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Trade Policy Review Body    
 
* In Original language only/ En langue originale seulement /En el idioma original solamente . 
  
MALAYSIA  
DRAFT MINUTES  OF THE MEETING* HELD ON 14 AND 16 FEBRUARY 2 018 
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat ( Mrs Barbara Blanquart: barbara.blanquart@wto.org , or to  tprd@wto.org ) no later 
than 6 April 2018 . 
 
Organe d'examen des politiques commerciales  
 
MALAISIE  
PROJET DE COMPTE REN DU DE LA RÉUNION* TENUE LES 14 ET 16 FÉVRIER 201 8 
Les délégations sont invitées à soumettre  leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat ( Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 6 avril 2018  au plus tard.  
 
Órgano de Examen de las Políticas Comerciales  
 
MALASIA  
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 14 Y 16 DE FEBRERO D E 2018  
Las delegaciones pueden enviar a la Secretaría (Sr a. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 6 de abril de 2018  las 
correcciones fácticas que deseen introducir en sus propias declaracion es. 
 
 
_______________  
  WT/TPR/W/144  • Malaysia  
 
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  TRADE POLICY REVIEW  
MALAYSIA  
DRAFT  MINUTES OF THE MEETI NG 
Chairperson: H.E. Mr Juan Carlos González (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  3 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F MALAYSIA  ................................ ... 5 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ..............  10 
4  STATEMENTS BY MEMBER S ................................ ................................ ........................  13 
5  REPLIES BY THE REPRE SENTATIVE OF MALAYSI A AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  51 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  60 
 
 
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_re p_e.htm.  WT/TPR/W/144  • 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 contained in document WT/TPR/G/366 
and that of the WTO Secretariat in WT/TPR/S/366.  
1.3.  Questions 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 de adline: 
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 financi al 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 env ironment 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 W TO-consistent 
trade and investment regime.  
1.5.  Coming up to the current review period, as noted in the Secretariat's report, trade and 
trade -related reform initiatives had been undertaken in several areas, particularly the replacement 
of the sales tax by a go ods 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 pr ovisions 
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 t o Malaysia's participation in the multilateral trading system, Malaysia had been 
the fifth Member to ratify the Trade Facilitation Agreement in May 2015. Malaysia notified that it 
had designated all provisions under Category A with some exceptions. Malaysi a 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 the complexity of Malaysia's tariff 
structure, tariff quotas and the persistence of non -ad valorem tariffs, especially in agriculture, the 
prevalence of export taxes, a nd 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 conditions, 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; sub sidies; government linked companies; 
and sectoral issues relating to services, agriculture, mining, and car manufacturing. The advance 
written questions for this TPR covered many of the same issues.  
1.8.  The Chairperson drew Members' attention to some other is sues they had raised in their 
advance written questions for this TPR. These included: 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; expo rt performance related tax measures and local content 
requirements for firms in free zones; plans to reform copyright protection; domestic support and WT/TPR/W/144  • 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 meeting would be a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to the multilateral trading system. T he 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 a nd investment regime since the last TPR in 2014.  
2.3.  Our thanks 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 wi de 
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 ques tions, 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 covered a number of areas mainly on intellectual property rights and 
competition policy, f oreign investment regime, import licencing procedures, tariff structure, 
sanitary and phytosanitary measures, services sector in particular 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 developments since our last TPR exercise.  
Malaysia and multilateral trading system  
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 performance  
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, particularly private expenditure and growth 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/W/144  • 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 amounted 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 owne d by Malaysian companies abroad amounted to RM522.5 billion, 
compared to outstanding 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 fo r 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 Nations' 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 focu s 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 policy   
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 eff icient 
governance and prudent fiscal discipline. As a result, some international credit rating agencies 
have maintained their ratings on Malaysia as 'A -' with a stable prospect.  
Structural reforms  
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 increase 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 reduci ng subsidies, Malaysia continued to improve its subsidy rationalization 
programme to provide assistance mainly to the low income and vulnerable groups.  
2.18.   Malaysia has also set a target of 3.7% for labour productivity growth under the 11th 
Malaysia Plan. To a chieve this, the Malaysia Productivity Blueprint (MPB) was launched on 
8 May 2017. The private sector, in partnership with the Government will be the key driver for this 
productivity agenda.  
2.19.   On education, the Government introduced the Malaysia Education Bl ueprint 2013 -2025 to 
improve the quality of school education through curriculum transformation, improving the quality 
of teachers and increasing 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 -intensiv e and services -driven economy,  Malaysia launched the Services Sector 
Blueprint (SSB) 2015 -2020. The SSB is a set of horizontal strategies 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 sector and provides action items for implementation.  
Financial services 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 financi al 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 financi al 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 
Financia l Market Committee (FMC) was formed in 2016 and is responsible for formulating 
recommendations to foster the development of Malaysia's financial market.  
Capital market sector  
2.24.   Malaysia has undertaken a process of phased and pragmatic liberalization in the capital 
market to derive maximum value from globalization. With the implementation of liberalization 
measures, all existing foreign equity restrictions in the capital market have been removed.  
2.25.   Other measures undertaken during the period under review for th e 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, Di gital Investment 
Management (DIM) framework and Alliance of FinTech Community (aFINity) to 
catalyse greater interest and visibility towards nurturing the development of digital 
finance; and  
iii. launching of the Islamic Fund and Wealth Management Blueprint to f urther 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 2 3% 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 competitiveness, 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 products will be 
driven by electrical and electronics, machinery and equipment, chemicals, medical devices and 
aerospace sub -sectors.  WT/TPR/W/144  • Malaysia  
 
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  2.28.   The aerospace industry h as 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 sector  
2.29.   In the wake of increased demand for sustainable palm oil, the Malaysian Sustainable Palm 
Oil (MSPO) Certification Scheme, which started in 2016, will be made mandatory b y 
31 December  2019, covering all smallholders, plantations and processing facilities.  
Intellectual property rights  
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 information and impro ve 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 str ives 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 facilitation  
2.32.   Malaysia is committed to create more conducive and facilitative environment for trade and 
investment. In 2015, the Government launched the Logistics and Trade Facilitation Master Plan to 
provide t he 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 econo mic 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 regional single windows in facilitating cus toms 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 practices 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 facilities for companies to 
apply licenses or permits to start operating business in Malaysia.  
2.34.   The new Companies Act 2016 has been enforced since 31 January 2017. This act 
modernizes the corporate legal framework in Malaysia to facilitate and reduce the time and cost 
taken in starting a business in Ma laysia.  
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 products in August 2017.  
Electronic commerce  and digital 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/W/144  • 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 of doubling e -commerce growth from 10.8% t o 20.8% and 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 v irtual zones that support SMEs to trade goods, 
provide services, innovate and co -create solutions.  
Way forward  
2.38.   To position Malaysia as a top 20 nation in economic development, social advancement and 
innovation in the next thirty years, the Government intr oduced 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 segments of society through a 
bottom -up syndication process to have c lear, 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 ru les-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 principles and rules of the WTO.  
2.40.   Before I end my statemen t, 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 protectionist sentiments.  
2.41.   As we have already provided mo st of responses to the Members' 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.  Gracias señor Presidente y buenos días a todos los presentes.  
3.2.  Quisiera iniciar esta ponencia dando la bienvenida a la delegación de Malasia, encabezada por 
Su Excelencia, el Señor Jayasiri, Secretario General del Ministerio de Comercio Internacional e 
Industria de Malasia. Agradezco al mismo tiempo su declaración inicial, que da cuenta de los 
notables avances en el desempeño de la economía de Malasia, su constante diversificación, así 
como de las medidas de política económica y comercial que ha adoptado su  país. Aprecio también 
las palabras introductorias del Presidente del Órgano de Examen de las Políticas Comerciales, 
como al equipo de Malasia y al equipo de la Secretaría por sus informes para este examen que me 
han sido de gran utilidad para preparar est a intervención.  
3.3.  Antes de comentar el contenido de los informes preparados para este Examen, permítanme 
compartir una breve introducción relativa a la historia reciente de la economía de Malasia.  
3.4.  Desde 1961, año en que se inicia el registro del Banco Mundi al sobre el crecimiento anual de 
los países del mundo, Malasia ha sostenido tasas de crecimiento altas, que solamente se han 
interrumpido o descendido levemente en años puntuales, a raíz de crisis económicas que han 
golpeado a su región o a la economía glo bal. Adicionalmente, hay que resaltar que el Señor 
Jayasiri ha compartido con nosotros hoy que la economía malaya ha crecido a una impresionante 
tasa de 5.9% durante 2017. Desde 1961, su población se ha multiplicado por 4, alcanzando 
aproximadamente 32 mil lones en años recientes; no obstante, su producción se ha multiplicado 
por 25 veces en el mismo periodo.  
3.5.  De acuerdo con los autores Zainal Yusof y Deepak Bhattasali1, el desarrollo favorable de la 
economía de Malasia tiene como uno de sus fundamentos que el país ha sabido aprovechar los 
ingresos ligados a los recursos naturales para fomentar la diversificación de su producción desde 
una etapa muy temprana. Otro fundamento del éxito registrado por la economía malaya ha sido 
sin duda el compromiso gubernamen tal por una eliminación de la pobreza estructural. La pobreza 
extrema se ha reducido de 3% de la población en 1985 a 0,3% hacia finales de 2010, de acuerdo 
con el Banco Mundial. Asimismo, las reformas en favor de las exportaciones, que incluyeron leyes 
en favor de la conclusión de acuerdos comerciales regionales y el fomento de las inversiones 
directas extranjeras, datan de fines de los años 60 e inicios de los años 70.  
3.6.  Los referidos autores señalan el importante rol de estas políticas económicas y comerci ales 
en la consecución de los importantes progresos que ha realizado Malasia desde la década de los 
60. En ese sentido, me complace formular estos comentarios respecto de un país que ciertamente 
ha tenido éxito en alcanzar importantes resultados económicos , convirtiéndose en un caso de 
estudio muy interesante, especialmente para los Miembros en desarrollo que transitan por caminos 
similares.  
3.7.  Dicho esto sobre la historia económica reciente de Malasia, paso a comentar el período bajo 
examen, comprendido entre  2014 y 2017.  
3.8.  El informe preparado por Malasia para este Examen resalta el rol del planeamiento 
gubernamental en los esfuerzos para el desarrollo de la economía, planeamiento que ha puesto 
énfasis en la inclusión, el aumento de la productividad y el fomen to de la inversión en negocios de 
alto valor agregado. Cabe destacar que en consonancia con los objetivos trazados en la 
planificación económica, el crecimiento se ha mantenido impulsado por diversos sectores, en 
donde resalta el rol cada vez más important e de los servicios en la economía local, así como el 
desarrollo de los polos químico y electrónico, y la importante participación de sector manufacturero 
industrial. El Señor Jayasiri nos ha dado algunas cifras impresionantes sobre el peso del sector 
manuf acturero, industrial en el total de las exportaciones del país. El crecimiento también se ha 
mantenido a pesar de la fuerte caída del precio del petróleo, señal clara del importante éxito de las 
políticas de Malasia para la diversificación de su economía. La respuesta del sector privado a la 
situación económica general ha sido positiva, habiéndose registrado un incremento notable y 
constante de la inversión privada durante el período bajo examen. Asimismo, el Señor Jayasiri nos 
                                                
1 "Economic Growth and Development in Malaysia:  Policy Making and Leadership", Zainal Aznam Yusof  
and Deepak Bhatt asali, 2008. The International Bank for  Reconstruction and Development/ The World Bank . WT/TPR/W/144  • Malaysia  
 
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  ha referido el importante vol umen de inversión de Malasia en el exterior, una tendencia creciente 
muy acentuada.  
3.9.  Asimismo, cabe señalar la importancia que ha asignado Malasia a los Acuerdos Comerciales 
Regionales en el período bajo examen. Particularmente, resalto su participación en la Asociación 
de Naciones del Sudeste Asiático, en la cual se ha aumentado el nivel interno de liberalización y se 
ha emprendido con éxito algunas adendas a los acuerdos comerciales de dicha Asociación, con 
socios claves. De igual manera, como parte de ASE AN, Malasia viene sentando las bases para la 
interesante negociación comercial conocida como "Regional Comprehensive Economic Partnership 
(RCEP)" , proyecto de Acuerdo que se plantea de cara a los socios comerciales preferenciales de 
ASEAN. A su vez, cabe d estacar su participación en la negociación del Acuerdo Transpacífico de 
Cooperación Económica o TPP, por sus siglas en inglés, y más reciente en la nueva iniciativa 
(Progressive and Comprehensive TPP cuya negociación viene de concluir y que habrá de 
suscri birse el próximo mes en Chile) y, de manera general, en los distintos foros de cooperación 
del Asia Pacífico, notablemente el APEC.  
3.10.   También resulta pertinente poner en relieve que, en el marco de esta Organización, Malasia 
ha mantenido una participación ac tiva, presidiendo importantes Órganos y ratificando prontamente 
el Acuerdo sobre Facilitación del Comercio y el Protocolo de Enmienda del Acuerdo sobre los 
Aspectos de Propiedad Intelectual relacionados con el Comercio (ADPIC).  
3.11.   Dentro de este marco ciertam ente favorable y prometedor para la economía y la política 
comercial de Malasia, quisiera referirme a ciertos puntos sobre los que me permito algunas 
reflexiones.  
3.12.   Sin duda un tema que se hace muy presente en los informes es la coexistencia entre una 
tende ncia a la intervención y presencia del Estado en ciertos sectores y una tendencia de carácter 
liberalizador y de apertura. Como ejemplo de esta situación, observo, de un lado, el empleo de 
empresas comerciales del Estado en ciertos sectores de la economía y el uso de incentivos fiscales 
y subsidios; y, de otro lado y como un contraste, la exoneración de aranceles para muchos 
productos, el puesto alto dentro de los rankings sobre facilidad para el comercio y la reciente 
autorización de participaciones de cap ital extranjero de hasta 100% en las empresas de ciertas 
ramas del sector servicios. Ante ello, quisiera sugerir a la delegación de Malasia que elabore sobre 
cómo su Gobierno prevé el desarrollo de ambas tendencias en los años por venir, en los puntos 
que he mencionado o que tengan a bien mencionar los Miembros en sus intervenciones. En este 
sentido, es importante señalar que uno de los pedidos de la Membresía de la OMC en ocasión del 
anterior Examen de las Políticas Comerciales de Malasia se relacionó a la  racionalización de los 
subsidios, pedido para cuyo cumplimiento el Gobierno de Malasia ha dado, durante el período bajo 
examen, algunos pasos notables, como la eliminación de los subsidios al diésel y al petróleo.  
3.13.   De igual manera, encuentro de interés es cuchar mayores detalles sobre el funcionamiento 
de la exención de impuestos ligada al valor del incremento de las exportaciones, a la que se hace 
referencia en el párrafo 15 del sumario del informe de la Secretaría.  
3.14.   Asimismo, considero que sería interesan te escuchar algunas precisiones que la delegación 
de Malasia pudiera dar sobre si se encuentra dentro de los planes gubernamentales reducir en 
cualquier medida los contingentes arancelarios, el uso de los impuestos a la exportación y el 
número de productos  sometidos a licencias de importación, habida cuenta, en particular, que 
algunos de estos elementos fueron ya objeto de comentarios de parte de la Membresía en el 
anterior Examen de Políticas Comerciales de Malasia en el año 2014.  
3.15.   De igual manera, noto qu e la posición de Malasia en el ranking del índice de facilidad para 
hacer negocios del Banco Mundial se ha mantenido sin mejora en el mismo lugar a lo largo del 
período bajo examen. Si bien este dato en cierta medida pareciera no guardar correspondencia 
con la creciente atracción de inversión privada del Miembro bajo examen y de la inversión que 
tiene del exterior, considero que sería interesante escuchar alguna información sobre las medidas 
que el Gobierno malayo pudiera haber previsto para retornar a una línea ascendente en ese 
ranking, incluidas las que se han adoptado con la reciente promulgación de la Ley de Compañías 
de 2016, mencionada en los informes.  WT/TPR/W/144  • Malaysia  
 
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  3.16.   Señor Presidente, quisiera concluir mis apreciaciones agradeciendo por la oportunidad de 
pasar revi sta al muy interesante sistema económico -comercial de Malasia, esperando que mis 
comentarios hayan podido aportar una breve introducción a este debate. Me quedo con la 
impresión de que el Gobierno de Malasia hace encomiables esfuerzos por lograr un desarro llo 
inclusivo y resiliente, y que su producción está fuertemente insertada en la economía global, 
buscando profundizar aún más dicha inclusión. Me parece que el compromiso de Malasia con un 
sistema de comercio abierto y basado en reglas es claro, de lo cua l son indicios evidentes el hecho 
de que no ha recibido solicitudes de consultas en el mecanismo de solución de diferencias de la 
OMC durante el período bajo examen, así como su participación activa en esta Organización y en 
las negociaciones de numerosos acuerdos comerciales regionales.  
3.17.   En este sentido, termino mi intervención agradeciendo por la prontitud con la que Malasia 
ha dado respuesta a las preguntas formuladas por las distinguidas delegaciones, y expresando mis 
mejores deseos de éxito para los al tos objetivos que Malasia se ha trazado, incluida la meta de 
convertirse en un país de ingreso alto para el año 2020, así como, por supuesto, para el presente 
Examen.  
3.18.   Muchas gracias.  
  WT/TPR/W/144  • Malaysia  
 
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  4  STATEMENTS BY MEMBER S 
CHILE  
4.1.  Para este ejercicio hemos formulado 7 consultas y agradecemos las respuestas entregadas.  
4.2.  Las relaciones diplomáticas entre ambos países datan desde 1979. La vinculación con Malasia 
se ha desarrollado de manera armónica, orientada especialmente al ámbito e conómico y de 
colaboración en los organismos internacionales.  
4.3.  Tras la firma del Tratado de Libre Comercio entre ambos países en 2010 (vigente desde abril 
2012), la relación comercial con Malasia se ha mantenido en un buen nivel. Este acuerdo comercial 
es bastante profundo en materia de bienes, con reglas de origen, p rocedimientos aduaneros, 
barreras técnicas al comercio, medidas sanitarias y fitosanitarias, defensa comercial, 
salvaguardias, cooperación, transparencia y solución de controversias. Además, contiene una 
"cláusula evolutiva" para negociar capítulos sobre e l comercio de servicios e inversiones.  
4.4.  En el 2017 las exportaciones de Chile a Malasia aumentaron un 53% respecto al año anterior 
totalizando 188 millones de dólares EE.UU. A su vez, las importaciones desde Malasia a Chile, 
también se vieron incrementadas , en un 7% respecto de 2016 y por un total de 207 millones de 
dólares EE.UU.  
4.5.  Para brindar mayor acceso a los mercados, con Malasia tenemos un Acuerdo de Servicios 
Aéreos, de Certificación Electrónica de Origen y de Certificación Halal. También esperamos a mpliar 
nuestra cooperación en otras materias, tales como antártica, energía y académica.  
4.6.  En el ámbito de la integración comercial, Chile y Malasia – a pesar de la distancia geográfica 
existente entre nuestros países - hemos dado pasos que expresan una visi ón y objetivos comunes. 
En este sentido cabe resaltar la importancia dada por nuestro país a sus relaciones con Asia al 
suscribir la adhesión al Tratado de Amistad y Cooperación con la Asociación de Naciones del 
Sudeste Asiático (ASEAN), del cual forma par te Malasia. Este hecho tuvo lugar en el marco de la 
Cumbre de Líderes de dicha Asociación en 2016.  
4.7.  Los diez países miembros de ASEAN constituyen la quinta economía mundial y se han 
transformado en el tercer mercado de importancia para nuestro país. Chile,  por lo tanto, reconoce 
que ASEAN juega un significativo papel no solo económico y comercial sino que también 
estratégico en la región del Asia -Pacífico. De tal manera, la adhesión al Tratado de Amistad y 
Cooperación con ASEAN consolida décadas de acercami ento con cada uno de sus Estados 
miembros, así como con la Asociación en su conjunto.  
4.8.  Al mismo tiempo, Chile y Malasia participamos activamente otros importantes foros 
suprarregionales que buscan una mayor integración comercial y estimulan el libre comerci o como 
es APEC y, próximamente, el Tratado Integral y Progresista de Asociación Transpacífico, más 
conocido como TPP -11, que será firmado por Chile y Malasia, junto a otros más, el 8 de marzo en 
Santiago de Chile.  
4.9.  Asimismo, cabe señalar que en esta casa Ch ile y Malasia compartimos visiones comunes en 
torno a la liberalización agrícola a través del Grupo Cairns y también somos parte del Grupo 
Informal de Amigos de las MIPYMEs.  
4.10.   Con respecto a los informes presentados, observamos que Malasia continúa siendo un a 
economía orientada al exterior, abierta, robusta, competitiva, diversificada y promotora de la 
inversión.  
4.11.   Destacamos la gestión económica pragmática y las políticas macroeconómicas adecuadas 
que han permitido que en estos últimos cuatro años Malasia haya  tenido un firme crecimiento 
económico de un 5% anual, a pesar de las contracciones y perturbaciones tanto internas como 
externas.  WT/TPR/W/144  • Malaysia  
 
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  4.12.   Nos parecen interesantes los esfuerzos del gobierno local para modernizar el sistema de 
concesión de licencias comerciales d el país. Es destacable que el país ocupe puestos altos en las 
clasificaciones internacionales relativas a la facilidad del comercio transfronterizo.  
4.13.   A su vez, desearíamos que existan menos restricciones a la inversión extranjera en el sector 
de la pesca, e nergía, telecomunicaciones, finanzas y transporte, y se aumente la participación 
extranjera en los proyectos de asociación público -privada.  
4.14.   Nos preocupa, asimismo, que el arancel medio NMF (Nación Más Favorecida) aplicado se 
haya incrementado de un 5,6% e n 2013 a un 7,5% en 2017 y que hayan aumentado tanto las 
investigaciones como medidas antidumping para determinados productos.  
4.15.   En el 6º Examen de Política Comercial de Malasia, mi país expresó su preocupación por la 
gran cantidad de subsidios utilizados. Nos complace tomar conocimiento que desde fines de 2014 
se hayan eliminado algunos de ellos por lo que invitamos a que Malasia continúe en esta senda y 
realice mayores esfuerzos en su reforma de racionalizar el régimen de subvenciones.  
4.16.   Confiamos en que Ma lasia gracias a su estabilidad y la puesta en marcha de distintas 
reformas internas y la fidelidad al lema nacional - "unidad es fuerza" - siga cumpliendo la política 
económica establecida en el documento Visión 2020 que pone de relieve la productividad, l a 
innovación y el comercio para lograr el crecimiento económico.  
4.17.   Finalmente, le deseamos a la delegación de Malasia mucho éxito en este examen.  
MÉXICO  
Introducción  
4.18.   México da la más cordial bienvenida a la delegación de Malasia encabezada por el 
Sr. J. Jayasiri, Secretario General del Ministerio de Comercio Internacional de Industria, a quien, 
personalmente, extiendo un caluroso saludo. Asimismo, mi delegación agradece al Embajador 
Claudio de la Puente (Perú) por su puntual análisis. Quisiera aprovechar la o portunidad para 
destacar y reconocer la muy activa labor del equipo de la Misión de Malasia.  
Situación económica en general  
4.19.   Malasia es un excelente ejemplo de disciplina y buena implementación de medidas 
económicas para no sólo hacer frente a las crisis financieras del pasado, sino también para lograr 
un crecimiento sostenido de su economía de un considerable 5% anual en promed io durante el 
período de examen.  
4.20.   Este crecimiento ha estado acompañado por cifras macroeconómicas sanas. De 2013 a 
2016, la inflación y la tasa de desempleo se mantuvieron por debajo del 3 y 4%, respectivamente, 
y la deuda pública por debajo del 55% del P IB. 
4.21.   Malasia es también una economía abierta al comercio y diversificada  en cuanto a producción 
y exportación de materias primas, manufacturas y servicios.  Las importaciones y exportaciones de 
bienes y servicios representan actualmente el 130% del PIB; sin embargo, durante el periodo 
examinado, el valor de las exportaciones disminuyó un 17% y el de las importaciones un 18%. A 
pesar de eso, la integración de Malasia con otros mercados a través de ASEAN y de otros acuerdos 
de libre comercio como la Asociación Económica Amplia Regional ha sido continua y progresiva.  
4.22.   La inversión extranjera directa no ha dejado de aumentar, sobre todo en los servicios 
financieros y de la construcción. Malasia ha decidido no limitar la recepción de inversión extranjera 
a esos sect ores; a partir de 2012 permite 100% de capital extranjero con respecto a 18 sectores, 
que incluyen atención sanitaria, servicios profesionales y ambientales.  WT/TPR/W/144  • Malaysia  
 
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  Acceso a los mercados  
4.23.   Por lo que respecta al acceso al mercado malasio, el 56,2% de las fracciones  arancelarias 
están libres de derechos y el promedio de arancel NMF aplicado fue del 7,5% en 2017; sin 
embargo, subsisten algunas barreras para exportar productos a Malasia, tales como:  
 Un arancel superior al 50% con respecto a ciertos productos industriales y agrícolas, por 
ejemplo: algunas manufacturas de tabaco, coles redondas y baldosas de cerámica.  
 La prescripción de licencias no automáticas para poder importar determinados productos 
en Malasia, tales como vehículos de tierra y autopartes.  
4.24.   Notamos que, por otra parte, el hecho de que el 20% de las líneas arancelarias siguen sin 
consolidar podría generar incertidumbre entre los exportadores.  
Subvenciones a la exportación  
4.25.   En cuanto a las subvenciones a la exportación, mi delegación quisiera expr esar también su 
preocupación sistémica por las subvenciones otorgadas por Malasia a determinados productos, los 
cuales están en función del incremento de sus exportaciones, ya que esos tipos de apoyos podrían 
contravenir el Acuerdo sobre Subvenciones y Med idas Compensatorias.  
Reformas legales  
4.26.   Por otra parte, mi delegación quisiera felicitar Malasia por la implementación de importantes 
reformas legales y administrativas, tales como:  
 Ley de Sociedades, por la que se cobra una tasa fija de constitución de com pañías en lugar 
de una "ad valorem", requerida anteriormente;  
 Automatización de los procedimientos aduaneros y aumento de 48 a 59 operadores 
económicos autorizados de 2014 a 2017;  
 La creación de la Ventanilla Única para la renovación de los derechos de propiedad 
intelectual llamada IP Renewal Lounge , y 
 La legislación bancaria para fortalecer la ética comercial, protección de los consumidores 
de servicios financieros y requisitos nor mativos diferenciados en función al riesgo y a cada 
actividad financiera.  
Relación bilateral  
4.27.   En cuanto a la relación bilateral, México y Malasia hemos venido acrecentando nuestros 
lazos comerciales y los flujos de comercio de forma sostenida en años recien tes, así como nuestra 
interacción técnica y política en materia de comercio e inversión. Prueba de ello es la conclusión 
satisfactoria de las negociaciones del Tratado de Asociación Transpacífico (TPP), que dará lugar a 
una zona de libre comercio entre nue stros países y otras nueve economías de la región Asia -
Pacífico.  
Cierre  
4.28.   En resumen, quisiera felicitar a Malasia por el buen manejo de sus políticas económicas, lo 
que, sin duda, contribuirá a que alcance su objetivo de convertirse en un país de ingresos altos 
para 2020.  
4.29.   Concluyo mi intervención agradeciendo nuevamente a Malasia las respuestas a las 
preguntas formuladas por mi delegación y le deseo mucho éxito en el presente Examen.  
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 WT/TPR/W/144  • Malaysia  
 
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  steps to continually improve its regulatory framework. We believe that these efforts will contribute 
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 consistent 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 i n Buenos Aires, 
Malaysia contributed to the discussions on important and current trade issues, such as Micro, 
Small, Medium Enterprises, e -Commerce and Investment Facilitation. ASEAN applauds Malaysia's 
contribution and commitment to preserving and strengt hening the multilateral trading system.  
4.33.   Last but not least, on behalf of ASEAN colleagues, 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 P olicy 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 economic 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 account 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 eco nomic 
cooperation. In ASEAN, Malaysia has played a proactive role in advancing ASEAN 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 l ooks 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 Jayasi ri 
Jayasena and his team a productive day ahead, and with confidence, this is going 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 pr esented the New Economic Model and in 2015 launched the 11th 
five-year Malaysia Plan 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 a nd 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.  WT/TPR/W/144  • Malaysia  
 
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  4.41.   Malaysia is making progress towards its goals. Its econ omy has been on a continuous rise 
since the mid -1970s and its GDP per capita has more 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 t he past years, low unemployment and contained inflation.  
4.42.   Located at a strategic position 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 i ts 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 
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 th e 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 bila teral relations with Malaysia. We are 
currently exploring the resumption of the negotiations 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 raise 
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 econo my. 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 E U 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 regime 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 recognizes that Malaysia has moved in the ri ght 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 improving 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 about th e 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 econ omies 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, wh ile 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 WT/TPR/W/144  • Malaysia  
 
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  products to Malaysia too and to compete with EU halal products on the Malaysian ha lal 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 forward 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.  
ECUADOR  
4.55.   Malasia en 1970 tenía muchas similitudes con el Ecuador, no sólo en el aspecto económico, 
siendo ambos países megadive rsos con abundantes recursos naturales, con una población 
multiétnica y una oferta exportable concentrada en bienes agrícolas primarios.  
4.56.   No obstante, en los años 70, Malasia comenzó una gran transformación que lo llevó de ser 
mayormente un productor de mat erias primas a convertirse en una economía emergente con 
múltiples sectores económicos bien desarrollados.  
4.57.   La vertiginosa transformación de la economía de Malasia en las últimas décadas ofrece 
grandes oportunidades que el Ecuador tiene mucho interés en con ocer. 
4.58.   La relación comercial entre Ecuador y Malasia es fructífera y continúa creciendo de forma 
dinámica. Además del café y los frutos del mar, el cacao ecuatoriano ha fortalecido su presencia en 
el mercado malasio donde es reconocido por su calidad y pureza.  
4.59.   En cuanto se refiere al informe presentado por la Secretaría, tomamos nota de la gestión 
saludable y eficiente de la economía malasia, lo cual se manifiesta en su estabilidad 
macroeconómica y el continuo crecimiento del PIB en los últimos años, aún  a pesar de las 
dificultades internas y externas.  
4.60.   Desde el último examen, se puede evidenciar la liberalización y apertura progresiva de su 
economía. El informe subraya la ampliación de los ACR de los que es parte Malasia, una red que 
según se prevé contin úa ampliándose de manera dinámica.  
4.61.   Se han dado cambios legislativos positivos, orientados a hacer más eficientes y más baratos 
los procedimientos administrativos para realizar actividades clave, tales como la apertura y la 
gerencia de negocios, lo cual br inda un claro impulso al emprendimiento y la exportación.  
4.62.   Saludamos la transparencia del sistema arancelario de Malasia, en el que un 99% de las 
líneas arancelarias son ad valorem. Ello constituye un ejemplo para muchos otros Miembros que 
aún deben trabaja r en la simplificación de sus aranceles.  
4.63.   También llama la atención el sistema de incentivos fiscales a las empresas, fomentando así 
la innovación y la exportación.  
4.64.   Sobresale, de igual forma, el esfuerzo que está llevando a cabo el país para lograr la 
armon ización de sus normas a la normativa internacional.  
4.65.   Vemos con agrado la ratificación por parte de Malasia en 2015 del Protocolo por el cual se 
enmienda el Acuerdo sobre los ADPIC en relación con la salud pública.  
4.66.   Felicitamos a Malasia por las medidas toma das para el fortalecimiento de su sector 
financiero, el cual es un referente a nivel internacional, ante todo en el mundo islámico.  
4.67.   Las previsiones económicas vaticinan la continuidad del crecimiento económico sostenido de 
Malasia en los años venideros, en  gran medida gracias al manejo lúcido de su política económica. 
Esperamos que continúen robusteciendo su economía en los sectores en los que requieren 
refuerzo.  WT/TPR/W/144  • Malaysia  
 
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  4.68.   Para concluir, deseamos agradecer a la delegación de Malasia por las respuestas brindadas 
a las preguntas que hemos planteado sobre algunos aspectos concretos de su política comercial, 
las cuales ya han sido remitidas a nuestra capital y contribuirán a fortalecer nuestras relaciones 
bilaterales en materia de comercio.  
4.69.   Auguramos a Malasia éxitos en e l presente Examen y deseamos que siga cumpliendo hitos 
en pos de las metas que se han planteado lograr para el año 2020, a través de la planificación 
cuidadosa y la visión de futuro que les caracteriza.  
UKRAINE  
4.70.   Our country attaches great importance to deve loping trade and economic 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 c ooperation and increasing 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, i ncluding import from 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; electric al machinery; industrial 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 commodities' 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. 
 Functioning 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 s ectors' development, 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 str engthening 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 engagements related 
to ASEAN and APEC. W hile 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.  WT/TPR/W/144  • Malaysia  
 
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  4.79.   We congratulate Malaysia for its strong and steady economic growth d uring the time period 
of this review, and for the progress that it has made in achieving 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, and 
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 r ole in regional bodies such as ASEAN and APEC.  
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 AS EAN Trade Repository Portal, and other trade 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 provid ed 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 value method for passenger cars. The adoption of 
the transact ion 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 access 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 eff orts to improve enforcement including arrests and prosecutions of suspected 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 penaltie s and what steps are being taken 
to address the country's CITES "primary concern" designation with regard 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 inves tment 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 u ndermines 
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 notifi cation under the Agreement on Subsidies 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 added 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 2017 WTO subsidies notification. We lo ok 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 Madrid Pro tocol 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 private s ervices 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 progre ss to sub -
sectors where restrictions remain such as energy, telecommunications, and finance.  WT/TPR/W/144  • Malaysia  
 
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  4.88.   In closing, the United States wishes to thank the delegation of Malaysia for its attention to 
our questions. We look forward to further cooperation with Malaysia o n trade matters bilaterally, in 
our regional work with ASEAN and APEC, and here at the WTO. We wish Malaysia a successful 
review.  
NEW  ZEALAND  
4.89.   New Zealand and Malaysia have a significant bilateral trading relationship, and Malaysia is 
one of our top ten tra ding 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 
Compreh ensive 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 essential 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 Facilitation a greement. 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 iss ues 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 liberalization in the 
region, including through its participation in the Comp rehensive 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 year for realis ing 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 liberalization of foreign equity 
restrictions in a number of different services sectors. We welcome s uch 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 digital 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 gas 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 conside r 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 su bsidies 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 Development Goals 14. 6. 
4.96.   We welcome the additional information provided in the report on Malaysia's agricultural 
production and policies. We would note the systemic importance of maintaining the integrity of the 
Agreement on Agriculture and ensuring that market price measures 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.  WT/TPR/W/144  • Malaysia  
 
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  4.97.   New Zealand welcomes Malaysia's commit ment 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 together both bilaterally and in this Organization, and look forward to 
seeing Mala ysia achieve its stated goal of becoming a high -income nation by 2020.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.98.   Malaysia's economy continued on a positive course over the period 2014 to 2016, with 
average GDP growth of 5.1% per an num. 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 launched 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 approach, 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 for 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 consid ered 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 f or 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 have a strong bi lateral 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 Southbound 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 convinced that the re 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 construc tive 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 WT/TPR/W/144  • Malaysia  
 
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  second largest trading partner. Last year, bilateral trade was S$108 billion, accounting for 11% of 
Singapore's total trade. Bilate ral 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, Kuala Lumpur, Penang,  Miri 
and Kuantan, have increased tourism and brought both sides even closer.  
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, from 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 identified as on e 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 and in th e 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 horizon. 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 actively an d 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 Agreemen t 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 initiative 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 obligations, 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 M ission 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 facing Mal aysia's economic reform efforts remain, our firm belief is that 
meaningful structural economic reforms will deliver a stronger economy and increased prosperity.  
4.115.   Australia highly values the important role of foreign investment in encouraging economic 
growth , and encourages Malaysia to foster and maintain an open 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.  WT/TPR/W/144  • Malaysia  
 
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  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 firms 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 industry - bringing it closer to realising its 2020 and 
2050 ambitions.  
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 a lmost $30 billion, two -way investment 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 additional impetus 
to the relationship. Tariff reductions under MAFTA are deli vering new opportunities for businesses 
in both countries. To continue this upward trajectory, Australia encourages Malaysia to turn its 
attention to reducing non -tariff barriers to trade and investment, particularly in relation to 
services.  
4.119.   Australia and Malaysia are active voices for trade liberalisation globally and regionally. We 
appreciate working closely with Malaysia in the Cairns group to promote agricultural liberalization 
and look forward to Malaysia chairing APEC in 2020. We are both members of t he 
ASEAN -Australia -New Zealand Free Trade Agreement (AANZFTA), and participate in the ongoing 
Regional Comprehensive Economic Partnership (RCEP) negotiations. We value our close 
cooperation in moving forward the Comprehensive and Progressive Agreement for Trans -Pacific 
Partnership (CP TPP) process, and welcome continuing engagement with Malaysia and other 
TPP-11 countries to bring this agreement into force expeditiously.  
4.120.   I'd like to thank Malaysia for its replies to our written questions. We are currently 
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 cooperate 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 challenging envir onment 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, par ticularly 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 con siders 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 note that aro und 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 a mbitious 
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.  WT/TPR/W/144  • Malaysia  
 
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  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 largest trading 
partner in the world. Malaysia was also our 13th largest trading partner in services in 2015. We 
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 achievements in trade facilitation. Since the last Review, Ma laysia has simplified document 
requirements; removed unnecessary regulatory requirements; established a National Single 
Window, and a Trade Facilitation Cluster Working Group, for implementation of the Trade 
Facilitation Agreement. Malaysia also runs an Au thorised Economic Operator programme, with a 
Mutual Recognition Arrangement with HKC. All these measures have greatly enhanced 
cross-border trade.  
4.129.   Trade and investment policies are, in general, becoming more liberal in Malaysia. 
Investment restrictions, fo r instance, are being relaxed, although not in all sectors. The Malaysian 
Government remains very involved in the economy through government -linked enterprises and 
their subsidiaries, notably in businesses such as petroleum, electricity, telecommunications , postal 
services, air transport, public transport, 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. Since the last Review, Malaysia has already lifted for eign 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 cargo services by 
foreign vessels on three more routes . We encourage Malaysia to continue with these kinds of 
progressive liberalisation in order to maximize its potentials in services trade.  
4.131.   On tariff, we appreciate that almost all of Malaysia's tariff rates are ad valorem. However, 
1% of tariff lines are no t, 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 notifications, including those on agriculture. 
Submitting ti mely 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 regard.  
4.133.   Finally, I would like to thank Malaysia for its r eplies to our written questions. We will 
review them carefully.  Hong Kong, China wishes Malaysia a very fruitful Trade Policy Review.  
SWITZERLAND  
4.134.   Striving to be an open economy inevitably entails an enhanced exposure to adverse 
external shocks. These shoc ks 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 imports are on the rise. Foreign exchange reserves appea r 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.  WT/TPR/W/144  • Malaysia  
 
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  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 competition across all sectors. The economy could benefit from 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 would contribute towards improving lacklustre 
productivity perf ormance. 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 multilateral trading system. The 
fact that Malaysia was one of the firs t 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 treatment 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 transparency. We encourage the authorities to submit in a 
timely man ner 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 indicated that - in general – it 
maintained the higher duty wher e 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 pleased to learn of Malaysia's readiness to re -evaluate the inc rease 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 duty exemption for 
locally produced cars.  
4.142.   The efforts of Malays ia 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 bring its palm oil production into line with the highest internat ional 
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 APEC'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 for eign 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, Switzerland and its EFTA partners 
launched negotiations for a comprehens ive 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. We thank Malaysia in advance for the answer to the follow -up ques tion 
concerning the planned study on merger and acquisition control by Malaysia.  
4.146.   In concluding, we wish Malaysia a successful outcome of this Trade Policy Review.  
  WT/TPR/W/144  • Malaysia  
 
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  NORWAY  
4.147.   Let me start by saying that Norway is pleased to note that Malaysia's economy is sho wing 
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 Government's report that states that Malaysia is committed to promoting a 
transparent and liberal trade and investment environment, e specially within the rules -based 
multilateral trading system of the WTO.  
4.149.   Let me now touch upon our bilateral trade with some comments that in fact reinforce the 
description of the positive developments 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, an increase of US$160 million compared to 2014. We also are see ing 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 in vestments 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 balanced measures in reducing restrictions and facilitating foreign 
partici pations 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 these important sectors.  
4.152.   We look forward to contributing towards finalizi ng 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 th e 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 Members 
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 discussions 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 
Govern ment 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 based on 
sustainability assessments. We urge Malaysia to be very careful so as not to make inc entives that 
lead to overfishing.  WT/TPR/W/144  • Malaysia  
 
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  4.156.   This said, The Secretariat report describes among other things your fisheries management 
as such, with regulations, licensing of all fishing boats and surveillance of all activities, and your 
National Plan of Action for th e 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 se complace en participar en este Examen de Políticas Comerciales de Malasia. 
Costa Rica, como parte de su política comercial, ha trazado el interés de acercarse a la región 
asiática y dentro de este esquema, Malasia juega un papel clave, como un importante socio 
comercial, con quien compartimos iniciativas e intereses comunes.  
4.158.   Costa Rica quisiera reconocer el papel constructivo de Malasia en la OMC, y su apoyo 
decidido al sistema multilateral de comercio. Al igual que Malasia, Costa Rica participa en 
iniciativas como la ampliación del Acuerdo sobre Tecnologías de Información (ITA), y el Grupo 
Cairns.  
4.159.   Costa Rica además comparte con Malasia i ntereses en temas como como el impulso al 
comercio electrónico y a las micro, pequeñas y medianas empresas.  
4.160.   En relación con el Examen específicamente, rescatamos el objetivo de Malasia de lograr la 
condición de país de ingresos altos para el 2020, a través  del crecimiento de la productividad, la 
innovación y el comercio.  
4.161.   Durante el período de este examen, Malasia ha hecho algunos esfuerzos importantes por 
mejorar el clima de negocios en su país, como lo serían las disposiciones introducidas en la Ley de 
Sociedades que simplifican los trámites para abrir una empresa, reducen los costos de las 
actividades empresariales y modifican las condiciones relativas a la insolvencia de las mismas.   
4.162.   No obstante y tal como lo indica la Secretaría en su informe, la partic ipación del Estado en 
la economía sigue siendo considerable y persisten restricciones a la inversión extranjera en 
sectores importantes como la pesca, la energía, las finanzas, las telecomunicaciones y el 
transporte.  
4.163.   En el sector de servicios, Malasia ha e stado aplicando una liberalización autónoma de las 
restricciones al capital extranjero, incluyendo en 2012 la liberalización de 18 sub -sectores, de 
conformidad con el 11avo Plan de Malasia. Nos interesaría conocer si estos esfuerzos de 
liberalización inclu yen servicios audiovisuales y de publicidad, en particular con respecto a 
limitaciones al Modo 1. De igual forma, nos gustaría saber si las restricciones para obtener 
licencias o permisos de servicios aéreos se extienden a los servicios de mantenimiento y 
reparación de aeronaves y si existen limitaciones en modo 1 y 2 para proporcionar dichos 
servicios.   
4.164.   En el marco de este Examen de Políticas Comerciales, Costa Rica presentó a Malasia 
algunas preguntas relacionadas con la eliminación de subsidios a los co mbustibles fósiles y sus 
políticas sobre energías renovables. Quisiera agradecer la atención que Malasia ha dado a estas 
preguntas, y concluir mi intervención deseándole muchos éxitos en este Examen de Políticas 
Comerciales.  
COLOMBIA  
4.165.   Cuatro años después del último Examen de política comercial realizado por Malasia, 
resaltamos el compromiso de ese país con el sistema multilateral de comercio. Nuestros dos países 
comparten visiones e intereses comunes en esta Organización. Para mencionar  algunos ejemplos, 
ambos participamos en el grupo de Amigos del Sistema, somos miembros del Grupo Cairns, somos 
parte del acuerdo sobre Tecnologías de la Información, participamos en el del Grupo de amigos de 
las MIPYMES, y como productores de aceite de pa lma, también hemos unido esfuerzos en beneficio 
del comercio de este producto en el contexto global.  WT/TPR/W/144  • Malaysia  
 
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  4.166.   Tal como le presenta el informe de la Secretaría, destacamos la apertura en sus políticas 
comerciales, así como la adopción en los últimos cuatro años de r eformas en ámbitos como 
reglamentación técnica, la simplificación de trámites aduaneros y la racionalización de 
procedimientos para abrir negocios.  
4.167.   Las tasas de crecimiento económico promedio de 5% anual y el destacado desempeño de 
los indicadores comercia les, a pesar de un contexto de caída en los precios de productos básicos, 
reflejan que Malasia tiene una economía sólida y una base productiva diversificada, que es 
complementada adecuadamente por una demanda interna robusta.  
4.168.   El comercio entre Colombia y M alasia ha tenido un desempeño positivo durante el período 
objeto de este análisis. Si bien se evidencia el impacto que ha tenido la caída en los precios de 
materias primas, los intercambios comerciales en el sector agrícola y las manufacturas han tenido 
una evolución creciente con tendencia a diversificarse.  
4.169.   Nuestras economías tienen sin duda un margen amplio para incrementar los intercambios 
comerciales y fortalecer los flujos de inversión. En particular, el sector agrícola y agroindustrial 
tiene un gran p otencial para ampliar las inversiones mutuas y compartir experiencias, tomando en 
consideración las fortalezas de cada economía y su capacidad de servir como plataforma regional 
para cubrir terceros mercados.  
4.170.   La política exterior de Colombia busca ampliar su enfoque y diversificarse, teniendo al 
continente Asiático en general y a ASEAN en particular como objetivos prioritarios en esa 
estrategia.  
4.171.   Para Colombia, la Alianza del Pacífico ha sido un mecanismo esencial en este objetivo, 
pues además de reforzar nu estros vínculos con varias de las economías más dinámicas de América 
Latina que son líderes en la integración con el Asia Pacífico, nos ha permitido desarrollar un 
acercamiento estratégico, integral y con vocación de futuro hacia esos mercados.  
4.172.   Es precisam ente bajo la Alianza del Pacífico que se vienen desarrollando acercamientos con 
ASEAN en áreas como facilitación del comercio y promoción del comercio entre Pequeñas y 
Medianas empresas, materializando así nuestro interés en esta región.  
4.173.   A partir de los in formes preparados para el presente Examen, Colombia presentó 
preguntas a Malasia sobre algunos aspectos que consideramos merecen atención.  
4.174.   En particular llama la atención es esquema de licencias de importación y el número de 
líneas arancelarias cubiertas p or este tipo de requisitos.  
4.175.   Adicionalmente, indagamos acerca de la política de control y estabilización de precios 
sobre productos como aceite de cocina y la harina, que podrían afectar los indicadores comerciales 
en estos sectores.  
4.176.   También consideramos in teresante aprovechar la oportunidad de este Examen de políticas 
comerciales para profundizar el esquema de Zonas Francas y los beneficios que obtienen las 
compañías instaladas en estas áreas de acuerdo con su desempeño exportador.  
4.177.   Finalmente, el informe de  la Secretaría menciona que el contrabando es una preocupación 
y señala que el Gobierno malasio ha desarrollado iniciativas a fin de enfrentar este fenómeno.  
4.178.   Para Colombia, siendo un país que también se ha visto afectado por el contrabando y otros 
fenómenos asociados al comercio ilícito, es de gran interés conocer las iniciativas que Malasia y 
otros Miembros de la Organización están realizando en este campo, con miras a compartir 
experiencias y fortalecer la cooperación en el ámbito del comercio mul tilateral.  
4.179.   Finalizo esta intervención deseándole a Malasia y a su distinguida delegación un exitoso 
Examen de sus políticas comerciales.  
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  ARGENTINA  
4.180.   La Argentina observa con gran interés que, en los últimos cuatro años, el crecimiento del 
PBI real de Malas ia ha sido, en promedio, de casi el 5% anual. En 2016, la economía registró un 
crecimiento del 4,2%. En 2017, la mejora en la demanda de sus principales socios comerciales y 
de los precios internacionales de los productos básicos que exporta Malasia, hicie ron que el PBI se 
incrementara un 5,6% durante el primer trimestre y un 5,8% en el segundo trimestre.  
4.181.   El comercio bilateral entre nuestros países supera, desde hace varios años, la cifra de 
1.000 millones de dólares EE.UU. anuales. Cabe destacar que Malasi a se ha posicionado como el 
tercer mercado más importante para las exportaciones argentinas a los países de la Asociación de 
Naciones del Sudeste Asiático (ASEAN). Argentina exporta a Malasia manufacturas de origen 
agropecuario, entre las que se cuentan ha rina de soja, maíz en grano, aceite de soja, aceites 
crudos de petróleo y aceite de girasol en bruto.  
4.182.   La Argentina saluda las acciones emprendidas por el Gobierno malasio para reducir las 
restricciones a la inversión extranjera. Sin perjuicio de las restri cciones aún presentes en los 
sectores de la pesca, energía, telecomunicaciones, finanzas y transporte, es de destacar que 
actualmente no hay ninguna restricción a la participación extranjera en el mercado de capital, con 
excepción de un límite del 70% para  los bancos de inversión. Son importantes, asimismo, los 
esfuerzos para modernizar el sistema de concesión de licencias comerciales del país y la 
realización de exámenes de reglamentaciones sectoriales para reducir las cargas reglamentarias 
innecesarias im puestas a las empresas.  
4.183.   Quisiéramos resaltar que durante el período objeto de examen, Malasia ratificó el Acuerdo 
sobre Facilitación del Comercio (AFC) y notificó la inclusión de prácticamente la totalidad de las 
disposiciones en la categoría A. En el mism o sentido, Malasia sigue ocupando puestos altos en las 
clasificaciones internacionales relativas a la facilitación del comercio transfronterizo.  
4.184.   La Argentina considera como positivos los progresos realizados por el Departamento de 
Normas de Malasia, que ha  logrado que el número de normas del país descienda de 6.381 a 5.284 
en los últimos cinco años. En 2017, el 60% de las normas de Malasia estaban armonizadas con las 
normas internacionales, un porcentaje ligeramente superior al 59,8% registrado en 2014.  
4.185.   Nuestro país destaca los esfuerzos de Malasia para promover el desarrollo y un marco 
regulatorio apropiado para las micro, pequeñas y medianas empresas (MIPYMES) y, en particular, 
el Plan General 2012 -2020, cuyos objetivos incluyen elevar la contribución de l a Pymes al PIB, su 
participación en el empleo y en las exportaciones totales del país. Los desafíos que afrontan las 
Pymes en Malasia (acceso a financiamiento, incremento de exportaciones, marco regulatorio) son 
compartidos por muchos Miembros de la OMC.  
4.186.   La Argentina sigue con atención la aplicación de tarifas específicas en algunos productos 
agrícolas y de contingentes arancelarios para productos como el pollo, la leche y la carne. En el 
marco de este examen de política comercial, presentamos preguntas vin culadas con el régimen de 
comercio e inversión, los incentivos a las exportaciones y las subvenciones el gas licuado de 
petróleo. Las respuestas proporcionadas serán analizadas en detalle por nuestras autoridades.  
4.187.   Finalizando, y al tiempo de reiterar nuest ro reconocimiento por esta nueva oportunidad de 
intercambiar elementos de juicio y consideraciones sobre las políticas y prácticas comerciales de 
Malasia, permítanos señalar, una vez más, la relevancia de este ejercicio de transparencia en 
todos sus aspect os y desear a las autoridades malasias la exitosa conclusión del presente examen.  
BRAZIL  
4.188.   With sound fiscal and monetary policies, Malaysia has experienced a robust economic 
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.  WT/TPR/W/144  • Malaysia  
 
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  4.189.   International tr ade 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. Stren gthened 
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 relation s: our strong commercial ties provide a solid basis for 
an enhanced partnership. Brazilian companies have important investments in Malaysia, in areas 
such as mining, construction 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 products from iron 
ore and sugar to automotive and microprocessors.  
4.191.   On the agricultural f ront, 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 benefit from further 
clarification as well. In particular, exports to the Sabah and S arawak regions have opaque local 
requirements, resulting in obstacles to establishments interested in exporting to those regions. 
Procedures for the certification of halal products should also be completed without undue delays.  
4.192.   We look forward to build upo n 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 Meetin g 
held in New York last September, when Ministers agreed to further enhance economic relations 
between the two blocs.  
4.193.   We have submitted questions on measures related to SPS requirements, intellectual 
property rights, trade in services and e -commerce. We th ank 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 Policy 
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 shoc ks. Trade policy formulation has 
been efficiently conducted, as Malaysia attained good and services export expansion with no major 
changes to the legal and institutional framework in areas of trade and trade related aspects. 
Indonesia also commends the Mal aysian 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. 
Howeve r, 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, Malaysia 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 pe riod 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 Indonesia to deepen the 
scope of our existing trade relations; to cover new grounds and a dditional sectors in our bilateral WT/TPR/W/144  • Malaysia  
 
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  trade activities, so as to reinvigorate positive trade growth performance. And let us benefit from 
the ASEAN and WTO rules -of-the-game in exploring possible ways to embark on such a mutually 
beneficial quest.  
4.200.   We have addr essed 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 answers 
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 Daruss alam.  
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 established Joint Commission in 1987, 
Joint Trade Committee in 2000, and Thailand -Malaysia Comm ittee on Joint Development Strategy 
for Border Areas in 2004. These partnerships have contributed not only to our two countries but 
also to the sustainable prosperity 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 
US$22  billion increasing by 8% from 2016. Malaysia was T hailand'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, automobil es, 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 vari ous 
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 implemented tariff commitments and submitted a 
modification to its Schedule of Concessions by the agre ed timelines in 2016. In addition, at the 
eleventh Ministerial Conference, Malaysia showed significant contribution to the discussions on 
Micro, Small, Medium Enterprises, E -Commerce and Investment Facilitation.  
4.208.   Thailand commends Malaysia's continuous effo rts in modernizing trade policies and 
promoting trade facilitation. For instance, the Government has continued to relax foreign 
investment restrictions, renovate business 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 policies 
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 2016 -2025, and 
Malaysia Productivity Blueprint. We would like to thank Malaysia for the timel y responses to our 
questions and will study them in detail with great interest.  WT/TPR/W/144  • Malaysia  
 
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  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 her e in 
Geneva. We wish Malaysia every success in this Trade Policy Review.  
INDIA  
4.211.   Malaysia is a middle -income country with a diversified economy. During the period under 
review the real GDP growth of Malaysia averaged around 5% annually. The growth was driven by 
domestic demand which is reflected in the buoyancy of the construction and services sectors. 
However, in contrast the agriculture sector contracted while the mining and quarrying sector grew 
at a declining rate. The challenges for the Malaysian economy include a number of external and 
domestic factors. These include fall in globa l commodity prices, volatility of financial markets 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 t he 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 inclusivenes s, 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 pur suing several innovative measures for promotion of investments and attracting foreign 
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 enhanced 
strategic partnership. Trade and economic ties are a key pillar 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 has been growing and stood at US$11.72 billion in 2016 and 
US$13.12 billion for the period from January -November 2017. The India -Malaysia Comprehensive 
Economic Cooperation Agreement covering goods, services, investment and other areas came into 
force on 1 July 2011 giving a boost to 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 highways, 
telecommunications, power, oil 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 technology, 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 ASEAN -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 Malays ia for the TPR and are thankful for the 
responses, which would be reviewed by our authorities. However, I wish to highlight some specific 
concerns which are undermining the potential of our trade ties. The stringent SPS measures 
applied by Malaysia sometim es not harmonised with CODEX and without scientific basis or risk 
assessment affect the trade of food and agricultural 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 th ese issues.     
4.217.   To conclude, we look forward to working closely with the authorities of Malaysia for further 
expanding and harnessing the potential of our trade and investment ties for mutual benefit. We 
wish the delegation of Malaysia a productive and suc cessful TPR.  
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  JAPAN  
4.218.   Needless to say, Malaysia is one of the most important and closest 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. J apan 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 t erm. It is our sincere hope to further develop these strong ties 
between us.  
4.220.   The report 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 res ilient 
economic growth is mainly lead by strong domestic demand, the diversified production 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 reg ard. 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 woul d 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 reconvert at least 75% of their export ea rnings 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 
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 b etween 
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; sustained by responsive macroeconomic pol icies; 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 ou t 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 r eforms 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 Government has been making efforts to modernize Malaysia's business 
licensing system and to cont inue 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 
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  4.229.   Malaysia and Saudi Arabia enjoy a brotherly and substantive relationship, underp inned 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 pilgr image 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 Kingdom of Saudi Arabia believes the multi lateral trading system is a key element for 
global development. We welcome Malaysia's continued leadership with the example of its own 
economic development and in the multilateral context.  
4.232.   I wish the Malaysian delegation a very successful Trade Policy Revi ew. 
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 volatility in major financial markets. The recent Dece mber 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 Assessment 
of Malaysia, which affirms that Malaysia i s 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 -diversified 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.   
4.234.   This vision is demonstrated by Malaysia's active participation at the WTO. Malaysia played 
a con structive 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 spirit, Canada encourages Malaysia to engage similarl y 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 Agreement 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 its transparency notifications as well 
as its defini tive 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 submit 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 with 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 pragmatic approach to 
concluding CPTPP negotiations and l ooks 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 investment relationship as part of the exploratory 
discussions between Canada and ASEAN.  WT/TPR/W/144  • Malaysia  
 
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  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 invest ment 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 force 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  TPR 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  WTO 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 Informa tion 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, th e first phase of the ASEAN Economic Community 
(AEC) Blueprint 2015 was completed.  
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  regarding 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 me aningful 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 liberaliz ed 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 su bmitted 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, which 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 more 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  working with Malaysia to enhance opportunities for trade and 
investment, and hence promote the mutually beneficial economic cooperation between Korea and 
Malaysia.  WT/TPR/W/144  • Malaysia  
 
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  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 progress made by Malaysia during the period under review. 
We have noted a positive momentum of Malaysia's economic growth despite external 
uncertainties, and its  integration 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 commercia l ties 
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 inc ome 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 imp ortant 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  Malaysia'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  signed 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 s uggestions.  
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 ma king the "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 tre nd since 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 frictions 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 partne r of ASEAN 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 bilateral trade amounting to US$4. 6 billion. 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 Phil ippines 
re-opened the Philippine Trade and Investment Center in Kuala Lumpur in December 2016.  WT/TPR/W/144  • Malaysia  
 
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  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 stated 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 petrole um, 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 expor ts. 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) global 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 business 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 Group, which is now composed 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 Chair manship 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 
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 N am 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 total, Viet Nam's export to Malaysia reco rded 
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 
components, mobile phones and components, crude o il 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 of 
125 countries and regions having inves tment 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 ex port 
policy and product quality control is highly appreciated. Cooperation and experience sharing in 
developing production linkage model are also welcome.  WT/TPR/W/144  • Malaysia  
 
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  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 every 
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 ai ms 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 t ogether 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 bil ateral 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 Malaysia 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 Malaysia. 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 billion in 2016. This trade performance of Malaysia is remarkable 
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 undertaken no major changes to the institutions responsible for 
trade policy formulation. In areas of trade and investment regulations, Malaysia enacted new laws 
including the C ompanies 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 tar iff 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 unde r the Customs Order 2017 which entered into force in April 2017.  
4.284.   Malaysia still has 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 the 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 it s exclusive right on ice importation was extended until 
10 January  2021. In addition, 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 econom ic base and general openness to trade helped 
the economy to continue to grow through 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 a ctively 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 WT/TPR/W/144  • Malaysia  
 
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  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 th e delegation of Malaysia every success in their 7th Trade Policy 
Review.  
SRI LANKA  
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 immensely 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 produ ct diversification index'.  
4.291.   It is noteworthy that Malaysia's ease of trading across 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 category -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 prepa ratory committee for Trade 
Facilitation.  
4.292.   Despite the low share in total tax revenue 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 surplus 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 comm ission established in 2006 between the two countries 
also focuses on issues of mutual interest especially on economic and commercial matters, technical 
and scientific co -operation and in areas such as tourism, culture, sports, immigration and human 
resourc es 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 a lso share traditional cultural relations with 
each other that come from ancestor links. Population of Malaysian origin in Sri 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 Gen eva based delegation of Malaysia in the WTL deliberations. We 
sincerely wish the delegation of Malaysia a successful conclusion of its 7th Trade Policy Review.  WT/TPR/W/144  • Malaysia  
 
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  KYRGYZ  REPUBLIC  
4.297.   Since the beginning of its Membership to the WTO, Malaysia has demonstrated high est 
dedication to WTO rules and as it has been said in the TPR of 2014, has convincingly 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 A cceptance 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 delegations of both countries on a mutual basis have created 
favourable conditions for discussions strengthening the potential of trade and investment 
cooperation between the two coun tries. 
4.301.   Our countries have discussed a wide range of issues on further expansion 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 a s actual issues of regional and 
international issues of mutual interest.  
4.302.   Our countries have established beneficial trade. For the last decade, Malaysia was mainly 
exporting specialized machinery, different types of oil, electrical appliances, and coffee an d other 
goods items to the Kyrgyz Republic.  
4.303.   The Kyrgyz Republic and Malaysia have potential for further strengthening cooperation in 
trade of goods as well as trade in services.  
4.304.   During the last visit of the Minister of Foreign Affairs of Malaysia, H.E. Ani f Aman with the 
President of the Kyrgyz Republic, the countries agreed to implement 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 stimulate 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 prin ciples also 
attract interest of the Kyrgyz Republic.  
4.307.   The Kyrgyz Republic wishes a very successful seventh Trade Policy Review to the 
delegation of Malaysia.  
GUATEMALA  
4.308.   Durante el período estudiado, observamos como medidas positivas, la inclusión de su Plan 
Quinquenal y el Nuevo Modelo Económico, cuyo objetivo principal es convertirse en año 2020 en 
una Nación de ingresos elevados. En el año 2015 con el inicio del 11° Plan de Malasia se fijan 
estrategias firmes que contribuirán al desarrollo económico y produ ctividad del país, así como la 
promoción del capital humano y la implementación de políticas de crecimiento verde que fomenten 
la sostenibilidad y la resistencia. La introducción de un nuevo régimen tributario y la política de 
salarios mínimos han instado a los sectores productivos a la creación de cadenas de valor que 
fomenten competitividad.  
4.309.   El formar parte de ASEAN, APEC y la Ruta Marítima de la Seda, son algunos de los 
principales impulsos a su economía, que representan obtener un lugar destacado en el entorno 
comercial regional de Malasia.  WT/TPR/W/144  • Malaysia  
 
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  4.310.   A pesar de los avances antes descritos, persisten importantes retos para la economía de 
Malasia, entre ellos instaurar medidas que faciliten y mantenga la inversión en el país. La creación 
de medidas que mejoren el tr ansporte terrestre a fin de mejorar la comunicación entre sus 
principales puertos comerciales. Seguir fomentado la implementación de mejores prácticas y 
sostenibilidad, en el caso Aceite de Palma, con el fin de mejorar la imagen del sector. A este 
respecto  nos sentimos complacidos en haber podido colaborar con Malasia en el seminario 
organizado durante el Foro Público de la OMC, en el cual, se presentaron experiencias nacionales 
de este sector productivo sobre medidas de sostenibilidad, así como los problem as que se 
enfrentan hoy en día en su proceso de comercialización, el cual fue de gran interés para los 
participantes.  
4.311.   Para finalizar, deseamos a la delegación de Malasia una exitosa conclusión de su séptimo 
examen de políticas comerciales.  
RUSSIAN  FEDERATI ON 
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 volatility. This enables u s 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 celeb rated 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%), fertilizers 
(13.8%), iron and steel (2.9%). Russia imports from Malaysia mostly electrical machinery and 
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 countries are working on im provement 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 cultural 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 successfully 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 so ftware 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.  
  WT/TPR/W/144  • Malaysia  
 
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  PERÚ  
4.322.   El Perú saluda los progresos realizados por Malasia en su desarrollo económico durante el 
período bajo examen, reconocidos claramente en los informes. Entre ellos, cabe destacar el 
crecimiento constante, la estabilidad macroeconómica, la div ersificación de la producción y la 
elaboración cuidadosa del planeamiento económico. De igual manera es destacable la 
implementación de la normativa relativa al salario mínimo, que esperamos conduzca a mejorar el 
nivel de distribución de riqueza.  
4.323.   En lo que  se refiere a la relación comercial bilateral, ésta atraviesa por un buen nivel y 
cuenta con une prometedora perspectiva. El monto total del intercambio comercial ha atravesado 
por primera vez los 250 millones de dólares EE.UU. en 2016, con una tendencia a l crecimiento 
para 2017. Confiamos en que la entrada en vigor del Tratado Integral y Progresista para la 
Asociación Transpacífica (CP -TPP, por sus siglas en inglés) en el futuro próximo, así como nuestra 
participación conjunta en APEC, acrecentarán el desa rrollo de nuestro comercio bilateral.  
4.324.   Si bien no hemos presentado preguntas para el Examen en curso, cabe reiterar lo 
expresado por nuestra delegación en el Examen de las Políticas Comerciales de Malasia en el año 
2014, respecto al uso frecuente u comparat ivamente alto de subvenciones en ciertos sectores de 
la economía y licencias no automáticas a las importaciones. Igualmente, observamos que las 
limitaciones a las inversiones extranjeras y el uso de impuestos a la exportación pueden ser 
medidas ambiguas re specto al fomento de la competitividad de su economía. Sin embargo, es 
igualmente importante notar que el Gobierno de Malasia ha dado algunos pasos para aminorar el 
grado de intervención en la economía, como la eliminación de las subvenciones al petróleo y  la 
apertura a los capitales extranjeros para inversiones en diferentes rubros del sector servicios.  
4.325.   Antes de concluir, la delegación peruana reitera sus mejores deseos de éxito para los altos 
objetivos que Malasia se ha fijado para su desarrollo, y asimis mo le deseamos un exitoso séptimo 
Examen de sus políticas comerciales.  
REPUBLIC  OF TAJIKISTAN  
4.326.   Diplomatic relations between Tajikistan and Malaysia were established on 11 March 1992. 
It is worth to note that the Republic of Tajikistan builds its relations with Malaysia taking into 
account its dynamically developing economy and its large financial re sources, 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 with 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 meeting of President of Tajikistan Emomali Rahmon 
with Prime M inister 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 cooperation with 
developed countries of South East Asia and par ticularly 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, technical, 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 provides an excellent opportunity to improve 
our understandin g of its trade and investment policies.  WT/TPR/W/144  • Malaysia  
 
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  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 commodity prices and volatile 
financial markets in major econo mies. 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 Malaysian companies into Global Value Chains (GVC) and 
developin g 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 increa sed to US$9,850. Despite the 
existing challenges, Malaysia remains externally competitive with its comparative advantage 
seemingly shifting from electrical goods and electronics manufacturing towards 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 2020 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 WTO, and grants at least MFN treatment to all trading 
partne rs. 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 protocols on telecommunications (Fourth Protocol) and financi al 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 negotiations of the WTO is also remarkable. We also 
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 co mmodity prices. Equitable and 
sustainable growth depends on implementing diversification and improved total factor productivity 
– enhancing structural reforms. These and related reforms would increase the flexibility of the 
Malaysian economy and its abilit y 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 competitiveness, and to maintain an 
open WTO -consistent tra de 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 economic 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 number of external and domestic shocks, including global commo dity price and 
financial market volatility, weak external demand, and domestic political environment.  
4.340.   Malaysia as a middle income country with diversified economy is highly integrated into 
regional and global value chains with exports and imports of goods  and services equivalent to 
about 130% of GDP.  WT/TPR/W/144  • Malaysia  
 
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  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 accelerating the growth of labour 
productivity. In addition, the Elev enth 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 economic 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 international issues.  
4.343.   Nepal exports vegetable products, handic rafts, 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 products. 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. Considering the importance of 
connectivity between two countr ies, the Air Service Agreement between Nepal and Malaysia was 
first signed in 2007 which has led to the increasing flow of tourists between two countries.  
4.345.   Malaysia has recognized Nepal as one of the source countries for foreign workers. 
Currently, more th an 400,000 Nepali migrant workers are working in Malaysia and are contributing 
to the economic growth and development of both countries. Most of the Nepali workers are 
employed in the manufacturing sector, followed by service, agriculture and construction sectors. A 
destination country for migrant workers, we request the Government of Malaysia to continue 
reforms in the labour sector to ensure that foreign workers get fair and equal treatment at every 
cycle of the migration process.  
4.346.   Similarly, we need to w ork together to achieve the SDGs which are shared goals and 
shared responsibilities, more particularly 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 successf ul Trade Policy Review.  
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 remarkable economic growth 
and predictable trade policy framework as we ll 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 is 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 very important and diverse. The sectors include 
hotel, real es tate and property development, power generation and transmission, 
telecommunication, construction, infrastructure, agriculture, manufacturing and other areas in the 
services sector such as banking and finance, information and communication technology (ICT)  and 
logistics.  WT/TPR/W/144  • Malaysia  
 
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  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 the bilateral meeting in August 2016 between Malaysia's Ministe r 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 bilateral 
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 Trade Policy Review.  
URUGUAY  
4.357.   Nuestro país mantiene amistosas y  constructivas relaciones con Malasia en los distintos 
ámbitos de la relación bilateral: tanto en el plano político, económico -comercial, como de 
cooperación y cultura.  
4.358.   Desde el último Examen de las políticas comerciales de Malasia en el año 2014, el 
relacionamiento político y comercial entre Uruguay y Malasia se ha fortalecido.  
4.359.   En ocasión de la celebración de la 11ª Conferencia Ministerial de la OMC, el Señor Ministro 
de Relaciones Exteriores del Uruguay, D. Rodolfo Nin Novoa, mantuvo una reunión con el Se ñor 
Secretario General del Ministerio de Comercio Internacional de Malasia.  
4.360.   En dicha oportunidad se expresó el deseo de nuestro país de ingresar carne con 
certificación halal al mercado malasio, y el Señor Ministro Nin Novoa invitó a Malasia a realizar una  
auditoría de los establecimientos uruguayos a fin de detectar los requisitos que faltarían cumplirse 
para lograr dicha certificación. Asimismo, se comentó la posibilidad que empresarios malasios 
compren una planta nacional y provean dese su país carne con  certificación halal con destino a 
otros países islámicos.  
4.361.   El intercambio entre Uruguay y Malasia se ha mantenido relativamente estable entre los 
años 2013 y 2016, en el entorno de los 30 millones de dólares EE.UU. El saldo de la balanza 
comercial con Mala sia es negativo para el período analizado, aunque con valores diversos.  
4.362.   El principal producto exportado desde nuestro país durante el año 2017 fue el haba de 
soja, por un valor de 4,3 millones de dólares EE.UU, 49% del total exportado. Las series anuales 
de exportación de dicho producto han ido aumentando en los últimos tres años. El segundo 
producto de exportación es el cuero y piel depilada por un monto de 1,7 millones de dólares 
EE.UU., representando el 19% del total exportado. Las ventas de este product o cayeron un 76% 
con relación al año 2016.  
4.363.   El pescado congelado, excepto los filetes, fue el tercer producto de exportación por un 
monto de 871 mil dólares EE.UU., representando el 10% del total exportado. Las ventas de este 
producto han sido relativamente  escasas durante todo el período.  
4.364.   En cuanto a las exportaciones hacia Malasia desde Zonas Francas de Uruguay, se debe 
indicar que las mismas se concentraron en un solo producto, la celulosa, el cual se exportó por un 
monto de 1,7 millones de dólares EE.UU. , un 33% menos que en el año 2016.  
4.365.   En cuanto a las importaciones al Uruguay, Malasia se ubicó en el 28° lugar dentro de los 
destinos de importación, representando el 0,42% del total. En 2016, se posicionaba en el puesto 
número 39. Los principales productos  importados fueron los diodos, transistores, las prendas de 
vestir, así como los insumos para la fabricación de muebles.  
4.366.   Con relación al trabajo realizado por Malasia en el ámbito de la OMC, Uruguay quisiera 
reconocer la labor que Malasia viene realizando dentro del Grupo de Cairns, así como aquella 
desplegada dentro del Grupo de Amigos de las MIPYMES, y alienta a que siga participando 
activamente en el Grupo Informal de Trabajo sobre MIPYMES.  WT/TPR/W/144  • Malaysia  
 
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  4.367.   Finalmente, quisiéramos reafirmar el interés de seguir trabajand o para alcanzar un 
resultado positivo en la CM12, y proteger el sistema multilateral de comercio basado en normas 
previsibles, transparentes y equilibradas.  
4.368.   Uruguay le desea a Malasia el mayor de los éxitos en su séptimo Examen de políticas 
comerciales.  
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 u nder 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 econo mic ties, which hold 
promising opportunities ahead for both countries. The bilateral trade between Jordan and Malaysia 
amounted 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 US$1.17 billion and 
imports from Pakistan at around US$ 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.  
4.376.   Pakistan welcomes the recent Malaysian investment in  Pakistan whereby a Malaysian 
telecommunication infrastructure services company, edotco, in collaboration with a local company, 
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 ba se, a flexible exchange rate, responsive macroeconomic policies, and strong financial 
markets. Long -term economic policy is set out in Vision 2020 which includes the objective of 
achieving high -income country status by 2020, by, sharply accelerating the gr owth of labour 
productivity.  
4.378.   Restrictions on foreign investment remain in fisheries, energy, telecommunications, 
finance, and transport services, and foreign participation in public -private -partnership projects is 
limited to a ceiling of 25% of share capi tal. Pakistan has noted that the Government has continued 
to relax foreign investment restrictions. Currently there is no foreign equity restriction in the 
capital market except for a 70% cap on investment banks.  
4.379.   The Government has been making efforts to m odernize Malaysia's business licensing 
system, by reviewing licenses and making them accessible online. The Malaysia Productivity WT/TPR/W/144  • Malaysia  
 
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  Corporation (MPC) conducted sectoral regulatory reviews to reduce unnecessary regulatory 
burdens on business.  
4.380.   There has been n o major change to customs procedures during the review period. Malaysia 
ratified the WTO Trade Facilitation Agreement (TFA) in May 2015 and notified that it designated all 
provisions under Category A with some exceptions.  
4.381.   The tariff is the main trade poli cy instrument of Malaysia, despite its low share in total tax 
revenue (1.7%). Due to changes in nomenclature the average applied MFN tariff increased from 
5.6% in 2013 to 7.5% in 2017.  
4.382.   Regarding standards, Standards Malaysia, Malaysia's national standardi zation and 
accreditation body, is focusing on establishing standards that have a high impact on the public, 
including industries, rather than on the number of standards. Malaysia continues to align its 
standards with international ones: in 2017, 60% of Mal aysian 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 significan t 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 ec onomy, contributing about 10.5% to GDP 
and about 14% to government revenues in 2016. Although the value of both exports and imports 
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 liberalized in 2012 and up to 100% foreign equity participation is now allowed for wholesale 
and retail trade, healthcare, professional s ervices, 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 undergo ne 
consolidation over a number of years. The financial sector, which is comprised of banks, insurance, 
and capital markets, contributed 6.4% to GDP in 2016 with increasing levels of cross border 
activity. Furthermore, Malaysia is at the forefront of the gl obal Islamic finance industry and has a 
highly developed Islamic finance sector. Islamic banking has grown rapidly over the past ten years 
with its market share increasing from about 12% in 2007 to 28% at the end of 2016.  
4.387.   We want to mention here the effor ts 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.  
BÉNIN  
4.389.   La délégation du Bé nin voudrait saluer les efforts menés par la Malaisie depuis le dernier 
Examen en 2014.  
4.390.   En dépit de l'incertitude de la situation économique mondiale, la Malaisie a pu enregistrer 
des résultats encourageants sur la période sous examen, soutenus notamment p ar trois secteurs 
économiques à savoir : les services, la manufacture, et la construction, qui ont contribué à eux 
seuls à 81,8% du PIB du pays. La croissance économique de la Malaisie sur la période 2014 -2016 
a été estimée à 5,1%.  
4.391.   Pour continuer d'enregis trer ces résultats encourageants, la Malaisie a entrepris plusieurs 
réformes sur les plans de la fiscalité, de l'amélioration du niveau des dépenses à la consommation 
par le relèvement du niveau des salaires, et de la promotion de la connectivité des trans ports afin WT/TPR/W/144  • Malaysia  
 
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  de soutenir le développement du commerce des services, conformément aux orientations du 
11ème Plan de la Malaisie.  
4.392.   Sur le plan des échanges commerciaux, le pays a enregistré un bond de 3% de la valeur 
de ses échanges en 2016, comparativement à 2014. Cette tendance positive s'est poursuivie en 
2017, avec une balance commerciale excédentaire qui est passée de 82,5 milliards de ringgit à 
87,3 milliards de ringgit en 2016.  
4.393.   La Malaisie a fait le choix d'accorder au commerce international une place c entrale dans la 
réalisation de son objectif de passer à la catégorie des pays à revenu élevé d'ici à 2020. Dans cette 
perspective, plusieurs initiatives visant à faciliter les échanges commerciaux ont été mises en 
œuvre, entre autres: l'introduction des bo nnes pratiques réglementaires afin d'intégrer et de 
mettre en place une procédure normalisée, structurée et systématique pour évaluer la 
réglementation des activités commerciales, la libéralisation progressive des prescriptions en 
matière de licences d'imp ortation, la mise en place d'un schéma directeur pour la productivité, la 
modernisation des douanes les activités de promotion des exportations, sans oublier le Plan 
Directeur pour les PME 2012 -2020, etc.  
4.394.   Tout en félicitant la Malaisie pour ces efforts acc omplis, la délégation du Bénin l'encourage 
à poursuivre les réformes et initiatives visant à faciliter les échanges.  
4.395.   La délégation du Bénin se félicite du rôle déterminant que la Malaisie a joué et pour la 
contribution importante qu'elle apporte aux travaux de négociations commerciales multilatérales 
du Cycle de Doha.  
4.396.   La délégation du Bénin voudrait, par ailleurs, expri mer son appréciation à la Malaisie pour 
le soutien constructif qu'il apporte aux PMA dans la promotion de leurs intérêts et priorités dans le 
cadre des négociations en cours du Cycle de Doha.  
4.397.   Sur le plan bilatéral, la délégation du Bénin se félicite des re lations de coopération qui 
existent entre le Bénin et la Malaisie, qui se traduisent par des échanges commerciaux, dont le 
volume ne cesse de croître, le partage d'expériences et d'expertise dans le domaine de la 
productivité, notamment le sous -secteur du palmier à huile, l'assistance technique et la formation.  
4.398.   Elle forme le vœu que cette coopération se développe davantage et que de nouveaux axes 
soient explorés et promus.  
4.399.   Pour terminer, la délégation du Bénin remercie le Secrétariat de l'OMC et le Gouvern ement 
de la Malaisie pour les rapports très informatifs élaborés dans le cadre de la présente Session 
d'Examen des politiques commerciales de la Malaisie.  
4.400.   Elle souhaite plein succès à la Malaisie, et un examen réussi de ses politiques 
commerciales.  
NIGERIA  
4.401.   We agree with the Government of Malaysia, 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 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 nation 
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 financial markets in major 
econo mies. 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 Secretariat 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, WT/TPR/W/144  • Malaysia  
 
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  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 overcome the 
economic challenges. We also share the view as highlighted in the Secretariat report, that given 
Malaysia's abundant resourc es, 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 economies 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 create an environment that is c onducive 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 2016. The Services sector con tinued 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 Malaysi an 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 sev eral economic integration initiatives to 
further enhance and facilitate trade in the region in particular, and the world in general. We 
encourage Malaysia to ensure that its active involvement in FTAs does not diminish the country's 
commitment to the multi lateral 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 and Investment Facilitation 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 protocol amending the TRIPS 
Agreement. We note and commend M alaysia 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 international 
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 Partnership 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 would Malaysia reconcile po ssible 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 i mproving 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 also highlighted at this review.  
4.406.   At the bilateral leve l, 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. We cherish our ties wi th Malaysia 
and would continue to do our best to consolidate these ties, as well as the furtherance of relations 
in other spheres. Nigeria, like Malaysia share common objective on the intensification of 
south -south trade as a major vehicle of integrating t he 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 constructive 
involvement in sev eral 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 contribution to the work of the WTO.  
4.408.   We wish Malaysia a successful Trade Pol icy Review.   WT/TPR/W/144  • Malaysia  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF MALAYSI A AND ADDITIONAL COM MENTS  
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 also like to express my si ncere 
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 unprecedente d 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 indicates 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 contribute to the effective 
functioning of the multilateral trading system.   
5.4.  From the interventions by Members, we could summarize 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 Mem bers 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 Members 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 subsidy programmes, 
taking into account its economic needs especially t he impact on the lower income group.  
TRADE AND INVESTMENT  POLICY  
Trade agreements  
5.7.  There were concerns raised about the conflict between Malaysia's FTAs and WTO 
commitments. Malaysia considers 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 arrangements, 
the principles and rules in the WTO will be adhered to .  
Global r anking  
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 dat a supplied to international 
Organizations are accurate, updated, comprehensive and reliable. The exercise is carried out in 
collaboration with all the different Ministries and agencies together with the private sector to 
improve Malaysia's rankings. All co mpetitiveness related data will now be displayed in the 
Malaysian Government portal.  WT/TPR/W/144  • Malaysia  
 
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  Facilitating trade and investment  
5.9.  Malaysia has undertaken various steps to ensure that its market remains 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 report. We have ensured 
effective implementation of our Co mpetition 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 and 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 
modernization of the regulatory regime.  
5.11.   The policy, which encompasses the Good Regulatory Practices (GRP), institutionalized 
consultative mechanism in formulating regulations o r 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 addi tion, 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 t he 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 P rogramme 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 Go vernment 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 specific key performance indicators as practiced 
by other private entities. Som e GLCs, however, are established to undertake specific 
socioeconomic obligations.  
Tariff structure  
5.15.   Several Members commented on the large number of unbound tariff lines maintained by 
Malaysia. Further to negotiations in the Uruguay Round, Malaysia increas ed 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 negotiations.   
5.16.   On the increase of MFN applied tariffs raised by Members, I wou ld 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 gu idelines 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 plans to convert these specific duties to ad valorem duties.  
5.18.   On high tarif fs imposed on products such as manufactured tobacco, round cabbage and 
ceramic tiles, these again were a result of the negotiations under the Uruguay Round where 
non-tariffs were converted to tariffs for the agricultural products. Another point highlighted  by the WT/TPR/W/144  • Malaysia  
 
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  discussant is related to Malaysia's tariff quotas. Here again, I would like to point out that this 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 r aw materials in the 
manufacturing sector. Export taxes on live animals are used for food security purposes. Export 
taxes on crude petroleum are mainly for revenue purposes.  
5.20.   On import licensing, Malaysia has abolished licensing requirements on 194 tariff l ines 
involving 5 product categories (iron and steel, motorhomes, wheat flour, safety helmet, and 
rethreaded tyres) since 2014. The process to review this requirement for licensing will continue. 
On automotives, as indicated in our previous trade review, Ma laysia is committed to eliminate the 
non-automatic licensing for new vehicles (franchise AP) by 2020.  
Customs valuation  
5.21.   Some Members highlighted the valuation method used by Malaysian Customs in determining 
the duties applicable to passenger vehicles. I w ould 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 conducting a review to improve the implementation of the CVA.  
E-commerce  
5.22.   Some Members wer e 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 with 
leading foreign companies such as Google, Lazada and Alibaba which provide tra ining 
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 partic ipate in the DFTZ.  
5.25.   Malaysia would like to express her continued support for the discussion that is taking place 
among Members in the WTO. We may consider exchanging ideas in areas such as trade facilitation 
and e -commerce, addressing infrastructure gaps, a ccess to payment solutions and online security. 
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, acce ss to payment solutions and online security.  
Tax exemptions  
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 ar e not automatic and aimed at encouraging SMEs to move 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 will 
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 e xpected to take place in 2018 will WT/TPR/W/144  • Malaysia  
 
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  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.  
5.29.   Malaysia has a lso 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 con ferred 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 intensified 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 procurement  
5.31.   We welcome the encouragement by some Members for Malaysia to participa te 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 participate in the Agreement.  
Trade remedies  
5.32.   Some Members raised issues on the increa sed 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 cau tious 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 fisheries sector  
5.33.   Malaysia takes note of the concerns raised with regard to incentiv es encouraging illegal, 
unreported, and unregulated (IUU) fishing. In Malaysia, incentives are only granted to legitimate 
fishermen under a robust Monitoring Control and Surveillance (MCS) system, which will prevent 
IUU fishing. Furthermore, these incentiv es are confined only to domestic fleets and not for high 
sea fishing.  
SECTORAL POLICIES  
Services sector  
5.34.   Malaysia has autonomously liberalized the services sector in 2009 and 2012 in order to 
enhance domestic competitiveness and strengthen FDIs. Moving forw ard, Malaysia would consider 
the binding of such commitments in the WTO and would be ready to engage constructively with 
other Members in the services negotiation.  
5.35.   On financial services, Malaysia has always promoted transparency in the sector. The 
enactme nt 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 institutions 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 culmin ated 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 ban king relationship between Malaysia and Indonesia. Malaysia has also signed a 
similar agreement with the Philippines.  WT/TPR/W/144  • Malaysia  
 
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  5.37.   On the financial market, 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 Malaysia, 
commensurate with the growth of the economy and the increasingly sophisticated needs of 
investors and businesses.  These measures were supported with vigorous industry consultations 
that ensured smooth implementation of these measures.  
Palm oil  
5.38.   We note some Members' interest for the possibility of technical cooperation and 
collaboration on palm oil plantation sector. Malaysia is willing 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 Departm ent of Veterinary Services (DVS) is 
responsible for the Sanitary and Phytosanitary aspect while JAKIM focuses on the Halal Shariah 
compliance requirements. These requirements are pertinent for the approval of foreign processing 
plant to supply Halal meat i n Malaysia. We also wish to highlight that currently JAKIM Malaysia 
recognizes 67 foreign halal certification 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 notifications 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 notif ications under CVA and 
updated our submission 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 requ ired under the WTO Agreements. We will continue to submit 
these notifications in a timely manner.  
CONCLUSION  
5.42.   In conclusion, this Trade Policy Review 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 environm ent. We appreciate all interventions 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 t o the 
Chairman, to the discussant, H.E. Ambassador de la Puente, and to the WTO Secretariat for 
making this Trade Policy Review a success. Thank you.  
DISCUSSANT  
5.44.   Gracias señor Presidente y buenos días a todos los presentes.  
5.45.   Quisiera iniciar mi segunda presentación como ponente para este Examen, agradeciendo a 
Su Excelencia, el Señor Jayasiri, por su intervención del día de hoy, en la que ha dado respuesta 
de manera clara y detallada a una serie de interrogantes e inquietudes expresadas por los 
Miembros. Asimismo, tomamos nota del ofrecimiento de complementar por escrito la información a 
las inquietudes de los Miembros.  
5.46.   Como lo hicieron ya algunas delegaciones el miércoles pasado, quiero también saludar la 
decisión de Malasia d e utilizar los plazos alternativos para la entrega de respuestas a las preguntas WT/TPR/W/144  • Malaysia  
 
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  de la Membresía, decisión gracias a la cual se ha contado con más tiempo para un diálogo 
oportuno y nutrido entre los Miembros. De igual manera, las respuestas han sido entreg adas con 
puntualidad, hecho que también favorece los intercambios.  
5.47.   Entrando a materia, quisiera resaltar el interés mostrado por la Membresía de cara a este 
Examen. Han sido más de 40 las delegaciones que hicieron uso de la palabra el día miércoles 
pasado,  planteando 476 preguntas, lo cual pone en evidencia el interés que despierta el caso y la 
experiencia de Malasia, lo cual se explica en el importante lugar que ocupa en el comercio 
mundial, la diversidad y amplitud de sus relaciones comerciales con países  de las distintas 
regiones del mundo, y la seriedad del rol que desempeña dentro de la Organización Mundial de 
Comercio. Estos elementos están presentes como un común denominador en el grueso de las 
intervenciones que escuchamos con mucho interés en nuestr a primera sesión. Del mismo modo, 
muchas delegaciones aprovecharon la ocasión para señalar oportunidades para avanzar en el nivel 
de integración económica con Malasia, incluyendo la negociación o conclusión de Acuerdos 
Comerciales Preferenciales. En este s entido, estoy seguro que la delegación de Malasia como ya lo 
ha señalado el Señor Jayasiri, habrá registrado estas expresiones de interés que confío conducirán 
a generar nuevas oportunidades de comercio y negocios de mutuo beneficio.  
5.48.   Con distintos matices , la gran mayoría de las delegaciones, si no todas, han destacado 
asimismo los avances y el progreso económico alcanzado por Malasia en el período bajo examen, 
pese a las condiciones adversas de un escenario internacional signado por la incertidumbre. No 
fueron pocas las expresiones de reconocimiento y elogio hacia la creciente diversificación, la 
solidez de la economía de Malasia, los altos índices de crecimiento económico sostenidos en el 
largo plazo, la orientación de apertura de algunas reformas del rég imen comercial y de inversiones 
llevadas a cabo durante el período de examen, y también de la cuidadosa planificación ejecutada 
de manera pragmática y estratégica; entre otros importantes desarrollos muy positivos que avalan 
el notable desempeño de la econ omía malasia.  
5.49.   Pero también, como es natural en los procesos de Examen, muchas delegaciones 
coincidieron en señalar, de manera constructiva pero también clara, algunos puntos a mejorar que 
generan inquietud como socios comerciales y de inversiones con Malas ia, entre los que quisiera 
resaltar algunos que, en mi opinión, podrían contribuir al desarrollo de Malasia.  
5.50.   En primer lugar, la transparencia. Numerosos Miembros han señalado la dificultad para 
hallar información sobre requisitos para obtener certificaci ones y licencias, así como algunos 
pendientes respecto a los compromisos de notificación en la OMC. Sin duda, contar con la 
información de una manera fácil y oportuna facilita la interacción entre los Miembros y provee 
herramientas para encontrar mejoras y  soluciones a los problemas del día a día. Además, la 
transparencia ha sido reconocida como un elemento fundamental del "buen gobierno" (good 
governance), que fomenta la confianza de actores tanto locales como extranjeros, y constituye 
una poderosa herrami enta de desarrollo.  
5.51.   Segundo, la importancia de una mayor apertura y facilidad para el establecimiento y 
desarrollo de inversiones. Para muchos Miembros este tema tiene especial relevancia. En mi 
intervención del día miércoles, señalaba la aparente inconsis tencia entre los crecientes niveles de 
captación de inversión privada de Malasia, y un estancamiento - o incluso un leve declive - en la 
posición de Malasia en el índice de facilidad para hacer negocios del Banco Mundial. El Señor 
Jayasiri también nos ha p roveído la información a este respeto señalando que la data será 
oportunamente registrada, publicada y será disponible con más prontitud u oportunidad. Sin 
embargo, quisiera comentar que las intervenciones durante el Examen revelan el interés de 
nuevos inv ersionistas en desarrollar sus operaciones en diversos sectores de la economía malaya 
como el de servicios financieros y el comercio de productos halal. Sin embargo, parecería ser que 
a veces no encuentran las facilidades suficientes para establecer y desa rrollar sus negocios en el 
país o lo hacen debiendo superar algunas dificultades administrativas. En este sentido, me permito 
sugerir una evaluación sobre las medidas que puedan adoptarse para facilitar el ingreso de nueves 
inversiones en esos y en otros s ectores que ayudarán a mejorar el rendimiento de la maquinaria 
económica de Malasia.  
5.52.   Tercero, la intervención y las medidas gubernamentales que influyen en la economía. Varias 
de las intervenciones de los Miembros han saludado el recorte de ciertos subsidi os por el Gobierno 
Malasio y, sin embargo, también han expresado su preocupación por la subsistencia de otras 
ayudas que pueden en algunos casos distorsionar el comercio. Algunos comentarios han sugerido WT/TPR/W/144  • Malaysia  
 
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  que ciertos sistemas de apoyo económico podrían coli sionar con provisiones de los Acuerdos de la 
OMC, en particular con el Acuerdo sobre Subvenciones y Medidas Compensatorias. Esto invita a 
Malasia a reflexionar sobre en qué medida una influencia económica del sector público puede o 
debe contribuir a la com petitividad de ciertos sectores ahora ya consolidados o si, 
alternativamente, dicha intervención pública podría ser aprovechada para reforzar otros 
fundamentos del desarrollo económico, como la infraestructura o el capital humano.  
5.53.   Cuarto: la importancia de  las reformas en favor del cuidado del medio ambiente. Algunas 
intervenciones resaltaron la necesidad de mantener sistemas productivos que sean sostenibles, en 
particular en lo concerniente al cuidado del medio ambiente y la protección de la fauna. El resp eto 
y la preservación del medio ambiente es, sin duda, una responsabilidad impostergable para toda la 
comunidad internacional. En este sentido, creo que los esfuerzos por evitar los pasivos 
ambientales son necesarios no solo a través de acciones estrictame nte gubernamentales, sino 
también con el apoyo de la sociedad civil y el sector privado. Este último debe estar informado y 
ser responsable de la implementación de dichas reglas. Si bien Malasia ha dado pasos favorables 
en favor de la preservación del medi o ambiente durante el período bajo examen, como la 
liberalización del mercado de los servicios medioambientales y la implementación de un esquema 
sostenible para la producción de aceite de palma, me permito sugerir la búsqueda de medidas 
adicionales que pu edan apoyar este esfuerzo.  
5.54.   Habiendo presentado brevemente estos cuatros puntos que no cubren el conjunto de 
inquietudes formuladas por la Membresía y a las cuales se ha referido con mucha claridad el Señor 
Jayasiri, quisiera aprovechar para agradecer nueva mente al Presidente de este Órgano por la 
oportunidad de participar en este motivador ejercicio, así como a la delegación de Malasia por su 
amable disposición y excelente colaboración durante este examen.  
5.55.   Para concluir, me quedo con la muy clara impresión  de que la seriedad, el pragmatismo y la 
consistencia en el manejo económico por el Gobierno de Malasia conducirán el país hacia la pronta 
consecución de su objetivo de convertirse en un país de ingresos altos. Confío en que los pasos 
que se den en favor d e este objetivo de corto plazo ayudarán también a superar los desafíos más 
ambiciosos que se plantean a largo plazo, ligados a los Objetivos de Desarrollo del Milenio, u otros 
que pueda plantearse el Gobierno malasio.  
5.56.   Dicho esto, solo me resta a reiterar a  la delegación de Malasia mi reconocimiento, 
felicitación y deseos de un exitoso y provechoso Examen de sus Políticas Comerciales.  
5.57.   Muchas gracias.  
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, additional information on liberalization in the financial services and 
maritime transport sectors.  
5.60.   We have submitted these quest ions in writing and we thank Malaysia in advance for the 
replies in accordance with the timelines for this exercise.  
5.61.   The EU is confident, as also mentioned by Malaysia this morning, that this TPR has helped 
Malaysia in understanding third countries concern s in relation to its trade related policies and in WT/TPR/W/144  • Malaysia  
 
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  reviewing them to ensure that they are favourable for attaining its economic objectives 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 delegation of Malaysia 
and the Secretariat for your constructive and diligent efforts in this seventh Trade Policy Review.  
5.65.   My autho rities 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 s 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 reg arding 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 r ange 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 cooperative 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, Indonesia 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 fir st day.  
5.73.   We will be in touch with the Malaysian delegation in following up with the 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 Excell ency Datuk Seri Jayasiri Jayasena, 
a productive remaining stay in Geneva and a safe flight back to Kuala Lumpur for His Excellency, 
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.  
  WT/TPR/W/144  • Malaysia  
 
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  H.E.  MR. J. JAZASIRI  (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 take 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 will 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 actuall y 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 u s 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 enga gement throughout this Review. I would also like to thank the discussant, 
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 Malaysia's trade and 
investment policies and practices. Malaysia's use of the alternative time -frame to reply to advance 
written questions to this TPR was also appreci ated. 
6.2.  Members praised Malaysia's strong and steady economic growth since the time of its last 
Trade Policy Review in 2014. Malaysia's prudent macroeconomic management and diversified 
nature of the economy allowed for strong and inclusive growth, despite th e 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, en hanced 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 gro wing 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 Amending the TRIPs Agreement. 
Malaysia's participation in the MSMEs, investment facilitation, e -commerce,  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 through 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 st ructure, 
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 establishment  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 
valuati on 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, tarif f 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 such 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 -dumpi ng 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 r eview 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 s tandards. 
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 enfor cement were appreciated.  WT/TPR/W/144  • 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, entrepr eneurship, 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 acc ount, 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 o utstanding questions within the next month, at which point the Review will be successfully 
concluded.  
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