 53.5% in the previous year. It is 
encouraging to note that the sector remains on track to meet the targeted goal of 56.5% set 
under the Eleventh Malaysian Plan. Malaysia should be commended for its autonomous trade 
liberalization efforts. Nevertheless, Malaysia  should be encouraged for further opening in the 
services sector, given the observation that a number of services sector remain partially or wholly 
closed to foreign investors. Nigeria further notes that Malaysia is a strong advocate of regional 
economic integration initiatives. In that regard, the country plays a key role in driving the regional 
integration process amongst the ASEAN, by pursuing several economic integration initiatives to 
further enhance and facilitate trade in the region in partic ular, and the world in general.  We 
encourage Malaysia to ensure that its active involvement in FTAs does not diminish the country 's 
commitment to t he multilateral trading system.  
4.404.   At the multilateral level, Nigeria wishes to acknowledge the active engagement of Malaysia, 
as an active member of the WTO and also being active in several Joint initiatives, such as on 
MSMES, e -commerce an d Investment Facilit ation for Development. Malaysia  is also a strong 
supporter of the system. It is noteworthy that Malaysia was the 5th WTO member to ratify the 
Trade Facilitation Agreement (TFA), including ratifying the protoco l amending the TRIPS 
Agreem ent. We note and commend Malaysia for the swift implementation of the TFA, FOLLOWING 
ITS ENTRY INTO FORCE, based on its Category A commitments. As pointed out in the Secretariat 
report, Malaysia 's ease of trading across borders remains highly ranked  in int ernational 
comparisons. We encourage Malaysia to continue  and build on this trajectory.  
4.405.   Malaysia continues to negotiate new regional trade agreements (RTAs) both bilaterally and 
together with its ASEAN partners. Malaysia is also in the Trans -Pacific Partn ership negotiations, as 
well as the ASEAN Regional Partnership (RCEP) negotiations. In view of the forgoing, Nigeria, 
would like Malaysia to share with us, its overall RTA strategy, which appears to combine both 
bilateral and multilateral objectives. How w ould Malaysia reconcile possible conflicts between its 
bilateral trade agenda and the multilateral trade agenda?  Similarly, while noting and appreciating 
Malaysia 's efforts to make the regulatory process more efficient and effective, Malaysia, should be 
encouraged to do more, by improving its transparency and predictability in administrative 
procedures , including the need to ensure  timely Notifications of its trade and related measures, as 
pointed out in the last TPR, which was als o highlighted at this rev iew. 
4.406.   At the bilateral level, Nigeria and Malaysia have maintained excellent relations. Bilateral 
relations between Nigeria and Malaysia have been characterised by cooperation and trust between 
the leaders of the two countries, and set to continue to flourish. W e cherish our ties with Malaysia 
and would continue to do our best to consolidate these ties, as well as the furtherance of relations WT/TPR/M/366  • Malaysia  
 
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  in other spheres. Nigeria, like Malaysia share common objective on the intensificat ion of 
south -south trade as a major veh icle of integrating the developing countries into the multilateral 
trading system.  
4.407.   In conclusion, Nigeria wishes to acknowledge and commend Malaysia for its strong 
commitment to the multilateral trading system, including its contribution to and constructi ve 
involvement in several areas of the work and negotiations in the WTO. In this regard, we wish to 
acknowledge the constructive and proactive engagement of the delegation of Malaysia, and its 
overall contribut ion to the work of the WTO.  
4.408.   We wish Malaysia a  successful Trade Policy R eview.   
  WT/TPR/M/366  • Malaysia  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF MALAYSIA  AND ADDITIONAL COMME NTS 
5.1.  I would like to begin this session by thanking all distinguished Members for your active 
participation in Malaysia 's 7th Trade Policy Review. I would als o like to express my sincere 
appreciation to the discussant, H.E. Ambassador Claudio de la Puente, for his insightful 
assessment on Malaysia 's trade policies and investment regime, which helped to facilitate a very 
productive TPR session on Wednesday.  
5.2.  This review is unprecedented for Malaysia as a total of 43 Members took the floor  on the first 
day and from 440 questions  it has now grown to 476 questions . This i ndicates the great interest 
Members have on Malaysia 's trade and economic developments, as well as its impact on the 
multilateral trading system.  
5.3.  I am encouraged by the overwhelming positive feedback and praises, and let me assure you 
that Malaysia will continue to be more open and transparent; and contribu te to the effective 
functioning of the multilateral trading system.  
5.4.  From the interventio ns by Members, we could summariz e them into three broad categories:  
 First, those who have raised concerns on some specific measures;  
 Second, request for further clarifications to better understand our policies; and  
 Third, several Members proposed constructive recommendations with the aim to further 
improve our trade regime.  
5.5.  I will address these points and for those which I am unable to do so now, Malaysia will 
provide responses in writing.  
ECONOMIC ENVIRONMENT  
Fiscal reform  
5.6.  Let me address the concerns raised by  the discussant and some other M embers on Malaysia 's 
subsidy programmes. In line with the fiscal reform initiatives, Malaysia has successfully 
undertaken a subsidy rationalisation programme. This includes removal of subsidies for fossil fuel 
and sugar i n 2014  not only  to reduce the burden on Government 's finances  but to also  make it 
more market -oriented. Malaysia will continue to review the relevance of its s ubsidy programmes, 
taking into account its economic needs especially the impact on the lower income group.  
TRADE AND INVESTMENT  POLICY  
Trade a greements  
5.7.  There were concerns  raised  about the conflict between Malaysia 's FTAs and WTO 
commitments. Malaysia  consider s FTAs as complementing the WTO in our pursuit of opening up 
markets. In all our current FTAs, we have ensured that there are no provisions that breach the 
WTO commitments. We will continue to ensure that in negotiating future free trade arrangeme nts, 
the principles and rules in the WTO will be adhered to .  
Global ranking  
5.8.  There were observations that Malaysia 's global rankings are not commensurate with our 
economic achievements. One of the reasons is that data provided to the ranking agencies were not 
complete or sufficient. Malaysia is now taking steps to ensure data supplied to international 
Organiz ations are accurate, updated, comprehensive and reliable. The exercise is carried out in 
collaboration with  all the different  Ministries and agencies t ogether with the private sector to 
improve Malaysia 's ranking s. All competitiveness related data will  now be displayed in the 
Malaysian Government portal.  WT/TPR/M/366  • Malaysia  
 
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  Facilitating trade and investment  
5.9.  Malaysia has undertaken various steps to ensure that its market re mains healthy and 
competitive. The initiatives include the reforms of the Companies Act which has enabled 
businesses to exercise discretion and flexibility that is required in their operations. The key 
features of this Act have already been  provided in our  Government r eport. We have ensured 
effective implementation of our Competition Act by conducting market reviews and introducing 
specific guidelines. Malaysia will continue its efforts to ensure  that businesses will be able to 
operate in a more conducive a nd competitive environment.  
Investment facilitation  
5.10.   There were some concerns raised on transparency in Malaysia. Let me reiterate that the 
trade and investment regime today is far more transparent compared to the past and this is 
evidenced by a number of  measures in place. In 2015, the Government launched the National 
Policy on the Development and Implementation of Regulations  (NPDIR) to support the 
moderniz ation of the regulatory regime.  
5.11.   The policy, which encompasses the Good Regulatory Practices (GRP),  institutionaliz ed 
consultative mechanism in formulating regulations or policies as well as reviewing existing 
regulations to enhance efficiency and competitiveness. Furthermore, to ensure transparency, 
related rules and regulations pertaining to trade and  investment are also published online in 
Government websites.  
5.12.   In addition, Ministries and Agencies continuously engage with business chambers, foreign 
business councils as well as industry associations through dialogues to inform on policies and seek 
feedback.  
Reducing state interventions  
5.13.   The Government is cognizant that the existence of GLCs may have a crowding effect on 
private investments. As such, the Government has implemented the GLC Transformation 
Programme to further enhance collaboration and co-investments with the private sector while the 
Economic Transformation Programme calls for the reduction of Government 's role in business. This 
has resulted in divestment of government ownership in certain key sectors, for example, the 
automotive sector  and postal services.  
5.14.   I would also like to highlight that the Malaysian Government has no intention to intervene in 
business and the existence of GLCs has minimal impact on private investment. The GLCs 
themselves are commercially driven and adhere to speci fic key performance indicators as practiced 
by other private entities. Some GLCs , however,  are established to undertake specific 
socioeconomic obligations.  
Tariff s tructure  
5.15.   Several Members commented on the large number of unbound tariff lines maintained b y 
Malaysia. Further to negotiations in the Uruguay Round, Malaysia increased its binding to 84.3% 
from 1.0%  that we committed  in the Tokyo Round. Nevertheless, Malaysia is now ready to 
negotiate the binding of the remaining tariff lines under the Doha nego tiations.   
5.16.   On the increase of MFN applied tariffs raised by Members, I would like to state that the 
average applied MFN rate increased due to the transposition exercise which increased the total 
tariff lines especially for chapter 87 from 356 lines in 2013  to 1,247 lines in 2017. This exercise 
was fully in compliance with the guidelines under the World Customs Organization (WCO).  
5.17.   On specific duties, Malaysia only has 1% covering alcohol, tobacco products and fruits. At 
present, Malaysia does not have any p lans to convert these specific duties  to ad valorem duties.  
5.18.   On high tariffs imposed on products such as manufactured tobacco, round cabbage and 
ceramic tiles, these again were a result of the negotiations un der the Uruguay Round where 
non-tariffs were converted to tariffs  for the agricultural products. Another point highlighted by the WT/TPR/M/366  • Malaysia  
 
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  discussant is related to Malaysia 's tariff quotas. Here again, I would like to point out that t his was 
as a result of the negotiations  in the Uruguay Round.  
Export taxes and import license  
5.19.   Export taxes are maintained to ensure adequate supply of raw materials in the 
manufacturing sector. Export tax es on live animals are used for food security purposes. Export 
taxes on crude petroleum are  mainly for  revenue purpose s.  
5.20.   On import licensing, Malaysia has abolished licensing requirements on 194 tariff lines 
involving 5 product categories (iron and steel, motorhomes, wheat flour, safety helmet, and 
rethreaded tyres) since 2014. The process to review this requirement for lice nsing will continue . 
On automotives, as indicated in our previous trade review, Malaysia is committed to eliminate the 
non-automatic licensing for new vehicles (franchise AP) by 2020.  
Customs v aluation  
5.21.   Some Members highlighted  the valuation method used by  Malaysian Customs in determining 
the duties applicable to passenger vehicles. I would like to clarify that the transaction value 
methods used by the Malaysian Customs is in line with the WTO Customs Valuation Agreement 
(CVA). We will , however,  be conducti ng a review to improve the implementation of the CVA.  
E-commerce  
5.22.   Some M embers were interested to know the adoption of e -commerce by the SMEs. Malaysia 
has undertaken a holistic approach to encourage e -commerce adoption by SMEs through 
collaboration among Government agencies, e -commerce players and trade associations.  
5.23.   The Digital Free Trade Zone (DFTZ) Pilot Project provides a platform for SMEs to sell their 
products and services globally. Under this initiative, Malaysian SMEs will be able to collaborate w ith 
leading foreign companies such as Google, Lazada and Alibaba which provide training 
programmes. Malaysian companies can also collaborate with leading eMarketplaces such as 
Alibaba.com, Amazon and eBay, to export their products.  
5.24.   The key initiatives by the Government include awareness programmes, training and talent 
development programmes, creating a one -stop eBusiness portal for SMEs and SME Onboarding 
Initiative. To date, more than 2,000 export -ready SMEs have signed on to participate in the DFTZ.  
5.25.   Malaysia would be happy to support the discussions that are taking place among Members in 
the WTO and to exchange ideas in areas such as trade facilitation and e -commerce, addressing 
infrastructure gaps, access to payment solutions and online security . 
Tax exe mptions  
5.26.   The discussant and a few other Members touched on Malaysia 's tax exemption linked to the 
value of the increase in exports. I wish to highlight that the tax exemptions provided by the 
Government are not automatic and aimed at encouraging SMEs to mov e up the value chain and 
integrate into the global value and supply chains.  
5.27.   The data in 2016 shows that 98.5% of the business establishment in Malaysia are SMEs. 
Although the number of SMEs is large, the contribution to exports by SMEs is only 17.8%. We wi ll 
however be reviewing this tax incentive.  
Intellectual property rights (IPR)  
5.28.   In order to enhance the effectiveness of the intellectual property regime, Malaysia would be 
amending its IPR related legislations , namely the  Patents Act,  the Copyright Act, the Geographical 
Indications Act and the Trade Marks Act. This process which is expected to take place in 2018 will 
among others ensure the legislations are in line with current developments and facilitate 
participation in international treaties such as the  Madrid Protocol, the Budapest Treaty, and the 
Marrakesh Treaty.  WT/TPR/M/366  • Malaysia  
 
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  5.29.   Malaysia has also taken various steps to ensure  that intellectual property protection benefits 
the IP holders and public at large. The IP Renewal Lounge which was introduced to safeguard the  
maintenance of intellectual property rights  also encourages that protection conferred through 
registration are renewed in a timely manner to avoid expiration. Under this initiative, a total of 
33,746 IPs have been renewed in 2017.  
5.30.   Malaysia has intensifie d efforts to reduce counterfeit goods in the market. Apart from the 
conventional enforcement methods, Malaysia has embarked on integrated enforcement actions 
involving relevant government agencies in combating the distribution of counterfeit goods in 
Malaysia. Among others, it includes  joint enforcement on the borders to restrict the entry of 
counterfeit, closing down web sites that are selling counterfeit goods and winding up businesses 
that are involved in distribution of counterfeit goods.  
Government pr ocurement  
5.31.   We welcome the encouragement by some Members for Malaysia to participate in the WTO 
Government Procurement Agreement (GPA). At the moment, Malaysia will remain as an observer 
to the GPA. However, we will continue to assess our readiness to partic ipate in the Agreement.  
Trade remedies  
5.32.   Some M embers raised issues on the increased use of trade remedies. Malaysia would like to 
stress that the focus of our trade remedies has been on iron and steel products mainly due to 
rampant dumping activities  in the sector . We would like to reassure Members here that Malaysia 
has been very cautious in exercising this right and that any imposition would only be executed 
based on the actual outcome of investigations as mandated by the WTO Agreements.  
Subsidies in fish eries sector  
5.33.   Malaysia takes note of the concerns raised with regard to incentives encouraging illegal, 
unreported, and unregulated (IUU) fishing. In Malaysia, incentives are only granted to legitimate 
fishermen under a robust Monitoring Control and Survei llance (MCS) system, which will prevent 
IUU fishing. Furthermore, these incentives are confined only to domestic fleets and not for high 
sea fishing . 
SECTORAL POLICIES  
Services sector  
5.34.   Malaysia has autonomously liberaliz ed the services sector in 2009 and 2012 in order to 
enhance domestic competitiveness and strengthen FDIs. Moving forward, Malaysia would consider 
the binding of such commitments in the WTO and would be ready to engage constructively with 
other Members in t he services negotiation.  
5.35.   On financial services, Malaysia has always promoted transparency in the sector. The 
enactment of the Financial Services Act (FSA) 2013 and Islamic Financial Services Act (IFSA) 2013 
is a clear testament of this. The prudential requirements and the key considerations in applying 
the best interest of Malaysia criteria in assessing all applications for new licenses and acquisitions 
of interest in shares in financial institu tions are published in the Acts  which are available on -line.  
5.36.   In the ASEAN region, Malaysia has played an instrumental role in deepening regional 
banking integration, which culminated in the establishment of the ASEAN Banking Integration 
Framework in 2015. Since then, Malaysia has signed a pioneer bilateral ASEAN Banking 
Integration Framework  agreement with Indonesia in August 2016, underscoring our commitment 
to strengthen the banking relationship between Malaysia and Indonesia. Malaysia has also signed a 
similar agreement with the Philippines.  
5.37.   On the financial m arket, the measures introduced in December 2016 were part of a series of 
market development initiatives by the Financial Market Committee (FMC) to support Malaysia 's 
aspiration to have a highly developed, liquid and deep foreign exchange (FX) market in Mal aysia, 
commensurate with the growth of the economy and the increasingly sophisticated needs of WT/TPR/M/366  • Malaysia  
 
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  investors and businesses. These measures were supported with vigorous industry consultations 
that ensured smooth implement ation of these measures.  
Palm oil  
5.38.   We no te some Members ' interest for the possibility of technical cooperation and 
collaboration on palm oil plantation sector. Malaysia is wi lling to consider such request and will be 
happy to discuss with the Members concerned.  
Halal  
5.39.   We note the request by some Members for clarification on the certification to supply Halal 
meat to Malaysia. For certification purposes, the Department of Veterinary Services (DVS) is 
responsible for the Sanitary and Phytosanitary aspect while JAKIM focuse s on the Halal Shariah 
compliance requirements. These requirements are pertinent for the approval of foreign processing 
plant to supply Halal meat in Malaysia. We also wish to highlight that c urrently JAKIM Malaysia 
recogniz es 67 foreign halal certificatio n bodies from 41 countries.  
5.40.   Malaysia 's current import requirements specify mandatory Halal certification for all imports 
of meat and meat products (except for pork and pork products).  
Outstanding notifications  
5.41.   Malaysia wishes to highlight that notificati ons related to agriculture such as imports under 
tariff quotas, export subsidy commitments, special safeguard, and export of significant products 
have been periodically submitted. We have also submitted our notifications under CVA and 
updated our submissio n on tariff and import data to the integrated data base (IDB). Malaysia takes 
note of the concerns of Members with regard to timely notification of Malaysia 's domestic support 
and quantitative restriction as required under the WTO Agreements. We will conti nue to submit 
these notifications in a timely manner.  
CONCLUSION  
5.42.   In conclusion, this Trade Policy R eview has been a very productive and meaningful exercise 
for Malaysia. The active participation of all delegates in this session reflects the great interest to 
further deepen trade and economic relations with Malaysia. The exercise has been useful to 
facilitate Malaysia 's efforts to further improve in areas that can be beneficial to the trade and 
investment environment. We appreciate all int erventions and the constructive views from 
Members.  
5.43.   On behalf of the Malaysian delegation, I would like to take this opportunity to thank all 
Members once again for your participation. I would also like to extend special thanks to the 
Chairman, to the d iscussant , H.E. Ambassador de la Puente, and to the WTO Secretariat for 
making this T rade Policy Review a success.  Thank you.  
DISCUSSANT  
5.44.   Thank you Mr Chairman, and greetings to all of you.  
5.45.   I would like to begin my second statement as Discussant for this Revi ew by thanking 
His Excellency Mr Jayasiri for his intervention today, in which he provided clear and detailed 
responses to a series of questions and concerns expressed by Members. We also take note of the 
offer to provide Members with further information i n this regard in writing.  
5.46.   I would like to join certain delegations that spoke last Wednesday in welcoming Malaysia's 
decision to use alternative timelines to provide its replies to Members' questions, a decision which 
has given us more time for fruitful an d extensive dialogue among Members. These exchanges were 
also favoured by the fact that the replies were submitted in a timely manner.  
5.47.   Turning to substance, I would like to highlight the interest shown by Members in this 
Review. More than 40 delegations to ok the floor last Wednesday and there were 476 questions. WT/TPR/M/366  • Malaysia  
 
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  This reflects the interest aroused by Malaysia's experience, which is explained by the important 
role it plays in world trade, the diversity and extent of its trade relations with countries in diffe rent 
areas of the world, and the serious role it plays within the WTO. These elements form a common 
denominator in most of the statements that we listened to with great interest during our 
first session. Similarly, many delegations took advantage of this e xercise to point out opportunities 
for improving economic integration with Malaysia, including the negotiation or conclusion of 
preferential trade agreements. I am certain that the delegation of Malaysia - as Mr Jayasiri already 
indicated - will have recor ded these expressions of interest, which, I feel sure, will lead to new, 
mutually beneficial trade and business opportunities.  
5.48.   To a greater or lesser degree, the vast majority of delegations, if not all of them, highlighted 
the economic progress achieved b y Malaysia during the period under review, in spite of adverse 
international circumstances characterized by uncertainty. There were plenty of expressions of 
gratitude and praise for the growing diversification of the Malaysian economy, its soundness, the 
high growth rates sustained over time, certain reforms undertaken during the review period that 
contributed to opening up trade and investment, and the careful, pragmatically and strategically 
implemented planning, not to mention other important and very po sitive developments that 
contributed to the Malaysian economy's remarkable performance.  
5.49.   At the same time, as would be expected in review processes, many delegations hastened to 
point out, constructively but also clearly, a number of areas that were a sourc e of concern to them 
as Malaysia's trade and investment partners and that required improvement. Among these areas 
I would like to mention a few which, in my view, could contribute to Malaysia's development.  
5.50.   Transparency, first of all. Many Members pointed to the difficulty of obtaining information on 
certification and licensing requirements as well as a number of outstanding issues relating to 
WTO notification commitments. Easily accessible and timely information unquestionably makes it 
easier to interact w ith other Members and provides a way of tackling and solving day -to-day 
problems. Moreover, transparency is recognized as a fundamental component of good governance 
in that it gives both local and foreign stakeholders confidence and is a powerful developme nt tool.  
5.51.   Second, the importance of increased openness and ease of establishment and development 
of investment. This issue is of particular importance to many Members. In my statement on 
Wednesday, I pointed to the apparent inconsistency between the growing  ability to attract private 
investment in Malaysia and the stagnation, or even decline, in Malaysia's ranking in the 
World  Bank's ease of doing business index. Mr Jayasiri also provided us with information in this 
connection, noting that the data would be duly recorded, published and made available more 
promptly and in a more timely manner. I wish to note, however, that the statements made during 
this Review reveal an interest on the part of new investors to do business in various sectors of the 
Malaysian e conomy, such as financial services and trade in halal products. And yet it would seem 
that at times they find it too difficult to set up and develop their business in the country, or they 
do so, but have to overcome a number of administrative difficulties.  It might be worth thinking 
about measures that could be taken to facilitate fresh investment in those and other sectors that 
would help to boost the performance of Malaysia's economic machine.  
5.52.   Third, government intervention and measures influencing the ec onomy. A number of 
Members welcomed the cuts by the Malaysian Government in certain subsidies, while also 
expressing their concern at the continued existence of other forms of support which in some cases 
could distort trade. Some of the speakers suggested that certain economic support systems could 
be at odds with provisions of the WTO agreements, in particular the Agreement of Subsidies and 
Countervailing Measures. Malaysia should probably consider whether the economic influence of the 
public sector can or  should contribute to the competitiveness of certain sectors which are now 
reasonably sound, or whether, on the other hand, this state intervention could be used to 
strengthen other essential components of economic development, such as infrastructure or 
human capital.  
5.53.   Fourth, the importance of environmental reforms. Some of the speakers stressed the need 
to maintain sustainable production systems, particularly with respect to environmental 
conservation and wildlife protection. Respecting and preserving the environment is unquestionably 
an urgent responsibility for the entire international community. Efforts to avoid environmental 
liabilities should not necessarily be limited to strictly governmental actions, but should also rely on 
the support of civil socie ty and the private sector. Indeed, the private sector must be informed and WT/TPR/M/366  • Malaysia  
 
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  responsible for the implementation of these rules. Although Malaysia did take a number of steps 
towards preserving the environment during the review period, such as the liberalizati on of the 
environmental services market and the implementation of a sustainable palm oil production 
scheme, I would suggest that Malaysia seek additional measures to support this effort.  
5.54.   Having briefly set out these four points which do not cover all of th e concerns expressed by 
Members - concerns which Mr Jayasiri addressed very clearly - I would like to take this opportunity 
to thank the Chair of this body once again for giving me the opportunity to participate in this 
motivating exercise, and to thank th e delegation of Malaysia for its willingness to work together 
and cooperate in this Review.  
5.55.   In conclusion, I am left with a clear impression that the serious, pragmatic and consistent 
manner in which the Government of Malaysia is managing its economy will soon have led the 
country to its objective of becoming a high -income nation. I feel certain that the steps that are 
being taken to fulfil that short -term aim will also help the country to face the more ambitious 
long-term challenges connected with the Mill ennium Development Goals, or indeed any other 
objectives that the Malaysian Government may set itself.  
5.56.   It remains for me once again to express my gratitude to the delegation of Malaysia, 
to congratulate them and to wish them a successful trade policy revie w. 
5.57.   Thank you.  
EUROPEAN  UNION  
5.58.   The EU would like to thank the delegation of Malaysia for the responses we have received to 
our questions in advance of the meeting. Thanks for the use of the alternative timeline and for the 
additional information provided today, many of which touched upon the questions we had raised 
on the first day in our statement.  
5.59.   The EU does have some follow -up questions in areas of Malaysia 's trade and investment 
policies where we feel that further clarification or information in still  necessary. These areas 
include Malaysia 's outstanding notifications, foreign investment regime, the approved permits 
system, the industrial linkage and the Multi Sourcing Parts Programmes, the use of safeguards, 
excise duty exemptions and halal standards,  as well as SPS measures going beyond the OIE 
Standard on BSE, the merger and acquisition control, reform plans on government procurement, 
further information on the ePerolehan system , protection of Non -registered Geographical 
Indications, and finally, add itional information on liberalization in the financial services and 
maritime transport sectors.  
5.60.   We have submitted these questions in writing and we thank Malaysia in advance for the 
replies in accordance with the timelines for this exercise.  
5.61.   The EU is conf ident, as also mentioned by Malaysia this morning, that this TPR has helped 
Malaysia in understanding third countries concerns in relation to its trade related policies and in 
reviewing them to ensure that they are favourable for attaining its economic obj ectives while 
respecting its international commitments.  
5.62.   We encourage Malaysia to continue its reforms and efforts and we are confident that the 
objective of becoming a high income economy by 2020 will be achieved.  
5.63.   In conclusion, the EU thanks Malaysia for its very constructive participation in this 
transparency exercise.  
UNITED  STATES  
5.64.   We would like to express our sincere thanks for the thoughtful and substantive perspectives 
shared  this morning. We would like to express our appreciation to the entire delega tion of Malaysia 
and the Secretariat for your constructive and diligent efforts in this seventh Trade Policy Review.  WT/TPR/M/366  • Malaysia  
 
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  5.65.   My authorities in Washington very much appreciated the informative answers provided to 
our many questions and are reviewing those carefully . We have also submitted a couple of follow -
up questions on government procurement and regulatory impact assessments  and look  forward to 
receiving those answers in due course.  
5.66.   As mentioned on day one of this review, the United States has taken good note of  the 
ongoing gazette price system review , review of intellectual property legislation and efforts to 
improve enforcement regarding trafficked wildlife products  
5.67.   The United States recognizes this progress in restrictions on foreign investment and 
encourages further reduction of restrictions in certain subsectors.  
5.68.   In addition, we encourage Malaysia to continue reviewing the full range of its subsidy 
policies and to submit further notifications to the Subsidies Committee.  
5.69.   The United States very much appreciates the strong bilateral relationship with Malaysia in 
trade and beyond. We commend Malaysia 's progressive economic growth and proactive 
engagement  in many efforts towards trade globalization, in capacity building and look forward to 
continued coop erative work with our friends here at the WTO  in Geneva and  at other venues.  
5.70.   To conclude, we would like to congratulate the delegation of Malaysia on its successful TPR 
and we wish everyone travelling back to capital a safe journey.  
INDONESIA  
5.71.   Once more, In donesia would like to convey appreciation to the delegation of Malaysia, for 
the good cooperation and communication  throughout this trade policy review process.  
5.72.   We have gone through the answers  to our advanced written questions and we would like to 
notify  that we have submitted  additional follow -up questions  seeking further clarification to the 
discussion being conducted during the first day.  
5.73.   We will be in touch with the Malaysian delegation in following up with th e response; and will 
be relying  on the good  offices of Ms. Fadzilah Abu Hasan and Mr. Salihin Mustafa  here in Geneva.  
5.74.   On behalf of the Indonesian delegation, I wish His Excellency Datuk Seri Jayasiri Jayasena, a 
productive remaining stay in Geneva  and a s afe flight back to Kuala Lumpur  for His Exce llency, 
and the capital -based Malaysian delegation.  
5.75.   Last but not least, Indonesia wishes the  best of experience and results  for the Malaysian 
Winter Olympic team in PyeongChang.  
H.E.  MR. J. JAYASIRI  (HEAD  OF DELEGATION)  
5.76.   Very briefly I would like to again thank the three additional interventions this morning. We 
take note of your additional questions and concerns. At the same time, I also would like to thank 
the Discussant for your comments  based on the interventions made , as well as the responses. We 
will tak e on board all this and we will  abide by the timeline set, and provide you with more detailed 
responses. And for those who have been encouraging us to do certain things, more than we have 
already done, certainly we wil l take that too on board. The process of transparency is something 
that is ongoing in Malaysia, we can't do this overnight  and I think one of the points that the 
discussant made about our ranking, which does not commensurate with the achievements, one of 
the flaws was because of transparency. So we realize the importance of transparency in many 
aspects, not just for the WTO but also for global rankings. We have actually put in place certain 
mechanisms to increase transparency in Malaysia.  
5.77.   With that, I would  like to again thank everyone for this fruitful exercise. Thank you.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  The seventh Trade Policy Review of Malaysia has offered us a good opportunity to deepen our 
understanding of its trade and investment policies. I  would like to thank the Malaysian delegation, 
led by H.E. J. Jayasiri, Secretary General of the Ministry of International Trade and Industry, for its 
constructive engagement throughout this Review. I would also like to thank the discu ssant, 
H.E. Ambassador Claudio de la Puente of Peru for his insightful remarks, and all the delegations 
that took the floor for their valuable contributions. The 476 questions submitted by 27 Members, 
and the interventions by 43 delegations underline the importance attached to M alaysia 's trade and 
investment policies and practices. Malaysia 's use of the alternative time -frame to rep ly to advance 
written questions  to this TPR was also appreciated.  
6.2.  Members praised Malaysia 's strong and steady economic growth since the time of its l ast 
Trade Policy Review in 2014. Malaysia 's prudent macroeconomic management and diversified 
nature of the economy allowed for strong and inclusive growth, despite the challenging global 
economic environment that it faced. Malaysia 's real GDP has grown at an average annual rate of 
5% over the past four years, and nearly 6% in 2017. Members acknowledged that Malaysia 's 
domestic reform, services sector liberalization, enhanced private sector participation as well as its 
trade openness had played a key role in  promoting growth. Trade is indeed very important for 
Malaysia, as its imports and exports of goods and services are the equivalent of 130% of its GDP. 
Malaysia 's growing role as an investment destination and as a foreign investor was acknowledged 
as well.   
6.3.  Members praised Malaysia 's active participation in the WTO and commended Malaysia for 
lowering tariffs under the ITA -2, and for ratifying the Protocol Amendin g the TRIPs Agreement. 
Malaysia 's participation in the MSMEs, investment facilitation, e -commerc e, and trade and 
women 's economic empowerment initiatives at the last Ministerial Conference was also highlighted. 
While Malaysia remains committed to the rules -based multilateral trading system, it has been 
expanding its RTAs commitments, including throug h inter alia : the negotiation of the Regional 
Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement 
for Trans -Pacific Partnership (CPTPP).  
6.4.  During the review period, Malaysia issued the Companies Act, simplified the tax structure, 
and modernized its business licensing system with a view to reducing business costs. Members 
encouraged Malaysia to continue to improve its business climate and further liberalize foreign 
investment restrictions, including in the areas of energy , telecommunications, and financial 
services.  
6.5.  Members commended Malaysia for being the fifth Member to ratify the Trade Facilitation 
Agreement and welcomed Malaysia 's latest notification for Category B of the Agreement. Members 
acknowledged the establishme nt of the National Single Window, the Malaysian National Trade 
Repository portal, and other trade facilitation initiatives.  On the other hand, Members noted that 
the adoption of the transaction value method regarding automobile imports in its customs 
valua tion would be a positive step in improving the transparency and openness of Malaysia 's trade 
regime. Members also noted the increase in the average applied MFN tariff rate from 5.6% to 
7.5% during the review period, the complexity of the tariff regime, tar iff peaks, and that 20% of 
tariffs were unbound. While appreciating Malaysia 's aim to become a hub for halal products, 
Members sought clarity regarding halal certification and procedures. Malaysia was encouraged to 
review and reduce non-tariff measures suc h as non -automatic import licensing, and to improve the 
overall transparency of its trade policies and measures by promptly addressing the issue of 
outstanding notifications . Some concerns were expressed at the increase in the number of 
definitive anti -dumping measures imposed by Malaysia during the review period .  
6.6.  Members welcomed the removal of subsidies on fuel that took place during the review period, 
as well as the reductions of subsidies provided to the fishery sector. They also encouraged 
Malaysia to  review its subsidy programmes and to notify these to the WTO, particularly those 
related to export performance and the use of domestic over imported goods. Several Members 
expressed concern regarding the application of stringent SPS requirements and other  standards. 
Malaysia was also encouraged to make its public procurement market more open and transparent 
to foreign suppliers, and to consider joining the Agreement on Government Procurement. 
Malaysia 's efforts to review its IPR legislation and improve enf orcement were appreciated.  WT/TPR/M/366  • Malaysia  
 
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  6.7.  Members congratulated Malaysia for the progress made in achieving its Vision 2020 goals, 
which are pursued in the context of the 11th five -year Malaysia Plan encompassing reforms to 
promote innovation, labour productivity, entre preneurship, and infrastructure development. They 
also welcomed the development of a national e -commerce strategic roadmap.  
6.8.  The above are some of the key issues that had emerged in our discussion. I am certain that 
the Malaysian delegation will take into account, and further reflect on  the many constructive 
comments, both broad and detailed  that it has received during this Review. Finally, I would like to 
thank all those that participated in our discussion, and I look forward to receiving the answers to 
any outstanding questions within the next month, at which point the Review will be successfully 
concluded.  
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